Q&As

We consider that the cap of 25% of damages for our fees does not include any after-the-event (ATE) premium payable, ie the client pays our costs (capped at 25%) plus the premium. Could you confirm the position?

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Produced in partnership with Alex Bagnall of Total Legal Solutions
Published on LexisPSL on 04/09/2017

The following Practice Compliance Q&A produced in partnership with Alex Bagnall of Total Legal Solutions provides comprehensive and up to date legal information covering:

  • We consider that the cap of 25% of damages for our fees does not include any after-the-event (ATE) premium payable, ie the client pays our costs (capped at 25%) plus the premium. Could you confirm the position?
  • Statutory caps
  • Contractual caps

We consider that the cap of 25% of damages for our fees does not include any after-the-event (ATE) premium payable, ie the client pays our costs (capped at 25%) plus the premium. Could you confirm the position?

On 1 April 2013 many of the provisions of the Legal Aid Sentencing and Punishment of Offenders Act 2012 (LASPO 2012) came into force. The effects of LASPO 2012 were wide-ranging. See Practice Note: Conditional fee agreements after 1 April 2013—personal injury and clinical negligence.

Statutory caps

One of the key provisions of LASPO 2012 was to ban the recoverability of success fees between the parties in most types of litigation. As a result, many personal injury solicitors now charge a success fee to their clients.

The amount which can be charged as a success fee is limited by section 58(4)(c) of the Courts and Legal Services Act 1990 (CLSA 1990) and Article 3 of the Conditional Fee Agreements Order 2013, SI 2013/689 at 100% of base profit costs.

In personal injury cases, CLSA 1990, s 58(4A)(b) and SI 2013/689, art 5(1)(a) cap the success fee in first instance proceedings at 25% of damages and past losses excluding compensation recovery

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