How is a medical negligence claim funded?

THE SHORT ANSWER

Most medical negligence claims are funded through a conditional fee agreement, better known as no win no fee. If the claim does not succeed you will not pay your solicitor's fees, subject to your agreement. If it succeeds, most costs are recovered from the other side and a success fee may be deducted from your compensation.

Cost is the worry that stops most people before they start. It is worth knowing that in medical negligence, paying fees up front is the exception rather than the rule.

What a conditional fee agreement is

Most medical negligence claims are funded through a conditional fee agreement, more commonly known as no win, no fee.

It is an agreement between you and your solicitor that their fees depend on the outcome. If the claim succeeds, the fees are paid. If it does not, they are not, subject to the terms of the agreement.

It is not the only option. Some people have legal expenses cover through a home or motor insurance policy, or through a trade union, and it is worth checking before signing anything.

What happens if the claim is unsuccessful

If the claim is unsuccessful, you will not pay your solicitor's fees, subject to the terms of your agreement.

There are other costs in a claim besides your solicitor's fees, such as medical records charges, expert reports and court fees. How those are covered if a claim does not succeed should be set out clearly in your agreement, and insurance is sometimes arranged to cover them.

What a success fee is, and what it is capped at

If the claim succeeds, most of your legal costs are recovered from the other side. Your solicitor may also deduct a success fee from your compensation.

Under a law known as LASPO, the success fee in these claims is capped at twenty five percent of the compensation awarded for your injury and your past losses. It cannot be taken from compensation for future losses, which is the part intended to cover the care and support you will need going forward.

That twenty five percent is the statutory maximum, not automatically the figure that will be charged. The percentage that applies to your agreement should be stated in it, and you should ask what it is before you sign.

What you will be told before you agree

Before you agree to anything, the funding arrangement should be explained to you in full: how the agreement works, what the success fee is, whether any insurance is needed and what it covers, and what happens in every outcome.

You should not be asked to sign at the first conversation, and you should not feel rushed. A funding agreement is a contract, and you are entitled to read it and ask about it.

If anything in it is unclear, that is a reason to ask rather than a reason to worry. There should be no surprises later.


Related guide - Read here


Want the funding explained before you decide anything?

That conversation is free and it does not commit you. We will explain how an agreement would work in your case, including what you would pay in every outcome.

 
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