As most businesses will already be aware, at present a person who has suffered some loss can bring a personal injury compensation claim with no financial risk to themselves whatsoever. If they win the defendant pays the solicitor’s costs and fees, including a special bonus – the “success fee”. If they lose their solicitor agrees not to charge you for their work – the no win no fee arrangement.
In addition, their solicitor will have arranged an after-the-event insurance policy (ATE insurance) which will pay for medical reports, court fees, mediator’s fee and the defendant’s costs which normally they would pay if they lost the case. Further if they win, the defendants have to pay the premium for the ATE insurance (which may be thousands of pounds) and if they lose the premium is self-insuring so they don’t have to pay for it then either.
However, all of this could be set to change. Lord Jackson has completed a review of personal injury litigation costs and has recommended that ATE premiums are no longer payable by defendants who lose personal injury claims. Also he has proposed that the success fee – instead of being paid to the claimant’s solicitor by the defendant – is paid by the claimant out of the their compensation. Hence if you win there is a fee.
Whilst it is true that these proposals are revolutionary they do have the strong backing of the senior judges so it is likely that they will be put in to force in the not too distant future. Rest assured that we will keep you posted on any further developments.
If you need any help or assistance with health and safety our expert health and safety consultants can help you From health and safety policy development to noise and COSHH risk assessment, safety audits and staff development, just call us on 01453 800100 or visit us at www.outsource-safety.co.uk. We also provide safety services to the construction industry including CDM Coordinator, construction site safety visits, method statement and risk assessment development and health and safety policy work.
