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Your legal people are wrong about the 200 per cent success fee in RTA claims.
Your legal people are talking rubbish, frankly, in their reply on page M5 of 16th July. There is no such thing as a 200 per cent success fee and never has been. Even if there was, 200 per cent of £275 would not be £550. That would be 100 per cent. The success fee is fixed at 12.5 per cent in RTAs with liability admitted and the costs claimed are also fixed - it doesn't matter how long the claim takes - the costs are fixed, so the onus is on the handler to settle it as quickly as possible. They can charge whatever they like per hour - they won't get it back.
And it is not normal to settle a claim in three to four months. More like one to four years. And what would a GP know about referral to a psychologist? Did this poor lady have no input into what treatment she had? Was she not consulted about referral to a psychologist? Please get your legal team to do a little more research into the basics. You could refer to me if you like. I actually know what I am talking about.
And it is not normal to settle a claim in three to four months. More like one to four years. And what would a GP know about referral to a psychologist? Did this poor lady have no input into what treatment she had? Was she not consulted about referral to a psychologist? Please get your legal team to do a little more research into the basics. You could refer to me if you like. I actually know what I am talking about.
Asked on 11 July 2011 by CC, Spilsby, Lincs
Answered by
Honest John
Lucy Bonham Carter of www.autolaw.co.uk replies:
“12.5 per cent success fees apply when the claim goes through the Pre-Action Protocol for Low Value Personal Injury Claims in Road Traffic Accidents, also known as "the portal" which is the "fast track" system organised by the Ministry of Justice. This should be the preferred route for lower value and non-contentious claims. A claim settled within the portal within stage one or stage two generates a fixed fee of around £1,200 (plus 12.5 per cent success fee) for the solicitor. However once a claim *falls out* of the protocol the 12.5 per cent success fee payable under the protocol falls due as well as an additional success fee of 100 per cent (or 2 x) for any additional legal costs.
"The reasons a case might fall out of the protocol might include: Insurer failure to respond (at all or within time period) * dispute over liability not settled within protocol time period. Dispute over the amount of compensation that should be paid. Or claim total over protocol limit (£10,000). Once a claim is outside the protocol hourly charging and the 100 per cent uplift applies. Claims which initially had a reasonable prospect of qualifying for the procedure but then turn out to be worth either less that £1000 or more than £10,000 will be taken out of the process and be dealt with under the appropriate court rules. In any event and for whatever reason when a case leaves the process, it cannot rejoin and fixed recoverable costs will generally cease to apply.
Given that cases settled within stage one and stage two of the protocol will only generate £1,200 in legal costs plus a 12.5 per cent success fee on top and given that the current referral fees being paid by solicitors for /any/ road traffic offence personal injury case are around the £800 mark, I leave it to you to guess what is going on.”
“12.5 per cent success fees apply when the claim goes through the Pre-Action Protocol for Low Value Personal Injury Claims in Road Traffic Accidents, also known as "the portal" which is the "fast track" system organised by the Ministry of Justice. This should be the preferred route for lower value and non-contentious claims. A claim settled within the portal within stage one or stage two generates a fixed fee of around £1,200 (plus 12.5 per cent success fee) for the solicitor. However once a claim *falls out* of the protocol the 12.5 per cent success fee payable under the protocol falls due as well as an additional success fee of 100 per cent (or 2 x) for any additional legal costs.
"The reasons a case might fall out of the protocol might include: Insurer failure to respond (at all or within time period) * dispute over liability not settled within protocol time period. Dispute over the amount of compensation that should be paid. Or claim total over protocol limit (£10,000). Once a claim is outside the protocol hourly charging and the 100 per cent uplift applies. Claims which initially had a reasonable prospect of qualifying for the procedure but then turn out to be worth either less that £1000 or more than £10,000 will be taken out of the process and be dealt with under the appropriate court rules. In any event and for whatever reason when a case leaves the process, it cannot rejoin and fixed recoverable costs will generally cease to apply.
Given that cases settled within stage one and stage two of the protocol will only generate £1,200 in legal costs plus a 12.5 per cent success fee on top and given that the current referral fees being paid by solicitors for /any/ road traffic offence personal injury case are around the £800 mark, I leave it to you to guess what is going on.”
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