Funding Arrangements

There is a chance that my case will go to court. What costs will I have to pay? 

Generally 

The costs involved will be solicitor's fees and court fees. Other costs that may be incurred are: 

• Counsel's fees, should counsel need to be instructed;
• Fees for an expert, should this be required; and
• Miscellaneous charges for photocopying and travel expenses.

At the end of a case, the court will often require that the losing party pay the winner's legal costs. If you win your case, the losing party may be required to pay your costs, but if you lose, you may have to pay all your own costs and expenses, as well as all of the costs of the winning side. 

Private Funding (paying myself)

You may be able to pay the costs yourself. Bear in mind, however, that you may have to pay the other side's costs should you lose the case. 

Some people take out bank loans or obtain loans from relatives or employers to fund litigation but you will need to consider how you will pay should you lose the case. 

Legal Expenses Insurance (LEI) - Before the Event

You must check all your insurance policies to see if any of these cover the legal expenses of your proposed claim:

• Car Insurance
• Household/Contents Insurance
• Buildings Insurance
• Credit Card Insurance
• Any other

You can also take out insurance to cover legal costs. See below: Legal Expenses Insurance "After The Event." 

Funding by a Professional Body/Employer

You may be covered for the claim in question (especially if the litigation relates to your work) by your professional body, your employer or trade union. 

Legal Aid

Legal Aid can help with paying for legal advice. Legal Aid is subject to a financial eligibility test. Further information about Legal Aid can be found at www.gov.uk/legal-aid/overview. 
Clarkson Wright & Jakes Ltd does not deal with Legal Aid. 

Conditional Fee Arrangements (CFA) ('No Win No Fee' Arrangements) 

We may be able to act for you under a Conditional Fee Agreement (CFA). Under a CFA you generally do not have to fund our costs if you lose your case. If you win your case, the court may order your opponent to contribute towards your legal costs. However, you are unlikely to recover all of the costs you have incurred. 

You are also responsible for paying the success fee which would be paid from any damages you recover. You may still have to fund disbursements as they occur and we will provide and review an estimate of disbursements as the case proceeds. 

Please note that a CFA will only be an option if, upon assessing your claim, we feel there are sufficient merits in your claim for us to act for you under a CFA. A CFA is offered solely at the discretion of Clarkson Wright & Jakes Ltd. Please note if a CFA is unable to be offered in your circumstances, the only way to continue with your claim may be by way of private funding. 

NOTE: It is vital that you check all insurance policies to see if you are covered for the claim in question by legal expenses insurance. If such cover is available and a CFA is entered into with us, the CFA and any insurance you take out to cover the other side's costs may be invalid, leaving you liable for the other side's costs. 

If you win your case 

As with the alternative forms of funding, at the end of the case the court will often order the losing party to pay the winner's costs. 

Acting under a CFA, solicitors are entitled to charge a 'success fee' in addition to their basic costs. This fee is a percentage of our basic costs and is determined at the outset in relation to the complexity, likely duration and prospects of success of a case. A success fee cannot exceed 100% of a solicitor's basic costs. 

You are primarily liable for payment of all costs, including the success fee. The success fee will not be recoverable from the losing party. 

NOTE: If you are eligible for pre-existing LEI or Legal Aid, you may not be able to recover all your costs from the other side under CFA.

Disbursements

As with private funding, disbursements under a CFA are recoverable from the other side. 

Shortfall in our costs 

If the court orders the other side to pay only a part of our costs, you will be liable for any shortfall. Your solicitor may agree to reduce or waive this shortfall in costs depending on the circumstances. 

If you settle your claim 

Under a CFA, a successfully settled claim is treated in the same manner as if you win your case in court.

If you lose your case 

You will not have to pay our costs. You are however, liable for our disbursements, the other side's costs and the other side's disbursements. 

Insurance

To protect you from having to pay these costs, you may be able to get insurance.

Damages Based Agreements ('DBAs')

A damages based agreement is another form of "no win, no fee" arrangement between us and you, the client. This arrangement provides that our fees are only payable in the event that you are successful in your claim and receive a financial benefit (usually in the form of damages). The fee that we would obtain to cover our costs is reflected as a percentage of the financial benefit you receive ('the DBA payment'). The percentage payable under a DBA will be agreed with you before the agreement is entered into and may be subject to statutory limits. 

If you are unsuccessful in your claim, you will not have to pay our costs. You will, however, potentially be liable for our disbursements and the other side's costs and disbursements. As above, you may be able to obtain after-the-event insurance to protect you from paying these costs.

Legal Expenses Insurance (after the event) 

There are a number of insurance products available on the market. Some are available to be used in conjunction with a CFA only and some are available as stand-alone products. 

These insurance policies, known as 'After the Event' insurance, provide cover against the risk of losing. Should you lose, the insurance company will pay all or some of the costs you may be required to pay to the winning party. You may also take out cover for your own costs. You are still required to fund your case while it is being conducted and therefore still need to pay your costs as they arise. 

The premium payable in order to take out insurance will be calculated according to the risk and the amounts involved in the case. The higher the chances of success, the lower the premium. The premium may be payable at the outset or through instalments. The insurer may even 'lend' you the premium by only requiring you to pay it at the end of the case. 

You are not entitled to claim the premium from the other side as a cost of the case in the event that you win. Generally, you would expect to pay the premium from damages you recover. 

Do you have available to cover your claim - Legal Expenses Insurance (Before the Event cover): 

Funding by a professional body/employer: 

Speak to our solicitors in Orpington, Kent

You can contact us either by filling in our simple online enquiry form, or by calling our friendly team on 01689 887887.

For further information, please contact our specialist solicitor Jill Lawton by emailing her at jill.lawton@cwj.co.uk.