UK government urged to provide clarity on ‘no win, no fee’ lawsuit deals
The UK government should provide clarity on “no win, no fee” lawsuit pay agreements, the Law Society of England and Wales has said.
The solicitor’s trade body’s call comes after the Court of Appeals ruled in favour of personal injury lawyers CAM Legal Services, over fees it charged in a “no win, no fee” claim.
The ruling saw the Court of Appeals overturn a lower court’s decision, in stating CAM was justified in charging a personal injury client a £500 fixed fee plus £321.25 fixed costs, after she won £1,916.98 in damages.
The claimant, who initially instructed CAM after being knocked off a motorcycle by a car, later instructed solicitors’ firm Checkmylegalfees.com to challenge CAM’s charges.
The High Court subsequently ruled in favour of Checkmylegalfees.com’s challenge before the Court of Appeals overturned the decision, in stating CAM’s bill was “fair and reasonable” – even as the judge suggested CAM “ought to have told the client what she would recover” in advance.
Master of the Rolls Sir Geoffrey Vos raised concerns about the lack of information given to the client around potential fees, as he suggested it would have been “straightforward” for CAM to provide information about costs.
The ruling states CAM could have charged even higher fees but instead “capped their fees voluntarily at a fair and reasonable level after the event.”
However, the judge said the current situation, under which clients agree to deals that let law firms charge significantly more than the claim, is “wholly unsatisfactory”.
In a 28-page ruling, the Appeals Court judge also raised concerns around Checkmylegalfees.com’s business model, as he argued the client herself “never had any real or economic interest in the pursuit of this costly litigation… Only Checkmylegalfees.com have such an interest.”
Following the ruling, Law Society vice-president Nick Emmerson said “it is crucial that solicitors can be paid equitably for the vital work they do.”
“The Law Society strongly urges the UK government to reflect on this case and ensure the civil justice system has a solid foundation of clear legal costs provisions on which solicitors and their clients can rely,” Emmerson said.