News: personal injury reform

The Justice Secretary Ken Clarke has announced plans to change the way personal injury claims are funded. Partner and Solicitor, Annette Thompson explains exactly what the reform means.

The change to funding will require claimants to meet part of the legal fees from their compensation award, however compensation levels will be increased by 10% to try and avoid any shortfall.  The aim is to give Claimants some financial stake in their case in the hope that they will apply pressure on lawyers to keep their legal fees down.

In addition, no legal fees will be payable to a Defendant if a claim fails.  Although this would appear to encourage frivolous claims, the government’s aim is to avoid the need for insurance policies which cover a Claimant’s liability to pay the Defendant’s legal fees where a claim fails.  Defendants usually have to pay the premium for these policies so it is hoped to save them this additional cost.