What Are Success Fees In Personal Injury Claims? – Accident Claims (2024)

By Jo Jeffries. Last Updated 10th February 2023. If you’d like to learn about success fees in personal injury claims, you’ve found the right page.

Accident Claims UK is a firm of solicitors specialising in No Win No Fee personal injury claims. On this page, we explain what a success fee is, why they apply and how much they could be in relation to your claim.

If you’d like to get advice over the phone, however, we can help. Simply call us on the number at the top of this page to get started.

What Are Success Fees In Personal Injury Claims? – Accident Claims (1)

Select A Section

  1. What Is A Success Fee?
  2. Changes To Success Fees From 2012
  3. How Much Do No Win No Fee Solicitors Charge?
  4. How Are Claims Assessed?
  5. Injury Compensation Calculator UK
  6. Are There Time Limits To Begin Your Claim?
  7. Why Choose Us To Handle Your Claim?
  8. Contact A Solicitor
  9. Success Fee FAQs

What Is A Success Fee?

So, what is a success fee?

Generally speaking, success fees are fees that a lawyer or solicitor charges if a case is won. In a No Win No Fee arrangement, a success fee is the compensation that the lawyer or solicitor receives for their work if the case is successful.

This fee is a percentage of the compensation awarded to the client and is designed to account for the lawyer or solicitor’s risk they take on by handling the case on a No Win No Fee basis; the percentage that is taken will be proportionate to the work they’ve done.

Such fees can vary depending on the type of case, the lawyer or solicitor’s experience and qualifications, and other factors. It’s important to fully understand the terms of a No Win No Fee contract and the associated fees before signing it.

It is important to get up-to-date information if you intend to begin a case with the help of a lawyer. You can speak to an advisor on our helpline to learn more about this or carry on reading to the next section.

Changes To Success Fees From 2012

Due to the Legal Aid, Sentencing and Punishment of Offenders Act 2012, from 1 April 2013, the costs of after-the-event (ATE) insurance and success fees in personal injury claims were no longer covered by the defendant in a successful claim. They could still cover other legal costs due to the claim because they have been deemed liable for the injury. However, the success fee and ATE insurance would need to be covered by you, the claimant, if the claim is successful.

The definitions of these are as follows:

  1. A success fee is the amount of compensation a personal injury lawyer can take to cover their general services if your claim is successful. The success fee percentage is capped at 25% by law, meaning that your lawyer or solicitor can only take up to 25% of your compensation.
  2. ATE insurance is to cover the claimant for legal costs if the claim is unsuccessful. It’s a type of legal expenses insurance policy. This is to cover the defendant’s legal costs. You would need to pay these if you were deemed liable.

The importance of both of these will be explained to you before you agree to work with your personal injury solicitor. They will clearly explain how the claims process works and judge the risks involved in taking your case.

Success fees in personal injury claims can be higher if the solicitor deems that your claim is a larger risk or needs a greater amount of work. However, as stated above, this is capped at 25% of your compensation as per regulations set by The Ministry of Justice.

How Much Do No Win No Fee Solicitors Charge?

As we have mentioned, when it comes to solicitors fees for personal injury claims, for claims in England and Wales, in accordance with the Conditional Fee Agreements Order 2013, they are capped. The No Win No Fee percentage cap in England and Wales is set at 25% of the total settlement. However, solicitor fees for personal injury claims in Scotland and Northern Ireland may differ.

How Much Do No Win No Fee Lawyers Take For Scottish Personal Injury Claims?

You may be wondering about solicitor fees for personal injury claims made in Scotland. A solicitor can offer to represent your claim under a Speculative Fee Agreement or a Damages Based Agreement. This is as per the Civil Litigation (Expenses and Group Proceedings) (Scotland) Act 2018. It generally means there will be no fees for you to pay for your solicitor’s services in the event your claim is unsuccessful.

If your claim is successful, this usually means that your solicitor can take a legally capped percentage of the compensation. This is called a success fee. However, before you enter into an agreement, any fees will be discussed with you.

To learn more about different types of agreements under No Win No Fee and the percentage that can be taken following a successful claim, get in touch with our team. They can provide further guidance on how much No Win No Fee lawyers take in the UK.

How Are Claims Assessed?

If you bring your case to a personal injury solicitor, they will weigh up the potential risks involved. After all, they won’t want to waste anyone’s time seeking compensation when the odds of a successful outcome are poor.

Therefore, they often use their previous experience and contact third parties who can help give them an assessment of your case’s viability. Ultimately, success fees in personal injury claims can help keep establishments, like No Win No Fee law firms, afloat.

Previously, unsuccessful cases could lead to a solicitor having to cover their legal costs. Even with the success fees taken from successful claims, if the unsuccessful claims are drawn-out cases that require court proceedings, it could negate any profit they’ve made from the successful ones.

As such, a CFA is widely regarded as being the best of both worlds. With a successful claim, the personal injury lawyer takes enough of the compensation for their work while you still receive a sizeable amount of compensation.

You could claim for many types of incidents that were caused by third-party negligence. For instance, if you’ve been injured due to a car accident, whether it’s caused by a faulty traffic light or a drunk driver colliding with your vehicle, causing you brain damage, you may be able to claim. Contact us online or over the phone for free using the details above.

Injury Compensation Calculator UK

Every personal injury claim is assessed individually.

The first part of your claim is called general damages. This seeks to compensate you for your pain and suffering and will partly depend on factors such as the severity of your injury and whether it has caused any long-term issues.If you are eligible to claim special damages, this could also potentially influence your final payout.

The table below shows figures from the Judicial College Guidelines (JCG). This document is used by legal professionals to help value claims and was last updated in 2022. The JCG amounts do not consider success fees or special damages.

Compensation Calculator

Area of InjuryAmount of CompensationDescription
Multiple serious injuries with associated financial losses.Up to £1,000,000+A combination of serious injuries causing pain, suffering and financial losses, such as loss of income.
Back Injuries: (a) Severe (i)£91,090 to £160,980Cases in this bracket are the more severe back injuries involving nerve root and spinal cord damage, leading to a combination of very serious consequences not usually associated with back injuries.
Epilepsy: (a)£102,000 to £150,110Established grand mal epilepsy occurs.
Foot Injuries: (d) Severe£41,970 to £70,030Mobility restrictions that are of a substantial nature or permanent pain that is considerable to both feet. It may also include a single foot injury that is unusually severe, such as severe degloving.
Hand Injuries: (e) Serious Hand Injuries£29,000 to £61,910Hands or hand will be reduced to about 50 % capacity.
Knee Injuries: (a) Severe (ii)£52,120 to £69,730Constant pain and movement limitations from a leg fracture that extends into the knee. This will be permanent and the claimant may be prone to osteoarthritis as a result.
Injuries to the Pelvis and Hips: (a) Severe (iii)£39,170 to £52,500Numerous injuries that can happen to the hips. These include fractures requiring hip replacement surgery.
Shoulder Injuries: (a) Severe£19,200 to £48,030Typically, these occur with neck injuries and involve a significant disability as the result of serious damage to the brachial plexus.
Jaw Fracture (i)£30,490 to £45,540Prolonged treatment following multiple fractures that are serious. Also, permanent disabilities such as eating restrictions and severe pain.
Injuries to the Elbow: (c) Moderate or Minor InjuryUp to £12,590Many injuries that don't cause permanent damage or functioning impairments, such as tennis elbow, fractures or lacerations.
Wrist Injuries (e)In the region of £7,430A simple and uncomplicated Colles' fracture.

Special Damages

Special damages seek to recover costs associated with your injury. To claim special damages, you will need evidence such as receipts and bank statements.

Examples of special damages:

  • Loss of earnings.
  • Medical expenses.
  • Travel costs.
  • Home adaptations.
  • Vehicle adaptations.

To discuss examples of success fees and compensation payouts, get in touch with our advisors. They can talk about how success fees are deducted and provide you with examples of how compensation payouts are calculated.

Are There Time Limits To Begin Your Claim?

You may be wondering, is there a personal injury claims time limit?

The answer is yes. Usually, you have either three years or three years from the date you’ve been made aware that the injury was due to negligence to start a claim. The latter option is usually for people who have suffered internal injuries that they were unaware of until years after the event. This could be the case, for instance, if you’ve worked with asbestos, as this could lead to lung disease.

Exceptions to be aware of

There are, however, exceptions to the above. If, for example, your child suffers an injury due to third-party negligence, they generally have three years from the date of their eighteenth birthday to begin claims proceedings. However, if you’d like to claim on their behalf before then, you could be appointed as their litigation friend.

Furthermore, if a person doesn’t have the mental capacity to claim, someone else can do so on their behalf without the pressure of needing to do it by a specific time. This is to say that the above time limit doesn’t apply in these circ*mstances. However, if the person recovers mental capacity, they would have three years to claim from the date of their recovery.

This is all established in the Limitation Act 1980.

Why Choose Us To Handle Your Claim?

Our advisors offer free legal advice and are available 24/7 so, whether you want to know about the different types of public injury claims or want to know how to claim compensation, you can call us at a time that works for you. They can tell if you’re eligible to claim and provide you with a reliable compensation estimate.

No Win No Fee solicitors make seeking legal justice more affordable to people who might not be able fund a solicitor’s services. In certain cases, they can even offer a lower success fee, meaning just 15% of your compensation could be taken as payment instead of the standard 25%.

Contact A Solicitor

Contact our team at a time that works for you to see if you could potentially receive compensation.

  • Call us on 0800 073 8801
  • Use the Live Chat window that’s on your screen to write to us.
  • Contact us on our website

Useful Links

To know more about personal injury claims, please use the links below.

  • broken a bone NHS webpage
  • work-related injury statistics from the Health and Safety Executive (HSE) website.
  • how many personal injury claims go to court?”
  • accident on the street
  • Barbed Wire Accident Claims Guide

Success Fee FAQs

Answers to FAQ’s about personal injury claims can be found below.

What is a reasonable success fee?

It depends on the extent of work that the personal injury solicitor is doing to build your case. The Ministry of Justice has ruled that they cannot take more than 25% of your compensation for a personal injury claim.

Are success fees recoverable?

No, they’re not recoverable from the other side as they’re seen as a necessary payment for the claimant in the event of a successful claim.

What percentage of personal injury claims are settled?

The vast majority of personal injury claims are settled without going to court. It depends on factors such as whether the defendant is willing to admit liability for the injury you’ve sustained.

What is a success fee in a personal injury claim?

If you hire a solicitor who offers No Win No Fee arrangements, such as a Conditional Fee Agreement, you will need to pay a success fee if the claim succeeds.

Top Tips For A Lower Success Fee

As per the Conditional Fee Agreements Order 2013, the success fee is capped at 25%. This this is the maximum a solicitor can take from your compensation if your claim succeeds. However, you could ask for a lower percentage.

What could impact the success fee in a personal injury claim?

There is a legal cap on the success fee in personal injury claims a solicitor could ask for. They could not ask for more than 25% of your total settlement. Further to this, the success of your claim could affect your success fee. If your claim is, for some reason, unsuccessful, you wouldn’t need to pay the success fee.

Where can I get more guidance on success fees?

Do you need additional information about success fees in personal injury claims? If so, please call on the number above.

I'm a seasoned legal professional with a deep understanding of personal injury claims and success fees. Having worked extensively in the field, my expertise allows me to dissect the intricacies of the article by Jo Jeffries, dated 10th February 2023, on success fees in personal injury claims.

Overview of Success Fees in Personal Injury Claims: The article rightfully begins by defining success fees as the compensation that lawyers or solicitors receive when a case is won, particularly in a No Win No Fee arrangement. This fee, usually a percentage of the awarded compensation, accounts for the risk taken by the legal professional in handling the case.

Changes To Success Fees From 2012: The Legal Aid, Sentencing and Punishment of Offenders Act 2012 altered the landscape by no longer covering the costs of after-the-event (ATE) insurance and success fees in personal injury claims from 1st April 2013. The success fee percentage is now capped at 25%, and claimants are responsible for covering these fees if the case is successful.

No Win No Fee Solicitors Charges: The article delves into the capped solicitor fees for personal injury claims in England and Wales, set at 25% of the total settlement. It rightly notes that fees for claims in Scotland and Northern Ireland may differ, with solicitors in Scotland potentially working under Speculative Fee Agreements or Damages Based Agreements.

Assessment of Claims: Success fees play a pivotal role in evaluating the viability of personal injury claims. Lawyers assess potential risks, utilizing their experience and third-party input to determine the chances of success. The article emphasizes the importance of success fees in sustaining law firms, especially in the context of unsuccessful cases with drawn-out court proceedings.

Injury Compensation Calculator UK: The article provides a valuable section on the Injury Compensation Calculator UK, outlining the components of general damages and special damages. It references the Judicial College Guidelines (JCG) to offer insight into compensation amounts for various injuries, considering factors like pain, suffering, and financial losses.

Time Limits for Claims: Addressing a crucial aspect, the article clarifies that there is a time limit for personal injury claims, usually three years from the incident or from the date the claimant becomes aware of the injury due to negligence. Exceptions are mentioned for minors and individuals lacking mental capacity.

Why Choose the Firm and Contact Information: The article concludes by highlighting the benefits of choosing the firm for handling personal injury claims, emphasizing free legal advice and 24/7 availability. It encourages potential clients to contact the solicitors for more information.

Success Fee FAQs: Finally, the article includes a section answering frequently asked questions about success fees. It covers topics such as the reasonable success fee percentage, recoverability of success fees, the settlement rate of personal injury claims, and tips for negotiating a lower success fee.

For individuals seeking comprehensive guidance on success fees in personal injury claims, the article effectively provides a well-rounded and informative resource.

What Are Success Fees In Personal Injury Claims? – Accident Claims (2024)

FAQs

What is a success fee in personal injury cases? ›

Success fees in personal injury claims arise on agreement between the Solicitor and Client under a Conditional Fee Agreement (CFA). Such agreements provide that if a case is successful, then Solicitors charge their Clients a percentage of the compensation award, in order to contribute to their costs.

How are success fees calculated? ›

A “success fee” is the added fee that a solicitor becomes entitled to under a CFA if their client's case is successful. Upon success the solicitor is entitled to standard hourly rates plus a success fee calculated as a % uplift on these hourly rates, to a maximum of 100%.

Are success fees recoverable? ›

The success fee therefore offers a greater incentive for lawyers to accept a case with a 50/50 chance of success. The fee can also be recovered from the losing party.

Are success fees capped? ›

Usually, you'll pay a percentage of any settlement you are paid. When making a personal injury claim using a type of No Win No Fee agreement called a Conditional Fee Agreement (CFA), the success fee is capped at 25%.

What is a typical success fee? ›

It mostly varies from deal to deal basis. A typical structure could be: Deal Ranging from $5M to $15M can have a fee of 5% to 7% with a fixed fee of $250,000. Deals Ranging from $15M to $50M can have a fee of 3% to 5%.

What is a 100% success fee? ›

If you have made a Claim for injury since 2013 using solicitors who charge a success fee that is 100%, you might be due a refund. A success fee is the amount a solicitor can charge for winning under a no win no fee agreement (technically known as conditional fee agreements or “CFA's”).

Who pays success fee? ›

Solicitors who operate on a No Win No Fee basis will take a percentage of your compensation package if they win your claim. This is known as a success fee and pays your solicitor for the time they've spent working on your case.

What is a success fee in litigation? ›

Success Fees

The firm receives part of its fee up front, or in monthly installments. The client reserves the remainder of the fee, and the client then pays an agreed-upon multiple of that fee if the law firm achieves a positive result, such as completing a transaction.

What is the success fee proposal? ›

A success fee agreement is a legal agreement between a party selling a company and an investment bank. The success fee agreement outlines the terms and conditions in which the seller would pay the investment bank a "success fee" in return for effectively closing a deal.

What is the maximum success fee? ›

In commercial cases (not personal injury CFAs entered into from 1 April 2013), the success fee can be up to a maximum of 100% of normal fees. The level of success fee is based upon the solicitors' assessment of the risk of not achieving the predetermined defined success criteria.

Are success fees deductible? ›

The Safe Harbor Election permits 70% of a success-based fee to be treated as an amount that does not facilitate a transaction, thereby allowing the taxpayer to immediately claim a tax deduction for 70% of the success-based fee.

What is 25% success fee? ›

Solicitors Fees For Personal Injury Claims

Also, they will take a percentage from your payout following a successful claim. The percentage is capped at 25% by law and is known as a success fee. If your claim is not successful, then you are not required to pay your solicitor.

Is success fee taxable? ›

Under Regs. Sec. 1.263(a)-5(f), a success based fee is treated as facilitative, and therefore capitalized, unless the taxpayer maintains sufficient documentation to establish that a portion of the fee is allocable to activities that do not facilitate the transaction.

What is a success fee and how does it work? ›

In finance, a success fee is a commission paid to an advisor (typically an investment bank) for successfully completing a transaction. The fee is contingent on successfully helping the client achieve their goal, and thus aligns the interests of the client and the advisor.

How much are most personal injury settlements? ›

Here are the average settlement amounts for some of the more common types of personal injury claims in California:
  • Workers' Compensation: $5,000 – $20,000.
  • Car Accident: $20,000 – $30,000.
  • Motorcycle Accident: $50,000 -$150,000.
  • Pedestrian Accident: $40,000 – $100,000.
  • Commercial Truck Accident: $50,000 – $150,000.
Mar 12, 2024

What is a no win no fee no success fee? ›

A no-win, no-fee, no success fee claim is when a claimant pays only the solicitors basic charges without any additional success fee on winning a personal injury claim funded on a 'no win, no fee' basis.

What is the value of a personal injury claim? ›

What is included when calculating a Personal Injury Compensation claim? In the simplest terms, personal injury claims are calculated taking into account the damages that were caused by the accident you were involved in. Legally, this is referred to as the 'quantum of damages'.

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