Services for Business
Professional Negligence Claims Not Involving Personal Injury
At Gregory Abrams Davidson, we understand that litigation (taking a claim to court) may be so expensive that claimants with a good claim may well decide not to pursue it because they are worried about the cost, and this means that they will not be compensated for an otherwise viable claim.
If we believe that your claim has:
- good prospects of success
- your opponent is likely to be able to satisfy your claim
- there is no other way of funding your claim
Then we may be prepared to accept your claim on a CFA.
A CFA is a funding arrangement where the solicitor takes the financial risk of the case, (a full CFA) or shares that risk with you (a partial CFA).
If you win
In return, if you won your claim at trial, or by a settlement with your opponent that we advised you to accept, whilst the Defendant will pay you a sum for damages and a further sum to cover your liability for our basic charges and any fees incurred to pursue the case, we would be entitled to charge you a success fee that is a percentage of our basic charges. It will never be more than 100% of our basic charges but in most cases it will be much lower than that. The success fee cannot be recovered from the Defendant.
If you lose or discontinue
If you lost your claim at trial, or had to discontinue it because your prospects of success were poor, you would not to pay us anything by way of our charges, for the work that we have done to pursue your claim, though depending on the CFA arrangement we put in place with you, you may still be required to pay any fees that we pay to others on your behalf, such as search fees, expert’s fees or barrister’s fees.
If we advise you to discontinue your claim before a claim is issued, then you would not have any further liability for the Defendant’s costs.
If we advise you to discontinue your claim after a claim is issued, then the Defendant would be entitled to recover its reasonable costs of defending the claim from you, unless they can be persuaded to waive that entitlement.
After the event (ATE) insurance
To meet this risk, you may be able to obtain a policy of insurance called ‘after the event’ (or ‘ATE’) insurance that will pay the Defendant’s reasonable costs in the event that you lost your claim at trial or had to discontinue. The cost of the premium is assessed by reference to the value of the claim and your prospects of success, which must be over 65%. The premium cannot be recovered from the Defendant.
A CFA may enable you to pursue a claim that you would not otherwise be able to afford, to do so. CFA arrangements for commercial and professional negligence cases are tailored to each case. This means that if we are considering offering a CFA, we will make an appointment to discuss the CFA arrangement with you in detail, so you can make an informed decision about whether it is right for you.