On 1st April 2013 a number of legal reforms came into effect, as recommended by Lord Justice Jackson. These make up Part 2 of the Legal Aid Sentencing and Punishment of Offenders Bill, a piece of legislation that has brought about significant changes for those wanting to claim compensation for personal injury.
The first and most obvious change is that public funding will not be available. In the absence of legal aid, personal injury claims will mostly be run on a no win no fee basis. In the past, this ensured a claimant did not have to pay anything, no matter what the outcome of their case. If you won, the other side would pay for everything, including your solicitor’s success fee. If you lost, an insurance policy was in place to meet any costs incurred.
However, under the Jackson Reforms, whilst claimants who are not successful will still be financially protected, if they win their claim the other side will no longer be responsible for paying all of the solicitor’s legal costs. Instead, this must be recovered through other means, namely from the compensation settlement of the accident victim.
The most that can be taken from a settlement for legal costs is 25% of a claimant’s compensation settlement. This change has now put solicitors in a perilous position, as this simply does not cover the cost and time involved in running a case. As a result, many firms have said they will no longer be able to afford to run personal injury claims. And who will that ultimately harm? Of course it is the personal injury victim who will not be able to find a firm to take their case on – particularly if it is a lower value claim.
Although the legal reforms have only just come into force, these adverse consequences are already being felt. A poll carried out by Liverpool firm O’Connors found that nearly a fifth of personal injury firms in the north-west are considering closure, as the downturn in profitability and means the PI sector is just not financially viable. In turn, many people are finding they are being denied the opportunity to access justice, leaving them without the compensation they rightfully deserve.
If you have suffered injuries whether it be a car accident, an accident at work, injuries due to doctors negligence, whatever has happened to you we would urge you to still contact us. We can help find out what options you have and whether or not it is likely you have a case. A personal injury lawyer from our team will be able to advise you whether you are in a position to make a claim under the new laws, and if so, will work hard to ensure you obtain the compensation you are legally entitled to.
Please phone on 01772 424999, email enquiries@solicitordirect.com, or use the form below and we will call you back free of charge.
