What does Referral Fees UK mean?
Referral fees UK could refer to the former practice of law firms taking a referral fee from a client for introducing them to a solicitor to handle their personal injury case. Following a review by Lord Justice Jackson, this practice is no longer permitted under UK law and the reform was implemented in April 2013. More detail is available on the Ministry of Justice (MoJ) website, including guidelines for personal injury compensation companies.
Civil justice reforms
Key findings on the civil justice reforms include the ruling on referral fees UK. This summary is anecdotal and should not be taken as legally accurate. It is necessary for interested parties to check the law at source for a precise interpretation, bearing in mind that major changes were made to the law of personal injury litigation in April 2013.
- No-win, no-fee Conditional Fee Agreements (CFAs) still remain, but “success fees” and insurance premiums are no longer payable by the losing side.
- CFA is one kind of no-win, no-fee agreement. The other is DBA, which is Damage-Based Agreement. Under a DBA, the solicitor does not charge a fee if his client loses, but if his client wins he may take a percentage of the award made. Prior to 1st April 2013, DBAs were not available in civil litigation.
- The fee a successful claimant in personal injury cases must pay is capped at 25%. For other classes of compensation claims, such as under an employment tribunal, different rules may apply.
- General damages payable for pain suffering and loss of amenity are increased by 10%.
- Qualified One Way Costs Shifting or QOCS caps the amount losing claimants may have to pay defendants. If they have played by the rules, QOCS applies.
- A new regime on defendants to encourage them to settle out of court.
Accident Advice Helpline
If you have suffered from a non-fault accident in which you were injured badly enough to be off work and need an extended period for your recovery, you could be eligible to make a personal injury compensation claim. If so, have a word with us at Accident Advice Helpline and take our advice, and you can ask us about referral fees UK too. The phone call is free and you are under no obligation to start a claim, but it could put your mind at rest to know where you stand and what your options are. You can reach our friendly professional advisors on 0800 689 0500 or from your mobile on 0333 500 0993. The lines are open 24/7 so you can get hold of us at any time. Contact us right away.
Date Published: 10th September 2013
Author: Emma Matthews