Personal Injury Legislation has changed

From the 1^st April 2013, the law regarding personal injury claims changed. As a result of the new legislation, solicitors may not be able to guarantee 100% in future. So if you want to benefit from the current fee structure offered by Bartletts Solicitors, it’s important that you get your claim started now.

Should you pay legal costs for the guilty party?

At present, all costs relating to personal injury claims, such as legal fees, are paid for by the defendant, meaning that claimants receive 100% of the compensation resulting from a court settlement. The new legislation will force claimants to pay legal costs, and any other fees incurred, from their compensation settlement, which could be seriously reduce the payout.

It’s still too early to say how much final payouts will be affected, but some experts believe compensation settlements could be cut by as much as 25%. That’s why it’s so important, if you’re considering making a personal injury claim, that you act now before the changes come into effect.

Bad news for both claimants and solicitors.

As part of the changes, it is proposed that the small claims limit is  increased from £1000 to £5000. All claims under £5000 would have legal fees deducted from the settlement, instead of being paid by the defendant’s insurance company. The result could be that compensation payouts may struggle to cover the legal fees and solicitors will be less willing to take on such cases.

Why is this happening?

The government are doing this in an attempt to counteract a ‘claims culture’, but clearly, people with legitimate claims will suffer as a result of the new legislation. ‘No-win, no-fee’ claims may not be financially viable for solicitors once the law comes into effect, so individuals may not want to pursue claims in case they are landed with a costly legal bill.

Contact our personal injury team on  0800 988 3674 or email advice@bartletts.co.uk