When pursuing a clinical negligence claim, it’s important to understand the various funding options available to you. At our law firm, we’ll ensure you’re fully informed about the possibilities and help you determine the most suitable approach for your circumstances.
1. Conditional Fee Agreements
The most common funding option for clinical negligence claims is a Conditional Fee Agreement also know as no win, no fee. Under a CFA, you won’t be liable for any solicitor’s fees if your case is unsuccessful, provided you’ve abided by the terms of the agreement.
When considering a CFA, your solicitor will assess the merits of the potential claim and the likelihood of success, which must be at least 51%. They’ll also consider the likely costs and potential compensation.
If your claim is successful, the solicitor is entitled to charge a ‘success fee’, which is capped at 25% of the general damages and past losses awarded. This success fee is deducted from your overall compensation.
2. After the Event Insurance (ATE)
If you enter into a CFA, your solicitor will likely advise you to take out After the Event (ATE) insurance. This covers the disbursements (such as expert reports and court fees) in the event that your claim is unsuccessful. ATE insurance may also protect you from having to pay any adverse cost orders, such as those that may result from rejecting a Part 36 offer.
The ATE insurance premium is usually only payable if your claim is successful, and the premium amount is dependent on the level of cover required.
3. Before the Event Insurance, also referred to as legal expenses insurance
You may already have existing insurance that can be used to fund your clinical negligence claim. This is generally identified as Before the Event (BTE) insurance or Legal Expenses Insurance (LEI). We recommend checking any relevant insurance policies you had in place at the time of the alleged negligence, or contacting your insurance provider directly.
BTE policies vary in their coverage, with some only covering legal costs up to a certain limit. If you have this type of insurance, it may cover some or all of the disbursements (such as expert reports and court fees) as well as a portion of the legal costs.
It’s important to note that some BTE insurers may require you to use one of their panel solicitors, at least initially. However, we can often negotiate terms that allow you to use the solicitor of your choice.
4. Trade union funding
If you are or were a member of a trade union at the time of the alleged negligence, it’s worth checking if the union can provide legal advice or assistance with your clinical negligence claim. Our team can also help you navigate this process and ensure you’re getting the maximum support available.
6. Private funding
While private funding used to be more common, it is now less frequent for clinical negligence cases. If you choose to pay privately, you’ll be responsible for the solicitor’s fees and disbursements if your claim is unsuccessful. If successful, you may be able to recover some of these costs from the opposing party.
When considering private funding, it’s essential to understand the solicitor’s hourly rates, which can vary, as well as any payments on account that may be required during the case.
In the end, the best funding option for you will depend on your unique circumstances. Our team is here to support you through the process and assist you in making an informed choice.
How can we help?
Rhian Lowe is a Partner and Head of our Civil Litigation Team specialising in medical negligence and personal injury.
If you have any queries on the above subject, please do not hesitate to get in touch with Rhian on 01206 835269 or complete our online enquiry form.