Conditional Fee Agreement
Introduction
At BLV Law you will enter into a Conditional Fee Agreement in relation to your claim for medical negligence, personal injury, or accident.
Details of the Conditional Fee Agreement are set out below:
What is covered by this agreement
- Your claim for damages for medical negligence or personal injury or accident claim
- Any application for pre-action or non-party disclosure.
- Any appeal by your opponent.
- Any appeal you make against an interim order or an assessment of costs.
- Any proceedings you take to enforce a judgment, order, or agreement.
- Negotiations about and/or a court assessment of the costs of this claim.
What is not covered by this agreement
- Any counterclaim against you.
- Any appeal you make against the final judgment or order
Paying us if you win
If you win your claim, you pay our basic charges, our expenses and disbursements and a success fee together with the premium for any insurance you take out. You are entitled seek recovery from your opponent of our basic charges and our expenses and disbursements. However, due to recent changes in the law we are not now entitled to recover the success fee or any insurance premium.
The overall amount we will charge you for our basic charges, success fees, expenses and disbursements are limited as set out in Schedule 2 below.
Circumstances where you may have to pay – if you reject our advice
It may be that your opponent makes a formal offer to settle your claim. If you reject this against our advice and your claim for damages goes ahead to trial where you recover damages that are less than that offer, then you will have to pay our basic charges and success fee for the work done after we received notice of the offer or payment. In these circumstances, you may also be ordered to pay your opponent’s costs, but only up to the amount of damages and interest awarded to you.
Expenses and Disbursements
If you receive interim damages, we may require you to pay our expenses and disbursements at that point and a reasonable amount for our future expenses and disbursements.
If you receive provisional damages, we are entitled to payment of our basic charges, our expenses and disbursements and success fee at that point.
If you win overall but on the way lose an interim hearing, you may be required to pay your opponent’s charges of that hearing, but usually only up to the amount of damages awarded to you.
If on the way to winning or losing you are awarded any costs, by agreement or court order, then we are entitled to payment of those costs, together with a success fee on those charges if you win overall.
What do I pay if I lose?
If you lose you will normally have the benefit of a new provision known as Qualified One-Way Cost Shifting. This means that the Court will not usually enforce an order for costs against you.
UNLESS:
- the proceedings have been struck out; or
- the claim is fundamentally dishonest; or
- the claim includes a claim for the financial benefit of someone else.
If you lose, you do not pay our charges, but we may require you to pay our expenses and disbursements.
The Success Fee
The success fee is set out in Schedule 1.
Basic Charges
Details of our basic charges are set out in Schedule 2.
After the Event Insurance
You may be able to take out an insurance policy against the risk of paying expenses and disbursements but not our charges if you lose, or some or all of your opponent’s costs even if you win. You will be responsible for paying the insurance premium for this if you win. If you lose the premium is not payable. Full details are contained in the insurance policy documents. We will give further information about insurance policies to you so that you can decide whether you wish to take one out.
Medical Examination
During the course of your claim it will be necessary to obtain medical evidence. This firm may utilise the services of a medical agency who instruct medical experts on our behalf to prepare medical reports in respect of your case.
The Medical Agency are able to provide access to a directory of qualified and experienced medical experts who regularly prepare legal medical reports.
You will not be required to pay for the medical reports we arrange on your behalf unless you request that we obtain a second opinion that we do not think is necessary.
Ending this agreement
If you have a right to cancel this agreement under Schedule 3 (see below) and do so within the 14-day time limit, you will pay nothing. Otherwise if you end this agreement before you win or lose, you pay our basic charges and expenses and disbursements. If you go on to win, you also pay a success fee.
We may end this agreement before you win or lose, with the consequences set out in the Law Society Conditions.
File destruction
We confirm that upon conclusion of your case your file will be destroyed upon the expiration of 6 years from that date unless you notify us that you require your file to be sent to you by this date.
Other points
Definitions of words used in this CFA are explained in the Law Society Conditions.
You have the right to cancel this agreement in the circumstances set out in Schedule 3.
We add VAT, at the rate that applies when the work is done, to the total of the basic charges and success fee.
The parties acknowledge and agree that this agreement is not a Contentious Business Agreement within the terms of the Solicitors Act 1974.
Signatures
Signed by the solicitor: ………………………………………………………..
Signed by the client: ………………………………………………………..
Dated: ……………………………………………………………………………..
Note: We are not bound to act on a conditional fee basis until both you and we have signed this agreement.
Schedule 1
Success Fee
The success fee is set at 25% of our basic charges, if the claim concludes before a trial has commenced or at trial.
The success fee percentage reflects the following:
- the fact that if you lose, we will not earn anything;
- our assessment of the risks of your case;
- any other appropriate matters;
- the fact that if you win, we will not be paid our basic charges until the end of the claim;
- our arrangements with you about paying expenses and disbursements.
- The arrangements about payment of our costs if your opponent makes a Part 36 offer or payment which you reject on our advice, and your claim for damages goes ahead to trial where you recover damages that are less than that offer or payment.
The Success Fee cannot be more than 100% of the basic charges in total.
Cap on the amount of Success Fee which you will pay us in the event of Success in proceedings at first instance
There is a maximum limit on the amount of the success fee which we can recover from you.
That maximum limit is 25% of the total amount of any:
- general damages for pain suffering and loss of amenity; and
- damages for pecuniary or financial loss, other than future pecuniary or financial loss;
which are awarded to you in the proceedings covered by this agreement. The maximum limit is applicable to these damages net of any sums recoverable by the Compensation Recovery Unit of the Department of Work and Pensions. The maximum limit is inclusive of any VAT which is chargeable.
The maximum limit includes any success fee payable to a barrister who has a CFA with us.
However, this maximum limit applies only to a success fee for proceedings at first instance and not to a success fee on other proceedings (such as, for example, an appeal against a final judgment or order).
We will provide you with a copy of any relevant judgment or of our calculation of any settlement showing how much of your damage should be attributed to General Damages and Past Pecuniary Loss, net of any sums recoverable by the Compensation Recovery Unit.
If you do not agree our calculation and this makes a difference to the amount of the Success Fee payable to you, then we will put the matter for determination by an independent barrister of at least 10 years call, to be appointed by agreement between us or, in default of agreement, by the President of the Law Society of England and Wales, such barrister to act as expert and not as arbitrator and his decision shall be binding. The barrister’s costs for assessing this issue are to be paid by you if the barrister agrees with us, but otherwise are to be paid by us
You also have the right to apply to the court for assessment of our costs, including our success fee.
Schedule 2
Basic charges
These are for work done from now until this agreement ends. These are subject to review.
How we calculate our basic charges
These are calculated for each hour engaged on your matter. Routine letters and telephone calls will be charged as units of one tenth of an hour. Other letters and telephone calls will be charged on a time basis. The hourly rates are:
| Grade of Fee Earner | Hourly Rate |
| 1.Solicitors with over eight years post qualification experience including at least eight years litigation experience. | £255.00 |
| 2.Solicitors and legal executives with over four years post qualification experience including at least four years litigation experience. | £218.00 |
| 3.Other solicitors and legal executive and fee earners of equivalent experience. | £177.00 |
| 4.Trainee solicitors, para legals and other fee earners. | £126.00 |
We review the hour rate in January of each year, and we will notify you of any change in the rate in writing. If there is no change, we will not notify you.
We will limit the total amount of charges, success fees, expenses, and disbursements (inclusive of VAT) payable by you (net of any contribution to your costs paid by your opponent) to a maximum of 25% of the damages you receive.
When the case is concluded we submit details of our charges, , vat and disbursements to your opponent for payment. Once an agreement as to the amount of our charges, vat and disbursements has been reached these will be paid first from any damages recovered. Once we receive payment of all compensation and charges, vat, and disbursements from your opponent; your compensation will be released to you less the success fee of 25%.
Schedule 3 – TO SIGN ONLY IF YOU WANT TO CANCEL YOUR AGREEMENT WITH US
To
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Notice of the Right to Cancel This only applies if you sign the Conditional Fee Agreement:
i. At your home, workplace or at someone else’s home; or ii. At our offices but following a visit by us (or by someone acting on our behalf) to your home, workplace, or someone else’s home; or iii. At our offices but following a meeting between us away from our offices.
You have the right to cancel this contract if you wish and can do so by telephone, email or letter or in person to our head office as listed below within 14 days of the date of signing this agreement. For the sake of completeness we would prefer the signed cancellation notice to be sent to the person mentioned below.
The person to whom a cancellation notice may be given is Cozette Lindsay-Veal or Lisa Binnion of BLV LAW at 2 High Street, Stourport on Severn, Worcestershire
Notice of cancellation is deemed to be served as soon as it is received by us.
You can use the cancellation form provided below if you wish.
Signed on behalf of BLV LAW : ……………………………………….Dated:……………………………………..
If you wish to cancel the contract, you must do so in writing, by telephone or email to cozette.lindsay-veal@blvlaw.co.uk or lisa.binnion@blvlaw.co.uk. You may use this form if you want to, but you do not have to. ………………………………………………………………………………………………………………………………………………………………… (Complete, detach and return this form ONLY IF YOU WISH TO CANCEL THE CONTRACT
To: Cozette Lindsay-Veal / Lisa Binnion of BLV LAW At 2 High Street Stourport on Severn Worcestershire DY13 8DJ
Case Reference No: …………………………………………………
I hereby give notice that I wish to cancel my Conditional Fee Agreement with your firm.
Signed: ……………………………………………………………………………………………………………………………………….
Name (please print): ………………………………………………………………………………………………………………..
Address: ………………………………………………………………………………………………………………………..
Date: ………………………………………………………………………………………………………………………..
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Law Society Conditions
The Law Society Conditions below are part of this agreement. Any amendments or additions to them will apply to you. You should read the conditions carefully and ask us about anything you find unclear.
Our responsibilities
We must:
- always act in your best interests, subject to our duty to the court;
- explain to you the risks and benefits of taking legal action;
- give you our best advice about whether to accept any offer of settlement;
- give you the best information possible about the likely costs of your claim for damages.
Your responsibilities
You must:
- give us instructions that allow us to do our work properly;
- not ask us to work in an improper or unreasonable way;
- not deliberately mislead us;
- co-operate with us;
- go to any medical or expert examination or court hearing.
Dealing with costs if you win
- [Subject to any overall cap agreed with you] you are liable to pay all our basic charges, our expenses and disbursements and the success fee (up to the maximum limit) [together with the premium of any insurance policy you choose to take out.
- Normally, you can claim part or all of our basic charges and our expenses and disbursements from your opponent. You provide us with your irrevocable agreement to pursue such a claim on your behalf. However, you cannot claim from your opponent the success fees or the premium of any insurance policy you take out.
- If we and your opponent cannot agree the amount, the court will decide how much you can recover. If the amount agreed or allowed by the court does not cover all our basic charges and our expenses and disbursements, then you pay the difference up to any maximum agreed with you.
- You, not your opponent, pay our success fee and any insurance premium.
- You agree that after winning, the reasons for setting the success fee at the amount stated may be disclosed to the court and any other person required by the court.
We are allowed to keep any interest your opponent pays on the charges.
You agree to pay into a designated account any cheque received by you or by us from your opponent and made payable to you. Out of the money, you agree to let us take the balance of the basic charges; success fee; insurance premium; our remaining expenses and disbursements; and VAT.
You take the rest.
If your opponent fails to pay monies due to you
If you opponent does not pay any damages or charges owed to you, we have the right to take recover action in your name to enforce a judgment, order, or agreement. The charges of this action become part of the basic charges.
Payment for advocacy
The cost of advocacy and any other work by us, or by any solicitor agent on our behalf, forms part of our basic charges. We shall discuss with you the identity, or any barrister instructed, and the arrangements made for payment.
Barristers who have a conditional fee agreement with us
If you win, you are normally entitled to recover their fee from your opponent, but not their success fee. The barrister’s success fee is shown in the separate conditional fee agreement we make with the barrister. You must pay the barrister’s success fee shown in the separate conditional fee agreement we make with the barrister. We will discuss the barrister’s success fee with you before we instruct him or her. If you lose, you pay the barrister nothing.
The barrister’s success fee is included within the maximum limit to the recoverable success fee in proceedings at first instance as explained in Schedule 1.
Barristers who do not have a conditional fee agreement with us
If you win, then you will normally be entitled to recover all or part of their fee from your opponent. If you lose, then you must pay their fee.
What happens when this agreement ends before your claim for damages ends?
(a) Paying us if YOU end this agreement
You can end the agreement at any time. Unless you have a right to cancel this agreement under Schedule 3 and do so within the 7-day time limit we then have the right to decide whether you must:
- pay our basic charges and our expenses and disbursements including barristers’ fees but not the success fee when we ask for them; or
- pay our basic charges, and our expenses and disbursements including barrister’s fees and success fees if you go on to win your claim for damages.
(b) Paying us if WE end this agreement
(i) We can end this agreement if you do not keep to your responsibilities. We then have the right to decide whether you must:
- pay our basic charges and our expenses and disbursements including barristers’ fees but not the success fee when we ask for them; or
- pay our basic charges and our expenses and disbursements including barristers’ fees and success fees if you go on to win your claim for damages.
(ii) We can end this agreement if we believe you are unlikely to win. If this happens, you will only have to pay our expenses and disbursements. These will include barristers’ fees if the barrister does not have a conditional fee agreement with us.
(iii) We can end this agreement if you reject our opinion about making a settlement with your opponent. You must then:
- pay the basic charges and our expenses and disbursements, including barristers’ fees;
- pay the success fee if you go on to win your claim for damages.
(c) Death
This agreement automatically ends if you die before your claim for damages is concluded. We will be entitled to recover our basic charges up to the date of your death from your estate.
If your personal representatives wish to continue your claim for damages, we may offer them a new conditional fee agreement, as long as they agree to pay the success fee on our basic charges from the beginning of the agreement with you.
What happens after this agreement ends
After this agreement ends, we may apply to have our name removed from the record of any court proceedings in which we are acting unless you have another form of funding and ask us to work for you.
We have the right to preserve our lien unless another solicitor working for you undertakes to pay us what we are owed including a success fee if you win.
Explanation of words used
(a) Advocacy
Appearing for you at court hearings.
(b) Basic charges
Our charges for the legal work we do on your claim for damages as set out in Schedule 2.
(c) Claim
Your demand for damages for personal injury whether or not court proceedings are issued.
(d) Counterclaim
A claim that your opponent makes against you in response to your claim.
(e) Damages
Money that you win whether by a court decision or settlement.
(f) Our expenses and disbursements
Payments we make on your behalf such as:
- court fees;
- experts’ fees;
- accident report fees;
- travelling expenses.
(g) Interim damages
Money that a court says your opponent mush pay or your opponent agrees to pay while waiting for a settlement or the court’s final decision.
(h) Interim hearing
A court hearing that is not final.
(i) Lien
Our right to keep all papers, documents, money, or other property held on your behalf until all money due to us is paid. A lien may be applied after this agreement ends.
(j) Lose
The court has dismissed your claim, or you have stopped it on our advice.
(k) Formal Offer to Settle
An offer to settle your claim made in accordance with Part 36 of the Civil Procedure Rules.
(l) Provisional damages
Money that a court says your opponent must pay or your opponent agrees to pay, on the basis that you will be able to go back to court at a future date for further damages if:
- you develop a serious disease; or
- your condition deteriorates;
in a way that has been proved or admitted being linked to your personal injury claim.
(m) Qualified One-Way Cost Shifting
The rules in respect of costs payable if you lose a personal injury claim set out in [Part 44Section II] of the Civil Procedure Rules.
(n) Success fee
The percentage of basic charges that we add to your bill if you win your claim for damages
(o) Trial
The final contested hearing or the contested hearing of any issue to be tried separately and a reference to a claim concluding at trial includes a claim settled after the trial has commenced or a judgment.
(p) Win
Your claim for damages is finally decided in your favour, whether by a court decision or an agreement to pay you damages or in any way that you derive benefit from pursuing the claim.
‘Finally’ means that your opponent:
- is not allowed to appeal against the court decision; or
- has not appealed in time; or
- has lost any appeal.