Any business or individual considering legal action is always going to consider the potential costs of doing so. If the legal costs could potentially be considerable, the reluctance to proceed will only increase. We work on hourly rates, fixed fees and contingent and conditional fees in appropriate circumstances and will seek to discuss flexible fees and risk sharing with you.
The recession has meant that whilst companies are more likely to need to litigate, they are less likely to have the financial resources to bring legal action. This situation has seen the rise of the Conditional Fee Agreement (“CFA”) which can remove the concerns over funding legal action.
CFA’s are essentially a written agreement where the businesses’ legal fees and certain expenses only become payable in certain circumstances.
No Win, No Fee
The most common type of CFA means that legal fees become payable only if a case is won. The solicitors run the risk of not being paid their fees if the case fails. As a result of this, a “success fee” will usually be charged in addition to the standard fees which are recovered from your opponent if the case is won which are recovered from your opponent if the case is won.
After The Event (ATE) Insurance
ATE insurance can be taken out after legal proceedings have been contemplated or commenced to cover legal costs which may be incurred as a result of the dispute. Most ATE premiums are also conditional which means you won’t have to pay, even if the case is lost, so your business can potentially take legal action being almost entirely insulated from the consequence of an unsuccessful claim.
Be Quick
Recent press comment has highlighted the problems of increasing car insurance premiums due to CFAs being used to fund the legal costs of whiplash and other personal injury claims.
It now looks likely that all such arrangements, even for commercial disputes, could now disappear by Autumn 2012. We are therefore advising businesses faced with potential legal issues to consider beginning CFA-backed action before this option disappears.
Can We Help You?
Please click here to complete the enquiry form and send us details of your case, we can then advise you if a CFA is a BPE option in your particular circumstances.