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: Law Department Management

Conditional fee arrangements in England

By Rees Morrison

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Legal Strat. Rev., Spring 2009 at 26, says ?The closest thing to a contingency fee in England is a conditional fee arrangement or ?no-win, no fee? deal. Solicitors are then allowed a 100% uplift on their hourly rate if they win the case and receive nothing if they lose. However, a party?s liability to pay the other side?s costs in the event of a defeat remains. Conditional fee arrangements tend to be used with specialist insurance products in order for client to minimize the risks further.? What happens if the company settles the case before trial?

I believe that the ?100% uplift? means twice the standard fees incurred by the firm (See my post of Oct. 31, 2007: insurance against litigation risks with 7 references; May 13, 2007: municipal insurance; and July 4, 2006: insurance and fixed fees.). Loser pays rules have gotten attention on this blog (See my post of Oct. 22, 2005: insurance proceeds in a loser-pays jurisdiction; May 31, 2005: insurance where the loser pays the other side?s fees; May 10, 2006: why US litigation hasn?t spread to Europe; Aug. 21, 2006: Florida experience with loser pays; and Jan. 12, 2009 #3: Germany?s rules.).

Full post as published by Law Department Management on May 21, 2009 (boomark / email).