It is highly likely that, as early as April 2012, everyone’s ability to bring a professional negligence claim against a solicitor, accountant or other professional will be severely curtailed.
At the moment, claims with a better than average chance of succeeding are largely conducted by solicitors under a conditional fee agreement (a CFA or “no win no fee” agreement). Normally, the agreement includes a success fee (a mark up on the solicitor’s costs to negate the risk of potentially not being paid) and is normally backed up with an insurance policy to protect the claimant if they lose their claim.
As things stand, the success fee and the insurance policy premium can be recovered from the other side when the claim is successful.
Much has been made in the press about the recent consultation and report which concluded that claimants in personal injury cases should not be able to recover the success fee or the insurance premium, even if they are successful. What is not so widely publicised is that this extends to professional negligence claims as well.
Under the Legal Aid Sentencing and Punishment of Offenders Bill, it is proposed that claimants will not be able to recover either of these items, even if they win, and it is highly probable (assuming the House of Lords do not overturn it) that this will become law sometime in 2012.
If the ability to recover those items is removed, then the cost of bringing a professional negligence claim will increase and could be disproportionate to the value of the claim.
Solicitors will continue to charge success fees to cover the risks of running cases and insurance policies will still be available. However, those additional payments will payable by the claimant (i.e. you) and will reduce the amount of damages you recover.
It is highly likely that a lot of people and businesses will be put off by these proposed changes to the law and will be deterred from bringing claims at all.
If you have a claim, the best time to start taking action is now. Hesitating may well cost you in the long run.
If you have a professional negligence claim you would like to discuss, please contact Richard Gore, Partner at Gregg Latchams on 0117 906 9424, via email richard.gore@gregglatchams.com, twitter @richardagore or via LinkedIn.
