The previous cost rules, which greatly favour claimants, have changed for proceedings issued after April 2013.
Lawyers are allowed to charge a success fee of up to 100% more than their usual hourly rates in the event of success, whilst at the same time agreeing to charge less than normal rates if success is not achieved. In the personal injury market that usually involves complete “no win, no fee” agreements, whereas in commercial matters firms such as Fladgate are willing to act on a “partial conditional fee agreement” involving a success fee of less than 100% in return for a partial discount if success it not achieved. Under England’s cost shifting rules, the success fee was included in the costs which the unsuccessful defendant can be ordered to pay. That cost shifting of the success fee ended in April. More…