Claimant and defendant personal injury solicitors have thrashed out a deal over the level of recoverable success fees in road traffic accident (RTA) cases, in a move that is expected to bring them significantly closer to a truce in the costs war.

The pact - which coincides with the introduction this week of a fixed costs regime in RTA cases - sets in principle the success fee at 12.5% of base costs recoverable for all successful claims that are settled out of court.

Cases that are tried will attract a 100% success fee.

The deal - mediated by the Civil Justice Council (CJC) - was made at a round table comprising the Law Society and representative groups including the Association of Personal Injury Lawyers (APIL), the Forum of Insurance Lawyers and the Motor Accident Solicitors Society.

Personal injury solicitors had previously expressed concerns that lack of clarity on recoverable success fees would put a spanner in the works of any potential benefits the fixed costs system would bring, leaving the door open for more satellite litigation.

Lord Phillips of Worth Matravers, Master of the Rolls and CJC chairman, said 'difficult' compromises had been made before the agreement was reached, but added that it would ease the claims process for up to 500,000 claims a year - two-thirds of all personal injury cases.

'I believe that certainty and prompt settlement brings considerable benefits to all participants, and will lead to better service for those seeking compensation,' he added.

APIL president David Marshall said the agreement was a 'fair conclusion' to months of negotiation that reflected the reality that no road traffic claim is risk-free.

'I hope we can expect an end to the costs war, which has seen the courts log-jammed with cases due to arguments about, among other things, the level of success fees in these cases,' he said.

'The fact that solicitors will be properly recompensed for the additional risk of taking such cases to trial is most welcome.'

A Law Society spokesman said: 'We are pleased that agreement was reached so that solicitors will have greater certainty when dealing with these cases.'

The agreement will now be referred to the rule committee for consideration and drafting of the appropriate rules of court.

It is hoped that the agreement will be implemented early in 2004.

By Paula Rohan