TACKLING FEES I have read with amazement the conclusion of research carried out by Westminster University in connection with conditional fee cases that the old voluntary 25% cap should be reinstated in relation to success fees (see [2001] Gazette, 17 May, 1).
Apparently, this should be done to protect clients.
It would seem that the authors of the report have little or no understanding of the operation of success fees.
Under the new regulations, success fees are recoverable from the losing party, not the client.
In fact, it is virtually impossible to recover any of the success fee from the client apart from that proportion relating to deferment of a claim for costs and arrangements concerning payment of disbursements.
In relation to that element of the success fee referring to the risk of the case, it would be necessary to seek approval from the court before any portion could be recovered.The new regulations ensure that the client is fully protected.
It is incumbent upon the lawyer to persuade the paying party that the success fee is reasonable.
My own experience with defendant insurers is that they seem to take the view that every case that is settled has little or no risk attached to it.
For the report's conclusion to make any sense at all it must have been based on the old regulations where the success fee was only recoverable from the client.
If that is the case then can someone explain the purpose of the report.
John Hall, Tilly Bailey & Irvine, Hartlepool
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