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A quick calculation on this one basically means that the Solicitor will have recovered fixed costs of £900 from the opponent. The success fee, presumably 100%, should also have been £900 plus VAT, totalling £1,080, BUT the 25% cap meant that this had to be reduced to being no more than 25% of the damages, being £850 including VAT (£708 plus VAT). The Solicitor therefore got costs totalling £1,608 plus VAT, for dealing with a claim which presumably took months.

As for the ATE Premium, the ATE Insurers set the premium, not the Solicitor but I would suggest that the Solicitor would be putting the Claimant to significant risk if they proceeded without appropriate Insurance taken out at the outset. (If taken out later, when more risks are known, liability denied etc, then the premium would probably increase significantly and a bespoke Policy would need to be applied for). That's how it works with us anyway.

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