How withdrawal of legal aid will affect injury claims

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by: Rhiannon Warner
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Date: Sun, 4 Dec 2011 Time: 10:18 PM
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Recent proposed changes to the law (Legal Aid, Sentencing and Punishment of Offenders Bill, 2011) have reduced the scope of personal injury claimants that are entitled to legal aid. The new Civil Justice Council paper on the topic ("Access to Justice for Litigants in Person (or self represented litigants)") suggests those appearing in court without a solicitor "will increase and with considerable scale". Already 28% of cases in county courts and 17% of cases in high court involve at least one party representing themselves.

"Litigants in person" (LiP) or "self-represented litigants" as they are now officially termed face a hefty challenge. With 18 out of 56 law centres set to close as a result of the cuts and the complexity of UK personal injury law not set to get any less confusing, the outlook is bleak for individuals seeking legal assistance.

This month, the government axed a number of information services aimed at providing legal advice and encouraging out of court settlements. The National Mediation Helpline, the Alternative Dispute Resolution website (ADRnow.org.uk) and the "public legal education organisation" (plenet.org.uk) have all been scheduled for demolition.

Those representing themselves are left to attack the Bailii (British and Irish Legal Information Institute) website for British case law, a site that clearly hasn't been redesigned since Internet Explorer 1.0 was considered state of the art.

The cuts in legal aid are pushing the UK legal system towards the US "no win no fee" model, and this is already evident in the arena of personal injury claims where legal aid has already been almost entirely withdrawn. It is now customary for solicitors to charge a fee only if they win.

No Win No Fee Solicitors
Unfortunately, the Legal Aid Bill is set to be damaging even for those using a personal injury solicitor offering to work under the "no win no fee" model. If the Legal Aid Bill passes then the lawyer's "success fee" (up to double the standard fee) will come out of any compensation awarded (capped at 25%).

It may therefore be advisable, if you are seeking to make a claim for personal injury using a no win no fee personal injury lawyer, to begin your claim before the "Legal Aid Bill" becomes law. You will however continue to have up to three years from the time of the accident in which to make a claim.

Despite all the doom and gloom there is one possible upside for those who wish to make a claim for injury compensation. If the legal aid bill passes, the losing side will not have to pay the winning side's legal costs which promises to reduce the risk of liability for potentially unsuccessful claimants. Personal injury compensation often runs into thousands of pounds, so if an accident causing injury is the fault of another individual or business it is likely to be worth pursuing. Compensation for personal injury is calculated based on any financial loss (through legal expenses, loss of income and any interest lost, for example) as well as the pain and suffering that resulted from the injury.

The Legal Aid Bill
After the passing of the "Legal Aid Bill" payouts may be reduced based on the legal expenses being deducted from compensation rather than by the losing party but this fee will be capped at 25%. It is important to remember that even if personal injury solicitors advertise a service as "No Win, No Fee" there are still likely to be costs incurred such as court fees. These fees are currently managed through "after the event" (ATE) legal expenses insurance arranged by your personal injury solicitor and paid for by the losing party - however with the passing of the "Legal Aid Bill", these fees may be payable by both the winning and the losing party depending upon what agreement is reached . It is therefore important that you discuss possible fees with your solicitor.

About the Author

Rhiannon Warner is a keen follower of UK law, driven by a thirst for legal knowledge and a passion for making the law work for everyone. She has bestowed her wide legal knowledge through legal sites in a number of different fields, including personal injury claims.