Child’s damages fees: Court of Appeal backs solicitor deductions

At Forbes Solicitors, if your claim relates to a child or person lacking capacity, we will not make any deductions from their damages. Providing we can recover our costs from your opponent, and you have followed our advice, they will receive all the damages they are awarded.

The court of appeal has handed down a judgment addressing a solicitor’s entitlement to deduct a success and the costs of an insurance premium from a child’s damages.

The County Court at first instance was concerned with preserving as much of the agreed damages for the child Claimant possible.

They had sustained an injury in a Morrisons store. Liability was disputed and proceedings were issued. Morrisons had agreed to offer the Claimant the sum £2,250. As with all claims involving children and persons lacking capacity, the settlement required approval by the court.

The Claimant’s litigation friend had entered into a no win no fee agreement with Express solicitors agreeing to pay a 100% uplift of the base costs. They also took out ATE insurance with premium of £650.00. The net effect of this meant that almost 50% of the damages were going to be deducted to cover these costs.

The judge decided to reduce the success fee uplift to 10% and refused to allow the solicitors to deduct the insurance premium from the damages, concluding it was unreasonable to incur a premium of £675, when qualified one-way cost shifting meant the Claimant had virtually no risk of have to pay Morrisons costs.

The court of appeal took the view the judge had applied the wrong principles in relation to the success fee and Insurance and Express solicitors were allowed to make the deductions.

Most solicitors charge success fees. These are capped by law at 25%. It is also capped by a number of factors. It does not apply to any future losses recovered and cannot exceed the costs recovered from the other party.

At Forbes Solicitors, we do not charge success fees in cases involving children or Claimants who lack capacity. We believe they should be able to retain all damages. Providing you follow our advice they will recover 100% of the damages awarded.

We will advise you about the options of taking out insurance, but we are of the view it is usually not required because of one-way costs shifting.

How Forbes Solicitors Can Help You

Our expert no win, no fee solicitors will discuss your personal injury claim with you and ascertain whether you have a viable claim and a strong chance of success. We offer services nationwide. We can offer consultations by telephone or video call, or in any of our branches across the UK. Our no-win, no-fee solicitors will focus on recovering maximum compensation for your injuries quickly.

If you have experienced an injury at work or need legal guidance, our team is here to help. For more information or to discuss your case, contact our Personal Injury division.