20% of compensation award for legal representation ...

[kilk]

The lawyer submitted information that I had sent them with receipts and corresponded on my behalf. The defendants insurance company admitted liability and defendant was found guilty of charge ever before I submitted my claim for damages.

No negotiations or settlement talks , just communicated on my behalf and submitted what was asked. I could have done all f this myself if I had known how simple the process was as I was never going to dispute settlement offer owing to stress. I just wanted my expenses reimbursed.

No advice." From them bar saying if you don't accept the offer and it goes to court you may lose everything.

The fees were 20% of the award plus VAT.

Is this normal for a few letters , emails and phone calls ? Seems extreme to me and am I entitled to breakdown for fees.
The contract did not state a specific sum or percentage but stated that fees would be charged relative to case.
AIBU that this is extortionate ?

Best to agree a percentage before you sign with them. This sounds like the situations I get myself into though.

Was it a “no win no fee” type arrangement? I think it’s quite normal in those circumstances but I’m no expert on private fees as I’ve always worked in public sector.

20% is fairly cheap for no win no fee, so probably would count as "relative" to the case being quite simple

Was this a personal injury claim run under a NWNF type agreement? Did you use a firm of solicitors or a slightly shadier claims company?

If it was a solicitor they should have given you various documentation outlining the scope of the agreement, fee structure, insurance requirements for costs etc (although it’s a long while since I was in PI!)

20% is a reasonable percentage for a conditional fee arrangement though, the fact that you (I assume?) settled early still works to your benefit as it was dealt with quickly. The NWNF type arrangements are essentially taking an element of risk on both sides - if it dragged on for months the lawyers could have been out of pocket, but you’d have benefited. If you didn’t want to pay some kind of hourly rate, then you accept that you get a 20% fee deduction regardless of when it settles.

Check your paperwork and whether it was clearly outlined to you though. If it wasn’t then that could be problematic for them.

I took an old employer to court many years ago for unfair dismissal I proved it was because I was pregnant. I was awarded £17,000 (only worked there 4months before) But my legal fees were over £9,000 was no win no fee.

It wasn't a no win no fee . The defendant admitted liability immediately.

Then what was the agreed fee arrangement that was in place? What does your documentation specifically say?

So when you employed the solicitor, what was the fee arrangement agreed?

If your contract with the solicitor didn't specify a specific fee or percentage of award, then I think you got away lightly! I have no idea why you would have signed a contract with such a loose term as “fees relative to the case” in the first place, to be honest.

I have zero experience with solicitors.
I could have done this myself if I had known that the sum total of their work would involved two brief meetings, submission of docs and a telephone call!

You didn’t know this when you engaged the solicitor: you didn’t know that the defendant would immediately agree to settle rather than fight the claim, nor could your solicitor know that you would agree to the settlement offered rather than fight. Talking about how it was easy work for them when neither of you knew what the outcome was going to be is a bit pointless. They will have set fees for opening a file in the first place, their fees for checking your credentials, for engagement, per 6 minutes of their time for meetings and for reviewing your documents, per letter sent etc. That quickly adds up.

To add, they should have sent you a schedule of fees so that you were aware of the charges for each action or block of time. Check your emails to see if it was sent as an attachment. They can’t tell you at the outset how much your final bill is going to be, because of course neither of you know.

‘The contract did not state a specific sum or percentage but stated that fees would be charged relative to case.’
This is the sticking point I’d think. You signed a contract where the fees were always going to be a surprise. Is it not slight madness to do that? They could have stung you with anything!

Surely there must have been a conversation about costs at some point?

I'm amazed you signed an agreement without knowing how much the fees were.

Also if it hadn't been quite to straightforward the fee would have been money well spent, it's the risk you take going into these things. You're annoyed now because you feel like you haven't had value for money. If you're happy with the money awarded to you then the law firm have done what has been asked by you.

How much is 20% of the award?

Solicitors should set out fees clearly, how did you not know how much you'd be charged?

I think it's very easy to say, after the event, it was all very straightforward and easy and I could have done it myself. You clearly didn't think that beforehand or you would have done it yourself. You also didn't feel confident enough to pay up front, and so took advantage of the no win no fee.

20% sounds standard for a no win no fee. You should pay it and be grateful you aren't embroiled in years of litigation.

Litigation isn't an exact science.

A solicitor can give advice on the likely chance of success of a claim but they cannot guarantee that the other side will settle, settle at a particular level or that a client will be happy to accept a particular offer.

But nobody would've known that at the outset, would they? The solicitor isn't psychic.

It is likely if you did it yourself the defendant wouldn’t have agreed liability. I’d look at it as you have 80% of and award, whereas a week ago you had nothing. And check the contract next time.

You opted for a no win no fee, they got lucky that they admitted it quickly, but if it had dragged on for months they would have got the same for much more work. You had the (theoretical at least) option to pay the fee but decided it to take the safe route, it has it's downsides. They will take on many they get nothing for.

That's a good point, sometimes people are more likely to behave themselves when the other side has legal representation. Your solicitor is likely to be scarier than you are.

Solicitors are useful because the other side often caves when faced with us. If you try to do it alone the other side takes you for a ride.

You should have fixed a percentage with them in advance. At the most I would query how the 20% was arrived at. But unless your compensation is over maybe 15k, and the time they had to spend was not significant, it’s likely to be reasonable for the time they’ve spent.

Wow genuinely didn’t know that percentages were still deducted in a NWNF arrangement. I claimed compensation years ago for a hit and run so no third party to claim from and had to pay 25% in fees so I don’t feel so bad now I know this applies in both circumstances!

Well, yes. If it was called just a “no fee, win or lose agreement”, no lawyers would exist because they’d all have gone bust 🤣

In this situation, It was simply a case of the lawyer using their 'professional' clout to move it forward. You still should have been made clear what the fees for this interaction would be. You may have signed something with small print you didn't see? If you could justify it wasn't made clear then you could take them to small claims but then there is more hassle...