Fees deducted from award help please

#1 2010-12-01 20:54:42
den9112

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2010-12-01

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Fees deducted from award help please

Hi, my no win no fee solicitor as informed  me of a settlement,i have had a second letter telling me that i will not get my full amount as they will be taking fees out of my payment then sending me the balance once they have recieved thier costs from the insurer which can take months ,i have waited three years for this . I was awarded ┬?5000 and i have no idea how much the fees will be i can end up with a very small check. could any one please help as i thought i would get the full 100% .Thanks

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#2 2010-12-02 09:59:02
TC

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2010-08-17

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Under a no win no fee arrangement (or a Conditional Fee Agreement to give it its proper title) your solicitor should claim all their fees and disbursments from the other side and not deduct it from your award.

We guarantee that our clients keep 100% of their award as do most other law firms, but there are some out there who will work by different rules.

You can question and you need to question exactly what fees they are deducting from your compensation, and then if needs be maybe consider making a formal complaint of professional negligence depending on the result of your question.

Under a no win no fee agreement, normally the only time you might be asked to pay anything is if you mislead your solicitor in an attempt to obtain a higher award.  In other words you allege your injuries are actually worse they they are and so additional work is done which need not have been done, or, if you decide to stop instructing your solicitor before any reallistic prospect of them recovering their costs have been achieved.  In other words if you suddenly decide you do not want to continue with a claim, your solicitor can charge you a reasonable fee for the work done so far.

If however, you instruct a new law firm, the new firm will usually sign an undertaking to pay the old firms reasonable fees when the case settles, so it does not cost you anything.

You are entitled to see a break down of their fees, so you really need to go back to them and get them to explain why you are being asked to pay from your award, and if you feel the answer is unsatisfactory, then speak to the Solicitors Regulation Authoirity.

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#3 2010-12-02 12:18:45
den9112

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2010-12-01

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Thank you for the reply,i have phoned my solicitor today and they have told me they will be taking their expenses ie, medical ,insurance fee and medical reports. This comes out of my compensation award and then reimbursed when they get thier fee from the insurers.So in theory i will be getting it back eventually but in the form of two cheques ,if this normal ...ps i have just contacted the SRA

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#4 2010-12-06 11:16:06
TC

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2010-08-17

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Sometimes, law firms will reimburse themsleves the cost of their disbursments from your award, and then send you the balance when their fees are paid, but they should have notified you of this when you first signed the conditional fee agreement, or as soon as the decision was made as your case progressed.

Disbursments are the medical report costs, Police accident reports (if appropriate) cost of medical records, maybe expert costs which can be and often is expensive, and usually law firms will fund these disbursments themselves, but in the past couple of years due to the credit crunch, forms have asked clients if they can take out the cost of these disbursments until such time as their fees are paid as it helps with cash flow.

But they can still only do it with your approval.

You will still gget your full award, but it means you will have to wait a while for the balance, which in the larger cases can take up to a year for the bill to be agreed and settled.

Hope this helps.

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#5 2010-12-07 19:10:55
den9112

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2010-12-01

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Thanks,your information as helped .

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#6 2016-07-08 18:41:07
Rayshelon

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Thanks for inucrdtoing a little rationality into this debate.

#7 2016-07-08 22:32:21
Topher

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ol??┬? bom dia, jose, estou deadgpremseo, amigo, fa??┬žo pequenos servi??┬žos, mas estou desempregado, jatrabalhei com policromia, duas cores, sei revelar, limpar tela,, moro em Bel??┬?m-pa , tenho 26 anos