Claimants should seek advice now before funding rules change

Posted 14/11/2012

The recently reported case of Loizou v Gordon, provides a reminder for all those seeking to make claims, including professional negligence claims, that time is running out before new rules on conditional fee arrangements (CFA’s) come in to force in April 2013.

If you enter in to a CFA after April 2013 your success fee cannot be recovered from the other side, you will have to pay this yourself. However, if you sign up to a CFA before April next year you will not be caught by these changes in the rules.

Rob Adam, Head of Dispute Resolution at Ashtons Legal says: “At Ashtons Legal we often use CFA’s or no win no fee arrangements in claims against professionals. These allow for a success fee to be paid by the losing side on top of normal costs if the case is successful. The case of Loizou upheld the principle that a 100% success fee can be recovered as soon as a trial starts. At the moment the success fee is paid by the losing party, but after April 2013 the rules change. Potential claimants should therefore seek advice on their claims without delay.” Click here for futher information about our Dispute Resolution and Professional Negligence services.