A recent High Court costs decision, in which the successful Claimant was represented in court by our Mark Carlisle highlights an important issue for anyone bringing a personal injury claim : you may not always need to pay a success fee or insurance premium from your compensation.
The Story Behind the Case
Mr Evans was injured in a road traffic accident and instructed solicitors to bring a claim on his behalf. His case settled successfully for £250,000, but he was then charged over £61,000 in legal fees, including a large success fee under a Conditional Fee, or "no win, no fee" agreement.
Mr Evans later challenged these charges. His argument was that he already had legal expenses insurance (often included with home insurance), which could have funded his case without those extra costs.
Why Legal Expenses Insurance Matters
Many people don't realise they may already have insurance that covers legal claims. This is called Before-the-Event (BTE) insurance or legal expenses insurance.
If used properly, it can:
- Cover your solicitor's costs
- Protect you against the other side's costs if you lose
- Avoid deductions like success fees from your compensation
What Went Wrong?
The court found that Mr Evans' solicitors did not properly check whether he could use his legal expenses insurance:
- They made no meaningful enquiries for over two years
- Their later checks were incomplete and not followed up properly
- They failed to contact the actual insurer handling legal claims
As a result, Mr Evans was placed into a funding arrangement involving a Conditional Fee Agreement and ATE Insurance that led to higher charges.
Could the Insurance Have Been Used?
The court decided that, on the balance of probabilities, yes—it probably could have been used:
- The policy wording suggested personal injury claims were covered
- The insurer did not rule out providing help
- There was no strong evidence that the claim would have been excluded
Would It Have Saved Money?
The judge accepted that if the insurance had been used:
- There would likely have been no success fee
- There may have been no need for additional insurance (ATE)
- Mr Evans would likely have kept more of his compensation
Mr Evans also said clearly that he would have used his insurance if given the choice—and the court believed him.
The Result
The outcome was significant:
- ✅ The solicitor's basic costs were still payable in principle (but the amount may be reduced yet on other grounds)
- ❌ The success fee was disallowed
- ❌ The insurance premium was said to be unnecessary
In simple terms, the court reduced what Mr Evans had to pay because he should never have been put in that more expensive arrangement.
What This Means for You
This case is important for anyone who has made—or is making—a personal injury claim.
You should be aware:
- You may already have legal expenses cover through:
- Home insurance
- Car insurance
- Bank accounts or memberships
- If that cover is available, it could:
- Reduce or eliminate deductions from your compensation
- If your solicitor does not properly check this, you may be able to challenge their fees
Need Advice?
If you are unsure whether you were correctly advised about funding your claim, or feel you may have paid too much in legal fees, it is worth seeking independent advice. Do please feel free to get in touch.