It emerged this week that an agreement has been reached between the Association of British Insurers (ABI) and solicitors' groups over the level of fees that personal injury lawyers should be allowed to take in 'no win, no fee', or conditional fee arrangement (CFA) cases.
Wrangling between insurers and personal injury lawyers has been taking place since the conditional fee system was introduced in 1995 to replace legal aid. However, according to reports, the situation has worsened over the past two years, with many insurance firms querying payments, and witholding the fees of the lawyers who worked on disputed cases.
Under the terms of the agreement reached this week, personal injury solicitors will be permitted to take a 12.5% of costs 'uplift' payment in successful cases, to reflect the potential risk of losing a case.
Speaking to the Guardian, head of general insurance at the ABI, John Parker welcomed the deal, announcing that:
"We hope the agreement can be implemented as soon as possible to bring about certainty and an end to over two years of disputes about fair uplift due to solicitors." He added:
"Now there is a welcome degree of clarity about legal costs."
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