Pre-action Protocol and Fees in Personal Injury Cases
Following the abolition of the General Table of Fees on 1 August 2005 Society has negotiated a replacement for the old Chapter 10 arrangements.
Claims settled after 1 July 2007
The fees for claims settled after 1 July 2007 and dealt with entirely under the Protocol include;
Instruction Fee
On settlements up to and including £1,500 -£320
On settlements over £1,500 -£700
Claims settled after 1 July 2009
The fees for claims settled after 1 July 2009 and dealt with entirely under the protocol include;
Instruction Fee
On settlements up to and including £1,500 - £358
On settlements over £1,500- £783
In addition agents may charge a completion fee which is the same regardless of the date of instruction.
Completion Fee
On settlements up to £2,500 25 %
On the excess over £2,500 up to £5,000 15 %
On the excess over £5,000 up to £10,000 7.5 %
On the excess over £10,000 up to £20,000 5 %
On the excess over £20,000 2.5%
NOTES:
1) In addition, VAT (on all elements) and outlays will be payable.
2) In cases including payment to CRU the % fees will be calculated in accordance with the following examples:
1) Solatium £5,000
Wage Loss £5,000
CRU repayment £2,000
Sum paid to Pursuer £8,000
In these circumstances the scale fee will be based on £10,000 being the total value of the Pursuer’s claim.
2) Settlement as above but repayment to the CRU is £6,000 and only £5,000 can be offset. Payment to the Pursuer is £5,000 and £6,000 to the CRU. The scale fee will be on £10,000 being the value of the pursuer’s claim, as opposed to the total sum paid by the insurer - £11,000.
Claims Intimated prior to 1st January 2006
From 1 January 2006 a Voluntary Pre-Action Protocol in respect of Personal Injury cases is available for use in Scotland. Its terms have been agreed between the Law Society of Scotland and the Forum of Scottish Claims Managers. The Protocol can be found on the Society’s website www.lawscot.org.uk. The Protocol is voluntary and not binding. Self insured bodies have not signed up to it at all.
There is a related fees structure which is annexed to this note - “Personal Injury Cases – Protocol Fees from 1 January 2006”.
It is always open to a solicitor to offer to negotiate any claim in terms of the Protocol and related fees structure e.g. where it was intimated before 2006 or where the insurer is not in the Forum, but an insurer is not obliged to agree to that.
Older Claims and Non Protocol Claims
For claims which were intimated prior to 1 January 2006 and/or which are not in the Protocol after that date, there is no agreement binding insurance companies to pay any particular fees to the claimant’s solicitor. However most insurers will agree to pay fees based on what was Chapter 10 of the former Table of Fees recommended by the Society (which was withdrawn on 1 August 2005). Those fees were as follows:
Negotiation and Completion Fee
Settlements up to £2,500 25 %
On the excess over £2,500 up to £5,000 15 %
On the excess over £5,000 up to £10,000 7.5 %
On the excess over £10,000 up to £20,000 5 %
On the excess over £20,000 2.5%
Posts and Incidents up to a maximum of 5% of the fee may be added.
Outlays (Disbursements) and VAT on the fees and posts are payable in addition to the fees.
General article on the issues in December 2005
