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New regulations provide clarity on the cost of litigation

The Civil Litigation (Expenses and Group Proceedings) (Scotland) Act 2018 (Success Fee Agreements) Regulations 2020 come into force today, 27th April 2020. These new regulations are designed to ensure that parties pursuing litigation in Scotland have as clear as possible an understanding about the costs involved to them in pursuing a Court action. The regulations will also regulate success fee agreements (also known as no-win, no-fee agreements). The regulations define the amount a person pursuing a claim can be asked to pay their Solicitor and puts a cap on the amount of damages a Solicitor can recover from the overall damages recovered once the case concludes.

From April 27th, the most that a Solicitor will be able to charge a claimant upon successfully pursuing a Personal Injury action will be 20% of the first £100,000 recovered for them. For example, if you are pursuing a claim and it settles for £10,000, the most your Solicitor can charge you is £2,000. The amount the Solicitor can charge drops down to 10% for sums between £100,000 and £500,000 and drops again to 2.5% for any claim with over £500,000. In addition to the sum the Solicitor takes from damages, costs including the cost of expert reports can be recovered from the opponent in the case.

The regulations are very much welcome as they ensure that anybody pursuing a personal injury claim seeking compensation will know from the outset the maximum level of fee their Solicitor can charge. 

To discuss these new regulations or to discuss any new personal injury claim please contact either David McElroy or Gordon Bell.

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