Crucial reforms affecting the funding of litigation cases are coming into effect on 1st April 2013.  The Jackson Reforms, as they are called, are the biggest shakeup of the civil litigation system in England and Wales since 1999.

At the moment, for example, anyone who wants to bring a claim against the estate of someone who has died who is on a low income, may qualify for legal aid.  After 31st March 2013 legal aid will no longer be available for this kind of case.  So if you think that you might want to bring a claim and would qualify on financial grounds it’s vitally important that you should get legal advice now.

If legal aid is granted to you before the end of March then your funding will continue (unless your financial circumstances improve).  After the end of the month –  unless you can persuade a solicitor to take your case on a no win no fee basis  – you may not be able to bring a claim at all.  Sarah Young, Partner at Ridley & Hall Solicitors comments: –

“Although the legal profession is well aware of the changes ahead, very few members of the public are aware that legal aid is being withdrawn for a huge number of cases.  I specialise in inheritance disputes and I know that they can cost a lot of money – without legal aid a lot of people will struggle to bring a claim and I would urge anyone who thinks they might have a claim to get advice now.”

It’s not just inheritance disputes that are going to be affected by the reforms.  Anyone who has been injured in an accident will be familiar with no win no fee agreements (also called conditional fee agreements).  These agreements mean that if you lose your case your solicitor is not paid and if you win they are paid by the other side’s insurers who also have to pick up the tab for a success fee (which is an extra amount that your solicitor is entitled to charge for taking on the risk of being paid nothing if they lose).  At the moment insurers also pay for the accident victim’s insurance cover – this protects them against the risk of having to pay the other side’s costs if they lose.  From the 1st April 2013 the success fee and the insurance premium will have to come out of the injured person’s compensation.

In personal injury cases up to a maximum of 25% of damages may have to be paid.  In other cases, for example in inheritance disputes where there is a no win no fee agreement, up to 50% of a client’s compensation may have to be paid to their solicitor.

Sarah Young has this message: – “The obvious point to make is that if you think that you may have a case, you need to get specialist legal advice urgently and if a no win no fee agreement is the best way to fund your claim you must sign one before the 1st April if you want to receive all of your compensation.  Any agreement signed after 1st April will be subject to the new regime and you may well be worse off.  Insurance companies, who have lobbied the government intensively over these reforms, will be hugely better off.  Those who have been injured or suffered loss, through no fault of their own, will be penalised”.

Sarah Young is a Partner with Ridley and Hall solicitors. She specialises in contentious probate and personal injury. Sarah has an LLM in Personal Injury Law and has a record of bringing the most complex cases to a successful conclusion.

For further information please contact Sarah Young of Ridley and Hall, Queens House, 35 Market Street, Huddersfield HD1 2HL on 01484 538421 or mobile 07860 165850.