Wigg & Co - quantum risks in success fees
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"In the majority of cases, the Court of Appeal appears to have found
that a quantum risk is a minor risk that is capable of justifying only a
modest increment in the Success Fee. But see "Edwards -v- Smiths Docks
Limited" (20014) EWHC 1116 (QB), a case in which the majority of the risk
related to quantum. The Court approved a Success Fee of 87%. If the risks on
quantum are not unusually high, then only a modest part of the Success Fee
will be attributable to that risk, but if a case turns on quantum, then a
large part of the Success Fee where the risk relates to quantum."
"Attack -v- Lee and another; Ellerton -v- Harris CA TLR 28th December NLJ
7th January 2005."
"the predictable Costs regime for accident claims, introduced on 6th
October 2003, does not apply to Conditional Fee Agreement's in respect of
cases arising out of accidents that took place before that date. In attack,
the Claimant appealed against the reduction of the Success Fee from 100% to
50% in a case that went to trial and then settled for £30,000.00 after a
finding of liability. In Ellerton, the Defendant appealed against an award
of a 30% Success Fee in a case that settled for £15,378.79, shortly after
the proceedings had been issued and allocated to the multi-track. In both
cases, the Court held that it would be wrong to apply the new rules as to
fixed percentage Success Fees. The reasonableness of a Success Fee had to be
assessed at the time the Conditional Fee Agreement was entered into. It was
permissible for any Conditional Fee Agreement to include a two-stage
Success Fee and that was to be encouraged."
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