Personal injury claim funding

Frequently Asked Questions (FAQs)

Q1 - Will I have to contribute towards 1ST CENTRAL Law’s fees?
A - You won’t have to pay anything up front, whatever happens. If you already have full Legal Expenses insurance at the time of the accident, then subject to the reasons given in questions 4 and 5 below, you won’t have to pay legal costs whether you win or lose the case. If you aren't covered by Legal Expenses insurance, then you'd need to make a contribution to our legal fees at the conclusion of the case. This contribution will be payable out of your compensation figure.

Q2 - How much will I have to contribute towards 1ST CENTRAL Law’s fees?
A - It depends on which claim process is suitable for your claim, but we'll advise about this before you decide whether to formally instruct us. You don't have to pay anything up front, and any contribution to our fees will be either fixed or capped at an agreed “% of damages” level, and paid at the end.

In addition to this, if you've chosen to buy an After the Event (ATE) legal expense insurance policy, then you'll also pay that premium from your damages at the end of the case. You don't have to take out that insurance, but in certain circumstances your damages could be at risk if you do not have it.

Q3 - Why should I contribute to my own legal fees if my claim is successful?
A - Before 1st April 2013, claimants generally received all of their damages after the legal costs had been resolved, but the government changed the law and new rules were introduced in late 2012 and early 2013 that changed the funding position dramatically. The rules relating to RTA claims where the injury is valued at/below £5,000 were then changed again for collisions occurring on or after 31st May 2021. We'll explain what (if any) your contribution towards our fees will be at the outset, before you formally confirm our instructions.

Q4 - Will I have anything else to pay if my personal injury claim succeeds?
A - There are rare circumstances in which claimants have to pay something towards the other party’s legal costs, even if compensation has been awarded. This could happen if your case is not a Small Claim and the other side makes a formal "Part 36 offer” which is then rejected by you, but which is subsequently shown to have been a reasonable offer. If this were to happen, then you may have to pay the other side’s legal costs from the date shortly after the offer was made. Those costs are generally limited to the value of your compensation, so although your compensation may be used up towards these legal costs, you would never end up having to pay anything more. An exception to this would be if your claim was shown to be dishonest or fraudulent; in which case, you could be ordered to pay further legal costs.  However, legal costs ordered against our clients are rare, as we give our clients clear advice about when to accept and when to reject offers.

Q5 - Will I have to pay anything else if my claim does not succeed? 
A - Not unless your claim was dismissed by the court (struck out) or shown to be dishonest or fraudulent.  In these circumstances you could be ordered to pay all of the other side’s legal costs, and your own legal fees.