100 percent compensation news
21/01/2010

Will Britain go the way of the US?

A growing number of legal professionals have expressed alarm that proposals contained in a report reviewing the process of civil litigation in Britain could prevent claimants from receiving 100 percent compensation and instead usher in an era of US-style damages awards.

Under the terms of the existing "no-win, no-fee" system, claimants often have no cut taken from their payouts and thus receive 100 percent compensation, but this would be ended if the government adopts the proposal of having solicitors take up to 25 percent of a payout .

One York-based personal injury solicitor commented that there would be an increase in the damages for victims of personal injury and clinical negligence.

"But," she asked, "would this be enough to compensate for the shift in responsibility to the claimant for meeting their lawyer's success fee?

She added, "The report is moving towards a more American-style system where lawyers act on a contingency fee basis and receive a percentage of the client's damages for their fees."

As the system currently stands, personal injury claimants receive can receive 100 percent compensation for all types of claim, regardless of whether it is for tinnitus, a work accident or whiplash.