Discounted CFA's

Useful Articles > Discounted CFA's (print this page )

The Court of Appeal have endorsed the use of a discounted CFA providing for basic charges with a success fee if the claim is successful and a discounted hourly rate if the claim is lost. 

In Gloucestershire County Council v Evans and Ors the Court approved a CFA which claimed basic charges of £145.00 per hour which were to be discounted to £95.00 per hour if the claim was lost.  A success fee of 100% was claimed on the basic charges (the £145.00 per hour) if the claim was successful.

The decision will be useful for practitioners who have faced having to conduct cases at the low hourly rates often insisted upon by BTE insurance providers as it will be possible to enter into this type of discounted CFA where the normal hourly rates are the basic charges which are discounted to the rates payable by the BTE Insurers if the case is lost. 

It may well be that Solicitors acting for liability insurers will also now act on this type of CFA (or CCFA) which may result in a potential increased costs liability if claims are lost which might have a knock on effect on ATE premiums.

As always if you or any one else at  would like to discuss this, or you've any other costs queries, please don't hesitate to contact me.

Andrew
A Neat Legal Services - Law Costs Draftsmen