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Client receives £10,500 from a previously deducted sum

Mr P had an accident at work when he slipped on wet flooring.  There were no warning signs and he therefore went to a firm of solicitors asking that they seek compensation on his behalf. 

The solicitors advised Mr P that it would be appropriate for him to enter into an after the event insurance policy which in the event that the claim was successful would result in him having to pay 35% of any compensation that he would receive by way of  a premium for that policy. 

Mr P thought that this was a normal arrangement between a client and a solicitor and he therefore signed the necessary forms and the claim was eventually settled in the sum of £43,000.00 of which over £13,000.00 was paid to the insurers. 

After the settlement and having spoken with colleagues who had had similar claims, Mr P instructed Paul Carvis to consider the paperwork to see whether he had been properly advised. 

Mr Carvis having looked at all the relevant documentation took the view that at the time that Mr P instructed the solicitors the normal practice was for solicitors to take cases on a no win no fee basis and that any premium on the ATE policy should be recovered from the Defendants so that the client would receive 100% of any compensation paid.

Accordingly, Mr P instructed Mr Carvis to take up this claim with the previous solicitors and after initially denying liability when threatened with legal proceedings the company agreed to repay Mr P £10,500.00 from the sum deducted and paid to the insurers.  

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