SDT Clears Personal Injury Solicitor of Improper Fee Allegations
(SDT)
Solicitors Disciplinary Tribunal
Clears Two Lawyers.
Yasin
Bagas and Arif Barber the principal of Barber and Co are cleared from being
accused of making fee deductions. This statement was made known by Legal Futures. The SRA
accused these two solicitors of making wrongful success fee deductions to
client’s damages. They were accused
right after it was made clear that the legal costs were far less what the
contracts required.
Personal
injury lawyer, Yasin Bagas was also suspected of possible fraudulent activities
with Arif Barber. However, the Solicitors
Disciplinary Tribunal found that both were unaware of the fraudulent
activity, Arif Barber still managed to receive a hefty fine. The fine was for
rule breaches and amounted to an astonishing £8000.
No
Win No Fee Hidden Costs.
Although
the term ‘no win no fee’
might be used by the majority of firms, it seems that not all clients know
exactly what it means. The Solicitors
Disciplinary Tribunal feels that a number of solicitors even commit crimes
without them even knowing. As mentioned above. This is mostly due to a lack of
knowledge. The term strictly means that there are no legal fees if the claim is
unsuccessful. However, if a client wins their case, there will be added legal
success fees on top of regular fees. Even with no win no fee cases there are
still upfront fees as well such as medical costs.
The
compensation a client receives acts as a sort of financial safe haven. It
allows them to cover expenses such as a lack of income. Since all the ‘extra’
fees are deducted from the compensation it deprives the actual purpose of the
settlement. This is why there is a controversy going on concerning claims fees
and extra added fees. A lot of claimants feel that even if they win their case
they still manage to lose a lot. They end up with a severe injury and they only
get a portion of their settlement if they win.
There are a number of cases where after the fee deductions the client
was left with not enough compensation to cover his expenses.
Example
to Take Advice From.
Law
Gazette
published an article in August of 2015 of a similar incident. The firm in the report
charged their clients a standard 100% success fee, to be capped at 25% of all
damages. This received quite a reaction from the court. The judge responded to
the thought of firms setting success fees in order to proceed with claims. The
suggestion that personal injury solicitors will not undertake a case if there
is no guarantee of success fee is unjustified. Firms and Solicitors can only
wait and see if the Solicitors
Disciplinary Tribunal (SDT) decides to intervene and adjust the system.
In
Summary.
There are various
parties that feel the Solicitors
Disciplinary Tribunal should in fact not have cleared the lawyers. Yet,
there are also parties who agree with them.
The more incidents that occur might just lead to a change in how they
calculate success fees. None the less it’s still necessary to work with injury claim lawyers when involved in an
accident. Even with added legal fees, at the end of the day, a no win no fee
solicitor will still cost less than a regular solicitor.
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