Understanding costs in personal injury claims can often be confusing for claimants and solicitors alike. Personal injury litigation involves a number of different types of legal costs, funding arrangements and court procedures. These costs can vary depending on the value of the claim, the complexity of the issues and the track to which the case is allocated.

At ARC Costs, we regularly deal with the costing aspects of personal injury claims, particularly in complex and high-value cases involving catastrophic injury or long-term loss. The questions below explain how costs work in practice and how they may be recovered from your opponent where a claim succeeds.

What are costs in personal injury claims?

Costs in personal injury claims refer to the legal fees, court expenses and other disbursements incurred while pursuing compensation for an injury.

These costs usually include:

• Solicitors’ legal fees
• Barristers’ fees
• The cost of expert witness evidence
• The cost of obtaining medical reports
• Court charges such as the court fee
• Insurance premiums, such as ATE insurance

In many successful claims, a large proportion of these costs may be recovered from your opponent, although the exact amount of costs recoverable depends on the funding arrangement and the type of case.

How are personal injury claims funded?

Many personal injury claims are funded using a conditional fee agreement (CFA), commonly referred to as a no win no fee arrangement.

Under a conditional fee agreement, the solicitor agrees that if the claim is unsuccessful, the client will not normally pay their solicitor’s fees. If the case is successful, the solicitor may charge a success fee, which is a percentage uplift on their basic costs.

The success fee is designed to reflect the risk taken by the solicitor in handling the case without payment during the claims process.

What is a success fee?

A success fee is an additional fee that a solicitor may charge when a claim funded under a conditional fee agreement is successful.

The success fee is typically deducted from the claimant’s damages rather than being paid by the losing party. The level of the success fee must be agreed in advance and is subject to legal limits.

Although the success fee cannot usually be recovered from your opponent, the majority of the solicitor’s basic legal fees can still be recovered as part of the overall costs claim.

What are disbursements in personal injury claims?

Disbursements are costs paid to third parties during the litigation process.

Common examples include:

• Fees for an expert witness
• The cost of obtaining medical reports
• Court charges such as the court fee
• Barristers’ fees
• Costs of obtaining specialist evidence

These costs are necessary to prove liability and establish the value of the injury. In successful cases, many of these disbursements can be recovered from your opponent.

What is ATE insurance?

ATE insurance stands for After The Event insurance. It is often taken out once a claim has started to protect the claimant against the risk of paying the other side’s legal costs if the case is lost.

The premium for ATE insurance is usually deferred until the end of the case and only payable if the claim succeeds.

In some cases, particularly where expert evidence is required, part of the ATE premium relating to the cost of medical reports may be recoverable from the defendant.

What is BTE legal expense insurance?

Some individuals already have legal expense insurance through policies such as household insurance or motor insurance. This is referred to as “before the event” or BTE insurance.

This type of cover may help fund legal advice and representation for a personal injury claim. Where legal expense insurance is available, it may reduce the need for a conditional fee agreement or ATE insurance.

However, the terms of these policies vary and not all claims will fall within their scope.

Do all personal injury claims go to court?

No. Many personal injury claims settle without the need for court proceedings. In many cases the parties reach an agreement on liability and compensation through negotiation.

However, where a settlement cannot be reached, court proceedings may be issued to resolve the dispute. When this happens, the court will usually allocate the claim to a particular track depending on the value and complexity of the case.

What are the different court tracks for personal injury claims?

Personal injury cases are generally allocated to one of several court tracks:

Small Claims

Lower value claims may fall within the small claims track. In these cases, the recovery of legal costs is very limited. Claimants typically cannot recover their solicitor’s fees from the other side.

Fast Track

Claims of moderate value may be allocated to the fast track. These cases follow a structured timetable and the recovery of costs is governed by fixed costs rules.

Intermediate Track

The intermediate track applies to claims that fall between the fast track and more complex litigation. Costs recovery in these cases are still likely to be subject to fixed or structured rules.

Multi Track

The multi track is used for higher value or complex claims. These cases often involve significant evidence, multiple experts and detailed legal arguments.

High-value injury cases such as catastrophic injury claims are typically managed on the multi track. In these matters the amount of costs involved can be substantial due to the level of investigation and expert evidence required.

ARC Costs has extensive experience dealing with costs issues arising in multi track personal injury litigation.

What happens to costs if the claim succeeds?

If a personal injury claim is successful, the court will normally order the defendant to pay a significant portion of the claimant’s legal costs.

These costs can include:

• Solicitors’ basic legal fees
• Expert witness costs
• Medical reports
• Barristers’ fees
• Court charges

However, the costs recovered from your opponent may not always equal the total costs incurred. The court will assess whether the costs claimed are reasonable and proportionate.

What happens if the claim fails?

If a claim proceeds to court proceedings and is unsuccessful, the claimant may be ordered to pay the defendant’s legal costs.

This is one reason why ATE insurance is often used in personal injury litigation. The policy helps protect claimants from adverse cost orders.

In addition, many claimants pursue cases under no win no fee agreements to limit their financial risk.

Why can personal injury costs be high in complex cases?

Some personal injury claims involve significant investigation and evidence gathering. For example, serious injury claims may require:

• Multiple expert witness reports
• Extensive medical evidence and medical reports
• Detailed analysis of long-term care needs
• Financial and employment evidence
• Complex liability investigations

These factors can increase the overall amount of costs involved in pursuing the claim.

In high value claims, careful management of legal costs is essential to ensure that the work undertaken can be justified and properly recovered.

What role do costs specialists play in personal injury claims?

Costs specialists assist solicitors in preparing and presenting costs claims arising from litigation.

Their work may include:

• Preparing bills of costs
• Advising on recoverability of legal fees
• Managing disputes over legal costs
• Supporting cases at detailed assessment hearings

At ARC Costs, we regularly work with solicitors handling high-value personal injury litigation. Our team has extensive experience in dealing with complex cost disputes arising in serious injury claims and multi-track cases.

How can ARC Costs assist?

ARC Costs provides specialist support on costs in personal injury claims, particularly in high-value and complex litigation. Our experienced team works alongside solicitors to ensure that legal costs are properly structured, justified and recoverable.

Our services include:

• Preparation of bills of costs
• Advice on legal costs recovery
• Assistance with disputes concerning the amount of costs
• Strategic guidance during court proceedings
• Representation at detailed assessment

While personal injury litigation can involve many different types of costs and funding arrangements, careful management of those costs is key to protecting recovery and ensuring that the work undertaken is properly recognised.

If you require assistance with the costing aspects of personal injury claims, ARC Costs can provide the expertise needed to support complex cases across England and Wales.

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