Some time ago, Lubbock Fine client, law firm Simons Muirhead & Burton (SMB), identified this as an issue and put its mind to finding a solution. Managing partner, Razi Mireskandari explains: “Irrespective of the subject matter of the dispute, we feel it is essential that our clients, big and small, have access to justice. In order to achieve that, our clients’ costs exposure must be such as to make litigation manageable. The way we achieve this is two-fold. First, if we consider that our client has a good claim, we only charge an agreed fraction of our usual fees. If the claim then fails, that is all we get. If the claim succeeds, we get the remainder of our fees (plus a ‘success’ element on top) from the other side. Secondly, at no cost to the client, the firm itself is able to offer an insurance policy backed by Temple Legal Protection in case a costs order is made against them.”
"Our charging scheme, backed by ATE insurance, therefore provides the confidence for individuals or businesses to chase an unpaid fee or to pursue a good claim rather than let it go for fear of costs escalating. In the current economic environment, when every penny counts, this offers a timely opportunity to recover lost funds without worry about further financial damage. It offers real peace of mind against an adverse cost order, and, if the client loses, their exposure to their own costs is limited and manageable and they do not have to pay the insurance premium."
A large number of SMB’s clients have been able to benefit from this scheme for many different types of litigation including Heather Brooke (whose freedom of information request kicked off disclosure of the MPs’ expenses claims); Mo George (the binman in EastEnders) who was falsely accused of beating up his girlfriend and Mahtab Chowdhury, owner of Taste of India restaurant, in a claim against a negligent builder. The scheme covers all types of dispute whether a breach of contract claim, a negligence action, a professional negligence issue, an intellectual property dispute – there really are no restrictions.
Most civil cases settle before trial and this remains SMB’s aim as it is in everyone’s interest if a contested trial can be avoided.
The scheme can also be adapted for use by defendants.
“Using ATE insurance means that our clients have access to the best legal advice but in a cost effective way,” adds Razi. “The firm was a pioneer in promoting this new way of funding which admittedly challenges the traditional relationship between lawyer and client, turning it into much more of a partnership. Clients often tell me that it’s good for a law firm to put its money where its mouth is…”
For further information about ATE, please email or call Razi Mireskandari at razi@smab.co.uk or on +44 (0)20 3206 2700 or look at the firm’s website www.smab.co.uk.