Beware of Fixed Fee Cost Agreements in Personal Injury Cases

Cost Agreements in Personal Injury Cases


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The Importance of Understanding Cost Agreements in Personal Injury Cases

When seeking legal assistance, especially in personal injury cases, it’s crucial to understand the nature of cost and fee agreements. This blog aims to guide individuals who have suffered injuries and are considering engaging a personal injury lawyer. We will explore why fixed fee agreements might not always be the best option and the importance of a transparent fee structure.

The Nature of Cost/Fee Agreements

How They Apply to Personal Injury Cases

In all legal matters, lawyers must enter into cost/fee agreements with their clients.

This obligation applies equally to personal injury cases as it does to other legal matters, although it could be argued that Cost agreements in personal injury compensation cases are of limited utility because, unlike most other areas of law, the insurer generally pays a large proportion of the injured person’s legal costs at the successful end of a personal injury claim.

Fixed Costs in Personal Injury Compensation

Understanding the Fixed Fee Model and Its Appeal

Many personal injury lawyers persuade their clients to agree to a fixed cost arrangement. The appeal of such arrangements lies in their promise of certainty. Injured clients are assured that they won’t be charged more than the agreed fixed fee at the conclusion of their injury claim, regardless of the claim’s complexity or outcome.

Pitfalls of Fixed Fee Cost Agreements in Personal Injury Cases

Why They Might Not Be Beneficial

Despite their apparent appeal, fixed fee agreements come with several drawbacks:

Overpricing Risks: The fixed fee might be disproportionately high compared to the nature of the personal injury claim and the work that is needed to successfully run the case.

Uncertainty of Legal Work Required: It’s often unclear at the outset how much legal work a claim will entail.

Lack of Transparency in Legal Work: There’s no guarantee of the amount and quality of legal work performed.

Your compensation lawyer might delegate substantial work to less experienced staff or outsource to external barristers, incurring additional costs.

Potential Overpayment: You risk overpaying for services, potentially leading to an unearned financial gain for the lawyer.

Personal injury solicitors should only be paid for the work that has actually be performed.

Stacks Goudkamp’s Approach to Cost Agreements

Prioritising Client Best Interests

At Stacks Goudkamp, we choose not to engage in fixed cost agreements. Our primary commitment is to act in the best interest of our clients, both financially and personally. We believe in prioritising the needs of our clients over financial gains, ensuring a fair and transparent legal process.


Making an Informed Choice

When choosing a personal injury lawyer, it’s vital to consider the nature of the fee agreement carefully. Fixed fee agreements, while offering certainty, can lead to complications and might not always align with your best interests. There is a reason some personal injury lawyers choose fixed fee agreements.

Written by Tom Goudkamp


I could write a book as to how the last 4 years would have been different if not for Tom and his team.
The support, assistance, advice from the first conversation till even after the settlement was second to none from the team at Stacks Goudkamp.
Four years on and after many downs, my children and I have our lives back.
We are unable to THANK YOU enough, but know that you have changed our lives for the better in so many ways since the accident.