How is an Erb’s palsy compensation claim funded?
The first step of any Erb’s palsy claim is to get funding in place, to pay for its various aspects such as medical records and expert reports.Funding also provides protection against having to pay the defendant’s costs if the claim is ultimately unsuccessful.
If you feel anxious about paying for a claim, we hope that this explains the process of funding. At the end of the day, if care has been negligent it’s important to bring a case to help hospital trusts consider the care they are giving to mothers and newborn babies.
What are the funding options for an Erb’s palsy case?
Funding falls into two main options:
1 – Legal aid
This would mostly be used for children and is subject to financial and merits criteria. We do however have a legal aid franchise for this area of work and therefore it is an option that we can provide to clients.
2 – A Conditional Fee Agreement (or CFA)
This is sometimes known as ‘no win no fee’. This means that we get paid nothing if the claim is unsuccessful, and in return (if the claim is successful) we get a percentage increase on our fees (known as a success fee). This must be backed by an insurance policy which will repay any sums paid out for medical records, expert reports, court fees etc. and will also cover the defendant’s costs up to stated limits.
Under this funding option, whilst the defendant will pay our basic charges and the insurance premium (which pays for the expert reports looking into whether or not there has been negligence, and if so what injury has been caused) any shortfall in our costs including the success fee, and the balance of the insurance premium has to be repaid from the damages awarded, up to a capped limit of 25% of the damages awarded for pain and suffering and past financial losses.
What are you liable for in an Erb’s palsy case?
With a CFA, any shortfall in our costs (including the success fee and the balance of the insurance premium) has to be repaid from the damages awarded, up to a capped limit of 25% of the damages awarded for pain and suffering and past financial losses.
With legal aid funding, theoretically any shortfall in our costs is payable, but in reality we try to ensure that the client receives all of their compensation monies.