No cure no pay for personal injury: what may a lawyer agree? | Utrecht

From experiment to permanent rule

Since 2014 there has been an experiment that allowed lawyers in personal injury cases to make result-related agreements, as an exception to the general ban. That experiment has been extended several times and has now been permanently laid down in the Verordening op de advocatuur, in paragraaf 7.4.3.

The aim is twofold: access to justice for people who do not qualify for subsidised legal aid but cannot afford a lawyer either, and lawyers who can compete with commercial personal injury firms.

The hard limits

The scheme is not a blank cheque. Two maxima apply, depending on who advances the costs:

• if the lawyer does not advance the costs, the fee is at most 25% of the result obtained, and the usual hourly rate may be increased by factor 2;
• if the lawyer does advance the costs – think of medical expert reports or court fees – then the maximum is 35% of the result, with an increase of the hourly rate by factor 2,5.

If a lawyer presents you with a percentage above these limits, that agreement is contrary to the regulation.

Not every case qualifies

The scheme applies to personal injury and fatal accident cases, and only if there is actually something to litigate: there must be a legal dispute about liability, the causal link or the existence of damage. There must also be uncertainty about the expected outcome.

A case in which the insurer has already admitted liability and only the amount is still being negotiated is therefore not automatically suitable. That is logical: without risk, a risk surcharge cannot be justified.

Lawyer or personal injury firm

With a lawyer you know where you stand: the maxima are in the regulation and there is disciplinary law. Commercial personal injury firms do not fall under the Verordening op de advocatuur and are not bound by those same percentages. So look extra carefully at the contract there, and pay attention to what happens with the out-of-court costs that the other party reimburses.

A sensible check in advance is whether the service provider holds the Nationaal Keurmerk Letselschade (National Quality Mark for Personal Injury).

What you ask before signing

• Over which amount is the percentage calculated: over the total compensation or over what remains after deduction of costs?
• Who advances the costs, and which maximum belongs with that?
• What happens with the out-of-court costs reimbursed by the other party?
• What if the case stops midway or you switch to another handler?

Have the agreement checked first if necessary. An agreement about your fee is one that you will carry with you for years.

Choosing a handler in Utrecht

If you are looking from Utrecht for legal assistance for your personal injury case, then the question of how you pay is at least as important as whom you engage.

First have it checked for free whether you might qualify for subsidised legal aid – then a result-related agreement is often not needed at all. Residents of Utrecht can go for that to Het Juridisch Loket Utrecht (the Legal Desk) (Moreelsepark 65, 3511 EP Utrecht), telephone 0900-8020. See het juridisch loket utrecht.

If it comes to litigation, then your case as a resident of Utrecht will be handled by the Rechtbank Midden-Nederland (locatie Utrecht) (the district court), Vrouwe Justitiaplein 1, 3511 EX Utrecht (telephone 088-361 1000). At that court the court fee is also charged – one of the costs of which you will want to know in advance who advances them. See rechtspraak.nl.

If because of the accident you temporarily have no income and you also cannot afford the court fee, then enquire at the Gemeente Utrecht (the municipality) about special assistance for legal costs: utrecht.nl.