With all of the difficulties claimant employment lawyers have faced over the past year it might come as a surprise, but there could be some good news on the horizon.
How to fund tribunal fees has been the big question on the minds of both claimants and their legal advisors and the answer could have been provided in a recent personal injury claim (Jeffrey Jones and Others v Sec of State for the Dept for Energy and Climate Change).
In this group action the Claimants succeeded in their claim for personal injuries and as well as claiming the usual costs and disbursements, they claimed interest incurred on disbursement funding offered by their solicitors. Each claimant had an agreement with their solicitor which gave them credit to spend on disbursements on the understanding that it would be recovered from the defendant if the case was successful or paid by an ATE policy if the case was lost.
The rate of interest at 4% was challenged on the basis that with their being little risk that the funding would not be repaid then a lower rate of interest which applies to business lending should be recoverable rather than a higher rate usually applied to individual borrowers.
However it was held that the claim for interest was actual rather than notional and the rate of 4% was approved as being reasonable.
After the event legal expense insurance is new to employment tribunal claims, but there is now a substantial risk of the claimant being out of pocket should their case fail so there is need for a policy.
Our Feesafe ATE insurance policies cover tribunal fees and other incidental disbursements. We also offer a loan for the hearing fee and the policy combined with a loan means that the claimant pays nothing and either the claim succeeds and the fees are recovered from the respondent or they are paid by the policy if the claim is unsuccessful.
We will need to see the full transcript before we can be sure the Jeffery Jones ruling will apply to disbursement funding for employment tribunal claims, but if it does then we seem to have an ATE product and hearing fee loan facility which can offer claimants cost free employment litigation once more.