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(e)
This of course only works where the plaintiff's lawyers and ATE insurers have
assessed the risk of losing as small and acceptable. Therefore a plaintiff with
less than a clear case is likely to find it difficult to fund his action through a
conditional fee agreement. Moreover, it can only work in some types of cases.
Thus, in running-down or industrial accident cases, the defendant is covered by
compulsory insurance so that the plaintiff who wins will not be left with an
empty judgment. The same may be true where the defendant is a substantial
company or institution which has ample assets and poses no risk of absconding.
But the risk attaching to less substantial defendants may make conditional fee
agreements unattractive and unworkable.
(f)
Where the plaintiffs' team correctly assesses the risk, the defendant, or more
probably, his insurers, have to meet the bill for the plaintiff's costs and
disbursements, including the success fee and the ATE premium. The
defendant's liability insurers in turn pass on those costs to those purchasing
motor, accident or some other relevant insurance policies.
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