No cure no pay in personal injury cases: what may a lawyer agree? | Amsterdam

From experiment to standing 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 (the ordinance on the legal profession), in paragraph 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 ordinance.

Not every case qualifies

The scheme applies to personal injury and fatal injury 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 accepted 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 ordinance 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, and pay attention to what happens to the extrajudicial costs that the other party reimburses.

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

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 to the extrajudicial costs reimbursed by the other party?
• What if the case stops midway or you switch to another case 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 case handler in Amsterdam

If from Amsterdam you are seeking 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 free of charge whether you might qualify for subsidised legal aid – then a result-related agreement is often not needed at all. Residents of Amsterdam can go for this to Het Juridisch Loket Amsterdam (the Legal Desk) (Wibautstraat 3, 1091 GH Amsterdam), telephone 0900-8020. See het juridisch loket amsterdam.

If it comes to litigation, then as a resident of Amsterdam your case will be handled by the Rechtbank Amsterdam (the district court), Parnassusweg 220, 1076 AV Amsterdam (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 bear the court fee, then enquire at the Gemeente Amsterdam (the municipality) about special assistance for legal costs: amsterdam.nl.