PI success fee uplift slashed by 15 per cent

The ruling settles an issue left undecided by the House of Lords in Callery v Gray, which ruled that the question of lawyers' uplift should be kept under consideration.
Although the reduction from 20 per cent to 5 per cent only relates to PI cases that settle out of court, it will nevertheless impact on thousands of cases, as the majority of such cases never reach litigation.
Peter Ralls QC, a barrister at Selborne Chambers acting for the appellants, said: “It's a major victory for insurers over lawyers. Insurers say that every 1 per cent uplift means a loss of £1m.”
The case also settled an issue that will impact on thousands of cases waiting in the wings: whether success fees can be awarded for litigation arising out of costs disputes. The Court of Appeal upheld Ralls' submission that a 5 per cent uplift, rather than the 20 per cent being sought, should be awarded for such satellite litigation.