MegaSack DRAW - This year's winner is user - rgwb
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Contribution cap..
" The contribution cap is 0.00 percent of any samages recovered plus applicable VAT"
This is in a no win no fee personal injury claim.
Need a bit more context, but if it's some form of agreement with your solicitors, then I suspect it is a cap on the amount you would have to contribute to their costs in the event of a successful outcome.
Does that make sense?
NWNF lawyers are allowed to set aside a proportion of your damages to cover their fees - this is the maxmimum they are allowed to take, so if, for example, the Contribution Cap was 25% and you won 10K, they could take up to 2.5K to cover their fees.
Is it really zero in this case? It's a bit of a sneaky phrasing given that most people would see a cap as a cap not allow for the charging of VAT on top.
I was told yesterday that they would like to represent me. They are confident that they will win the case and the amount of 'costs' awarded to them ( attainable from the defendent) would be enough to cover their costs. And that nothing would be deducted from the awarded damages.
Trouble is I find it very difficult to understand the legal-speak.
It goes on to say
"The contribution cap will be operate in the following manner
((i) and (ii) being consecutive)
(i) Payment by you of Level 2 basic charges plus any applicable VAT on Level 2 basic charges;
(ii) payment by you of the Success Fee ( this is your contribution by way of the Success Fee is subject to maximum limits which are inclusive of VAT) See schedule 3 below."
I'd hate to think I'll be agreeing to something that'll later bite me in the ass.