Compensation Claims - What is a Compensation Claim?

Compensation claims are the financial sum awarded to a claimant that has been victim of negligence in some way. This can refer to a number of incidents, including breach of contract, breach of duty, personal injury or loss. The industry is fantastically set-up, with numerous companies set up in several specialised forms of seeking compensation.

Historically the act of claiming compensation would cover a host of activities in UK law. This could include damages upon the breach of contract, in which the claimant is recompensed for an associate’s unlawful behaviour in regards to a signed document. However, in light of the 21st century explosion of ‘no win no fee’ law companies, and the movement towards an Americanised society, compensation has become heavily associated with personal injury or loss.

‘No win No fee’ law firms are an invention stretching back to the early nineties in the UK. These companies operate on the premise that they work for free up until the awarding of compensation, of which they then take a substantial percentage cut. This created a visionary link between lawyer and client. This wonderful symbiotic relationship meant the client was eternally satisfied as at no point were they ever parting with cash, whereas the company was duly happy with the large sum they took off any amount of compensation.

The notion of this idea materialised after a host of high profile instances in which crazed stupidity was rewarded with financial reward, as the companies being targeted had not protected themselves from liability, for such an occurrence.

In 1994 Stella Liebeck sued the McDonalds restaurant chain after she had spilt coffee on herself whilst holding the boiling cup between her legs, when driving away from the chain. The spillage caused her to receive third degree burns on her thighs, groin and buttocks, resulting in an 8-day hospital stay. She sued McDonalds on the reasoning, that they had not issued a large enough warning on the cup, that the liquid inside was ‘hot’. After a highly contentious trial, Mrs Liebeck was awarded a whopping $640,000 compensation for the injuries she received, labelling McDonalds accountable for the incident. This judgment had a significant impact on the actions that followed in the UK, with savvy thinkers realising that the judicial system did not account for common sense, and that not following exact safety procedures could result in huge compensation claims.

The market is now awash with hundreds of companies offering clients that have been injured at there workplace or in their personal lives the opportunity to stake a compensation claim. The reason for the explosion in these companies is partly due to the working-classes ability to pursue negligence. In times gone by, workers in industry or trades simply assumed that any personal injury due to an occurrence at work was simply an occupational hazard. These individuals have now been enlightened to the fact that they can pursue claims for any harm done which is not there own fault. Not only this, but whereas previously it would be an unaffordable expense to obtain legal advice on such an issue, let alone a lawyer, they are now able to converse with the right people at no charge.