What Is A Split Liability Agreement?

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A split liability agreement is a legally binding contract between claimant and claimant that agrees an apportionment of liability between the two parties. Such an agreement is not uncommon with personal injury claims, especially where the case will require considerable investment, or where the case is not unquestionable due to a lack of evidence.

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Under what circumstances is a split liability agreement be proposed?

Sometimes, a split liability agreement will be proposed if there is no clear evidence of who or what was at fault for an accident taking place. For example, if two people were involved in a road traffic accident and both were to make a claim for financial compensation, with neither party accepting liability for the accident, a split liability agreement may be advised by your compensation solicitors as the best course of action.

What happens when a split liability agreement is agreed?

When a split liability agreement is agreed, each party receives a proportion of their claim. So in the case of a 50/50 split liability agreement, each party would receive 50% of the claim value, after their solicitor’s fees and the success fee is paid off. You may wondering why, if you aren’t to blame for your accident, why a 50/50 or even 75/25 split is possible. The reason is that if you were partly responsible for the accident, even in a minor way, and this can be proved, the other part isn’t legally obliged to pay you the full compensation amount.

Whose choice is to agree to a split liability agreement?

When it comes to deciding on whether or not to agree to a split liability agreement, the choice is yours. Your solicitor will never impose such an agreement on you – although they may advise in agreeing to it, as is their legal responsibility. You may also feel hell-bent on pursuing the maximum compensation amount, if you feel as though you were in no way to blame for your accident. However if there’s insufficient evidence to direct liability, a split liability agreement may be the best and only option available to you.

What are the most common split liability agreements?

Such agreements are in percentages, these are: 100/0, 75/25, 50/50, 25/75 and 0/100. 100 equals the full compensation amount – the other numbers are self-explanatory.

Isn’t a 50/50 agreement the same as a ‘knock for knock’ agreement?

No, not in the slightest. ‘Knock for knock’ is where both parties’ insurance companies pay any losses sustained, regardless of who is liable. This type of agreement is irrelevant with regards to personal injury claims, as it is not under any circumstances a part of the personal injury claims process, whereas split liability agreements are.

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