What are ‘No Win No Fee’ accident claims?
It is an agreement between a solicitor and a client which shows that the client will only pay when there is a winning situation and the claim is a success. Here the risk factor falls more on the solicitor than the client who feels secure and safe in any case. This feature compensates the risk ratio in the event of claim and client can seek all sorts of help and discuss their happenings freely with the solicitor. In the UK an agreement, CFA (*Conditional Fee Agreement) is signed that assures advocacy and proof of litigation. Under a CFA agreement the charges of the solicitor depends upon the outcome/result of the case.
What is a Conditional Fee Agreement?
A Conditional Fee Agreement is an arrangement where you only pay your personal injury lawyer for their work if your claim is successful and you win compensation. Conditional fee agreements have been in use since 1998 to ensure people have an affordable way of accessing legal representation to seek compensation for an accident or medical negligence. Frequently referred to as a No Win No Fee contract, a Conditional Fee Agreement is a service we offer our clients at The Legal Advice Group to make obtaining quality legal support affordable for everyone. It takes away the financial risk of engaging lawyers who require payment before a claim is agreed. The uncertainty of the outcome leaves claimants vulnerable to expensive legal bills.
How a solicitor gets paid if a ‘No Win No Fee’ case is successful?
Before April 2013, a successful claimant’s legal fees were paid for by the insurance company of the defendant. This meant that, in addition to paying their own legal fees and compensation, the losing side also had to pay the legal costs of the claimant. A change in the law means that a personal injury lawyer’s fee can no longer be recovered from the defendant. It is therefore typically deducted from the claimant’s compensation payment. You will agree on an amount, which is usually around 25% of damages you receive, to be paid to your solicitor for their work. If your solicitor is successful in winning the claim process, you are entitled to receive 100% of the awarded compensation, Now, out of that compensation amount received you can pay your solicitor fees and cost as agreed upon which usually is capped at 25%. So it’s in the best interest of the solicitor to fight for the highest amount possible. At The Legal Advice Group our panel solicitors will typically only take on a case if it has more than a 50% chance of winning.
Do I pay anything if my claim is unsuccessful?
You do not have you pay any of your legal costs if your claim is not successful providing you have adhered to the conditions of your agreement, including taking their legal advice and being honest with the information you provide. If you have been dishonest with the panel solicitor you may be in breach of your agreement and may still be liable for payment of court costs, expert reports, and any other expenses detailed in your contract, so make sure you understand it before signing. Also if you terminate the agreement before your claim for damages ends, you may be liable to pay basic charges including (but not exclusively) disbursements and barristers fees.