No Win No Fee (Conditional Fee Agreement)
Accident & Personal Injury
What is a 'no win no fee' agreement and how does it work?
A 'no win no fee' agreement, also known by solicitors as a Conditional Fee Agreement (CFA), is a very effective way of covering the legal fees involved in bringing a claim for compensation, following an accident or injury.
It works particularly well for clients because the solicitor does not get paid until the end of the claim and only then, if the claim is successful. Effectively, this means that claimants never have to worry about legal fees. As a result 'no win no fee' agreements are now the most common way of funding personal injury claims.
When taking on a case with a 'no win no fee' agreement, the solicitor takes a risk. If the case is lost, they will not get paid. Only if the matter is won, will the defendant's insurance company have to pay all of the claimant's legal fees.
To compensate the solicitor for taking the risk, the law allows a 'success fee' or 'win bonus' to be paid to the solicitor. In the past, this success fee has often been deducted from the compensation, but this is now paid by the defendant's insurer at the end of the case, along with the legal fees. This means that clients receive 100% of their compensation.
Solicitors should also take out After The Event Insurance (ATE) which covers the defendants legal fees if the claim is lost. The risk taken by solicitors on these cases does mean that they will try their very hardest to win a claim for you, but it also means that they have to carry out an assessment at the start, to see if there is a viable case, before proceeding.
For help or advice please contact Richard Paremain or telephone 02476 521081