We often hear of law firms offering a “no win, no fee” agreement for personal injury claims, from TV ads to radio and across the internet, but what does it really mean?
Can you pursue a compensation claim without any financial risk? And how does it work if you win?
In this guide, we’ll answer all of those questions and more. As a law firm that believes in transparency, we’ll give you an honest appraisal of no win, no fee claims so you can decide if they’re suitable for your situation.
What does “no win, no fee” mean?
“No win, no fee” means that a solicitor will not charge their client any fees in the event of an unsuccessful outcome. If the claim is successful, the solicitor’s fees are typically recovered from the losing party or from a portion of the compensation awarded.
In other words, payment is conditional. That’s why the official legal document that is signed when agreeing to go ahead with a no win, no fee claim is known as a Conditional Fee Agreement (CFA).
A no win, no fee arrangement reduces the financial risk for clients, although it does not mean there is zero risk (as we’ll discuss later on). Regardless, the arrangement is a particularly useful means of pursuing a claim, especially in personal injury cases where a client may already be facing financial strains due to their injury.
Where does it stem from?
The concept of “no win, no fee” has existed in UK law since 1990. It represented a significant shift from the traditional model where clients had to bear the cost of legal services regardless of the outcome.
The concept was further bolstered by the Access to Justice Act 1999, which provided better protection for the compensation awarded to a successful party and made CFAs more attractive to a wider range of individuals.
How does “no win, no fee” work?
We already know the basic underlying principle: if a solicitor doesn’t win the case for you, you won’t pay any solicitor’s fees. But how does this play out in real life?
Let’s take a look at the step-by-step process, using a personal injury case as an example:
- Case Evaluation: Once you’ve found a solicitor offering no win, no fee claims, you’ll organise a consultation. During the consultation, the solicitor will gather facts, review evidence, and perform a full case evaluation.
- Decision: The solicitor will then decide whether to offer a no win, no fee arrangement. As part of their decision-making, they will undertake a detailed risk analysis to see if it is worth pursuing. Most solicitors will only take on your case if they believe there is a realistic, high chance of winning.
- Conditional Fee Agreement: If the solicitor takes your case, you will be asked to sign a Conditional Fee Agreement (CFA). In the CFA, specific details will be given, including the fact that you will only pay legal fees when the case is closed. In addition to this, your claim must have been successful and you must have received the compensation before payment is taken. Note:
- The small print can vary between solicitors. Some may take a fixed fee upon completion of a successful claim, whereas others may take a percentage of the compensation. All of this will be agreed upon before beginning to pursue the claim, so there is a mutual understanding from the outset.
- The majority of the legal costs will be recovered by the party responsible for your injury, but it is worth checking a breakdown of the costs and that everything is fair.
- Claim: If you agree to go ahead, your solicitor will gather evidence and build a case before submitting a claim against the party responsible for your injury. This typically involves notifying the defendant and their insurer of your intention to seek compensation.
- Negotiations: Many personal injury claims are settled out of court. Your solicitor will negotiate with the defendant or their insurer to reach a settlement that adequately compensates you for your injury.
- Court: If a settlement cannot be reached, your case may go to court. Your solicitor will represent you throughout the court proceedings, presenting your case and arguing for your right to compensation.
What happens next depends on the outcome of the case…
What happens if you lose your case?
Under the terms of a Conditional Fee Agreement, if you lose your case, you do not need to pay your solicitor’s fees. While this can save you thousands, it does not mean you’re totally off the hook.
Typically, you’ll still be required to pay the defendant’s legal costs, although it’s common for claimants to take out insurance against this possibility. The insurance is designed to cover such costs if the claim is unsuccessful.
You may also be liable to pay for any disbursements. Disbursement is a fancy legal term that broadly covers any additional expenses incurred by your solicitor during the case. For example, a specialist medical report in a personal injury claim, or court fees for submitting a claim.
What happens if you win your case?
If your claim is successful and you win your case, your solicitor’s fees can be recovered either from the losing party or your compensation. Ideally, they’ll be recovered from the losing party so you retain as much of your compensation as possible.
Additionally, in the UK, CFAs often include what is known as a ‘success fee’, which is an extra charge payable to the solicitor for the risk they took. Success fees are capped at 25% of the damages awarded, but the exact percentage will be stated in the CFA document.
Alternatives to no win, no fee
If no win, no fee isn’t for you, or if you’re rejected by a no win, no fee solicitor, there are alternatives to consider. Here’s a quick breakdown of the most popular:
- Legal Expenses Insurance: Often included as part of your home or car insurance policy, Legal Expenses Insurance (LEI) can cover the cost of legal advice and proceedings in various situations, including personal injury claims. It’s worth checking your existing insurance policies to see if you’re covered.
- Trade Union Representation: If you are a member of a trade union, you may have access to free legal representation for various matters, including workplace injury claims.
- Private Funding: You can choose to pay for legal services privately, either on an hourly rate or a fixed fee basis, regardless of the outcome.
- Crowdfunding: For certain cases, particularly those with a social impact or community interest, it may be possible to raise funds through crowdfunding platforms to cover legal costs.
- Pro Bono: In some instances, solicitors may take on a case pro bono, meaning they provide their legal services for free. This is more common in cases with a public interest or for clients with severe financial constraints.
- Litigation Funding Agreements: These types of agreements are another form of the no win, no fee arrangement, but the funding is provided by a third-party, not the solicitor.
How to find no win, no fee solicitors you can trust
With a highly saturated market, it can feel overwhelming when trying to find a no win, no fee solicitor that you can trust.
However, there’s a process you can follow.
- First, start with looking for solicitors who specialise in your particular type of case. Search engines, word-of-mouth referrals, and platforms like the Legal500, can help.
- Second, review their credentials. All law firms in the UK should be registered with the Solicitors Regulation Authority (SRA). You may want to look for awards they’ve won or associations they’re part of.
- Third, and most critical, take a look at their reviews so that you can see feedback from real clients. It’s best to use independent review sites, like Trustpilot or ReviewSolicitors.
- Once you have a shortlist of 2-3 solicitors, set up consultations. Not only will you get a good feel for your solicitor, you’ll be able to compare their fees.
At the end of this process, you should be able to make an informed decision and proceed (fingers crossed) successfully.
Speak to our no win, no fee solicitors in Manchester
Our personal injury team has received hundreds of great reviews from clients on Review Solicitors, and as a business, we are ranked number one in Manchester.
If you do have a no win, no fee claim that you would like us to look into, you can give us some further information on the form below and the team will be in touch. Alternatively, feel free to call directly on 0161 969 3131.