What does No Win No Fee* really mean?
You might have heard the phrase no win no fee several times, but few people know what the term really means.
No Win No Fee* is a word normally used by solicitors, which means that if your claim is unsuccessful, you won’t have to pay any fee to the solicitor. No Win No Fee* arrangements also remove the risk of making an accident claim as there are no upfront fees and no unexpected costs to pay.
If you win the case you solicitor will recover their basic costs for representing you from the defendants. However, you will usually have to pay the “success fee” – but the amount you pay will be determined by the type of No Win No Fee* agreement you enter into.
There are two types of no win no fee arrangements and they are:
- Conditional Fee Agreements
- Contingency Fees
Conditional Fee Agreements
Conditional fee agreements are the only type of No Win No Fee* arrangements that are allowed for a vast majority of cases. Conditional fee agreements have two important features.
Firstly, solicitors are allowed to charge a success fee so as to reward their risk-tasking in the event of a successful result. This is currently capped at 25% of the damages awarded in personal injury cases.
Secondly, as a general principle under the legal system in England and Wales, the loser usually pays the winners costs. This means that you will not have to pay for your solicitors’ basic costs if you win or lose under a No Win No Fee* agreement. But you might be liable for the legal costs of your opponents if you lose.
However, when entering into a No Win No Fee* agreement you would be required to purchase an after the event insurance policy, which would cover your opponents costs if you lose.
The second kind of No Win No Fee* arrangements are contingency fees agreements. Contingency fees are more straightforward. Usually, the solicitors would take a slice or a straight percentage out of the compensation awarded. Such arrangements are limited and are used in non-contentious cases, but are especially popular for employment law claims.
No Win No Fee* provides an excellent way for those who wish to make a personal injury claim but do not have the financial means to do so. No Win No Fee* provides benefits for those who are looking to make a claim by:
- Providing a risk free method of pursuing your claim
- Offering no costs for you to pay during your claim
- No unexpected costs or upfront fees
Not every solicitor offers a No Win No Fee* arrangement. At Cute Injury we work our hardest to ensure that all our personal injury solicitors provide this form of agreement for all our clients.