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How Does No Win No Fee Work?

no win no fee arrangements
A no win, no fee, also known as a conditional fee agreement, is a contract between a solicitor and a client, read this article to find out how it works.

Reviewed By: John Black

John is Claim's Bibles lead content writer and is passionate about helping people claim the compensation they deserve if they have been mis sold or mislead.

Last Updated on 27th August 2023 by John Black

Home E Financial Product Claims E How Does No Win No Fee Work?

Hiring a solicitor can be expensive and as a result, many people perceive legal help to be unobtainable. When you suffer injuries and losses due to the negligent actions of another, you are entitled to file for compensation.

However, you increase your chances of getting maximum compensation when you hire a solicitor. Unfortunately, many may not have the money to pursue their case. As a result, the at-fault party can potentially walk free.
Unlike other forms of lawsuits, most personal injury claims can be made using a “no win, no fee” agreement, in fact, hiring a solicitor on this basis has become common practice across the UK. With no win, no fee, members of the public can gain easy access to legal services when they ordinarily would not.

Before signing a no win, no fee, agreement it’s important to understand how it works. At Claims Bible, we will help you calculate your fees and connect you with our panel of legal experts.

What Is a No Win No Fee Agreement?

A no win, no fee, also known as a conditional fee agreement, is a contract between a solicitor and a client in which the solicitor gets paid for their legal services only after they resolve the case in favour of their client. But, if they fail, they don’t get paid. No risk, no catch. If you don’t win, you don’t pay.

Originally, this agreement was made to ensure the defending party covered all legal costs associated with making a claim. As well as not having to pay any associated costs, this also meant clients would keep 100% of their compensation.

However, in April 2013, new legislation was introduced, which meant solicitors could no longer recover all of their fees from the defending party. Now solicitors can recover their costs from their clients through a deduction from the overall payout.

It is important to state that not all solicitors define a successful case outcome in the same way. For this reason, you must review your agreement to understand what’s required before working with your solicitor. For example, most conditional agreements do not apply to disbursements. So, if the solicitor incurred expenses on your behalf when handling your case and it is still unsuccessful, you may be required to cover the cost.

What Types of Legal Claims Does the No Win No Fee Agreement Apply to?

A no win, no fee agreement relates mainly to civil claims where you seek damages for personal injury caused by someone else’s negligence. Examples of these cases include:

  • Slip and fall accidents
  • Medical negligence
  • Housing despair claims
  • Road traffic accidents
  • Workplace accidents
  • Nursing home negligence, etc.

When you suffer injury or illness in these cases, you can recover compensation from the person or company responsible. The money you get, either as a settlement from the at-fault party’s insurance company or as an award in court, is to compensate you for the injury’s impact on your life.

A solicitor will handle your case properly to get fair compensation to cover medical bills and other expenses. However, the services of a solicitor do not come without a charge. Thankfully, you can approach a law firm without fear because of the option of conditional agreements.

How Does No Win No Fee Work?

When you approach a solicitor to act on your behalf, they will draft a legal contract. The contract will state that they will only be paid on the condition that they win your case. If they fail, they won’t get paid. The agreement will contain the following details:

  • The specific proceedings or part of the proceedings the no win, no fee relates to.
  • Details of how the solicitor’s fees will be paid.
  • Details of the exact amount and percentage payable under various circumstances.

Usually, your solicitor will take out an insurance policy on your behalf to cover the costs incurred to handle your case. Should your claim be successful, the other party will pay for your damages, and your solicitor will take an agreed percentage from the total compensation recovered.
Note that your solicitor will get paid before you receive your settlement.

Once the insurance company sends the settlement cheque, your attorney will pay the necessary fees and deduct the contingency. Then, you receive your money.

With this agreement, you don’t have to pay any upfront or hourly fee before your case is given attention. However, you may be liable to pay fees if you abandon your claim after legal work has commenced. A conditional fee agreement is legally binding, so there should be no grey areas.

What Is the Average No Win, No Fee Percentage Charged?

In the UK, no win, no fee can only be a maximum of 25% of the total payout external link icon light blue from the settlement won from the insurance company or the award in court. For example, suppose you were awarded £100,000 in total compensation and agreed upon a 25% success fee. Your solicitor will deduct £25,000 from your compensation. This would leave you with £75,000 in compensation.

Some solicitors charge lower or higher depending on the case specifics. However, the exact number will be agreed upon during the initial consultation before you start working together. Plus, some solicitors may charge more if your case proceeds to trial or less if they successfully settle your claim before a lawsuit is filed.

Other factors may also be considered when deciding on the agreed percentage. For example, the lawyer will consider the complexity of your claim or the time to be spent, etc.

What Compensation Can My No Win No Fee Solicitor Get Me?

No win, no fee claims can range from thousands of pounds to millions depending on the severity of your injuries and their impact on your life. Usually, the more severe your injuries, the higher the compensation you would expect. However, before filing a compensation claim, you must know the full extent of your personal injury damages.

If you are not a claims expert, calculating how much your claim is worth can be difficult. With the help of our experts at Claims Bible, determining the true value of your claim is easier. We will consider all the factors and ensure we cover your injuries and their financial implication on your life.

However, you can get a settlement for economic (special) and non-economic (general) damages. The two covers the following:

  • Medical expenses
  • Prescription medications
  • Lost wages
  • Property damages
  • Loss of earning capacity
  • Loss of consortium
  • Loss of enjoyment of life
  • Pain and suffering
  • Emotional distress/mental anguish
  • Physical therapy or rehabilitation

Are There Benefits to the No Win No Fee Agreement?

Yes, the no win, no fee agreement benefits solicitors and their clients. For instance:

  • You can safely hire a solicitor without worrying about the cost, knowing that you have no financial risk if the case is unsuccessful.
  • You can avail yourself of the best legal services, and an experienced solicitor will only advise you to start a compensation claim if you have a reasonable chance of winning.
  • The solicitor’s fees will be paid from the compensation awarded to you instead of out of your pocket.
  • Your solicitor wants to be paid, so they will work in your best interest to ensure you win.
  • If the attorney does not succeed, you are not obligated to pay any fees.
  • Are There Other Expenses Included in the No Win No Fee Agreement?

There are other unavoidable costs associated with filing a personal injury claim. These costs may or may not be included in the no win, no fee arrangement. If your agreement does not cover these expenses, you will be responsible for them.

Examples of these associated costs include:

  • Filing fees
  • Court costs
  • Cost for medical expert witness
  • Deposition costs
  • Cost for investigation
  • Charges relating to serving summons and subpoenas
  • Administrative costs (photocopying, typing)
  • Charges related to obtaining medical records, police reports, other documents, etc.

Depending on your agreement, the lawyer may pay for these expenses and deduct them from your final settlement before taking out their professional fees.

How Can Claims Bible Help?

Our panel of legal professionals at Claims Bible has been helping injury victims win the compensation they deserve for their injuries and losses. We will help calculate the true value of the compensation you deserve. In addition, our legal team works on a contingency fee basis, and our fees are transparent.

If you have any questions about how we can help you, kindly contact us using this form. It takes less than five minutes to fill it out.

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