No Win No fee

What does 'no win no fee' mean?

When you are party to a no win no fee agreement, or a Conditional Fee Agreement as it is often known as, you are entering the agreement on the understanding that if your claim is not successful, you will not have to pay your solicitor any money. This means that the solicitor that is assigned to your claim is effectively agreeing to work for free unless your claim is successful. However, if your claim is successful, you will need to pay your solicitor for the time they have spent working on your no win no fee claim.

Conditions for making a no win no fee claim

If you have suffered loss, an injury or damage in your own home, at work or from the effects of a faulty product bought on the high street, it is possible that you could make a no win no fee claim. You will be assigned a solicitor who will assess your claim to see if it is worth taking further. If your claim is suitable to pursue, your solicitor will then work on your no win no fee claim.

If you lose your no win no fee claim

In the event that you lose your no win no fee claim, it is understood that you will not have to pay your solicitor any money. However, it is likely that you will have to pay the winner any incurred charges, known as disbursements. These usually include such things as court fees, and fees for medical reports. Disbursements are commonly accrued by both the winning and losing parties, so it is a good idea to have insurance to protect you if you have to pay these fees. This insurance is known as 'after the event' insurance, and will usually be arranged by your solicitor to cover the risk of you having to pay the disbursements in the event that you lose your no win no fee claim.

If you win your no win no fee claim

In the event that your no win no fee claim is successful, you will need to pay your solicitor for the time that they have spent working on it from the compensation that you are awarded. Your solicitor will also be entitled to a charge known as a 'success fee'. This fee covers the risk that your solicitor will not get paid, in the event that you lose your no win no fee claim, and so acts as a kind of compensation for your solicitor for taking that risk. The success fee will normally be paid by the losing party, however, it is important to remember that you will be liable to pay any costs that the losing party is not ordered to pay. You should be prepared for this eventuality.

Making a no win no fee claim

When you wish to file a no win no fee claim, it is important to remember the risks that are involved. If you lose your no win no fee claim, you will not have to pay your solicitor for their time, but you may have to pay the disbursements of yourself, and those of the winning party. Because of this possibility, you should make sure that your solicitor arranges 'after the event insurance'. If you win your no win no fee claim, you must pay your solicitor for working on your claim, and any other costs that the losing party is not ordered to pay, from your compensation.

Further advice to help you

There are other elements that should be noted if you are contemplating making a no win no fee claim. Concerning the success fee, the higher the chance that you will lose your claim, the higher the success fee is likely to be. This makes sense, but is easy to forget and can come as an unpleasant surprise to the unprepared. It is also important to know that you may have to pay the insurance premium on your 'after the event' insurance. You should always be prepared for these hidden costs when you make a no win no fee claim.