A Conditional Fee Agreement, more commonly known as a “No Win No Fee Agreement” is an agreement between you and your solicitor relating to your compensation claim. It effectively does what it says on the tin – if you do not win your case and receive compensation, you do not have to pay solicitor’s fees. You will be provided with the Conditional Fee Agreement (CFA) at the start of your case and you and your solicitor will both sign it.
However, legal costs (lawyer’s fees), for the purposes of the CFA, do not include disbursements which you will need to discharge unless your opponent agrees to pay for them.
Disbursements are all other costs incurred as part of your claim which are not your solicitor’s fees. These are for example the costs of medical experts, medical records (in personal injury cases and barrister’s fees. Sometimes you can take out insurance to cover the cost of your disbursements and this can be discussed with your solicitor.
If your claim is successful and you receive compensation, either by way of settlement or following court proceedings, then a percentage of your compensation, called the success fee, will be deducted from that compensation and is paid to your solicitor. The success fee percentage will be clearly outlined in the CFA which you sign at the start of your claim. In personal injury claims, this can be no more than 25% of your compensation. This is the solicitor’s bonus for winning your case.
The CFA ends either when your claim is successful or when your claim has been unsuccessful or no longer has good prospects of success. If your solicitor, or a barrister advising on your claim, considers that your case has less than 51% chance of succeeding, then your solicitor will end the CFA and you will not have to pay any legal costs. Unfortunately, any disbursements which you have already paid for will not be recovered unless you have insurance.
At Marsden Rawsthorn, we regularly take personal injury claims under a No Win No Fee Agreement and will assess each case. If you wish to make a claim, contact us now and we can advise you as to whether we can act on a No Win No Fee basis for you. In acting for you on a no win no fee basis, it is clearly our interests as well as yours that we win.
Authorised and Regulated by The Solicitors Regulation Authority. Authority number 591294.
For details of the professional rules governing the conduct of solicitors go to www.sra.org.uk/code-of-conduct.page