If you’re considering a compensation claim but are worried about the financial risk. A no-win, no-fee agreement, also known as a Conditional Fee Agreement, can offer a solution.
This type of legal arrangement allows you to pursue a claim without paying any solicitors’ fees upfront.
The core principle is simple: you only pay if your claim is successful. If you lose your case, you won’t owe your solicitor a penny. This significantly reduces the financial risk of seeking justice.
How a “No Win, No Fee” Agreement Works
A “no-win, no-fee” agreement provides financial protection throughout your legal claim. When you begin a claim under this arrangement, your solicitor typically secures an After the Event (ATE) insurance policy on your behalf.
This policy is a key component, as it shields you from the significant risk of paying your opponent’s legal costs if your case is unsuccessful. The premium for this insurance is only due if your claim is successful.
If you win your case, the opposing party will pay the majority of your legal costs. Any remaining costs, including the ATE insurance premium and a success fee for your solicitor, are then deducted directly from your compensation.
This ensures you never have to pay these fees from your own pocket. Your solicitor will always provide a clear, upfront explanation of all potential costs and deductions so you can proceed with confidence and without any financial surprises.
What are the Common No-win No-fee Claims?
No-win, no-fee agreements are most often used for personal injury claims. This includes a wide range of cases where someone has suffered an injury, such as:
- Road traffic accidents
- Workplace injuries
- Public liability claims
- Clinical negligence cases
How to Start a “No Win, No Fee” Agreement claim?
Taking the first step toward a no-win, no-fee claim is simple. Begin with a free and confidential discussion with a legal expert.
To make this initial conversation as productive as possible, it helps to have some information ready, such as:
- Relevant documents: This could include copies of receipts or correspondence related to your incident.
- Contact details: The names and contact information of other parties involved.
- Evidence: Any photos of injuries or the incident scene.
Even if you don’t have all the details, don’t worry. Your expert will guide you through the process, review the information you provide, and advise you on the best path forward, including all funding options.
Once you decide to move ahead on a no-win, no-fee basis, you will sign a formal Conditional Fee Agreement (CFA). This allows your solicitor to begin building your case with only a 25% deduction fee on a successful settlement.
What to Expect if You Win
A successful outcome in your no-win, no-fee claim means you’ve secured compensation, and your opponent will be responsible for the majority of your legal costs.
However, a few costs will be deducted directly from your compensation settlement. These include:
- The Success Fee: This fee is a pre-agreed percentage of your compensation that goes to your solicitor. It’s their payment for the risk they took in handling your case without any upfront fees.
- Costs Not Recovered: In some cases, your opponent may not be required to cover all of your legal expenses. Any remaining basic costs will be paid from your settlement.
- ATE Insurance Premium: The cost of the “After the Event” insurance policy, which protects you from having to pay legal fees if you lose, is also typically deducted.
Your solicitor will explain these costs to you in advance, so you’ll have a clear understanding of what to expect from your final settlement. For example, here at Oakwood Solicitors we cap our success fees at a maximum of 25% of your total compensation.
What Happens if You Lose Your Case?
One of the most significant advantages of a no-win, no-fee agreement is the financial security it offers. If your claim is unsuccessful, you will not be responsible for paying your own solicitor’s fees.
Furthermore, the After the Event (ATE) insurance policy, which is a standard part of these agreements, protects you from paying the other party’s legal costs. This means that even in a loss, you won’t be left with a bill for legal expenses.
This protection is a cornerstone of the agreement, ensuring you can pursue a claim without the fear of financial loss. The only exceptions to this rule are in rare circumstances where a claimant is found to have acted dishonestly, maliciously, or breached the terms of their agreement.
Understanding Your “No Win, No Fee” Settlement
Valuing a no-win, no-fee injury claim and negotiating a settlement is a complex process that requires an expert. Your assigned solicitor will carefully review all offers and provide you with their professional advice. They are dedicated to helping you achieve the best possible outcome.
While our legal team will guide you, the final decision on whether to accept a settlement offer is always yours. If you receive an offer, you don’t feel is fair, you are not obligated to accept it. Your solicitor will be ready to continue fighting for a better settlement, even if it means taking the case to court.
Going to court can seem daunting, but it’s important to remember that your specialist will be with you at every step, working to make the process as stress-free as possible.
Why should I choose Oakwood Solicitors Ltd?
If you are based nationally or in Leeds, West Yorkshire, we have a dedicated team of solicitors and paralegals who have many years of experience between them in running cases of this nature. They are highly trained to deal with all aspects of no-win no-fee claims.
Oakwood Solicitors Ltd wishes to ensure that clients are not overwhelmed by legal jargon that they don’t understand and aims to allow the claims procedure to be as transparent as possible.
If you have been impacted and are hesitant to claim due to financial queries, get in touch today for a no-obligation consultation.
Choose one of the methods on the right-hand side of this page or call us on 0113 323 2817 to find out how we can help you with your enquiry.
Further information:
House of Commons Library: No win, no fee funding arrangements.
No-win no-fee solicitors.
Oakwood Solicitors: Our fees.
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Abbie Keech originally studied and completed a degree in Medical Microbiology at Newcastle University before converting to a law degree. She became Head of the Road Traffic Accident department at …
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