What is No Win No Fee?


What is a No Win No Fee Agreement?

A 'no win, no fee' agreement, also known as a conditional fee agreement (CFA), promises you will not be made to pay our fees in the event your case is unsuccessful. If your case is successful, you will not be charged any fees until your case has settled, although the Defendant will generally cover the majority of costs.

Changes in Legislation

As a result of Government changes put in place April 1 2014, payment for legal costs and funding for personal injury claims are now to be handled differently. Solicitors are now unable to recover 100% of legal costs from your opponent, meaning we aren’t able to recover the success fee or the ATE policy cost.

The Government has stated the Claimant is now required to make these payments, deducted from damages. To assist in combating these additional costs to the Claimant, the Government has increased the damages awarded by 10%. The level of the deduction will depend on the type and value of your claim.

Why do Solicitors Enter into a No Win No Fee Agreement?

As stated above, if your no win no fee claim is not successful we will not be paid. In order to recognize this risk, we are entitled to claim what is known as a 'success fee'. This is also known as an uplift and is a percentage of the costs or damages awarded.

What is an After the Event (ATE) Insurance Policy?

If you do not have Before the Event Insurance, an After the Event Insurance Policy is usually the most suitable option. This covers the Defendant’s costs, should your case be unsuccessful.

Similar to the legal fees, the cost of the ATE Insurance Policy is put on hold until your case is settled. If the compensation claim is successful, costs will be deducted from your damages. If the case is lost, no payment is required as the premium is self-insuring.

What Do I Have to Pay?

The Claimant is now required to pay the cost of the ATE premium and the Success Fee. The ATE premium is self-insuring, so you will not be responsible for any charges in the event your case is unsuccessful. You are also not required to make any payments up-front, with costs deducted from your claim at the conclusion of your case. Medical Negligence Solutions will not accept any expenses on your behalf without your express permission.

Basically, a ‘No Win, No Fee’ agreement means you are at no financial risk to pursue your claim. Would you like to learn more? Contact the Medical Negligence Solutions team on 0300 303 3634.