A No Win No Fee agreement – also known as a Conditional Fee Agreement (CFA) – is a way of funding a legal claim without having to pay any upfront legal fees. It allows you to pursue compensation with reduced financial risk.
Here’s how it works:
- If your claim is successful, most of your solicitor’s fees are usually paid by the other party (typically the defendant or their insurer). You will also pay a success fee, which is a percentage of your compensation. Any deductions from damages including any costs not recovered from the other party and your success fee are limited to a maximum of 25% of the damages. You will keep at least 75% of the damages.
- If your claim is unsuccessful, then as long as you have complied with the terms of the agreement you won’t have to pay your solicitor’s legal fees – hence the term No Win No Fee.
To protect you from other costs (like the other side’s legal fees or expert reports), you will also be advised to take out After the Event (ATE) insurance policy. This is only paid for if the case is successful, and the premium can be deducted from your compensation. It is included within the maximum of 25% deductions, so you will take home at least 75% of the damages.
A No Win No Fee agreement makes it possible for you to seek justice and compensation without the worry of large legal bills if the claim doesn’t succeed.
To protect you from other costs (like the other side’s legal fees or expert reports), you will also be advised to take out After the Event (ATE) insurance policy. This is only paid for if the case is successful, and the premium can be deducted from your compensation. It is included within the maximum of 25% deductions, so you will take home at least 75% of the damages.
A No Win No Fee agreement makes it possible for you to seek justice and compensation without the worry of large legal bills if the claim doesn’t succeed.