The term 'no win no fee' has become popular in recent years due to its association with personal injury claims. The lesser known term of Conditional Fee Agreement (CFA), is the official name for no win no fee agreements. Apart from family or criminal matters, many types of claim are suitable for CFA's.
The basic principle is that you will not be charged by your solicitor for their time spent working on your case unless you win your case (hence the phrase, no win, no fee). For a no win no fee arrangement to be valid, the solicitor has to follow a specific process, and provide you with information at various stages.
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What do I have to pay if I’m successful?
When you win a case being run under a no win no fee agreement, your solicitor is entitled to charge you for their time. They are also entitled to charge an extra fee (known as a success fee). However both the basic fee and the extra fee will normally be paid in full by the losing party.
There are other costs such as court fees or the fee for a medical report that you will incur during your claim (these are normally known as 'disbursements'). Again, the losing party should pay all or part of these costs. You are liable to pay your solicitor for any costs that the losing party is not ordered to pay.
What do I have to pay if I lose?
You will not have to pay your own solicitors costs (because you didn't win) but you will probably have to pay the costs of the successful party (the other side) and also your disbursements.
Your solicitor will normally arrange insurance for you to cover these risks if you don’t already have it. This is known as an 'after the event' (ATE) insurance policy. Most ATE insurance policies work the same way as no win no fee agreements ie the premium is only payable if the case wins and then the other side will pay it.
To find a personal injury solicitor who can pursue a claim for you under a no win no fee agreement with an ATE insurance policy visit the Law Society's Accident Direct website.