‘No Win, No Fee’ arrangements

Conditional Fee Agreements (CFAs) are more commonly known by the public as ‘No Win, No Fee’ arrangements.

What is a CFA/ No Win, No Fee arrangement?

This is when the solicitor agrees to take their own risk in your litigation with regards to their own fees. In the event that your case loses, the solicitor agrees not to charge you, the client. By taking the risk that they will only be paid in the event that your case is successful, they are entitled to an extra fee on their standard fees. This is known as a Success Fee.

So who pays my solicitors, if I succeed in the case?

Both the solicitor’s basic fee and their extra fee are normally paid in whole, or in part, by the losing party.

There are additional costs involved in litigation such as Court fees or medical reports. These are known as Disbursements. These costs should also be paid in full, or in part, by the losing party.

Are there circumstances where I would be liable for my solicitor’s costs or own disbursements?

Yes. As detailed above, whilst usually the losing party will be ordered to pay your costs there can be circumstances where this is not the case. You would remain liable to your solicitor for any costs that the losing party is not ordered to pay. Your solicitor is obliged to advise you on the circumstances where this could occur.

What if my claim fails?

With a ‘No Win, No Fee’ case, you would not have to pay your own solicitor but it is likely that you will have to pay the costs of the successful party – your opponent in the litigation. You would also have to pay for any other costs incurred such as medical reports and court fees (Disbursements).

Is there any way of protecting myself against the costs of the other side and the cost of my disbursements if I lose my case?

Yes. There are insurance policies available known as After-the-Event Insurance (ATE) policies which can insure you against the risk of being liable to pay the other sides costs and the cost of your disbursements (See ‘After-the-Event Insurance’ for details).

What type of claim can I obtain a ‘No win, No Fee’ arrangement for?

With the exception of two areas, family and criminal law, potentially all other types of claim are capable of being run on a CFA. For example, if you have a Personal Injury claim, Clinical Negligence claim, Professional Negligence claim (e.g. against a surveyor) or a dispute over a will, a ‘No Win, No Fee’ arrangement may be an appropriate way for you to proceed with your case.

It will be a decision for the solicitor firm as to whether they are prepared to act for you on a ‘No Win, No Fee’ arrangement and most will make these decisions on a case by case basis. The solicitors on the FreeLegal4U are all familiar with offering No Win, No Fee arrangements to their clients.

In order for a ‘No Win, No Fee’ arrangement to be valid, your solicitor will have to complete a number of formalities and advise you of certain matters.