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Before No Win No Fee was introduced, people were often deterred from taking legal action due to the cost of solicitors’ fees; as a result, many cases went undefended.

No Win No Fee claims have made justice more accessible. Our advisors can help you understand how solicitors charge for their services and what kind of agreements may apply to your claim.

No Win No Fee

Solicitors typically offer clients a Conditional Fee Arrangement (CFA), more commonly referred to as no win no fee agreements. With such an agreement in place, your solicitor will charge their normal fees along with a success fee (typically 25% of damages awarded), which will also be covered by an After the Event Insurance (ATE) policy they take out on your behalf.

Legal aid agreements allow people who would otherwise not be able to pursue legal action – such as those suffering serious injuries or facing workplace retaliation – to pursue justice without risking their finances. Before proceeding with your claim, however, make sure the solicitor offers such agreements, as changes due to the Jackson Review now preclude receiving legal aid in most civil litigation cases, including personal injury claims.

Conditional Fee Agreements (CFAs)

Under the no win no fee principle, CFAs provide access to legal representation for individuals who would otherwise be limited by financial considerations in taking legal action. However, it’s imperative that clients openly discuss potential success fees with their solicitors and review these terms thoroughly to make sure they fully comprehend them before agreeing to a CFA contract.

Solicitors under a Conditional Fee Agreement (CFA) can legally charge up to 25% of general damages compensation (excluding future pecuniary loss ) as their success fee. Additional expenses, such as getting an independent medical assessment may apply during a claim and should be discussed with your solicitor before starting it. In contrast to CFAs, success fees under DBAs don’t get recovered from defendants and thus comprise a higher proportion of any total settlement awarded to claimants; nonetheless all success fees remain capped at 25% under both agreements.

Direct Fee Agreements (DBAs)

DBAs differ from CFAs by basing the attorney’s fees on the outcome of each case and taking a percentage of any compensation awarded; these were introduced following Jackson Review but have not gained popularity as quickly. For personal injury claims, typically 25% is charged as a success fee on DBA agreements for general and special damages awards (excluding future pecuniary losses).

An indemnity business arrangement (DBA) does not cover all costs associated with running your claim and you may need After The Event (ATE) insurance in order to cover these expenses. Your solicitor should discuss this option before advising you to make one under this arrangement. Under traditional arrangements, clients pay solicitors an hourly rate – something which may become costly in longer and complex cases; many trade union members can access legal aid when filing such cases.

Legal Aid

Legal aid is a means-tested system which enables those unable to afford legal representation accessing legal representation at no or reduced costs through duty solicitors and community legal clinics in the UK. Covered cases include criminal (although many now handled via Conditional Fee Agreements – a type of contingent fee arrangement), certain civil matters and advice services.

Trade union members eligible for employment law representation may receive free legal aid; additional sources of support include charities and policies with After the Event (ATE) coverage.

Claiming compensation for personal injuries requires your solicitor to deduct a success fee and outstanding legal costs from any money awarded to you – these have been set at 25% of total value of your award, which also applies for housing disrepair cases and road traffic accident suits.