A no win no fee solicitor agreement (also known as a contingent fee arrangement) allows an individual to obtain a compensation claim, with no financial danger and without paying any solicitors’ fees upfront.
The individual will only ever pay anything if their no win no fee claim is successful. If their case is unsuccessful then they won’t have to pay any legal fees – either to their own solicitor or to their opponent.
How Do No Win No Fee Claims Work?
There are people who will evaluate an individual’s personal damage claim in a free initial consultation, and advise them on whether solicitors think they have a case. From there, it will be discussing their various funding opportunities with an individual. Most of the claims solicitors manage are on a no win no fee basis. This usually means taking out a security policy on their behalf. There’s no financial risk to making a no win no fee claim, subject to the complying with obligations under the terms of the insurance policy. If an individual wins the case their opponent will pay the majority of their legal costs. Any legal costs not paid by their challenger will be subtracted from the compensation that they may receive.
Individual compensation will be determined using expert evidence that was gathered. The amount will depend on factors such as:
● How serious the injury or illness is
● How an individual life has been affected by the injury or illness
● Future care and support needs
● How much money an individual has lost or will lose as a consequence (e.g. loss of earnings, travel expenses)
● Specialist equipment and Changes an individual may need
Although the majority of personal injury cases are funded through a no win no fee agreement, there are other funding options available such as Legal Expenses Insurance, Trade Union Membership, and Legal Aid:
● Legal Expenses Insurance – this is usually included on household insurance policies and may include some or all of the legal costs involved in obtaining a personal injury claim.
● Trade Union Membership – some trade union membership packs include the legal cover.
● Legal Aid – this is possible for birth injury claims on behalf of children who experienced a serious neurological injury during pregnancy, or within eight weeks of their birth.
In most successful No Win, No Fee claims, Claimants must provide part of their return to their solicitor in the form of a ‘success fee’. This success fee is nearly always a percentage of the total compensation amount, and most solicitors charge 25%.
A success fee is a bonus structure paid to an investment bank for successfully concluding a transaction. The success fee is usually computed as a percentage of the company’s enterprise value and is likely on the completion of the deal.
If a Patient loses the case then there will be no fee for the solicitors as part of the agreement. This agreement is a great thing anyone can make and decide.