What is a No Win No Fee Agreement?
A ‘no win, no fee’ agreement, also known as a conditional fee agreement (CFA), is a contract between you and our Firm with the goal no solicitor costs are payable in the event your case is unsuccessful provided that you have upheld the contract. If your case is successful, a success fee would be charged but this is not until your case has settled and is only taken from any damages obtained from past losses and damages, meaning that any damages received for future care are retained entirely by you. There are no upfront costs to pay and because of the benefit to you, this is by far the most popular form of funding a claim. There are no hidden fees.
Changes in Legislation
As a result of Government changes put in place April 1 2014, payment for legal costs and funding for personal injury claims are now to be handled differently. Solicitors are now unable to recover 100% of legal costs from your opponent, meaning we aren’t able to recover the success fee or the ATE policy cost.
The Government has stated the Claimant is now required to make these payments, deducted from damages. To assist in combating these additional costs to the Claimant, the Government has increased the damages awarded by 10%. The level of the deduction will depend on the type and value of your claim.
Why do Solicitors Enter into a No Win No Fee Agreement?
As stated above, if your no win no fee claim is not successful we will not be paid. In order to recognize this risk, we are entitled to claim what is known as a ‘success fee’. This is also known as an uplift and is a percentage of the costs or damages awarded.
What is an After the Event (ATE) Insurance Policy?
If you do not have Before the Event Insurance, an After the Event Insurance Policy is usually taken out to work alongside the CFA. The CFA covers you against solicitor costs. The ATE policy covers you against the Defendant’s costs and any disbursements that are incurred during the investigation and life of your claim. It is another layer of protection for you. Similar to the legal fees, the cost of the ATE Insurance Policy is deferred until your case is settled. If the compensation claim is successful, the premium will be deducted from your damages.
If the case is not successful, providing you have upheld your end of the contract, no payment is required as the premium is self-insuring. Again, there are no upfront costs to pay, and having both CFA and ATE in place provides complete protection from any adverse costs.
Funding is something that would be discussed in more detail with the team should we be able to assist you with a claim. Contact the Medical Negligence Solutions team on
What Do I Have to Pay?
The Claimant is now required to pay the cost of the ATE premium and the Success Fee. The ATE premium is self-insuring, so you will not be responsible for any charges in the event your case is unsuccessful. You are also not required to make any payments up-front, with costs deducted from your claim at the conclusion of your case. Medical Negligence Solutions will not accept any expenses on your behalf without your express permission.
Basically, a ‘No Win, No Fee’ agreement means you are at no financial risk to pursue your claim. Would you like to learn more? Contact the Medical Negligence Solutions team on 0300 303 3634.
