You may have heard this term used in various personal injury adverts. The actual, legal term being referred to is called ‘conditional fee agreement’ however; ‘no win no fee’ seems to be more widely used.
No win no fee means that you don’t have to be out of pocket, and also if your case is unsuccessful you won’t be charged a penny. If you win, the at-fault party will cover the legal costs, including fees, court costs, and other expenses. Your solicitor will also be entitled to a fee, which is known as the ‘success fee’.
This will be paid along with other costs by the losing party. The advantage of the no wins no fee system, is that it’s relatively easy and reduces the risks for the claimant. A lawyer or solicitor will not take on your case unless they think there is a good chance of it succeeding. Which means that from the start if you will know if you have a good case before committing time and money.
Unfortunately, there may be firms who work in conjunction with insurance companies and sell their policies, often at expensive premiums, for their clients. Another risk is that of the ‘success fee’ which is deducted from your compensation award.
This can be set at a very high rate and makes a huge dent in your award. In some situations, clients receive a tiny amount of money which is much less than they had expected to receive. Make sure that you understand the no win no fee policy for your chosen lawyer or solicitor. Ensure that you are fully aware of what you are paying for and why before you sign any contracts or similar documentation.