Michael Tunnicliffe
For many individuals considering legal action—particularly in personal injury or civil claims—the cost of pursuing a case can be a significant concern. A common and effective solution to this is the No Win No Fee arrangement, formally known as a Conditional Fee Agreement (CFA). This legal structure has become an essential mechanism in promoting access to justice, allowing claimants to pursue compensation without the burden of immediate legal fees.
A No Win No Fee agreement is a contract between a solicitor and client, whereby the solicitor agrees not to charge legal fees unless the claim is successful. If the case is won, the solicitor is entitled to recover costs from the losing party, along with a success fee agreed upon at the outset. If the case is lost, the client is not liable for the solicitor’s fees.
This model is most commonly used in personal injury claims, but it may also apply to other types of civil litigation, including professional negligence, employment disputes, and financial mis-selling cases, depending on the solicitor’s practice area and the merits of the claim.
How the Agreement Works
Before entering into a No Win No Fee agreement, a solicitor will assess the merits of the case. Only claims with a reasonable prospect of success are typically offered on this basis. If the solicitor is satisfied with the evidence and believes the claim is viable, they may offer to proceed under a CFA.
The success fee, which is the solicitor’s reward for taking on the financial risk, is capped in personal injury cases at 25% of the compensation awarded to the client (excluding damages for future care and losses). This fee is agreed in writing before work begins and is deducted from the final settlement only if the claim succeeds.
Importantly, clients do not pay anything upfront. All costs associated with case preparation—including medical reports, expert opinions, and court fees—may be deferred until the conclusion of the matter. These disbursements can also be covered by a specialist insurance policy, known as After the Event (ATE) insurance, which protects the client from potential liability for the defendant’s costs if the case is unsuccessful.
The Role of ATE Insurance
While the solicitor’s fees are waived if the case is lost, the opposing party’s legal costs may, in some circumstances, be recoverable from the claimant. To mitigate this risk, clients are usually advised to take out ATE insurance. This policy can be arranged by the solicitor and is often structured so that the premium is only payable if the case is won. If the claim is unsuccessful, there is usually no cost to the client.
Advantages of No Win No Fee
The primary benefit of a No Win No Fee agreement is that it eliminates the financial barriers to pursuing legitimate claims. It ensures that individuals can access legal representation regardless of their financial position. It also aligns the interests of the solicitor and the client—both parties are focused on securing a successful result, as the solicitor is only paid if the claim succeeds.
Moreover, the predictability of legal costs under a CFA offers clients peace of mind. There are no hidden charges, and the financial terms are clearly outlined from the start. This transparency helps build trust and confidence in the solicitor-client relationship.
Conclusion
No Win No Fee agreements play a vital role in ensuring access to justice for those who might otherwise be unable to afford legal representation. When used appropriately, they provide a fair, transparent, and low-risk path to pursuing compensation. As with any legal arrangement, it is important that clients receive clear, tailored advice before entering into a CFA, to ensure they understand their rights, obligations, and the potential costs involved.
If you are considering a legal claim and are concerned about the cost of proceedings, it may be worth speaking to a solicitor who offers No Win No Fee services. An experienced practitioner will be able to assess your case, explain your options, and help you make an informed decision about how best to proceed.