No Win, No Fee explained: Making a personal injury claim without upfront costs

 

If you’ve been injured in an accident, the thought of legal costs shouldn’t stop you from seeking the compensation you deserve. Legal disputes can be expensive, but most personal injury claims are brought under a no win, no fee agreement. This means you don’t pay anything upfront, and you won’t be left with a big bill if your case isn’t successful.

What is a No Win No Fee agreement?

The legal term is a Conditional Fee Agreement (CFA). Put simply, it’s a contract where your lawyer only gets paid if your case succeeds. If your case is settled or won at trial, your solicitor can recover:

• Their basic fees (calculated at an hourly rate)
• A success fee, which is an additional charge to compensate for the risk of taking the case on a CFA basis.

The agreement will always set out how fees are calculated and the percentage of any success fee. By law, the success fee is capped, and we’ll explain it clearly before you decide to go ahead.

In most cases, the majority of your lawyer’s basic fees are paid by the other side (usually their insurer). The success fee, however, comes out of your compensation.

A quick example

Let’s say your lawyer spends 40 hours on your case at £200 per hour. Their basic costs would be £8,000, plus VAT. If the success fee was agreed at 25%, that would add £2,000.

Most of the basic costs are usually recovered from the other side. The success fee, however, comes out of your compensation. So, if your compensation was £20,000, you would keep £18,000 after the success fee is deducted.

Are there any risks?

No win, no fee protects you from paying your own lawyer’s costs if you lose, but there are other possible expenses:

• Disbursements: These are additional expenses like expert reports and court fees.
• Opponent's costs: If the case is lost or abandoned, the opposing party may seek to recover their legal costs.

To cover these, we normally recommend After-the-Event (ATE) insurance. If your case succeeds, the premium is usually paid from your compensation. If you lose, you typically don’t pay it.

Key things to check before signing a CFA

• Success fee: This can be up to 100% of the solicitor’s base costs but is usually less. In most cases, it will be capped at 25% of damages for past losses and damages for pain and suffering. Importantly, future losses (such as future loss of earnings) are ring fenced and cannot be subject to deduction of the success fee.
• Liability for basic costs: Make sure you understand whether you’ll need to pay any unrecovered costs, disbursements, or liabilities.
• Insurance: We strongly recommend ATE insurance which can protect against unexpected expenses.
• Total deductions: Your solicitor should give you a clear idea of what percentage of your compensation you’ll keep if your case succeeds. It’s a good idea to agree a maximum figure.

Final thoughts

No Win No Fee agreements are designed to give you peace of mind when making a claim, so you don’t have to worry about upfront costs or legal bills if you lose. However, it is essential to understand the CFA terms before going ahead.

Understanding how funding works is just one piece of the puzzle. The other big question people often ask is “how long will it all take?” Every claim is different, of course, but the next section provides a clear picture of the typical timeline can help you know what to expect at each stage.

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Thinking about making a claim? Contact our Personal Injury team today for a no-obligation chat and find out how we can help you move forward with confidence.