1. What Is a No Win No Fee Agreement?
A no win no fee agreement, or Conditional Fee Agreement (CFA), is a legal arrangement where you don’t pay your solicitor’s fees unless your case is successful. It makes legal help accessible, especially for personal injury, medical negligence, or accident claims.
2. What Happens If You Lose Your Case?
If your claim fails under a no win no fee agreement:
- You won’t pay your solicitor’s legal fees
- You may still be liable for other legal costs such as:
- Opponent’s legal fees (in some situations)
- Court fees or expert reports
- Disbursements (e.g., medical records, travel, filing fees)
This is why it’s vital to understand what’s included in your agreement.
3. What Is After the Event (ATE) Insurance?
To protect yourself from these extra costs, most firms recommend After the Event (ATE) insurance:
- It covers expenses if your case is lost
- Includes opponent’s costs and disbursements
- Premiums are usually only payable if you win
- No cost upfront in most agreements
Your solicitor will often arrange ATE insurance when your case starts.
4. Are There Any Hidden Fees?
Reputable no win no fee solicitors should be fully transparent. However, you should:
- Check for charges on early cancellation
- Clarify who pays for non-recoverable expenses
- Confirm whether disbursements are covered by ATE insurance
- Ask for a full written breakdown of potential costs
Never sign a CFA without understanding all terms and exceptions.
5. Can You Be Charged Anything at All?
Technically, yes—but only if:
- You breach the contract, e.g., provide false information
- You withdraw the case without valid reason
- Your solicitor incurs non-refundable expenses not covered by insurance
These situations are rare and preventable with proper communication.
6. What If You Have Legal Aid or Other Coverage?
No win no fee is usually used when legal aid isn’t available. But if you have:
- Legal expense insurance through home or car insurance
- Trade union legal cover
- An employer’s corporate legal plan
—consider these before signing a CFA.
7. How Much Will the Lawyer Take If You Win?
If you do win:
- Your lawyer takes a success fee, usually up to 25% of your compensation
- The rest is yours, minus any ATE premium or court costs
- Your lawyer must provide a clear estimate of this in your agreement
This fee rewards the solicitor for taking the financial risk of your case.
8. How to Make Sure You’re Fully Protected
Before signing a no win no fee agreement:
- Ask for a clear written explanation of all costs
- Confirm ATE insurance is in place and covers all risks
- Understand when and why you might still owe anything
- Choose solicitors who are regulated, experienced, and transparent
A good solicitor will answer all your questions upfront.
Frequently Asked Questions
1. Do I ever pay upfront under a no win no fee agreement?
No. Genuine no win no fee arrangements involve no upfront payments.
2. Is ATE insurance really necessary?
Yes. It protects you from paying the other side’s legal fees if you lose.
3. Can I cancel the agreement if I change my mind?
Yes, but you might be charged for work already done or disbursements. Check your contract terms.
4. What happens if the case is withdrawn?
If the case is dropped on legal advice, you may not pay. If you withdraw voluntarily, you could owe limited costs.
5. Can I switch lawyers mid-case?
Yes, but the new firm must agree to the no win no fee terms, and costs may carry over.
6. Do I pay anything if I lose at trial?
If insured with ATE, those costs are covered. Without ATE, you could owe the defendant’s legal fees.
Conclusion
A no win no fee agreement offers peace of mind—but only if you understand the fine print. While you typically pay nothing if you lose, having ATE insurance and a clear contract ensures you’re fully protected. Choose a trustworthy solicitor, ask the right questions, and you can confidently pursue justice without fear of hidden costs.
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