If you’re thinking about making a personal injury claim, you’ve probably come across the phrase “No Win, No Fee.” But what does it actually mean in practice and what should you expect if you enter into this kind of agreement with a solicitor?
In this blog, we break down exactly how No Win, No Fee arrangements work, what they cover, and when costs might apply.
Understanding the Legal Term: Conditional Fee Agreement (CFA)
A “No Win, No Fee” arrangement is formally known as a Conditional Fee Agreement (CFA). This is the contract you enter into with your solicitor when pursuing a claim without paying upfront legal fees.
A CFA gives people access to justice regardless of financial circumstances, removing the worry of paying legal costs if the case doesn’t succeed.
How does 'No Win No Fee' work?
Risk Assessment by the Solicitor
Before taking on your case, our team will carry out a comprehensive risk assessment to determine whether your claim has reasonable prospects of success. Because we take on the financial risk, we must be confident the case is strong and we usually determine this by assessing whether the case has at least 51% chance of success.
What happens if my 'No Win No Fee' case is unsuccessful?
If the claim is lost, you do not pay your solicitor for the time or work they carried out.
There are, however, rare exceptions where you might be charged. These include:
- you acted fraudulently
- you were fundamentally dishonest
- you failed to cooperate with your solicitor
In these situations, the CFA is treated as breached.
What happens if my 'No Win No Fee' case is successful?
If your claim succeeds:
- Most of the solicitor’s basic legal costs are paid by the losing party. Usually the defendant’s insurer
- The solicitor will also charge the client a success fee
What is a success fee in a 'No Win No Fee' case?
A success fee is the solicitor’s payment for taking on the financial risk that your case may not have succeeded. This fee:
- cannot be more than 25% of the damages awarded
- applies only to general damages and past financial losses
- does not apply to future losses such as ongoing care or long‑term earnings
After The Event (ATE) Insurance
As part of your CFA, we will usually arrange 'After The Event' insurance (ATE) on your behalf.
What is After the Event insurance?
After the Event insurance (sometimes referred to as ‘ATE’ insurance) is a specialised, tailored type of policy that’s put in place early in the litigation process to ensure maximum protection.
What does After the Event insurance cover?
- Adverse Costs: If you lose, the policy pays the legal fees and costs of your opponent.
- Disbursements: Costs incurred during your case, including expert witness fees, court fees, and police or medical reports.
How much does After the Event insurance cost?
The cost of ATE insurance can change as your case progresses, depending on the time and risk of the claim. It can also depend on the value of the case, as often the premium increases with the value of the claim.
If you don't receive any compensation for your injury, then you won't have to pay anything for your ATE insurance. The cost of the premium writes itself off.
If your claim is successful, you'll pay for the insurance out of your compensation in addition to the success fee.
In most cases, the ATE premium is only payable if you win your case.
Starting a 'No Win No Fee' claim with us
A No Win, No Fee agreement provides a safe and accessible way to pursue a personal injury claim without upfront financial pressure.
If you are thinking about making a claim, we are here to help. We'll happily answer any questions without legal jargon.
We provide specialist advice and representation for various types of personal injury claims including fatal accident claims, road traffic accident claims, accidents at work and more.
We have a dedicated frequently asked questions page on our website, where you can also see what our clients say about us. However, if you would like to contact us, please do so on 01332 364436 or at legal@timms-law.com.
