Who hasn’t heard of no win no fee personal injury claims? A quick internet search brings up pages of personal injury lawyers, all offering to progress personal injury claims with seemingly no financial risk.
However, it is hard to believe that specialist personal injury solicitors are prepared to take on what are often complex personal injury claims without a guarantee of payment.
This guide aims to answer all your questions about no win no fee claims, dispel some myths and give you the real low down on all the facts so you can proceed with confidence.
What Is A No Win No Fee Agreement?
Also known as a conditional fee arrangement, a no win no fee agreement is a formal contract between a law firm and its client in which a solicitor agrees to progress a case without upfront payment of their fees.
A no win no fee lawyer will represent you, only taking a fee if your claim is successful. This is called a success fee.
How Does A No Win No Fee Claim Work?
No win no fee agreements are used in civil cases and are the most popular basis to advance a personal injury claim. However, just because a solicitor agrees to take your case on a no win no fee basis, this isn’t an automatic guarantee that your claim will be successful.
What Are The Benefits Of A No Win No Fee Agreement?
A no-win, no-fee agreement guarantees access to a solicitor’s legal advice, allowing claimants to progress a compensation claim without the worry of upfront solicitor’s costs, which would otherwise be unaffordable. You’ll only pay solicitor fees if your claim is successful.
No win no fee agreements provide an open door to justice for thousands of people who don’t qualify for legal aid and those who have work accidents and are not members of a trade union.
How Does The Process Work?
No win no fee lawyers usually offer a free initial consultation to evaluate the details of your claim and how the accident happened and determine whether you have a valid case.
In order to make a successful personal injury claim, your injury needs to have been caused by a third party – that could be a person, a company or other organisation – who owe you a duty of care.
A duty of care is a legal obligation to protect you and keep you safe in certain circumstances.
Road users owe each other a duty of care to drive safely and minimise accidents. Your employer owes you a duty of care in the workplace to protect you from injury. Medical professionals owe you a duty of care to correctly meet the required standard to diagnose and treat your injury or medical condition.
A personal injury solicitor will identify whether a duty of care is owed and has been breached, leading to your injuries. If there is a basis to make a claim, they will proceed with a no win no fee agreement, which you will need to read and sign before they start work on your case.
What Is The Maximum Fee A Solicitor Can Take?
If your no win fee claim is successful, then your solicitor will take a percentage of the compensation awarded. In personal injury claims, this is capped at a maximum of 25% by the Ministry of Justice.
Before 2013, a successful claimant would have the defendant pay their costs in addition to the compensation awarded. However, the law changed, so the defendant was no longer responsible for paying the claimant’s solicitors’ success fee. The Conditional Fee Arrangements Order 2013 capped the success fee at 25% of the compensation figure to ensure solicitors did not take more than they ought to have done.
Are There Any Drawbacks To A No Win No Fee Agreement?
A no-win, no-fee agreement has no drawbacks because even if your claim is unsuccessful, you still won’t pay any solicitor fees, so you have nothing to lose.
However, a conditional fee agreement only covers your solicitor’s legal costs so that it won’t include disbursements. Disbursements are other charges over and above your solicitor’s costs like court fees, barrister’s charges to represent you in court, and professional fees for people like independent medical experts. These disbursements can run into thousands of pounds.
Check your conditional fee agreement carefully so you know who is responsible for these costs. Some personal injury lawyers ask the claimant to pay disbursements separately, or your solicitor might take out an ‘after the event’ insurance policy.
An after the event insurance policy is designed to cover the other side’s legal fees (if any are applicable) because these won’t be included in your no win no fee agreement. Sometimes, these policies will also include disbursements as well, so it’s best to check.
Should You Use No Win No Fee Solicitors For Personal Injury Claims?
No win no fee solicitors can offer a way for you to pursue a personal injury no win no fee claim. A solicitor will only accept your case if there is a clear duty of care which has been breached leading to your accident.
You can discuss at the outset how the no win no fee agreement works and how much you are likely to receive in compensation based on your injuries.
What Happens If I Choose Not To Follow The Advice Of My Personal Injury Solicitor?
Your solicitor will give you a guide on what your personal injury claim might be worth. The legal profession and the judiciary use something called “The Judicial College Guidelines” which set compensation ranges for different types of injury. However, that is not a guarantee you will receive a settlement for this amount.
Your solicitor may receive all types of offers to settle, and these can be lower than you are entitled to. This is often a tactic to bring a case to a quick conclusion, and some people are happy to accept a lower offer so they can move on with their lives.
If, however, you receive a settlement offer which your solicitor advises you to accept and you refuse, then additional costs may apply. This is because you may not be able to obtain any further compensation and to pursue the case beyond this point will be a waste of time and money.
The same principle also applies if you decide to settle out of court against your solicitor’s recommendation, or go against their advice in some other way meaning they cannot properly represent you and pursue your claim.
How To Start A No Win No Fee Personal Injury Claim
Talk to us! We are specialists in no win no fee claims and offer an expert and professional service to all claimants.
Frequently Asked Questions
How long do no win no fee personal injury claims take to settle?
Every personal injury claim is unique so it’s hard to give averages on how long you’ll have to wait for a settlement. A useful ballpark figure to work to is between twelve and eighteen months, but complex cases like medical negligence claims can take longer. The Ministry of Justice has a claims portal for lower value claims worth under £25,000 for workplace accidents, road traffic injury compensation claims or a public accident. This is a fast track system with a settlement window of 35 days once the evidence of the injury has been submitted. These cases can be settled within six months.
Will I have to contribute to legal fees if my claim is long and complicated?
Even if your no win no fee claim is successful, some cases can run on for years due to the complexity of the situation or the injuries sustained. It’s a fair point to think that your personal injury solicitor may want a contribution towards their costs or a higher success fee. However, the legal costs your no win no fee solicitors are entitled to are stated clearly in the conditional fee agreement and the success fee cannot be more than 25% of the compensation settlement.
What happens if I change solicitors and my claim is successful?
If your current solicitor advises you to drop your case and you decide to disagree, move on and instruct a second lawyer on a conditional fee agreement, then if the second solicitor wins your case, you may find yourself liable to pay a success fee to both lawyers. This could represent 50% of the compensation awarded. Always read the small print of no win no fee agreements carefully so you are fully aware of what might happen if you decide to either drop your case or pursue it with a different legal team.
Are there other ways to fund a personal injury claim?
Some people can use legal aid to fund a personal injury claim. However, qualifying criteria are strictly defined. The government funds legal aid and is entirely different to a no win no fee agreement. You won’t have to pay the other side’s legal costs if you are entitled to legal aid. If you have had an accident at work and are a member of a trade union then you may be able to take advantage of a dedicated union legal service, which will represent you for no cost.
How will I know if my compensation offer is enough?
Part of assessing a personal injury compensation claim is to seek financial redress for current injuries but also to anticipate future needs based on an accident which has caused life-changing injuries. Not fully understanding the impact of certain accidents is one of the main factors in delaying settlement to ensure that the total extent of a claimant’s injuries is understood. Compensation must accurately reflect pain and suffering, potential loss of earnings and any adaptations you have to make to your daily life.
What is an ‘after the event’ insurance policy?
As part of a conditional fee agreement, most solicitors require claimants to take out an After the Event (ATE) insurance policy before they start work on their claim. This protects you from paying the other side’s costs if your claim is unsuccessful, and it can also cover disbursements. The cost of the premium will vary from one law firm to another and is linked to the solicitor’s track record of winning claims. The better their track record, the lower the insurance policy premium.
Who pays the premium for ATE insurance?
If your claim is unsuccessful, then you won’t have to pay the premium. If you win, then the cost of the policy is usually deducted from the compensation award alongside the success fee. ATE insurance premiums can be expensive for law firms with a poor track record of success or just starting out and haven’t yet built a claims history.
