What is a No Win No Fee Agreement, and What does it Actually Cost You?
After suffering a personal injury, the cost of taking legal action can be a concern. You may have medical expenses, loss of earnings or other financial pressures at the same time as trying to recover. A no win no fee agreement can allow some people to pursue a personal injury claim without paying their solicitor’s fees upfront.
The phrase can sound simple, but the agreement needs to be understood before you sign it. The percentage payable, what happens if the claim is unsuccessful, and whether other costs apply should all be clear from the outset.
What is a no win no fee agreement?
A no win no fee agreement is a funding arrangement between a solicitor and client. In Scotland, this can take the form of a conditional fee agreement or another type of success fee agreement.
In a personal injury case, the agreement will normally explain what the solicitor can take if the claim is successful. The exact fee arrangement should be set out clearly in writing before legal representation begins. Scottish solicitors must provide clients with information about how their services will be charged.
How do no win no fee agreements work?
Under a no win no fee arrangement, the solicitor agrees to conduct the case on agreed terms. If the claim is unsuccessful, the agreement may mean that the client doesn’t have to pay the solicitor’s fees, subject to the precise terms of the agreement and any other costs that may arise.
If the claim is successful, the solicitor may take a success fee from the compensation award. This can be calculated as a percentage of the compensation, so the amount needs to be understood before you decide to make a claim.
Does a no win no fee agreement mean you pay nothing?
Not necessarily. “No win no fee” doesn’t always mean that every potential cost disappears.
A solicitor should explain legal fees, outlays, VAT where applicable and any additional costs that could arise. The written terms should also explain what happens if the claim is unsuccessful and whether any costs could still be payable by the client.
That distinction matters. Before signing, ask the solicitor to explain exactly what you could pay, both if the claim succeeds and if the claim is unsuccessful.
What is a success fee?
A success fee is the amount a solicitor may take from the compensation if the claim succeeds. Under Scottish success fee arrangements, the fee can be calculated by reference to the damages recovered or agreed.
For example, if a solicitor agrees to act for a client on a ‘no win, no fee’ basis in a personal injury claim, the amount he deducts will depend upon the damages ultimately recovered. The agreement should state how much and the percentage and how that is calculated.
What are the advantages of no win no fee agreements?
One of the main advantages of no win fee arrangements is that they can allow a person to seek legal representation without paying their solicitor’s fees upfront. This can be particularly relevant where an injury has affected income or created other financial pressures.
The arrangement can also give a client peace of mind over solicitor fees if the claim is unsuccessful. However, the benefits will depend on exactly what the agreement is, so the terms should be considered carefully and not based on the words “no win no fee”.
Are there other costs in a personal injury claim?
There can be. Depending on the case, costs may include medical reports, court fees or other outlays. A solicitor should explain which expenses may arise and how they will be dealt with.
The Scottish Legal Complaints Commission advises clients to check their Terms of Business and ask whether they will have to pay other costs, sometimes called outlays or disbursements.
Can you make a personal injury claim without upfront costs?
Some people can make a personal injury claim without upfront legal costs where a solicitor agrees to act under suitable fee claims arrangements.
That doesn’t mean every personal injury case will qualify. A solicitor will usually assess the circumstances, evidence and prospects of the legal claim before agreeing to fund the work in this way. Claims management companies may also offer funding arrangements, but their terms can differ from those offered by a solicitor.
What should you ask a solicitor before signing?
Ask how much the solicitor may take if the claim is successful, what happens if the claim is unsuccessful and whether any additional costs could be paid by the client.
You should also ask whether the solicitor expects costs to be recovered from the other side and what happens if the amount recovered doesn’t cover every cost. Clear answers at the beginning can help you make informed decisions about whether the proposed funding arrangement suits your circumstances.
Do you need a solicitor for a no win no fee claim?
You don’t have to use legal representation for every form of redress. Some compensation schemes or statutory processes can be accessed without a solicitor. A personal injury claim involving disputed liability, medical evidence or significant financial losses can be more complicated.
A solicitor can assess whether there is a basis for a claim, explain the potential costs and manage the claim properly. That assessment should take account of the evidence and circumstances rather than simply the fact that an injury occurred.
How can SGT Law Firm help with a personal injury claim?
SGT Law Firm provides personal injury legal services across Scotland. A solicitor can discuss the circumstances of an injury, consider whether a compensation claim may be appropriate and explain the available funding options.
The firm’s Personal Injury Lawyers Glasgow service provides further information about personal injury claims. More information about the firm is available through SGT Law Firm.
Before entering a win no fee arrangement, ask for the fee explained in writing and make sure you understand the potential costs in both outcomes. Every personal injury claim is different, and the appropriate funding arrangement will depend on the circumstances.
