What is a No Win No Fee Agreement, and What does it Actually Cost You?

A No Win, No Fee agreement lets you pursue a personal injury claim without paying your solicitor's fees upfront. If the claim fails, you do not pay your solicitor's fees. If it succeeds, your solicitor takes a success fee, which is a percentage of the compensation recovered and is capped by law.

In Scotland, these agreements are regulated by the Civil Litigation (Expenses and Group Proceedings) (Scotland) Act 2018. The phrase sounds simple, but it is worth understanding exactly what you could pay, in both outcomes, before you sign anything.

What is a No Win, No Fee agreement?

It is a funding arrangement between you and your solicitor. In Scotland, the formal name is a success fee agreement.

The law requires the agreement to be in writing and to set out how the success fee will be calculated. Scottish solicitors must also explain to clients how their services will be charged, so the terms should be clear before any work begins.

How does a No Win, No Fee agreement work?

1. Assessment The solicitor looks at the circumstances, the evidence and the prospects of the claim before agreeing to act on this basis.
2. Written agreement You receive and sign a written agreement setting out how the success fee is worked out and what you would pay in each outcome.
3. The claim proceeds Your solicitor pursues the claim without asking you for fees upfront.
4. If you win The success fee is taken from your compensation, as set out in the agreement.
5. If you lose You do not pay your solicitor's fees, and you are normally protected from paying the other side's legal expenses.

What is a success fee?

A success fee is the amount your solicitor takes from your compensation if the claim succeeds. It is worked out as a percentage of the compensation recovered, and the law allows that percentage to be capped by regulations.

Because the fee depends on the compensation, the final amount is not known at the start. What you should know from the start is the percentage and how it is applied, as the agreement will set out exactly what you would pay.

What happens if you lose?

If your claim is unsuccessful, you do not pay your solicitor's fees under a No Win, No Fee agreement.

You are also protected by a rule known as qualified one-way costs shifting, under section 8 of the 2018 Act. In personal injury cases, a person who brings a claim and loses is normally protected from paying the other side's legal expenses, as long as the claim was conducted properly (for example, not fraudulently or in a manifestly unreasonable way). Our guide on recovering legal expenses in a Scottish civil case explains how expenses work more generally.

Does No Win, No Fee mean you pay nothing?

Not always. "No Win, No Fee" describes your solicitor's fees, but it does not automatically cover every possible cost.

Ask your solicitor to explain how outlays (sometimes called disbursements), such as medical reports or court fees, will be dealt with, and whether VAT applies. The Scottish Legal Complaints Commission encourages clients to check their terms of business and ask about these costs.

What are the advantages of No Win, No Fee?

The main advantage is that you can get legal representation without paying fees upfront. That matters when an injury has affected your income or added to your financial pressures.

It also limits your financial risk if the claim does not succeed. The real benefit depends on the terms of your agreement, so judge it on what it says, not on the label.

Can anyone make a claim on this basis?

Not every case will qualify. A solicitor will usually assess the circumstances, the evidence and the prospects of the claim before agreeing to act on a No Win, No Fee basis.

Good evidence helps. Our guide to the evidence you need to support a personal injury claim explains what to keep. Being partly to blame does not rule you out either, as you can still claim if the accident was partly your own fault.

Claims management companies may also offer funding arrangements, but their terms can differ from a solicitor's, so read them carefully.

What should you ask before signing?

• What percentage success fee will you take, and how is it calculated?
• What will I pay if the claim is unsuccessful?
• How will outlays such as medical reports and court fees be handled?
• Do you expect to recover any costs from the other side, and what happens if they do not cover everything?
• Roughly how long is the claim likely to take?

Clear answers at the start help you decide whether the arrangement suits your circumstances.

Do you need a solicitor for a No Win, No Fee claim?

Not every form of redress needs a solicitor. Some compensation schemes can be used without one. A personal injury claim involving disputed liability, medical evidence or significant financial losses, however, is usually more complicated.

A solicitor can assess whether you have a claim, explain the potential costs and value it properly, including both pain and suffering (solatium) and financial losses (patrimonial loss). Our guide on how much compensation you can claim for a personal injury in Scotland explains how claims are valued.

How can we help with a personal injury claim?

Stewart Gordon Thomson Law Firm handles personal injury claims across Scotland on a No Win, No Fee basis. We can discuss what happened, consider whether a claim is appropriate and explain the funding options in writing before you commit.

Find out more about our personal injury lawyers in Glasgow. Every claim is different, and the right funding arrangement will depend on your circumstances.