When you enter into a No Win, No Fee agreement -officially called a "Conditional Fee Agreement (CFA)" - your personal injury solicitor’s fees are paid from the compensation you receive if your claim is successful. This payment, known as the "success fee," is a percentage of your total compensation.
If your claim is unsuccessful, you won’t have to pay any solicitor’s fees. This conditional payment structure is the key feature of all no win, no fee claims that allows claimants to pursue an injury claim without financial risk.
Why do solicitors charge success fees?
Success fees were introduced after the removal of Legal Aid for most personal injury claims in 2000. Without Legal Aid, many claimants were unable to afford legal representation. To ensure access to justice, success fees allow solicitors to take on cases without charging upfront fees or fees if the case is lost.
Success fees help claimants take legal action and ultimately take their case to court, without worrying about paying solicitors legal fees if their claim is unsuccessful.
Solicitors take on a financial risk with every case they accept on a No Win, No Fee basis. If they lose the case, they don’t get paid. The success fee for winning cases helps offset the costs incurred from cases that are lost.
Who pays the success fee?
Before 2013, success fees were paid by the defendant as part of the overall legal costs. This meant that claimants received 100% of their compensation. However, the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO) changed this. Since then, the success fee is paid by the claimant, not the defendant. Other legal costs, such as court fees, are still typically covered by the defendant if the claim is successful.
How much is the success fee?
The Ministry of Justice introduced a success fee cap of 25% of the total compensation amount in personal injury claims. This cap ensures that claimants keep at least 75% of their awarded compensation.
Do all solicitors charge 25%?
While the law allows solicitors to charge up to 25% as a success fee, solicitors do not have to charge the full amount. One of the aims of the introduction of success fees was to encourage competition and drive down legal costs. In practice, however, most solicitors charge the maximum 25%.
Will I lose 25% of my compensation if I win?
No. While there is typically a 25% success fee deduction from your compensation, claims made on a no win, no fee basis benefit from a 10% increase in the compensation total. This increase was introduced by the courts after changes to the law in 2013, helping to offset the impact of the success fee deduction and ensure you retain a fair portion of your compensation.
Can I negotiate a lower success fee?
Every claim is unique, and before you agree to a Conditional Fee Agreement, you have the opportunity to discuss the success fee with your solicitor. It’s important to understand how the fee is structured and whether there’s room for adjustment based on the specifics of your case.
If you’d like to explore your options or have any questions about success fees, we encourage you to give us a call. We’re happy to discuss the details and help you find the best arrangement for your situation.
Are there any other costs to pay when making a claim?
You may encounter other costs when pursuing a no win, no fee claim, such as legal disbursements, medical expenses, court fees, expert reports, and the defendant’s legal costs. To cover these potential expenses, no win, no fee claims include After-the-Event (ATE) insurance. ATE insurance is arranged by your solicitor after the accident and it protects you from having to pay these potential legal costs if your claim is unsuccessful.
ATE insurance is only paid if you win your case, with the premium (usually minimal) deducted from your compensation. Having this insurance in place means no win, no fee claims can proceed without any risk of unforeseen legal costs.
See also:
What is After the Event (ATE) Insurance When making a no win, no fee claim?
Find out more about making a no win, no fee claim
When entering a no win, no fee agreement, it’s crucial to have a clear understanding of how success fees work and how they might affect your compensation.
Before signing a Conditional Fee Agreement, your solicitor will explain the full fee structure, including any additional costs, such as After-the-Event (ATE) insurance. At Cycling Injury Legal, we believe in transparency and making sure you are fully informed. We’ll walk you through every detail to ensure there are no surprises down the line.
If you’d like to discuss your case or learn more about how no win, no fee claims work, contact us today. Our expert team is ready to guide you through the process and help you seek the compensation you need, with no financial risk.
Get the compensation you deserve
Success fees are an integral part of all no win, no fee personal injury claims. Our panel of expert cycling injury solicitors will clearly explain how success fees work, ensuring you understand how they impact your final compensation.
We’re committed to transparency, so you can make informed choices and proceed confidently with your claim.
Written by Chris Salmon on 29th June 2016