What exactly does “No Win No Fee” mean?


No win no fee is a fair means of providing everyone with access to justice, especially those who can’t afford to pay solicitors’ costs. It means just what it says – if a compensation claim fails, the claimant doesn’t pay anything even though their solicitor will have run up considerable fees during the claims process.

No Win No Fee services are officially known as a conditional fee agreement, which states that your solicitor will only be paid for their services if you win your claim for injury compensation.

A deduction if you win

When a claimant succeeds and wins their compensation claim, a deduction is taken from the settlement. This came about as a result of the government’s Compensation Act 2012 (LASPO Act 2012) that sees winning claimants contributing up to 25% of any settlement value to the cost of their claim. The deduction is formed by the value of the entire claim and may also include the sum provided for a special damages settlement.

At Direct2Compensation, our no win no fee process complies fully with the requirements of legal and government legislation. This guarantees that the bulk of your legal costs will be paid for you when you win your claim, and that you will receive at least 75% of any compensation settlement awarded to you. The balance of your legal costs will be payable by the 3rd party.

No costs if you lose

In the event that your no win no fee claim is not successful, you will never be liable for the costs incurred so long as you are not acting fraudulently.

This means that the solicitor’s own costs are lost when a claim fails. The 3rd party defendant may well charge their costs to the claimant’s solicitor, but our solicitors will have ensured that all claimants have obtained an insurance policy that will cover such costs. The insurance policy will cost the claimant nothing if the claim fails, but the premium for the policy may be deducted from the compensation settlement should the claim be won.

The important thing to remember is, that with Direct2Compensation, our claimants are not responsible for any legal fees.

It continues to be very much worth it to pursue a no win no fee claim, and we do our utmost to minimise any deductions from compensation settlements. Our staff and partner firms uphold the ethos of working in our client’s best interest at all times. We are proud to be part of the personal injury claims industry, and to help our clients claim compensation they deserve in an efficient and ethical way.

2 questions have been answered below, why not ask your own?

  1. I have a solicitor working for me on a no win no fee basis against my previous employer.
    the company have accepted liability but don’t want the case to go to a tribunal. the original injury to feeling was £16,500. but because they came back with a bit of defence, we had to drop the injury to feeling. the first offer was £3000 but I said no and went back with £12,000, but the solicitor said no go for £9000 and if they offer £5000 we should accept it. I said I wasn’t prepared to drop that low and he said if it continues like this then I will not be able to carry on with this case on the no win no fee basis. this case hasn’t been going on for long, and we have an acas conciliator involved. Should he be saying this to me?

    • It is hard to advise as to whether or not your Solicitor is advising you correctly but we would always assume that the Solicitor is acting correctly and advising you in your best interests. However, you cite a hefty drop in damages and are well within your rights to be unhappy with the lowering of possible damages. However, your Solicitor maybe right and as per the terms of the Conditional Fee Agreement that you would have signed with them, they are able to terminate a No Win No Fee agreement if you ignore their advice.

      I would suggest that you should ask for a different Solicitor within the same firm to review your file – perhaps via the Solicitors complaints policy (which would be published on their website) in order for a fresh view on things.

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