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What Does A ‘No Win No Fee’ Personal Injury Claim Really Mean?

By Ian Morris | Updated June 28th, 2024

56 questions have been answered on this subject - ask us your question

Quick Answer: No win no fee, also known as a Conditional Fee Agreement (CFA), means that if your compensation claim is unsuccessful, you won’t have to pay any legal fees to your solicitor. This arrangement allows individuals to pursue compensation claims without the financial risk associated with traditional legal services.

Key Takeaways

No win no fee agreements eliminate upfront legal costs for claimants
If the claim is successful, the claimant pays a success fee from their compensation
The success fee is capped at 25% of the compensation awarded
Claimants are protected from paying the defendant’s legal costs in most cases
No win no fee agreements increase access to justice for all

Many people who are injured in non-fault accidents hesitate to seek compensation, fearing the potential costs of legal proceedings. This is where no win no fee agreements come in, offering a lifeline to those seeking justice without financial risk.

But what exactly does “no win no fee” mean? How does it work, and what are the implications for claimants? Here we demystify the concept of no win no fee claims, so you can make an informed decision about your legal rights.

What is No Win No Fee?

Definition and Legal Basis

No win no fee, officially known as a Conditional Fee Agreement (CFA), is a legal arrangement between a client and a solicitor. Under this agreement, the solicitor agrees to handle the client’s case without charging any upfront fees. If the claim is unsuccessful, the client doesn’t owe the solicitor any legal fees.

This type of agreement was introduced in the UK in 1995 and has since become a popular way to fund personal injury claims, clinical negligence cases, and other types of litigation.

At the start of the personal injury claims process, a solicitor will evaluate the strengths and weaknesses of a claim, then decide if the prospect of success outweighs the prospect of failure. If they believe the claim has a realistic chance of success, they may take the case on a Conditional Fee Agreement (No Win No Fee) basis.

How No Win No Fee Works

Initial consultation: The solicitor assesses the viability of your claim at no cost
Agreement signing: If the claim has merit, you sign a CFA with the solicitor
Case progression: The solicitor handles your case without charging upfront fees
Outcome:
- If you win: You pay a success fee from your compensation
- If you lose: You don’t pay any legal fees to your solicitor

Benefits of No Win No Fee Claims

Financial Protection

The primary advantage of no win no fee agreements is the financial protection they offer to claimants. You can pursue your claim without worrying about:

Upfront legal costs
Ongoing fees during the claims process
Legal bills if your claim is unsuccessful

So long as you have not acted fraudulently and cooperated fully with your solicitor, you will pay nothing if your claim is unsuccessful.

Access to Justice

No win no fee agreements have significantly increased access to justice for many people who might otherwise be unable to afford legal representation. This system ensures that:

Anyone can seek compensation, regardless of their financial situation
The legal system is more accessible to all members of society
Victims of negligence are not deterred from seeking justice due to financial concerns

Motivation for Solicitors

Under a no win no fee agreement, solicitors are incentivised to:

Take on cases with a strong chance of success
Work efficiently to resolve claims
Maximise the compensation awarded to their clients

What Do I Pay if I Win a No Win No Fee Claim?

If you win your no win no fee claim, your solicitor will deduct their success fee from the awarded compensation, as outlined in the Conditional Fee Agreement. This deduction covers the solicitor’s legal fees, with additional costs charged to the defendant. The remaining balance is then forwarded to the claimant.

What is a Success Fee?

A success fee is an additional amount paid to your solicitor if your claim is successful. It’s designed to compensate the solicitor for the risk they take in handling your case on a no win no fee basis.

How Much is the Success Fee?

The success fee is capped at 25% of the compensation awarded (excluding future losses)
The exact percentage is agreed upon between you and your solicitor at the start of your claim
This fee is deducted from your compensation, not added on top of it

Example Calculation

Let’s say you’re awarded £10,000 in compensation, and your success fee is set at 25%:

Success fee: £2,500 (25% of £10,000)
Amount you receive: £7,500 (£10,000 – £2,500)

When a solicitor successfully handles a no win, no fee claim, they ensure that the full extent of the injury and its long-term consequences are thoroughly understood. They negotiate the maximum compensation for the injury and recover all lost income and incurred costs related to the injury. This forms the total settlement of the claim, which is agreed upon by both the solicitor and the claimant before negotiating with the defendants.

What Do I Pay if I Lose a No Win No Fee Claim?

While every no win no fee claim is pursued with the expectation of success, there is always a chance it may fail. Defendants might present a strong defence early on or a judge might rule that the defendant is not liable.

If a claim fails, it is understandably disappointing. However, as long as you have provided honest information and fully cooperated with your solicitor, you will not face any costs. Not for their fees, nor the defendant’s fees.

ATE Insurance – Protection Against Defendant’s Costs

One common concern with legal proceedings is the risk of having to pay the defendant’s costs if you lose. However, with no win no fee claims:

You’re generally protected from paying the defendant’s costs if you lose
This protection is usually provided through After the Event (ATE) insurance
ATE insurance premiums are typically self-insuring, meaning you only pay if you win your case

The law prohibits successful claimants from recovering the cost of ATE cover from the defendants on success of a claim. If such cover is needed, the cost is typically £150-£250 but this can vary. Again, it is only payable if and when a claim succeeds and never payable if a claim fails.

Often ATE insurance isn’t required at all, particularly in clear-cut cases where you’re fully expected to win. Also, if a claimant has pre-existing Legal Expenses Insurance (LEI) cover in place, a solicitor will attempt to use that instead of separate ATE insurance.

Can I Ever Be Charged if a Claim Fails?

If you, as a claimant, have acted honestly and fully cooperated with your solicitor you will not pay any costs if the claim fails for reasons beyond your control.

However, claimants should be aware that solicitors can recover costs if a claimant acts fraudulently, causing the solicitor to incur expenses on a dishonest claim. Additionally, if a claim fails because a claimant did not cooperate, return signed documents on time, or attend required assessments or hearings, the solicitor can pursue the claimant for costs, as they cannot recover these from the defendant.

Claimants may also be liable for costs if they withdraw from their claim before it is settled. This is because the solicitor will have incurred costs from their work and disbursements (such as medical record requests and expert instructions) that cannot be recovered from the defendants.

If you are worried about pursuing your claim, always speak with us or your solicitor before deciding to withdraw. We understand that legal action can cause anxiety, and we are here to help you feel confident in pursuing your claim fully.

Frequently Asked Questions

Remember, while no win no fee agreements offer significant benefits, it’s crucial to fully understand the terms before signing. Always ask questions and seek clarification from your solicitor to ensure you’re making an informed decision about your legal representation.

56 questions have been answered on this subject - ask us your question

Comments & Questions

Read on for questions and advice about claiming...

Hi there Ian,

I was put on to some nwnf solicitors by my insurance company after an accident back in November. in the accident, a car (oncoming traffic) swerved across on to my side of the road and crashed through my drivers door. I sustained a head injury against the drivers door window with lasting concussion symptoms (3+ months) and trouble with short term memory since with foggy/blocked thought, other injuries such as a dislocated right shoulder, injury to elbows and left wrist, whiplash, my door also smashed in and hit me in the abdomen hard causing significant pain for a week or two and still have discomfort down there, some good bruising to my right leg and left knee.

They sent me documents to sign, I had telephone calls with them but I could not remember much of what was spoken about after the call and I haven’t signed anything to this date.

I have used some of the services arranged- physio therapy x 8 sessions which was recommended from an assessment they arranged. The Dr that assessed me did not listen to how the accident happened and described nearly all my injuries as whiplash related, not due to the impact of the other car into my door and into me.
only 8 sessions were granted and solicitors didn’t respond to th physios who stated more sessions were needed.

I am looking to use another solicitor now as they aren’t very helpful.

I have not yet seen a conditional agreement form and have not signed anything, although, I have used their services and will owe them for what they have provided, but I am not sure how to go about changing to a new solicitor and if they will still be entitled to 25% of my claim or if I must just settle up for the physio and the arranged assessment?

Any help would be gratefully received.

Please call us on 01225430285 – as you haven’t signed any paperwork, it is hard to see how the Solicitors you have been put on to by your insurers could have any legitimate claim to any portion of your compensation.

For a Conditional Fee Agreement to be enforceable, a Solicitor MUST ensure that a claimant has been fully advised of the contents of the agreement, that the claimant has been able to ask any questions or make any queries that they wish and that the claimant fully understands their obligations and what costs, if any, they may face if they fail to cooperate or when they succeed with their claim. This does not appear to have been the case in your situation.

You clearly have a considerable number of injuries and ongoing symptoms and your claim should be handled by a specialist Solicitor of your choosing to ensure that you get the best service and outcome possible. With this in mind, we’ll be very happy to assist you.

Do I still have to pay if a Solicitor quits before the claim has ended?

If a Solicitor were to withdraw from a claim and you then went on without representation to settle the claim, you would not have to give the Solicitor a penny. However, if a new Solicitor takes over the running of a claim from a previous Solicitor, the previous Solicitor may preserve a right to recover their lien costs from the new Solicitor – when the new Solicitor receives settlement from the defendants.

What is LEI? My partner is going through a no win no fee claim at the moment. The acting solicitor has requested all our insurance document even my car insurance . I’m concerned that if he does not succeed they will claim against our insurance which will have a huge impact on future insurance.

LEI is ‘Legal Expenses Insurance’ (and also known as BTE – ‘Before the Event’) and is often an add on that is included with various insurance policies, financial products or memberships of certain societies or bodies.

Your Partner’s Solicitor is acting correcting in ascertaining what, if any legal expenses insurance your Partner has in place that may prove to be helpful in the pursuit of their claim. If a claimant has no LEI/BTE insurance in place, a Solicitor may recommend that an ‘After the Event’ insurance (ATE) policy is purchased to help with the claim. The claimant wouldn’t pay for the insurance if they lost their claim, but would cover the premium from their settlement if they succeeded. In most cases, ATE is not needed or recommended, but if a claimant has LEI or BET in place, it can enable a Solicitor to take more risks with a claim – especially if it is proving difficult to get the defendant to make a sensible settlement offer. Generally speaking, our Solicitors no longer recommend such policies.

Please rest assured that using any existing LEI/BTE insurance has no impact on renewal premiums and is not seen as a claim on your motor insurance or home insurance etc – these policies are there to be used when legal help is needed – whether that be a personal injury claim as in this case, or if you had a dispute with a contractor, neighbour or some other sort of need for legal services.

Hi I was in a RTA as a passenger, the driver admitted liability, my solicitor is charging 25% plus vat. I thought on personal injury there was no vat, also I was told to take out ATE insurance which I was told would be £350, now solicitors are charging £473. So when an offer was made it worked out the solicitors were taking half of my offer, can you please tell me can the solicitor do this when there’s legalisation put in place? thankyou .

If the Solicitor is VAT registered, they can add VAT. Many Solicitors opt to include any VAT within their deducted 25% but some do add the VAT to the 25% deduction. As for the ATE premium fee, the Solicitor should not deduct any more from your settlement for that than they had expressly stated that they would – and to which you signed at the outset of the claim.

I just wanted to ask whether with a no win no fee claim, if u win your case is the 25% (and any insurance premium) taken from your winnings or do the other side pay your fees?

I met a lady who said that she went with a no win no fee provider and when she won her case (which didn’t go to court), the people she was suing were the ones who paid her 25% and nothing came out of her winnings as it was recovered from the other side. Is that correct?

Sadly, the person with whom you were speaking is incorrect – unless their claim was for an accident that happened before the personal injury reforms came in to effect on 1st April 2013. Before these changes, claimants could retain 100% of their compensation and recover all of their costs from the defendants. Unfortunately now, claimants cannot recover all of their costs from the defendants and they cannot recover ATE insurance premium costs either. Therefore, a claimant will have to contribute from their settlement should they succeed.

Our No Win No Fee service guarantees that a claimant will NEVER contribute any more than 25% towards their costs and our Solicitors will not recommend that a claimant takes ATE insurance except in very rare cases where the benefits of doing so are obvious and worthwhile. Some companies do continue to recommend often expensive ATE policies. Whilst the claimants would never pay anything if they are not successful with their claims, some claimants end up contributing far more than 25% of their settlement towards costs if they don’t choose the right specialist provider (like us!) to act for them.

I am currently pursuing a claim for an RTA under no win no fee, it’s being going on for nearly 14 months now still not resolved, even though 4 independent medical professionals have concluded it was whiplash injury caused at low speed 5-10mph. Third party insurers saying the injuries sustained are not consistent with the speed and damage to the vehicle. Third party insurers had until 3rd December to make out of court offer, my nwnf solicitor does not want to pursue court action saying there’s a risk of loosing and I would have to pay Defendants to costs if lost in court, so he’s still pursuing other insurers for settlement. 1. Is that correct saying I would be liable for costs? 2. Am I in my rights to transfer this case to another solicitor to pursue as he seems to be getting nowhere?

The situation that you find your claim in ‘low velocity impact’ (LVI) is problematic for claimants. Whilst there is no defined evidence to prove that soft tissue injuries such as whiplash cannot be sustained at low speeds, there is also no evidence to prove definitively that such injuries can be sustained. This has opened an escape route for insurers to refuse to compensate for personal injury even when they admit liability for the car accident and vehicle repair costs.

Your Solicitor is correct in that as the defendant has refused to accept liability, taking the matter to court is risky. You would be relying on the Judge finding in your favour and compelling the insurers to compensate you – in which case, they would pay court costs and the majority of your Solicitors cost (less your 25% contribution). However, if the Judge were to find in favour of the defendants – which is sadly a realistic possibility – you would not only obtain compensation, but you would also have to then pay the defendant costs.

Switching to a different Solicitor is unlikely to make any difference to the outcome of your claim and given the nature of the cost burden, a new Solicitor would be very unlikely to wish to take your claim further as it would be financially unviable for them to do so.

After canceling a claim before the 14 day cool-off period, will my claim still be on the insurance I was going against?

If you have decided to withdraw from the Conditional Fee Agreement instructions to your Solicitor before the 14-day cooling off period, the claim would not have even started and the insurers would not have been contacted regarding any claim.

My sister has been fighting a claim against hospital for 12 years. It’s been dragging on and on knowing that she has won her case, but now her own solicitor has gone against her and she wants to sack them.
It was a no win no fee. Would she be liable to pay for the work they’ve done even tho they’ve been crap?

Whilst your Sister can seek to switch to a new Solicitor, the process is far from easy unless the previous Solicitor has breached the terms of their Conditional Fee Agreement, they will still require payment for their work should the new Solicitor succeed with the claim. This would require the new Solicitor to give an undertaking to the previous Solicitor to meet their costs on settlement. As you can imagine, this may well make it financially unviable for a new Solicitor to get involved (depending on the total value of the claim and total legal costs).

As there appears to be questions about the handling of the claim by the Solicitors appointed, it may well be a good idea to make a formal complaint to the firm in question outlining the areas of concern and why it is felt that they have not acted in the best interests of your Sister – the claimant. If they uphold the complaint, they should resolve matters and ensure that your Sister can settle her claim in a way in which she is happy. If they cannot do so, the complaint can be escalated to the regulatory authorities and legal ombudsman.

Thank you very much for your reply.
Apologies, as on my second question, I felt that I that I had not explained myself very well. If I may ask again?
Do I have any rights as a claimant to know the total cost of my case?
Many thanks in advance…

Your Solicitor can provide you with a full breakdown of the costs of your claim – including their costs, disbursements and any other fees. Contact your Solicitor to request the same in writing.

I have cancelled my no win no fee data breach claim but have been charged two lots of charges one for the solicitors for the work they have done and a separate charge for redemption of the load which was after the 14 day cooling of period is this correct? Should the solicitor fees be included in the CFA charges?

Much will depend on the terms of the CFA you signed with the Solicitors. How long into the process was your decision to cancel?

Thank you Ian for your reply. It is very useful.

You’re welcome!

How will a claimant know when their Solicitor has obtained compensation on their behalf from the defendant insurer?.

A Solicitor cannot obtain a compensation settlement without having provided written advice of the offer and obtained a signed authority to accept it. Therefore, if you haven’t yet signed the authority, your Solicitor cannot have the settlement.

Thank you for your reply, this is very useful information.
I’ve also learned that the 35% success fee they will be claiming is higher than the norm and that even after conducting my own due diligence, it is clear that not all solicitors are the same.

Solicitors are free to make their own arrangements regarding client costs and potential deductions and it is therefore sensible to make sure that you do not sign up with a firm who charge a higher deduction on success than other firms.

Yes, there is a CFA in place and I am aware that the ATE policy will only be payable if the case is won. The PAD fee I was unaware of and I haven’t been advised of the exact cost – all I have been sent are some fee waiver/reduction forms, though my salary appears to be way too high to qualify for reduced court fees. The claim will be for an as yet unspecified amount.

It is certainly not the norm for a client to be required to fund such situations. It would be prudent to ask your Solicitor to put their reasoning for this requirement to you in writing and to request that they confirm that you would be able to recover any such fee should you succeed. Also, I would ask them why they are not able to fund this themselves under the conditional fee agreement you have previously signed.

Thanks for your speedy reply will discuss with my wife and will let you know, thanks

My wife is considering no win no fee claim but the solicitors fee is up to 33% is this too high, she has also been told she will have to pay extra fee I.e. shortfall in costs that cannot be recovered from her opponent, does this sound correct. Thanks

Our Solicitors will deduct no more than 25% of any awarded damages. The only other potential ‘cost’ to a client may be if an ATE policy is needed – although it is rare that such cover is advised these days. If ATE cover is needed, a claimant will not pay the costs of the premium if the claim is unsuccessful, but will have to cover the cost from their settlement alongside a maximum deduction of 25% of the total settlement.

If your wife would like to discuss her potential claim with us, we’d be more than happy to consider the matter and pursue it if viable to do so.

Hi There.

I am in the midst of a personal injury claim and my solicitors are at the stage of issuing an application for pre-action disclosure, due to non-response from the defendant’s insurers. As well as paying £2000 plus VAT for an ATE insurance policy, I am now informed that I have to pay the court fees for the PAD (which have been described in my Solicitor’s letter as ‘substantial’). Is this standard practice?

Is your Solicitor acting on a Conditional Fee Agreement basis?

Hi, I have recieved a solicitors bill from a no win no fee solicitors but I have never signed any agreement as the first lot of paperwork they sent me had small print I wasn’t happy with and didn’t want to peruse anything as i felt my daughter didn’t have any injury from the RTA.
She was a passenger in another families vehicle and I was contacted by the solicitors they were using, I never reached out to them. She attended a Dr appointment as the other family asked her to attend to see if she had any injuries and I was just sent a text message telling me where to be and at what time by the solicitors. I’ve not and never signed anything and after a very aggressive phone call a year later I then end up with this bill, do they have any right to ask for this money?
Thanks Diane

Without you having ever formally instructed anyone to pursue this matter for your daughter, I am at a loss as to why a medical assessment would have been arranged and even more so that you have now been billed costs for this matter. I do not believe you have any liability and I would suggest that you report the firm in question to the regulatory authorities and have this investigated formally.

If I want to do a claim will the costs to the solicitor ever exceed “go over” the pay out ?

To answer your question simply, the answer is no – never! When pursuing a claim on a No Win No Fee basis, you will never pay any costs should your claim succeed. Whilst all claimants must contribute to their own legal fees when pursuing a claim for personal injury compensation, our Solicitors will deduct no more than 25% of any compensation received regardless of the total cost of the claim. In rare cases, an additional ‘After the Event‘ insurance policy may be needed, but this is certainly not the case in the majority of claims. If ATE cover is needed, the claimant would only pay the premium if they were to succeed with their claim and again, it would be a relatively small value compared to their final settlement.

So I have cancelled the instructed solicitors on my no win no fee case because of their incompetence and the fact they wanted to charge me 25% plus vat. I have now taken on a new solicitor who is absolutely brilliant and will not be changing me anything. My question is do I still have to pay my old solicitors?

How are the new Solicitors to receive any fees? Are you certain that they are not deducting 25% from your settlement?

Your previous Solicitors will be entitled to recover the fees that they incurred for the work that they have undertaken on your claim – if you are successful. This will be as per the terms of the No Win No Fee agreement you would have signed with them at the start of the claim. Indeed, when obtaining your file from the previous Solicitors, the new Solicitor would have had to give an undertaking to ensure that the previous Solicitors lien costs would be covered should they succeed with the claim.

No my new solicitor will get paid from the other side and have told me they do not have to pay the other solicitors if I don’t want them to as i will be taking them to court for their incompetence and lies they told me.

If you are making a professional negligence claim against the previous Solicitors, you won’t have to pay their fees – unless you fail with that action.