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

By Ian Morris | Updated June 28th, 2024

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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...

No win no fee, do I have to pay something to the solicitor if i signed agreement for money to not claim anymore?

If a claimant withdraws from the claims process or fails to cooperate, a Solicitor is within their rights (as stated in any and all Conditional Fee Agreements) to pursue the claimant for costs. This is because when acting on a conditional fee basis, a Solicitor can only recover their costs if they succeed with a claim. Whilst the claimant will never pay if the claim fails for reasons beyond their control – such as a robust defence or insufficient evidence – if the claim fails because the claimant has been dishonest or simply opted to pull out, a Solicitor will be left unfairly out of pocket.

Whilst the ‘right’ for a Solicitor to pursue a claimant for costs exists, the reality is that it would rarely be followed through – simply due to the costs of such action and the fact that they would probably not receive payment anyway.

I’ve been asked by out injury lawyer to pay £750 to engage with a private physician that will assess my injuries.
(Medical negligence from an NHS hospital) leg injury that went wrong. The Injury Lawyer would appear confident that we have a strong case but says we need this independent assessment. Surely I should not have to pay (I don’t have that kind of money spare) and everything stops until we make the assessment. I thought that there were various insurances that would cover this.. I don’t want to argue with our lawyer but he can’t see an alternative?

Clinical Negligence although personal injury, are slightly different to the ‘normal’ claims when an injury has happened in a non-fault accident and we have no reason to question the integrity of your Solicitor. In normal circumstances, a claimant should be able to undergo a specialist medical assessment at no cost (the cost is met by the defendant if they admit liability). Have you already had any such medical? If a 2nd medical is requested, that will be a cost that the claimant has to meet, whether they win, lose or draw!

Have you asked your Solicitor why they cannot fund the medical for you as a disbursement and reclaim the cost from the defendant if they succeed with your claim?

Of course, if liability is admitted, you shouldn’t worry too much as you will get the costs back when you settle your claim.

Thanks, Ian.. I’ve emailed my solicitor. Of course, I agree with you why can’t the solicitor meet the cost if he’s that confident that we have a strong case? I was even thinking of contacting my insurance company who offer legal cover just to cover the cost? Seems very inefficient.
Let’s see how he replies..

Good luck – hopefully the Solicitor will be able to provide helpful support.

My wife has just received by post the “no win, no fee” contract in the post from a Solicitor.

Page 14 of the contract includes the following :
Paying us if we (the solicitors) end this agreement

Clause:
(i) We can end this agreement if you do not keep to your responsibilities….etc (acceptable)
(ii) We can end this agreement if we believe you are unlikely to win. If this happens you will only have to pay our expenses and disbursements, which will include barristers’ fees if the barrister does not have a conditional agreement with us.

This second clause seems to me to be unnacceptable as it effectively allows the Solicitors to accept cases they are unsure of winning and charge their own clients for their fees by cancelling the contract before it goes to court. Their firm can end up minimising risk and winning payment either way.

My wife has only had an initial telephone consultation with the Solicitors and is now worried that if she refuses their services because of this clause, she will already have to pay them for sending her this contract and associated paperwork including a partly filled in claim notification form (RTA 1) and a mibservices.orguk askCUE PI enquiry match.

Is she correct in belieivng she is already indebted to this form before signing the contract and possibly becoming further in debt to a possibly untrustworthy Company?
Is this clause typical of “no win, no fee” agreements and is it one that your Company requires to be within the contract?

Whilst the wording that you cite can be read in the way you have noted, you need not worry as the paperwork is for No Win No Fee services. You (in this case your Wife), will not pay any costs whatsoever should the claim fail and she should only contribute up to a maximum of 25% of any awarded total if you succeed.

All Conditional Fee Agreement (No Win No Fee) paperwork contain such clauses. They are not in place to enable Solicitors to run any case that comes across their desk, but to minimise exposure to cost for the Solicitors. Again, if a claimant fails and loses their claim, they pay NOTHING whatsoever – to any party. At Direct2Compensation, we ensure that all clients instructing our Solicitors first receive a simple one page summary – essentially a guarantee on costs (no costs if no success and a maximum deduction of up to 25% if they succeed).

There can be some exceptions to costs – but never any cost when a claim fails. In certain claims, a claimant may require an After the Event (ATE) insurance policy to be put in place – although in almost all cases with us/our Solicitors, such cover is not needed and is not recommended or taken. In the rare event that ATE cover is suggested or taken, the claimant will never pay for it if the claim is not successful, but if the claim is successful, they cannot recover the premium from the defendant and must pay for it from any settlement obtained. Again, this is a very rare occurrence and is certainly not recommended in RTA claims.

Your Wife certainly won’t face any costs if she opts NOT to sign the Solicitors paperwork. The firm in question are not instructed to act for her until she formally signs their paperwork. Further, there is a 14 day cooling off period post signing any such forms.

We would be more than happy to have our Solicitors act for your Wife in her claim.

I’ve got a current work injury claim going on but the defendant insurers will not give a response for liability which has been ongoing for over 12 months.
I’m not happy with my solicitor who are just sitting back on the case showing no forward direction.
Could I request correspondence documentation between my solicitor and the defendant insurer to see what is actually happening, as I’ve lost total faith and trust with my solicitor?
Please advise.

Given the timeframe you mention, you have every right to feel uneasy about the claim. You should request some written evidence from your Solicitor as to what they have done and you could even consider complaining to force them to fully update you about the situation. If you exhaust all avenues of working with your current Solicitor, you can then seek to switch to a new Solicitor to pursue the claim for you.

My no win no fee solicitor does not want to continue to act for me in three admitted liability cases after two and a half years. What should I do?

It seems bizarre that a Solicitor would choose to withdraw from cases where they have achieved an admission of liability! If the Solicitors close their file, they are writing off their fees and success fees! What is their reasoning for withdrawing from the claims?

Unless there is something we are not aware of that has lead to them closing their files, it should not be too difficult to place the claims with a new Solicitor and get to the point where settlement is reached and the cases closed in your favour.

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.