All about no win no fee
Monday, June 28th, 2010No win no fee naturally attracts a certain degree of suspicion as it is not usual to get something for nothing. No win no fees arrangements are known legally as Conditional Fee Arrangements (CFAs). They were first introduced in 1998. In England and Wales legal aid is no longer permitted for most personal injury claims, apart from medical negligence.
No win no fee solicitors who offer to take on no win no fee accident claims are agreeing to take the risk that if they fail, then no payment will be received. This might sound a surprising risk to take, but the fact is that many solicitors have to accept this type of case as the industry is changing. This means that the no win no fee solicitor will occasionally have to take the risk that a case will be lost and he or she will not be paid. Reputable firms should not charge their clients anything in order to pursue their claims. The client should pay nothing at the beginning and nothing at the end of the case, under most circumstances.
However, pursuing accident claims through the courts carries the risk of losing the case and although the claimant will not have to pay his or her solicitor he or she will very likely be asked to pay the costs of the opponents. For this reason it is advisable for claimants pursuing this course to take out insurance in case they lose. A reputable firm will provide insurance for their clients and this should not cost them anything, the insurance premium being deducted at the end from the no win no fee compensation received. The insurer generally drops the premium charge if the case is lost.
Claimants should also avoid no win no fee solicitors who want to take a percentage of the no win no fee compensation received. The one exception to this rule is when the MIB hit and run agreement applies and in claims in which there is a high risk of losing. The MIB (Motor Insurer’s Bureau) pays out compensation for injuries and losses resulting from a car accident involving an untraced or uninsured driver. However, in the case of an untraceable driver only compensation will be paid, legal fees have to be deducted from the compensation received.
