The Basics

No win no fee solicitors are available for people in Hythe, but the phrase does not mean every local firm will take every claim or offer the same terms. It usually means the solicitor’s payment is linked to the result, with any success fee and other possible costs explained in the paperwork before a claim goes ahead. If you want to check whether a claim may be suitable, get a free consultation with First4Lawyers, who can connect you with a solicitor offering a no-win-no-fee arrangement for the type of case you want to discuss.

Hythe can mean different local contexts depending on whether you are looking around the Kent coast, the Hampshire waterside area, or another nearby community with the same name. The practical questions are usually similar: what type of claim is involved, whether a solicitor is prepared to act on a no win no fee basis, what percentage or success fee may apply if the claim succeeds, whether any insurance is involved, and what costs could still need to be understood before signing anything.

Conditional Fee Agreements

No Win No Fee is a term in the UK commonly used to describe Conditional Fee Agreements (CFA) between lawyers and their clients. In simple terms, the solicitor’s payment is linked to whether the claim succeeds, rather than being paid in the usual way as the case goes along. If the claim is successful, a success fee may be deducted from compensation; in many UK personal injury claims the common rule of thumb is up to 25% of certain parts of compensation, but the agreement itself matters. If the claim is unsuccessful, the paperwork should explain what happens to disbursements, such as report fees or court fees, and whether After the Event insurance is used to help cover certain risks. Not all types of cases allow no win no fee arrangements, and family and criminal cases do not allow CFAs to be used.

Types of Cost Components 

When comparing No Win No Fee Agreement options in or around Hythe, it helps to look past the headline phrase and check the main cost components in the agreement. The important point is not just whether something is described as no win no fee, but what happens if the claim succeeds, what happens if it does not, and whether expenses such as reports, court fees or insurance are dealt with clearly.

• Basic Charges or Standard Fee – Fees associated with legal work done on behalf of a client.  Typically based on the number of hours spent and hourly rates associated with the staff involved with case. Different lawyers in Hythe will have different fees for their day-to-day work, and these can vary between practices, and between qualified solicitors within a practice.
• Disbursements – Payment for expenses made on behalf of the client including but not limited to court fees, experts’ fees, accident report fees and travelling expenses.
• Success Fee or “Uplift” To compensate for the cost of lost cases, lawyers typically are allowed to add a success fee or ”Uplift” in the CFA.   This is usually a percentage (not more than 100%) of a lawyer’s basic charges that is added to a client’s bill for which they will seek to recover from the other party if they win the claim.
• After the Event (“ATE”) Insurance Premium – Cost of Insurance as part of a no win no fee agreement to indemnify the costs and disbursements of the lawsuit.  Usually purchased at or after the start of the litigation process.

Advantages and Disadvantages

Advantages

• Because the cost to the client is linked to the outcome of the case.  For an unsuccessful case, there is the possibility that the client pays little or no cost.
• Required disclosure of a CFA to the other party may encourage earlier settlement as the other party’s cost will increase in line with the level of the success fee.
• Any damages awarded to the client will not be eaten up by the success fee, as the success fee will in most cases be payable by the opponent.

Disadvantages

• There is no privilege, nor privacy attached to the funding arrangement in place. The existence of the CFA must be disclosed to the other party at the outset of the litigation and the risk assessment has to be disclosed to the court and if necessary to the other party when costs are assessed.
• A CFA gives the lawyer a financial interest in the litigation and because of this they are inclined to take control of the strategy and resolution of the litigation.
• Unless the client buys ATE to cover the winning party’s costs, the client is still at risk to pay those costs.

To search for a specific solicitor, try the Solicitors Regulation Authority website, which lists all the law firms and people regulated by the Solicitors Regulation Authority. Alternatively, if you want a general conversation about whether a no win no fee solicitor may be able to help with a claim in Hythe, visit our partner First4Lawyers for a free no-obligation chat.