The Basics

No win no fee solicitors are available for people in Earl Shilton, but not every local firm offers this type of arrangement and not every claim type will qualify. In simple terms, a no win no fee agreement usually means the solicitor’s payment is linked to whether the claim succeeds, with the details set out in the agreement you sign. To discuss an Earl Shilton enquiry, get a free consultation with First4Lawyers, who can help find a solicitor offering a no-win-no-fee agreement for your specific type of case.

If you are comparing no win no fee solicitors in Earl Shilton, it is worth looking beyond the headline phrase. The important questions are what costs may apply, what happens if the claim does not succeed, whether insurance is involved, and which parts of any compensation a fee might be calculated from.

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 general, a CFA can allow a person to pursue a claim without paying all legal fees upfront, with the solicitor’s fee usually becoming payable if the claim succeeds. If the claim is unsuccessful, the client may not have to pay the solicitor’s basic charges, but there can still be other costs to understand, such as disbursements, opponent costs, or insurance terms. For this reason, some clients use “After the Event” (ATE) insurance to help cover certain risks if the case is lost. The insurance premium and disbursements may be treated differently depending on the agreement and claim type. Not all types of cases allow no win no fee arrangements. Family and criminal cases do not allow CFAs to be used.

Types of Cost Components 

There are several cost components to be aware of when investigating the benefits and possible disadvantages of a No Win No Fee Agreement:

• 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 Earl Shilton 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 in Earl Shilton, try the Solicitors Regulation Authority website, which lists all the law firms and people regulated by the Solicitors Regulation Authority. Alternatively, visit our partner First4Lawyers for a free no-obligation chat about whether your enquiry may be suitable for a no win no fee solicitor.