What Percentage Do No-Win-No-Fee Solicitors Take When You Win?

If you’ve suffered an injury or illness due to someone else’s negligence, you may be considering making a personal injury claim. One of the most common concerns is the cost of hiring a solicitor and how much of your compensation they might take if your claim is successful. In the UK, many solicitors offer their services on a “No Win No Fee” basis, but what exactly does this mean, and what percentage do they take from your compensation? This article will provide a comprehensive guide to help you understand the process and what to expect.

What Is a No Win No Fee Agreement?

A No Win No Fee agreement, formally known as a Conditional Fee Agreement (CFA), is a funding arrangement between you and your solicitor. Under this agreement:

• No Upfront Costs: You don’t have to pay any fees at the start or during the course of your claim.
• No Win, No Fee: If your claim is unsuccessful, you won’t owe your solicitor any legal fees.
• Success Fee: If your claim is successful, your solicitor will deduct a percentage of your compensation as their fee.

This arrangement makes legal representation accessible to those who might not afford it otherwise, allowing you to pursue justice without financial risk.

What Percentage Do Solicitors Take?

In the UK, the percentage that solicitors can take from your compensation under a No Win No Fee agreement is capped by law. According to the Conditional Fee Agreements Order 2013:

• Maximum Success Fee: Solicitors can take a maximum of 25% of the compensation awarded to you.

However, it’s important to note that:

• Negotiable Fees: The actual percentage may be less than 25%, depending on the complexity of your case and the solicitor’s terms.
• Agreed in Advance: The percentage your solicitor intends to take should be discussed and agreed upon before you proceed with your claim.

When Is the Success Fee Charged?

The success fee is only payable if your claim is successful and you receive compensation. It is deducted directly from the settlement amount before the balance is paid to you. The success fee covers the solicitor’s costs and compensates them for the risk they took in taking on your case without any guarantee of payment.

Are There Other Costs Involved?

While the success fee covers your solicitor’s legal costs, there may be other expenses, such as:

• Legal Protection Insurance Premium: Sometimes, you may need to take out an insurance policy to cover any costs you might be liable for if the case is unsuccessful.
• Disbursements: These are expenses incurred during the claim process, such as medical reports or court fees. In many cases, these costs are recovered from the opposing party if your claim is successful.

Your solicitor should explain all potential costs at the outset so that there are no hidden charges or surprises later on.

Advantages of No Win No Fee Agreements

• Access to Justice: Removes the financial barriers to seeking legal representation.
• Financial Protection: Minimizes the financial risk if your claim is unsuccessful.
• Incentive for Solicitors: Solicitors are motivated to win your case since their payment depends on it.

How to Choose the Right No Win No Fee Solicitor

When selecting a solicitor to handle your claim, consider the following:

• Experience and Expertise: Choose a solicitor who specializes in personal injury claims and has a proven track record.
• Transparent Fees: Ensure they clearly explain their fee structure and any potential costs.
• Communication: They should keep you informed throughout the process and be available to answer your questions.
• Reputation: Look for reviews or testimonials from previous clients.

Understanding Compensation: General and Special Damages

Your compensation award may consist of two main components:

1. General Damages

Compensation for the pain, suffering, and loss of amenity resulting from your injuries. The amount is usually based on the severity of your injury and how it affects your quality of life.

2. Special Damages

Reimbursement for financial losses incurred due to the injury, such as:

• Loss of Earnings: Compensation for wages lost due to time off work.
• Medical Expenses: Costs of treatment, prescriptions, or rehabilitation.
• Travel Costs: Expenses for traveling to medical appointments.
• Care Costs: If you require assistance with daily activities.

By claiming both general and special damages, you can ensure that you are fully compensated for both the physical and financial impact of your injury.

Frequently Asked Questions

Do I Have to Pay Anything If My Claim Is Unsuccessful?

Under a No Win No Fee agreement, you won’t have to pay your solicitor’s fees if your claim is unsuccessful. However, you may still be responsible for certain costs unless covered by legal protection insurance. Discuss this with your solicitor to understand any potential liabilities.

Who Pays the Compensation in a Successful Claim?

In most cases, the compensation is paid by the insurance company of the party at fault, such as an employer’s liability insurer or a public liability insurer.

What Are the Time Limits for Making a Claim?

Generally, you have three years from the date of the accident or from when you became aware of the injury to start your claim. There are exceptions, so it’s best to consult a solicitor promptly.

How Much Could I Receive in Compensation?

The amount of compensation varies depending on the severity of your injury and its impact on your life. While it’s difficult to provide an exact figure without knowing the specifics of your case, your solicitor will give you an estimate after assessing your situation.

If you’ve suffered an injury due to someone else’s negligence, don’t let financial concerns prevent you from seeking the compensation you deserve. A No Win No Fee agreement could be the solution that provides you with access to justice without the financial risk. Our partner First4Lawyers offer free consultations for claims suited to this kind of arrangement. You can arrange a free consultation with First4Lawyers using this link.