The concept of ‘No win, no fee’ is simple. When you and your solicitor are working towards winning a claim, if the circumstance where you don’t win the claim occurs, then you, the client, are not liable to pay a fee to your solicitor.
There are many people who can’t pay solicitor fees in many circumstances, so, this agreement is designed to be helpful to them. So, if you lose the claim, you don’t also have to suffer a financial loss in solicitor fees.
How do they work?
‘No win, no fee’ contracts are usually used in injury compensation claim cases. Injury claim cases can be tricky to deal with, so a ‘no win, no fee’ contract is used, so that if the case fails to go through and be won, then solicitors aren’t owed any money from the side of the client. It is one of the best ways to protect the financial interests of the client.
There are three different types of ‘No win, no fee’ contracts that a client usually signs:
Conditional Fee Agreements (CFAs)
This is the most basic type of ‘no win, no fee’, agreement. This contract is designed so that if the case fails, then the client has to pay no fee.
- Contingency Fee Agreements (CCFAs)
This agreement is based on the solicitor achieving a certain kind of result, which may not be fully advantageous, such as a settlement. If such a settlement isn’t reached then the client doesn’t have to pay a fee.
- Damages Based Agreements (DBAs)
This agreement is based on the amount that a client wins in damages. If a pre-agreed amount in damages isn’t reached, then the client isn’t liable to pay fees to a solicitor.
There aren’t any strong requirements to sign a ‘no win, no fee’, agreement, but it is considered pretty standard that the client must be suffering from an injury that they suffered due to 3rd party negligence. If that requirement is met, then you are considered eligible for a ‘no win, no fee’, agreement.
Losing a Claim
So, hypothetically speaking, if you happen to lose a claim, then the whole point of this agreement is that you don’t have to pay any fees. The solicitor signed such an agreement and then failed to win the claim on your behalf.
But this agreement can be rescinded or violated if the client fails to disclose all relevant information regarding the injury itself or the circumstances surrounding the injury. There are clients that can be dishonest about such information. This is when the insurance policy that the firm takes on your behalf to cover all fees can fail.
Winning a Claim
The outcome in such a circumstance must be pretty obvious by now. If the solicitor fights a claim on your behalf and wins the claim, then the client or the party responsible for the client is liable to pay the solicitor fee in full.
The fee of the solicitor will depend on the case and the circumstances of the claim. Usually, the fee depends upon the hours the solicitor worked on the case. Some cases, with proper evidence and relative legal simplicity, can be won in days or weeks, but other cases, complicated due to whatever reasons, can take months or even years to win. The fee of the lawyer is decided on that basis.
The ‘no win, no fee agreement is considered a big risk by any firm, but they take it still because they are confident that they can win the case, and they want to make sure that their client isn’t overburdened with financial loss.
HD Claims are here to help our clients the best we can. We guarantee the utmost professionalism, transparency, honesty, and commitment to your injury claim case.
HD Claims has the best Personal Injury Solicitors in Scotland. Our solicitors are driven and focused on getting you the justice you deserve.
If you, or someone you know, has suffered personal injury and are looking for solicitors that can offer ‘no win, no fee agreements, HD Claims is here to guide you and help you.