No Win No Fee
The definition of No Win No Fee
No Win No Fee Agreements are more formally known as Conditional Fee Agreements (CFA) but that doesn’t really have the same ring to it, which is why the phrase ‘No Win No Fee’ was coined. What it means is that for the majority of the cases we take on, we promise that there will be no fee from us if the case is lost. The concept of No Win No Fee has come about since the government restricted access to legal aid for legal disputes.
Changes to the system
On 1 April 2013 the arrangements for no-win, no-fee cases were reformed. Previously our ‘success fee’ was payable by the losing side however this is no longer the case. Instead, this success fee must be paid by the winning party, typically out of the damages recovered.
Although this success fee can be up to 100 per cent of the basic fee in personal injury cases, a lawyer’s fee must not exceed 25 per cent of the damages which includes VAT but excludes future care and loss. Disbursements are mostly paid by the losing party if your claim is successful however if disbursements are incurred for reasons such as failure to attend a medical report, an insurance policy premium or rehab charges then these costs will be deducted from your settlement on top of the 25% deduction. VAT will be added to any disbursements where necessary.
While you do not have to pay legal fees if your case is not successful, other costs, called disbursements, to include court costs or expert’s charges are covered by insurance that may be taken out on your behalf , unless you have a policy of your own to cover such fees. VAT will be added to any disbursements where necessary.
If you have legal expenses cover (such as with a bank account, credit card or car or home insurance policy), then your insurance could cover your costs. In some cases, for example you do not have legal expenses cover of your own, the firm will take out an insurance policy on your behalf and a further maximum 10% may be deducted from your compensation. So the deduction is usually up to a maximum of 25%, but never more than a maximum of 35%.
Estimate of Costs
It can be difficult for us to estimate the likely costs of pursuing your claim, since we do not know at this stage exactly what work we will be required to do and whether it will be necessary to issue court proceedings. Based on average costs for the past six months we can provide the following guidelines :-
- Claims against employers, Councils or other organisations or individuals (employers liability, public liability, product liability not involving a road accident) an average of £6,005.*
- Claims involving a road accident an average of £6,543.*
To this must be added any VAT which is payable and any disbursements payable. The figure above should not be taken as a quotation – but they are the best guide as to the fees that are likely to be incurred at the start of your claim.
*figures taken 6 months leading up to November 2023
As part of the claims process, you are invited to carry out a preliminary assessment. Depending on the nature of the claim this can be carried out either over the phone or in some instances we will come and visit you. This initial assessment is literally used by us to determine whether you have a case for compensation, and the likelihood of the case being successful. If the case is unlikely to succeed, we would be unable to take the case on because we would be unable to recover any fees from the opposition. These initial assessments help discover whether there is a solid foundation for a claim and stops any time being wasted on a claim that is unlikely to be successful.
What types of claims are covered?
Russell Worth Solicitors specialise in all types of personal injury claims and have helped victims of accidents for many years. Our lawyers have had a vast amount of success in an array of claim types:
- bicycle accidents
- accidents at work
- sports injuries
- trips or slips
- product liability claims
- holiday accidents
Russell Worths Position
Despite competition from various independent bodies, our company has continued to grow and develop our No Win No Fee case load, which is testament to the experience and expertise of the solicitors and claims handlers involved.
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