What is a Conditional Fee Agreement?
We have all seen advertisements in the newspapers, on the radio and television for “no win, no fee” agreements that are offered by law firms to injured individuals. However, you may be wondering what a no win, no fee agreement actually entails.
When it comes to personal injury claims, one significant concern for individuals seeking legal representation is the cost involved. Legal fees can be daunting, often deterring individuals from pursuing legitimate claims.
To address this issue, the concept of a Conditional Fee Agreement (CFA), also known as a “no win, no fee” agreement, was introduced. In this article, we will explore what a Conditional Fee Agreement and how it works in personal injury claims.
What is a Conditional Fee Agreement?
A Conditional Fee Agreement is a legal arrangement between a client and their solicitor, designed to provide financial protection to the client pursuing a personal injury claim. The fundamental principle behind a CFA is that the client will only be required to pay their lawyer’s fees and expenses if their case is successful and they are awarded compensation.
“No win, no fee” basis
The primary advantage of a CFA is that it allows access to legal representation and the potential for compensation without any upfront costs. This can be especially crucial for individuals who may not have the financial means to privately instruct a personal injury solicitor. Under a CFA, the solicitor assumes the risk of not being paid if the claim is unsuccessful, which provides an incentive for them to only take on cases that have a reasonable chance of success.
After-the-Event (ATE) insurance
In order to protect against the risk of having to pay the opposing party’s legal costs and disbursements in the event of an unsuccessful claim, we advise our clients to obtain After-the-Event (ATE) insurance. ATE insurance covers the potential liability for the defendant’s costs and protects the claimant from having to pay these expenses.
Conclusion
Conditional Fee Agreements have become an invaluable tool in enabling access to justice for individuals pursuing personal injury claims. By offering a “no win, no fee” arrangement, CFAs provide financial protection to claimants whilst allowing them to seek compensation.
However, it’s important for claimants to fully understand the terms and conditions of the CFA, including the success fee and the potential for recovering costs. Seeking advice from a reputable personal injury solicitor can help ensure that individuals make informed decisions regarding their legal representation and maximise their chances of a successful claim.
When we take a new enquiry from a prospective client, we clearly explain the terms of our conditional fee agreements and the potential deductions that could be made at the end of a successful claim, before an agreement is actually entered into. If you have sustained injuries as a result of an accident and want to bring a claim, please contact me at 01494 773377 or laxmi.mall@lennonssolicitors.co.uk.
This is part two of Laxmi Mall’s thread of articles which answer personal injury clients’ frequently asked questions. To read part one of the article thread, please click here.
About the author
DISCLAIMER: The content of this article has been prepared for informational purposes only. This content does not constitute legal advice, nor does it give rise to a solicitor/client relationship. Specialist legal advice should be taken in relation to specific circumstances.
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