Understanding Conditional Fee Agreements

Conditional Fee Arrangements are a relative newcomer on the British scene, though they have long been common in the United States. Since 1998 they have become widespread, allowing ordinary people a far greater access to the courts than previously, and allowing anyone to get compensation for an injury which was not their fault, where before it was significantly more difficult.

A conditional fee agreement allows a solicitor to offer what is called a “no win, no fee” arrangement when taking on new cases. In other words, the solicitor can offer the client a fee structure which means that while they will receive a success fee if they win the case, if their case should be unsuccessful then no fee will be charged. The benefit to a client is obvious; it means that a legal claim for compensation is no longer the preserve of those who can afford the services of a good lawyer, and rather than basing your decision on cost, you can pursue a claim for compensation based on the extent of the injury you may have suffered.

Solicitors make the decision on taking on such cases based on several factors. These can include their experience, either as an individual or as a firm, in dealing with similar cases. (This is always a good sign when choosing a lawyer; look for people and firms that have handled cases like yours in the past, as it will give them an invaluable advantage when claiming compensation.) Another factor which will influence a solicitor’s decision on whether or not to take on a case on a conditional fee agreement basis is the likely duration of the case. Obviously the longer a case drags on, the more expensive it is for all concerned in terms of both time and money. A solicitor will normally prefer that cases being paid for under a conditional fee agreement are less time-consuming, and this in turn will tend to hinge on the complexity of your particular claim.

The other main factor that a solicitor will take on board when deciding on whether to offer a client a conditional fee agreement is the chance of winning the case. This is a difficult judgement for any solicitor to make; it is not necessarily a comment on the seriousness of your injury if they decide that yours is not a case that is likely to be won. In order to win compensation, you will need to demonstrate that the accident was not your fault, and this is not always straightforward to prove.

If your case is successful, then your lawyer’s costs will normally be paid by the other side, and this will include a “success fee” for your solicitors. However, it’s important to understand that if you are not successful you may be required to pay part or all of the costs, not just of your lawyers, but potentially also of the other side’s legal team as well. When you are involved in a compensation claim against an employer or large company these associated legal costs may be quite high, and so normally you will be required to take out an insurance policy to cover any payouts that need to be made in this instance.

All of these details should be properly explained to you by your solicitor. If not, make sure that you ask about all associated costs, and take the time to read through a conditional fee agreement before you sign it. The advent of conditional fee agreements have made it possible for anyone to get the compensation they are due, but it is important to be aware of the risks and potential costs before signing up to any agreement.