How Does No Win No Fee Work with Lawyers?

‘No win no fee’ is a phrase commonly seen online and in television advertisements. It can mean many things but generally means that the lawyer’s payment is dependent on the outcome of the case.

No win no fee removes roughly half of the risk if the case is unsuccessful. It does not protect the claimant from having to pay the defendant’s costs if the claim is unsuccessful. It may be possible to purchase an insurance policy against losing to protect the claimant from this outcome. 

It is essential to examine the terms of the arrangement with a solicitor carefully. Most solicitors will charge a success fee of up to 100% in return for the risk of acting under a no win no fee. This success fee and any insurance premiums paid cannot be recovered from the defendant and will reduce the amount recovered by the claimant after meeting these unrecoverable costs.

The no win no fee principle doesn’t mean a solicitor will take on any or all cases. Usually, there will be an initial consultation during which a solicitor can determine whether you have the grounds to support a claim on a no win no fee basis. A solicitor can also comment on the strength of the case and whether it is likely to be successful.

If a solicitor agrees to take the case, they will create a conditional fee agreement. The agreement must clearly state that you will not be liable for any of their legal fees if your case is unsuccessful. 

Always read the agreement carefully because you could still be liable for other expenses like the cost of third-party expert reports or court fees if your claim fails. 

The defendant can also seek to recover their legal costs from you in an unsuccessful claim; your no win no fee agreement only relates to your legal costs, not theirs.

If you abandon the claim because you change your mind — or the claim is found to be vexatious or fraudulent — you will be liable for any time spent on the case by your solicitor and their associated costs.