For those who would like to know what this “no win no fee” actually means, here is the answer. It is a mutual agreement made between the client and the solicitor. This is mainly associated with personal injury claims. It is a common term used for the lesser known term of Conditional Fee Agreement (CFA). The basic idea behind this agreement is that you are not required to pay for your solicitor for the time he spent on court unless you win your lawsuit. You cannot expect this privilege for every lawsuit as there are certain conditions to be met for this agreement to take place. When such an agreement comes into place, the solicitor is supposed to provide you with information at various stages of the case. With this agreement being into effect, the legal system for getting compensation has leveled to a great extent for all, rich and poor.
Pros and Cons of CFA
Before you dive in for this option, it’s good to understand certain facts about this CFA agreement. This agreement has both advantages and disadvantages for both the client and the lawyer. The advantage for the client is that he doesn’t have to pay in advance for lawyer’s time he spends in court. This greatly reduces much of risk involved in filing a lawsuit in court. The disadvantage for the client is that often the solicitor’s fee is one third of the recovery. So as the case proceedings stretch more than expected, the amount will be much higher. When it comes to the lawyer, the effects are just the opposite. He gets nothing for the time he spent on court if he loses the case. But if he wins it, he might get more for his time he had spent than he would have got on an hourly rate.
Know some more facts about no win no fee
If the solicitor is able to win the lawsuit, the solicitor is entitled to get his fee which is usually a success fee from the opposing party. Often this opposing party will be insurance companies as the lawsuits are associated with personal injury cases. But if you lose your case, you may be liable to pay for the opposing parties costs too. So in order to cover such expenses, your solicitor should arrange an “After Event” insurance which will normally cover the risk for the premium which you or your solicitor might need to pay.
So, that’s all for you folks today.Google+