How would you feel if you lose a battle in court and end up in a situation where you are forced to pay your attorney and your opponent’s attorney? I bet that it would never be a good feeling! However, with the new conditional fee agreement, you pay your solicitor only if he is wins the case for you. So what exactly is a ‘no win no fee’ agreement? Let us find out the two types of this agreement’s conditions.
Conditional Fee Agreements
This is the most widely accepted and preferred conditional fee agreement. Two main features of this type of agreement are:
- Success fee – The attorney gets his success fee only if he is successful in court. However, the attorney can charge you double his normal fee if he wins the case for you. This is considered as a compensation for the risk he took.
- The ‘After Event’ Insurance policy – If you lose the case, it is true that under the ‘no win no fee’ agreement, you do not have to pay your attorney. However, you are accountable for your opponent’s costs. This will include the court fees of your opponent, his solicitor’s fee or any other fees pertaining to the case. It is the responsibility of your solicitor to arrange this fee for you with the help of an ‘after event insurance policy’. This will make sure that you do not have to pay a penny to the opponent even if you lose the case.
This is much easier to understand compared to the Conditional Fee Agreement. You can find Contingency fee agreements in employment tribunals where clients usually battle for a reimbursement or compensation. The client agrees to pay a part of this compensation to the solicitor if he wins the lawsuit for him.
The Access to Justice Act of 1999 has lead to a number of debates and hullabaloos. With the law enacted in 1999, a large number of companies came up with no lawyers. With policy premiums going up, the victims in accident cases ended up with nothing in their pockets even after successful results in courts. In an attempt to make easy money, companies also started to egg on clients to apply for fake and insignificant claims.
Although, the law brought in many controversies along with it, it has become the most preferred agreement for many clients. However, please note that no solicitors may take up your case or agree to the conditional fee agreements if they do not see any hope of winning your case.Google+