‘No Win, No Fee’ Solicitors Fees Explained
What Is A Success Fee?
A ‘No Win, No Fee’ agreement allows people to access justice without paying legal fees upfront.
A success fee is the money charged by your solicitor for winning a ‘No Win, No Fee’ case. It reflects the commercial risk they take when acting on a ‘No Win, No Fee’ basis. If the case is lost, the solicitor will not generally recover their legal costs, despite spending months or even years working on a case. This fee covers the solicitor’s time and expenses.
This money is not paid by the claimant directly: it is taken from the compensation awarded to them. A ‘success fee’ percentage is agreed upon when the claimant signs a contract with their solicitor.
In England and Wales, success fees are capped at a maximum of 25%. Not every ‘No Win, No Fee’ solicitor charges 25% – some charge lower fees – and success fees should not be deducted from future losses.
Compensation Protected If You Win Your Case
Success fees are only deducted from ‘No Win, No Fee’ compensation for pain and suffering, loss of amenity, and past financial losses. They are not deducted from compensation awarded for future financial losses. This can include the costs of future treatments, or any future loss of earnings.
This distinction is important, as many personal injury claimants are unaware that future loss compensation is protected.
Other ‘No Win, No Fee’ Charges
Along with the success fee, you could also be liable to pay other ‘No Win, No Fee’ fees with your compensation. Your solicitor should go through all of these charges with you, but they could include:
- After the Event (ATE) insurance premium: This insurance policy is taken out to protect you if your claim fails. It covers the other side’s legal fees and disbursements. If you lose your claim the premium is sometimes waived. If you win your claim then you pay for the premium out of your compensation.
- Disbursements: These are the out-of-pocket costs for submitting a claim and can include medical reports, court fees, or expert witness fees. In most cases these disbursements are recovered from the other side, but you may be liable for some expenses.
How ‘No Win, No Fee’ Charges Can Work
At most, I charge a 20% success fee, not the maximum 25%, because I believe clients should retain as much of their compensation as possible.
A lot of people believe solicitors automatically take 25% of the compensation. That is not always correct. The rules allow solicitors to charge up to 25% of certain elements of the award.
Two years ago, I represented a personal injury client from North Wales who developed Carpal Tunnel Syndrome. They were working in a factory as a wooden frame assembler, which had involved prolonged use of power and vibratory tools. The medical expert in the case concluded that this, together with the forceful gripping and repetitive nature of his work, had most probably contributed to the development of his condition.
I recovered £30,000 compensation for my client. That award reflected not only his physical and psychological injuries but also included the cost of 12 sessions of counselling he was recommended. The cost of the recommended treatment was £2,000. This is a prime example of a future loss to which no success fee should apply.
Although the total settlement was £30,000, our 20% deduction applied only to £28,000 of the ‘No Win, No Fee’ compensation.
Am I Charged If I Lose A ‘No Win, No Fee’ Case?
If you lose your ‘No Win, No Fee’ case then you will pay no solicitors’ fees. The Conditional Fee Agreement waives these fees and the After the Event insurance policy covers the other side’s legal costs. These protections apply whether your claim was settled in or out of court.
Book Your Free 'No Win No Fee' Consultation
If you or a loved one has suffered a personal injury, don’t hesitate to contact RG Jones Solicitors for a free initial consultation to understand your legal options.
