No win, no fee claims explained

"No win, no fee" makes it possible to bring a claim without paying legal fees upfront. It is most common in personal injury and clinical negligence claims, but is also used in employment and some other civil disputes. There are two main types of agreement.

Conditional fee agreements (CFAs)

Under a CFA, if you lose you usually pay no fee to your own solicitor. If you win, your solicitor recovers their basic costs, usually mostly from the other side, and can charge you a success fee. In personal injury cases, the success fee you pay is capped at 25% of the damages you recover, excluding damages for future care and losses. Many firms charge less than the maximum, so it is worth comparing.

Damages-based agreements (DBAs)

Under a DBA, your solicitor takes an agreed percentage of the compensation you win. The maximum, including VAT, is 25% in personal injury cases, 35% in employment tribunal cases and 50% in other cases. DBAs are more common in employment claims.

What if you lose?

In most personal injury cases, a rule called qualified one-way costs shifting means a claimant who loses usually does not have to pay the defendant's legal costs. There are exceptions, for example if the claim is found to be fundamentally dishonest. You may still have to pay some expenses, such as medical reports or court fees. Your solicitor may recommend after-the-event (ATE) insurance to cover these. Check whether the premium is deducted from your damages.

Time limits

You generally have three years from the date of the injury, or from when you first knew about it, to start court proceedings. For children, the three years start from their 18th birthday. For people who lack mental capacity, time may not run at all. Don't leave it late. Solicitors need time to gather evidence.

Road traffic injuries and small claims

Since May 2021, most lower-value road traffic injury claims (whiplash and similar injuries, where the injury part of the claim is worth up to £5,000) go through the Official Injury Claim service. Legal costs are generally not recoverable in these cases. For other personal injury claims, the small claims limit is lower. Ask a solicitor which track your claim is likely to fall into.

Questions to ask before signing

• What percentage of my compensation could be deducted, and what is the worst case?
• Do I need ATE insurance, and how much will it cost?
• What happens if I want to end the agreement early, or reject a settlement offer you recommend?
• Are any referral fees or other deductions involved?

Read the agreement carefully. Under consumer law you normally have a 14-day cooling-off period if you sign away from the firm's offices. Find a personal injury solicitor near you.