Understanding the Issues in a No Win No Fee Agreement

Basically, a “no win - no fee” agreement is another term for a contingency fee arrangement on the condition that a client does not have to pay for the lawyer’s services unless the case is won. Under this arrangement, if the compensation is won, the cost or fees of the claim process will be charged on the losing party.

This agreement is applicable only to some personal injury cases but not to all accidents or injuries. Road accidents, workplace accidents, and slip and fall accidents can qualify for this arrangement. It also includes those injuries or accidents that occur in hazardous working conditions and industrial accidents where victims have sustained traumatic, serious injuries and had to undergo long recovery.

On the other hand, medical negligence cases or other complex cases such as those that involve complicated processes cannot be eligible for a no win-no fee agreement. Similarly, cases that involve minor injuries that do not seriously affect the victim are not applicable under this arrangement.

Benefits under the Agreement

A no win-no fee agreement may be beneficial to a client in more ways than one. First, this arrangement could give those who cannot afford litigation costs with access to the courts. It could also encourage lawyers to work more diligently on a case. This means, lawyers will work harder toward the successful outcome of their case and therefore, reduce the number of irrelevant cases.

To determine whether a claim is eligible for this agreement, lawyers must first evaluate the merits of your case. During evaluation, the lawyer will discuss and present all the options available to you. A no win- no fee offer often depends on the strength of one’s claim and the high percentage of success of a case. A no win-no fee agreement is often offered in personal injury cases where a claimant has a greater chance of success.

Costs

In a no win no fee agreement, a claimant usually has to pay only legal fees after the case is won, which is recovered from the losing party. However in some cases, some lawyers apply for an “after the event” (ATE) insurance policy on behalf of the accident victim to cover disbursements and expenses to secure documents such as medical reports, police accident reports, and court fees, including the opposing party’s legal costs. Payment for the premium of ATE is usually deferred until the end of the case.

In cases where the claim is lost, the claimant need not pay the premium. On the other hand, if the case prevails, the premium is recovered from the losing party.

In sum, a contingency arrangement is generally advantageous to accident victims who are required by law to file their claims within the two-year period set by the statute of limitation.

From the author: paying lawyers through contingency fee

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