"No Win No Fee" is the term used to describe the Conditional Fee Agreement (CFA) between a law firm and their client. In a Personal Injury claim, this is an agreement between the client and their lawyer, which will enable the lawyer to take on a personal injury case on the understanding that if they lose the case, the client will not have to pay their lawyer’s costs.
However if the lawyer wins the case they will be entitled to their standard fee plus an uplift referred to as a success fee. In English law, the success fee cannot be greater than 100% of the lawyer’s standard fee.
If the client wins their Personal Injury case, either the Courts or the losing party’s insurers will make an award of damages. In addition, the insurer will be required to pay the client's legal costs including any uplift of fees as well as expenses. With most Conditional Fee Agreements, the client will have nothing to pay and will receive 100% of any compensation awarded in their claim.
After the Event Insurance (ATE) is the term used to describe the type of insurance policy, which is normally obtained by a lawyer acting on behalf of their client. This is generally taken out after legal proceedings have been contemplated or in the case of a personal injury claim, when a Conditional Fee Agreement (CFA) is entered into. ATE insurance is designed to protect the client from the risk of legal costs from either their own lawyer or those costs incurred by an opposing party in a legal case in the unlikely event that a personal injury case is either discontinued or lost at trial.
In addition, there are several alternatives to ATE for funding a personal injury claim.
These include:
• Legal Expense Insurance (LEI), often referred to as Before the Event (BTE) Insurance
• Legal Aid
• Paying for own Legal costs
To read the full article. click What is No Win - No Fee?
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