No win no fee – what does it mean for anyone involved in a dispute?

Everyone has heard of no win no fee but in reality what does it mean?

A main concern for anyone involved in a legal dispute are the lawyers’ fees. If your lawyer is prepared to act for you under a no win no fee agreement (more properly called a conditional fee agreement) then this alleviates some of those concerns. If you win your claim then, subject to a few exceptions, it is likely that your opponent will be ordered to pay your lawyer’s fees. You may not recover all your legal fees but a lot of lawyers will waive any difference between the fees claimed and those recovered from your opponent.

The danger arises if you don’t win. OK, so you won’t have to pay your own lawyer’s fees BUT you may be ordered to pay your opponents fees. Most clients aren’t prepared to take that risk so insurers have developed various insurance products to cover this risk. The best of these policies do not require the premium to be paid until the end of the case and then only if the case has been won. Therefore if you lose your claim there is nothing for you to pay. Your lawyer will be able to advise you on appropriate insurance and arrange it for you.

If you win your claim then the insurance premium is payable. However the good news is that the premium should be recoverable from your opponent together with your lawyer’s fees.

Your lawyer will charge a success fee which is payable if you win. Again, the good news is that this will be included in the fees payable by your opponent.

If you do not have any existing insurance to cover your legal costs then no win no fee is a great way to fund your claim. In any event it is always sensible to take advice on how best to fund a claim.