If you have to escalate a dispute to a courtroom, then the prospect of losing all of the money you invest might be daunting. In many cases, the possibility might make legal action unfeasible. After all, even if you’re fairly sure that your case has merit, you might not be willing to bet everything on success.
This is what conditional fee agreements, better known as ‘no win, no fee’ arrangements, come into play.
Understanding ‘No Win No Fee’
A deal of this kind seeks to eliminate the fee you would normally pay to your solicitor. Instead, they’ll simply subtract a portion of your winnings after a successful case. In many cases, this is a percentage of any compensation awarded.
In some cases, you might still be forced to pay for some of the other side’s costs. It’s worth discussing this possibility with your no-win, no-fee solicitors, and understanding exactly what it is that you’re signing up for. They have a duty to make the risks clear to you.
Advantages for Claimants
The clear advantage conferred by this kind of arrangement is the reduction in financial risk. This can make legal services accessible to those who might otherwise not consider them. For example, if you want to take legal action against a negligent doctor, you might be dissuaded by the idea of having to cover a substantial legal bill. Often, it’s only wealthy households and individuals that can afford to take this risk, which in practice means that poorer ones are left out.
A conditional fee agreement, therefore, makes legal representation more accessible, as a consequence of its ability to reduce risk. There are social benefits, in other words, as well as raw financial ones.
Choosing the Right Solicitor
Of course, just because a solicitor offers to work on this basis does not mean that there’s no risk involved in taking legal action. For one thing, there are emotional costs to be borne during the process, as well as financial ones. Working with a solicitor who is uncommunicative or otherwise incompetent can be hugely stressful.
Moreover, not all no-win, no-fee arrangements are created equally. You’ll therefore need to be sure of exactly what you’re risking when you get the ball rolling. More generally, it’s worth vetting the solicitor you’re dealing with to ensure that they are reputable, competent, and effective.