Conditional fee agreements, also known as no win no fee agreements, are a type of legal agreement between a client and a solicitor. These agreements are often used in personal injury cases where the client may not have the financial resources to pay for legal representation upfront.
Under a conditional fee agreement, the solicitor agrees to take on the case and to only charge their fees if the case is successful. This means that if the case is not successful, the client will not have to pay any legal fees. If the case is successful, the solicitor will receive a percentage of the compensation awarded to the client as their fee.
The percentage of the compensation awarded that the solicitor will receive as their fee is agreed upon at the beginning of the case. This percentage can vary depending on the complexity of the case and the amount of work involved.
In addition to their fees, solicitors may also charge for disbursements, which are expenses such as court fees or medical reports that are incurred during the case. However, these expenses are usually only charged if the case is successful.
It is important to note that while conditional fee agreements can be beneficial for clients who cannot afford to pay for legal representation upfront, they can also have some drawbacks. For instance, if the case is unsuccessful, the client may be left with no compensation and may still have to pay for disbursements.
Furthermore, the percentage of the compensation awarded that the solicitor will receive as their fee can be quite high, sometimes up to 25% or even 50%. This can result in the client receiving less compensation than they would have if they had paid for legal representation upfront.
Overall, conditional fee agreements can be a useful option for clients who cannot afford to pay for legal representation upfront. However, it is important to carefully consider the potential drawbacks and to speak with a solicitor to determine if this type of agreement is right for your particular case.