What Will It Cost Me?
With a no win no fee agreement, who pays your solicitor's legal costs?
The basic rule in a personal injury case in England and Wales is that "costs follow the event". The rule is also sometimes described as the "loser pays".
In other words, if we win your case, the opponents' insurers will have to pay:
- Your compensation
- Your legal costs
Who pays the other side's legal costs?
If your case is successful, then the other side will have to meet their own legal costs.
However, if your case is defeated, then you would have to meet the other side's costs. To protect you against this risk, litigation insurance can be arranged in certain cases.
The "loser pays" rule applies whether or not your claim is funded by way of a no win no fee agreement.
What is litigation insurance, and how does this apply in a no win no fee case?
A no win no fee compensation claim can be advanced with or without the protection of litigation insurance.
I can arrange litigation insurance in most cases on a "deferred premium" basis, at no cost to the client.
I do not insist on insuring every single claim.
Generally speaking, in an "open and shut" claim, including with many road and car accident claims, litigation insurance is an unnecessary expense.
However, for more unpredictable claims, litigation insurance gives peace of mind. The cost of the premium can normally be reclaimed in full from the opponent at the end of the case.
Why is litigation insurance recommended in certain no win no fee cases?
Realistically, a successful outcome to your claim can never be fully guaranteed.
I carry out a risk assessment at the commencement of each no win no fee claim. However, at the end of the day it is not possible to eliminate hazards such as:
- An unsympathetic judge
- Witnesses failing to support you
- Flaws appearing in the medical evidence
- Fresh evidence appearing which undermines your case.
If we do decide to insure the case, then the cost of the premium is reclaimed from the opponent at the conclusion.
Will there be any deductions from my compensation, assuming a successful outcome?
In the majority of cases, I make no deductions from your damages, thereby leaving you with 100% of the final award.
There are certain exceptions to the above general rule, in particular the minority of cases where:
- Your claim seems destined to remain live and unresolved for an unusually long period of time
- Your case poses usual difficulties
- Limitation expires in under 12 months
- The claim has already been started by (or rejected by) other solicitors and then transferred
If any of the above factors apply, I will alert you to the likely position and discuss the matter fully before agreeing to accept your instructions.
What is the normal outcome in a successful no win no fee personal injury claim?
The normal outcome in a successful no win no fee claim is that the opponents will pay your compensation.
Additionally, they must also pay your legal costs, including the litigation insurance premium (if insurance has been taken out).
Finally, the opponents must meet their own legal costs.