“No Win - No Fee” arrangements are a way of financing proceedings that might otherwise be prohibitively expensive. For other ways see  funding a claim. 

As the name implies, if a claim is pursued on a “No Win - No Fee” basis, if you lose then we do not get paid. However, this is only half the story. If you lose, you will in all probability (except, as a general rule, in employment cases) have to pay the other side’s costs and your own disbursements e.g. Counsel’s fees (unless he himself is working under a “No Win - No Fee” agreement), your experts fees, witness expenses, court fees etc. Insurance policies are available to cover the other side’s costs and your own disbursements. 

If you win, you can expect an award of costs in your favour payable by the other party - to include a reasonable insurance premium that you have paid. There is, however, one very important further ingredient to the “Win” situation. In cases where damages are recovered your solicitor will be entitled to a “success” fee. 

Clearly, if he is risking not being paid if the case is lost, he is fairly entitled to an extra reward if you win. The “success” fee should not, under present regulations, exceed 25% of the damages that are recovered. In addition, the solicitor is entitled to his usual charges - which may or may not be recoverable in full from the other party. 

“No Win - No Fee” arrangements can now be entered into in respect of most civil litigation claims whereas until recently they were limited to personal injury claims only (where legal aid is no longer available). Such arrangements are not, however, available, for example, in family and criminal proceedings. 

Before entering into a “No Win - No Fee” arrangement, careful consideration should be given to whether it is the best option. You should also be given written and oral advice beforehand. Clearly, if in a particular case, you are entitled to legal aid this option should be considered. Moreover, if your case is an absolute certainty (which can rarely be said with complete confidence) then funding the proceedings from your own resources might be a better option - thereby avoiding the “success” fee. 

In general terms, a “No Win - No Fee” arrangement is only viable where:­ 

a) there are reasonable prospects of success; and 

b) the other party is financially or otherwise able to meet any judgment made against him. 

In summary, if it is decided to be the best option a “No Win - No Fee” arrangement requires you to enter into:­ 

i) an agreement with your solicitor in a particular form - known as a  conditional fee agreement.  and 

ii) an insurance policy - the premium for which will vary depending upon the risk and nature of the case.

See the example of the way in which fees are calculated under funding your claim.