A contingent fee agreement also known as a no win no fee agreement involves an arrangement where the client will only pay their legal fees when they win the case and won't have to pay their solicitors if they lose. In some cases extra fees have to be paid if they are arranged by the solicitor such as court fees or expert fees that were arranged beforehand.
Whenever a no win no fee arrangement is considered, it's best to know exactly what's in it for you and what's in it for your solicitors. Acknowledging the fact that there are going to be advantages and disadvantages to both parties. Below are a list of pros and cons regarding no win no fee claims, you should read the whole article as it's vital you know all the correct information regarding this arrangement.
Pros
- The most obvious advantage to No Win No Fee arrangements is that you won't have to pay if you lose. This is typically accomplished through the use of "After the event" insurance.
- Useful if you don't have any extra cash in deposit for legal fees. You can seek justice without having to pay significant amount in fees.
- The Solicitor that's working for you has strong incentive to win the case because there is motivation in the form of significant monetary gain.
Cons
- You might have to pay the costs of the other party winning if you choose not to get insurance.
- Solicitors will control the situation and plan how they want it to go. They might have strategies you might not agree with but still go ahead because they are the ones going into the red if the case is lost.
There are both advantages and disadvantages to going with a no win no fee agreement. As you can see from above, it's better used in some situations versus others. You have to consider the interest of all parties. If you think you have a very good chance of winning and choose not to use it, then you would be out of pocket if you lose. Having a No Win No Fee deal would have been the better choice in this case.
Whatever the situation, this article lays the foundation to what is important to know about No Win No Fee arrangements. If you enter into an arrangement without knowing full well what you're getting into then you're setting yourself up for disaster. As a final tip to end this article, always check the solicitors experience and get one that has a good record of winning court cases that are similar to yours.
Source by Nigel N.
