During the early 2000’s there has been a strong emergence of solicitors offering deals on claims made from various accidents such as car and workplace. The injured party can be entitled to gain a small or large amount of money or assistance, depending on the severity of the accident. To file a claim seems like it would be a simple matter, however there can be high costs involved in settling a dispute. These can involve solicitors fees, transport, court costs etc. This is where the introduction of no win, no fee agreements have made a huge leap in popularity over the years.
What is No Win, No Fee ?
In case of an accident claim, there are many solicitors who offer the no win, no fee agreement. This means quite simply, the firm offers to take your case with no fees up front. If your case is unsuccessful then the client does not have to pay any fees. However, if the case is successful, the firm would then expect a fee. The fee is usually a percentage of the claimants winnings from the case. A client is highly advised to discuss and agree on a percentage before any legal proceedings take place.
What are the Benefits ?
The strongest advantage to using a no win, no fee agreement is the safety aspect. Many injured parties fear the level of costs involved in making a claim. Therefore, they feel safer in the knowledge that if they lose, they will be no worse off.
The concept of only paying if you win, is a much more attractive idea as any money you do have to pay is covered by the costs of the losing party. Therefore, even if you pay a higher percentage ‘success fee’, any money you do receive in the end is money you would not have had.
Agreeing a percentage fee beforehand is useful, as you are aware of just how much you may receive in the end.
What are the Disadvantages ?
Finding a good solicitor who offers the NWNF agreement can sometimes be hard. This is because a firm may not want to take the risk of a case if they do not believe they will be paid. Therefore, a client needs to be aware they should have a good case before a solicitor will take them on.
Using a NWNF agreement often means the solicitor will take a high percentage of the winning claim. This is because of the risk involved, just in case they do not win. A client would possibly receive a substantially higher amount by using a solicitor in a normal fee agreement.
A client might choose a no win, no fee agreement based upon personal factors such as; not wanting the costs of hiring a solicitor and knowing the safety of not paying a fee in case of a loss. The client should take the benefits and disadvantages into considering before going into any agreement.