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No Win No Fee Claims

What does no win no fee actually mean?

The no win no fee system was introduced in 1995 to help people who otherwise couldn't afford to hire an injury lawyer. Under a no win no fee agreement (also known as a Conditional Fee Arrangement, or CFA), there are no upfront legal fees, which means anyone who has been involved in an accident that wasn't their fault, rich or poor, can gain access to justice without any financial risk.



The 12th edition of Guidelines for the Assessment of General Damages in Personal Injury Cases

What happens if the claim is won?

If your no win no fee claim is successful, you will be awarded compensation. This compensation will be made up of two separate parts: general damages and special damages.

General damages cover the pain, suffering and loss of amenity caused by the personal injury. This money is to compensate for any past, present and future pain, physical or psychological, and, if applicable, loss of ability to carry out everyday tasks. All judges who oversee personal injury cases receive a copy of the Judicial College's book "Guidelines for the Assessment of General Damages in Personal Injury Cases", which provides guide amounts for different types of injuries. For example, for fractures to the forearm, the book quotes a guide compensation amount of between £5,390 and £15,510. Claims4Free's no win no fee solicitors will be able to provide you with a rough estimate of the compensation you should expect to receive.

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Special damages are easier to calculate, and cover any expenses that are incurred as a result of the personal injury. These expenses could take the form of lost earnings for any time taken off work, or if unable to return to work at all, future loss of earnings. Also covered will be things like car repairs, travel costs, medical fees, car hire, and any other expenses that are a result of the accident.

Due to changes governing the no win no fee system, which came into effect in April 2013, injury solicitors are no longer allowed to claim their 'success fee' from the losing party. This fee is now usually paid out of any compensation, but can be no more than 25% of the amount awarded. However, general damages have been increased across the board by 10% to help offset these changes. Any personal injury solicitor will make clear before taking on a case what percentage of the compensation will be taken as a success fee.

What happens if the claim is lost?

The term "no win, no fee" gives a good indication of what to expect if the claim is unsuccessful - there are no fees to be paid to the no win no fee lawyer. However, the losing party is usually liable for the legal costs of the other side. In most cases, these costs are met by something called After the Event (ATE) insurance, which will be taken out at the start of the no win no fee claim if the solicitor feels there is a chance of the case being unsuccessful. This means that there is no need to worry about having to pay any hefty legal fees in the event of a lost claim.

Time limit for making a no win no fee claim

According to the Limitation Act 1980, there is a three year period from the time of the accident in which to start a claim for no win no fee compensation. However, there are a couple of exceptions to this rule. In some cases, the personal injury may not become apparent until weeks, months, or even years later. For example, someone who worked with asbestos may not develop symptoms of an asbestos-related illness for 30 or 40 years. In situations such as this, the three-year time limit applies from the date when the victim becomes aware of the injury or illness.

Another exception to the rule is when the injured person is under the age of 18. There are two options in this situation:

  • A relative or guardian can act as a 'litigation friend', and take legal action on behalf of the child, or...
  • The injured child can make a claim when they turn 18 years old, with the three year time limit starting on their 18th birthday.

There are also very rare occasions when a judge may allow a claim to proceed even if the three year time limit has expired, but we always advise that you start your claim at the earliest possible opportunity.

History of no win no fee claims

Below is an overview of the history of no win no fee, with the most recent changes first:

DateExplanation of changes
1st April 2013The changes enacted in the Legal Aid, Sentencing and Punishment of Offenders Act 2012 come into force, meaning in cases launched after this date, no win no fee solicitors can no longer claim their success fee from the losing side.
1st May 2012The Legal Aid, Sentencing and Punishment of Offenders Act 2012 receives Royal Assent, bringing in wide ranging changes to Legal Aid and personal injury law.
October 2010A report for the Prime Minister called "Common Sense, Common Safety" is written by Lord Young of Graffham, looking into areas of health and safety and the perceived "compensation culture". Despite stating that "the problem of the compensation culture prevalent in society today is, however, one of perception rather than reality", Lord Young suggests implementing the recommendations of the Jackson Report.
January 2010Lord Justice Jackson publishes his Review of Civil Litigation Costs, also known as the Jackson Report. The major recommendation of the report affecting no win no fee claims is that injury solicitors should no longer be allowed to take their success fee from the losing party, and should instead be taken from any compensation awarded, up to a maximum of 25%.
January 2009Lord Justice Jackson's investigation into the area of personal injury and no win no fee claims gets underway.
2008Master of the Rolls Lord Clarke of Stone-cum-Ebony, the second most senior judge in England and Wales, asks Lord Justice Jackson to begin a review into the costs involved in civil litigation.
1st April 2001The Access to Justice Act 1999 comes into effect, which allows injury solicitors to recover their success fee from the losing party, updating the previous Courts and Legal Services Act 1990.
1995Five years after the enactment of the Courts and Legal Services Act 1990, the first no win no fee claims are made.
1st November 1990The Courts and Legal Services Act 1990 is given Royal Assent, introducing Conditional Fee Agreements (also known as "no win no fee") for legal proceedings which aren't either criminal or family (divorce, child custody, etc.).

Fast-track claims

In 2010, the government introduced the Road Traffic Accident Personal Injury Scheme, a fast-track system for road traffic accident claims valued between £1,000 - £10,000. Most claims are settled within six months, and greatly reduce legal costs.

The scheme was expanded in 2013 to include no win no fee claims for road traffic accidents, employer's liability and public liability valued up to £25,000. If your claim falls into one of these categories, and is valued at £25,000 or less, it is likely to be settled quickly.

Making a no win no fee claim

If you want more information, or if you feel you are in a position to make a no win no fee claim, you can call Claims4Free.co.uk on 0808 115 0700, or submit our quick and easy online claim form. Our injury solicitors can help anyone in the UK start the claim process, and get you on the track to winning compensation for your injuries.

No Win No Fee FAQs

Can every type of claim be pursued on a no win no fee basis?

Will I be out of pocket if I lose my no win no fee claim?

Do all no win no fee claims have to be decided in court?

How much will I have to pay to start a no win no fee claim?

What happens if I lose?

 

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*Disclaimer: Although this site is updated as often as possible the information provided may not accurately reflect the current laws, procedures and/or facilities available to you. To ensure that you get the most up to date information make sure you consult an actual injury solicitor before pursuing any action. The articles on this site are for informational purposes only and are not intended to advise any particular action or inaction. Please read our terms of use for more information.