How Does “No Win No Fee” Actually Work?
I have heard the term “no win no fee” used for many years but never fully understood how it works. As part of this post I have looked into “no win no fee” and some of the procedures involved. If you are considering a “no win no fee case”, I recommend contacting a qualified accident solicitor.
So how does it actually work? Well one of the main principles of English law is that the loser of a case pays not only their legal costs but also the costs of the winner. So in a NWNF situation, the solicitor will agree to not charge the client anything unless the case is won. So if you instruct the legal firm on a NWNF case, then the risk you take is limited to the costs form the other side plus court costs. But the recommended way to help protect against this is to take out insurance to cover these costs.
Taking up a NWNF service with insurance means that your solicitor will take the biggest financial risk, but the solicitor will usually charge a success fee. Court cases only usually happen when both parties feel they can win and the level of risk involved will determine the solicitor’s success fee. If the success fee is reasonable, then the court will make the loser pay it as part of the settlement.
There are two types of legal insurance you can take out to cover yourself for court costs. One is after the event or ATE and the second is before the event or BTE. ATE is something you take out after an event has happened and you know you need to go to court, this insurance will cover your costs and the other sides if you lost. BTE is insurance that people will get bundled in with things such as house insurance.
For more information on no win no fee accident compensation claims, visit Claims for you.