In the 1990s, the concept of ‘no win, no fee’ was introduced and many primarily used this to finance employment litigation in Townsville and around the globe. After improvements to the civil procedure method or ‘Jackson Reforms’ occurred in 2013, ‘no win, no fee’ lawyers divided the agreements into two kinds. These are damages based agreements (DBAs) or contingency fees, and conditional fee agreements (CFAs’).
‘No win, no fee’ agreements offer a substantial benefit to personal injury victims who desire to claim compensation:
- Personal injury cases do not have legal aids available. This is why CFAs offer a way for claimants who do not have enough finances to pay their solicitor up front the freedom to forward a claim.
- The solicitor holds all the liabilities. If they do pick to represent you, they will settle all the court and legal costs right away. For cases where the claim failed, they will have to finance these charges using their own capital — and the amounts can be significant. In the region, a complicated brain injury case can charge around six figures to go to trial.
- As they carry all the dangers, a law firm will only choose a personal injury case that has a good possibility of winning. They make this decision after conducting an initial risk assessment. Carrying a personal injury claim can be upsetting and demanding for a claimant. By getting into this agreement, they will have a strong guarantee their solicitor has faith that they will get their expenses back. They can only achieve this if they win the compensation on the claimant’s behalf.
It is important that the claimant completely knows the penalties of getting into a ‘no win, no fee’ agreement. Ensure that you obtain the particulars of the agreement in writing. It should openly discuss the success charge that will be charged if the claim is unsuccessful.