The term "no win, no fee" is often used by lawyers on the television to promote law firms looking to help you with a compensation claim.
A large majority of people considering a compensation case are often sceptical regarding these offers due to the old adage "if it's too good to be true, it probably is".
However, when no win no fee lawyers say "no win, no fee" this is exactly what they mean; the only issue is interpretation of the phrase.
"No win, no fee" is officially known in legislation as a Conditional Fee Agreement between the solicitor and client.
This agreement states, in basic terms, that if no win no fee lawyers lose your case, you do not have to pay them a fee for their services.
Although this may seem simple enough, there are important asterisks to bear in mind.
1.
It's Not Free The term "no win, no fee" by no means translates to "no win, no cost".
Legal battles are a costly feat and that money has to come from somewhere so it's important to understand that it could be from you.
When a compensation case is undertaken, the winner receives compensation from the losing side who also pays for the winning lawyer's fees and the lawyer's winning bonus.
If you're on the losing side, you may not have to shell out for your own lawyer, but you are liable for the legal costs to the other side.
2.
Win = 100% One of the often overlooked bonuses of no win no fee lawyers is the agreement on compensation percentage won in the case.
The process which is used for these types of compensation cases denotes that the claimant receives 100% of the compensation pledged to them by the court should they win.
This is because all lawyer's fees and bonuses are added on top of compensation and paid by the losing party.
3.
You'll Need Insurance Legal insurance is a must-have in these types of cases.
Despite the "no win, no fee" claim, this only stands for your own legal counsel.
If you lose your compensation case, you become liable for the legal costs of the opposing party.
In other words, you may not pay fees to your own lawyer, but you pay fees to theirs, including any expenses and winning bonuses.
"After-Event Insurance" can be taken out which ensures that you are covered in the event of losing.
This insurance will pay for legal costs including expenses and bonuses.
Your solicitor should explain this to you and assist with the implementation of a policy; always check previous policies as a policy already in place can cause the new one to be invalid.
4.
There's a Matter of Expenses Although there are no costs to you from your own legal side, per se, often you will be lumbered with legal expenses in the interim period prior to trial.
This forces you to pay for any legal expenses your own lawyer has, which will be recuperated in the event of winning the case.
However, if you lose the case, you are stuck with those expenses plus the expenses of the opposing lawyer.
5.
Confidence is Key Lawyers do not want to work for free.
This means that in taking on your case, they have a certain level of confidence that they'll win.
You should bear this in mind when considering whether to press on with the compensation case or not.
In conclusion, "no win, no fee" rarely leads to no costs - if it's not insurance then it could be the expenses and legal fees of your opposition.
However, it's important to recognise that with 100% compensation at stake at only the cost of insurance, your compensation case could be extremely worthwhile.
A large majority of people considering a compensation case are often sceptical regarding these offers due to the old adage "if it's too good to be true, it probably is".
However, when no win no fee lawyers say "no win, no fee" this is exactly what they mean; the only issue is interpretation of the phrase.
"No win, no fee" is officially known in legislation as a Conditional Fee Agreement between the solicitor and client.
This agreement states, in basic terms, that if no win no fee lawyers lose your case, you do not have to pay them a fee for their services.
Although this may seem simple enough, there are important asterisks to bear in mind.
1.
It's Not Free The term "no win, no fee" by no means translates to "no win, no cost".
Legal battles are a costly feat and that money has to come from somewhere so it's important to understand that it could be from you.
When a compensation case is undertaken, the winner receives compensation from the losing side who also pays for the winning lawyer's fees and the lawyer's winning bonus.
If you're on the losing side, you may not have to shell out for your own lawyer, but you are liable for the legal costs to the other side.
2.
Win = 100% One of the often overlooked bonuses of no win no fee lawyers is the agreement on compensation percentage won in the case.
The process which is used for these types of compensation cases denotes that the claimant receives 100% of the compensation pledged to them by the court should they win.
This is because all lawyer's fees and bonuses are added on top of compensation and paid by the losing party.
3.
You'll Need Insurance Legal insurance is a must-have in these types of cases.
Despite the "no win, no fee" claim, this only stands for your own legal counsel.
If you lose your compensation case, you become liable for the legal costs of the opposing party.
In other words, you may not pay fees to your own lawyer, but you pay fees to theirs, including any expenses and winning bonuses.
"After-Event Insurance" can be taken out which ensures that you are covered in the event of losing.
This insurance will pay for legal costs including expenses and bonuses.
Your solicitor should explain this to you and assist with the implementation of a policy; always check previous policies as a policy already in place can cause the new one to be invalid.
4.
There's a Matter of Expenses Although there are no costs to you from your own legal side, per se, often you will be lumbered with legal expenses in the interim period prior to trial.
This forces you to pay for any legal expenses your own lawyer has, which will be recuperated in the event of winning the case.
However, if you lose the case, you are stuck with those expenses plus the expenses of the opposing lawyer.
5.
Confidence is Key Lawyers do not want to work for free.
This means that in taking on your case, they have a certain level of confidence that they'll win.
You should bear this in mind when considering whether to press on with the compensation case or not.
In conclusion, "no win, no fee" rarely leads to no costs - if it's not insurance then it could be the expenses and legal fees of your opposition.
However, it's important to recognise that with 100% compensation at stake at only the cost of insurance, your compensation case could be extremely worthwhile.
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