One of the first questions many people ask when considering a claim is how they will pay for legal representation.
The term “no win no fee” is widely used by personal injury solicitors, but many people are unsure what it actually means in practice. Does it mean a claim is completely free? What happens if the claim is unsuccessful? Will you keep all of your compensation?
In this guide, we explain how no win no fee agreements generally work in Scotland. The specific terms of any arrangement will be set out in the terms and conditions of the agreement offered and explained to you before you decide whether to proceed.
What Is a No Win No Fee Agreement?
A no win no fee agreement is a funding arrangement that allows a solicitor to pursue a claim on your behalf without requiring you to pay legal fees upfront.
You may also hear these arrangements referred to as:
- Success fee agreements
- Conditional fee agreements
Although the terminology can vary, the basic principle is the same. A fee only becomes payable if your claim is successful.
This allows people to pursue a personal injury claim without having to fund legal fees as the claim progresses.
Do I Have to Pay Anything Upfront?
In most cases, no.
One of the main benefits of a no win no fee agreement is that it allows a claim to be investigated and pursued without requiring an upfront payment.
This means you can focus on your recovery while your solicitor investigates the circumstances of your accident and pursues compensation on your behalf.
How Does No Win No Fee Work?
The arrangement is straightforward.
If your claim is successful, an agreed percentage of your compensation is used to pay the success fee.
If your claim is unsuccessful, you do not pay the success fee.
The percentage payable should be explained and agreed before your claim begins so that you understand exactly how the arrangement works.
At Jackson Boyd, we believe funding arrangements should be transparent and easy to understand from the outset.
Are No Win No Fee Claims Really Free?
Not entirely.
A no win no fee agreement means that you do not pay legal fees upfront and that the success fee is only payable if your claim succeeds.
However, if your claim is successful, an agreed percentage of your compensation will usually be deducted to pay the success fee.
The important point is that this should be explained clearly at the beginning of your claim. You should understand exactly how much may be deducted and how the arrangement works before deciding whether to proceed.
What Happens If I Win My Claim?
If your claim is successful, compensation will be recovered on your behalf.
The agreed success fee will then be deducted in accordance with the terms of your funding agreement.
Any deduction should be transparent and discussed with you before the claim begins.
What Happens If I Lose My Claim?
This is understandably one of the most common questions people ask.
If your claim is unsuccessful, you will not pay the agreed success fee.
Before your claim starts, your solicitor should explain the funding and costs position fully so that you understand any potential risks and the protections available.
What About Outlays?
Outlays are the costs involved in investigating and pursuing a claim.
Examples include:
- Medical reports
- Medical records
- Expert evidence
- Police reports
- Court fees
These costs can become significant, particularly in more complex cases.
It is therefore important to understand how outlays will be funded and whether they are covered by the funding arrangement. Your solicitor should explain this clearly before your claim begins.
Why Are No Win No Fee Agreements Used?
Personal injury claims often require significant work before compensation can be recovered.
Claims may involve:
- Obtaining medical records
- Instructing independent medical experts
- Gathering witness evidence
- Investigating liability
- Negotiating with insurers
- Preparing court proceedings where necessary
A no win no fee agreement allows people to pursue a claim without having to fund this work themselves as the case progresses.
Is No Win No Fee My Only Funding Option?
Not necessarily.
Some people have legal expenses insurance which may fund a personal injury claim. This is often included as part of a motor insurance policy, home insurance policy or certain bank account packages.
Before any funding arrangement is entered into, your solicitor should consider whether alternative funding options are available.
How Jackson Boyd Can Help
If legal expenses insurance is not available, Jackson Boyd can often arrange funding through our funding partner, Collaborate.
This allows claims to be fully investigated and pursued without upfront legal fees. It also allows the costs of obtaining evidence, such as medical reports and other outlays, to be funded during the life of the claim rather than requiring clients to pay those costs themselves.
If the claim succeeds, an agreed success fee is deducted from the compensation recovered.
If you would like to learn more about how this type of funding works in practice, read our guide:
We will always explain how your claim will be funded before any work begins, ensuring you understand exactly where you stand from day one.
Our specialist personal injury lawyers represent clients across Scotland in road traffic accident, employer liability and public liability claims. Learn more about our Personal Injury Services.
