Questions to ask before signing a No Win No Fee agreement

Before you sign any sort of legal or financial agreement, it is good practice to look critically at any documentation you receive. Knowing exactly what you are agreeing to allows you to prepare for any potential costs, risks and outcomes. 

No Win No Fee agreements are no different. If you can’t find the answers in your paperwork, you could always contact the company and clarify, though many would see this as an issue. Here are four questions you should ask before signing a No Win No Fee agreement. 

What are the potential costs if I lose the case?

The whole idea of No Win No Fee agreements is to protect clients from paying solicitor fees if they lose their claim. However, there are some costs that can be charged. 

Disbursements such as medical reports or court fees can be charged to you. Some agreements also have clauses where you may be liable for up to 75% of your opponent’s court costs unless you utilise the Small Claims Court. Being aware of exactly what may happen in the event of a loss allows you to weigh up whether you want to continue with the claim or not. 

What percentage of my compensation will be taken as a success fee?

If you do win your claim, your solicitors will take a percentage of the awarded compensation for their time and work as a success fee. This is standard practice for No Win No Fee agreements. 

According to UK law, the maximum amount a solicitor can deduct is 25% for personal injury claims so this gives you an idea of how much you would be looking at after deductions. It is best to clarify exactly what percentage will be taken before you sign. 

How will you handle disbursements and other case expenses?

Disbursements are fees which are paid to third parties to help with a case. This includes private medical reports, other expert testimony, court fees and other administrative costs. 

Some solicitors will ask you to front the costs of these expenses with the condition that you get reimbursed. Other contracts will cover the costs initially with the idea that if you win the sum will come from your compensation, but you may be required to pay these costs back should you lose. 

What happens if I decide to settle the case early?

Whilst most solicitors will advise you not to settle early, there may be some situations where you want to. 

You need to be sure what will happen if you do decide to go down this route. There is a chance that you will be required to pay disbursements and expenses, regardless of whether the information was used to help your case.