Conditional Fee Agreement is also referred to as “no win no fee”. According to no profit, no fee is agreed, a specialist is paid only if he wins the case or if the claim is effective. How does a Conditional Fee Agreement work? In this agreement, the specialist is also qualified for a fee, known as a performance fee. A winning fee is a fee which is intended to compensate the Specialist for the risk that he will not be paid in the event of loss and will cover the delay in payment by the other party.
The level of the Progress Fee depends on the type of cases and the chance of winning. In the event that a case is resolved without trial, the performance fee is lower than in litigation cases. The basic fee and the success fee are paid by the other party in general or in installments. There are various costs, apart from the medical fee, similar to the court fee, the fee for medical reports and so on, known as distributions. The losing party must pay all or part of the expenses.
Regardless of whether you have agreed to a conditional fee agreement, remember that you have asked your case officer to give you a summary estimate of any reasonable costs they have already processed in your case. Conditional fee agreement will undoubtedly remove many financial risks from your shoulders, but not evacuate all financial risks.
What happens if you lose your case on a no win, no fee agreement?
If you lose a case, you do not yet have to pay your specialist fee, and at the same time you have to pay the legal costs of the fertile party, such as court fee, medical opinion fee, and so on, known as a royalty. To avoid having to pay huge bills to your opponent in case you lose your case, your specialists will advise you to take out legal expenses insurance. There are many other insurance companies in the market, and you can take one of them independently from someone else, but at the chance that you ask your specialist to arrange for insurance, then it would be significantly cheaper. At some point you do not have to pay the premium, sometimes you have to pay independently of someone else.
Conditional fee agreements are offered by accident claims solicitors when the chance to receive legal aid was excluded from personal claims for damages. With the government finding that the removal could lead to popular uprising, the government quickly introduced a type of security that allowed accident victims to claim personal damages without burning thousands of pounds. The conditional fee agreement was the result.Tags: accident claims, accident claims solicitors, Fee Agreement