What does it mean to be ‘No-Win, No-Fee’?

At Pocket Claim, most of the claims that our legal partners offer are No-Win, No-Fee. It’s a phrase that’s getting used more frequently in the legal profession, so it’s worth explaining exactly what it means.

In short, No-Win, No-Fee arrangements allow you to pursue compensation without paying legal fees upfront. Subject to the terms of the agreement, you will usually only pay your solicitor’s fees if your claim succeeds. In a successful claim, your solicitor may recover costs from the other side and may also deduct a success fee from your compensation, where permitted by the agreement. If your claim is unsuccessful, you will not usually be required to pay your solicitor’s legal fees, although this will depend on the terms of the agreement and any insurance arrangements.

No-Win, No-Fee arrangements can make it easier for people to pursue claims by removing the need to pay legal fees upfront.

What is a No-Win, No-Fee agreement?

You might hear No-Win, No-Fee referred to as a Conditional Fee Agreement, or CFA. Under a CFA, the solicitor agrees to defer some or all of their fees unless the claim succeeds. The funding arrangements and any insurance protections in place will vary between firms and cases.

If you win, the solicitor may recover certain costs from the other side and may also be entitled to a success fee in accordance with the terms of the Conditional Fee Agreement. This is similar to, but distinct from, a Damages-Based Agreement (DBA). For the purposes of this article, and understanding the key points of No-Win, No-Fee agreements, we’ll stick to discussing CFAs.

The exact terms of a CFA vary for every solicitor and each claim.

How does No-Win, No-Fee work?

The process is broadly the same across most claims:

• Initial assessment – You contact a solicitor and explain what happened. They review whether you have a viable claim.
• Solicitor accepts the case – If they think you have reasonable prospects of success, they may offer to represent you under a CFA.
• The claim progresses – Your solicitor gathers evidence, corresponds with the defendant, and builds your case.
• Outcome – Your claim either settles or goes to a decision. If you win, compensation is awarded. If you don't, the agreement determines what, if anything, you owe.
• Fees are settled – On a successful outcome, the solicitor's fees are handled per the agreement. You receive the remainder of your compensation.

What do you pay if your claim is successful?

While you do not pay any upfront costs in pursuing a claim through a No-Win, No-Fee arrangement, it’s not free: if you win, a ‘success fee’ is deducted from the compensation you’re awarded.

The amount payable will depend on the terms of your Conditional Fee Agreement and the nature of your claim. Your solicitor will explain any success fee and how it is calculated before you enter into the agreement.

Before entering into any agreement, you should review the terms carefully and ensure you understand how any fees, deductions and costs may apply.

What happens if your claim is unsuccessful?

If your claim is unsuccessful, you will not usually be required to pay your solicitor’s legal fees. However, this will depend on the terms of your Conditional Fee Agreement and any associated insurance arrangements.

Certain costs, expenses or disbursements may be treated differently under the agreement, so it is important to read the terms carefully before proceeding.

For example, some agreements include provisions for disbursements (court fees, expert reports, and other additional materials). In some circumstances, failing to comply with the terms of the agreement may affect your entitlement to the protections offered under the CFA. That said, your solicitor is bound by a regulator and an ethical code to work in your best interests; a No-Win, No-Fee arrangement incentivises everyone to pursue the claim as quickly, efficiently and effectively as possible.

In certain cases, where the claim is unsuccessful, solicitors recover costs through ‘After the Event’ (ATE) insurance, which generally covers the solicitors’ out-of-pocket expenses and the opposing side’s legal fees.

Can you make a data breach claim on a No-Win, No-Fee basis?

Yes! Many solicitors handling data breach claims offer No-Win, No-Fee arrangements, although funding options will vary between firms and individual cases.

Data breaches affect millions of people, meaning there could be millions of possible claimants. As a result, solicitors want to make the process of signing up to a claim as simple and low-risk, such as by offering a CFA.

Ultimately, whether a solicitor offers a Conditional Fee Agreement will depend on their assessment of the merits of the claim, the available evidence and the prospects of success.

Explore Our Current Data Breach Claims

Is No-Win, No-Fee right for me?

Key points:

• You can pursue a claim without paying legal fees upfront if the solicitor accepts your case
• You get access to specialist legal representation
• The exact terms of a No-Win, No-Fee agreement vary for each claim

But remember:

• A success fee will be deducted from your compensation if you win
• Not every claim will be accepted – solicitors assess prospects before agreeing to act
• You should check the terms of the agreement you enter into for a claim

FAQs

What does No-Win, No-Fee actually mean?

It means your solicitor agrees not to charge their legal fees unless your claim succeeds, subject to the terms of the agreement.

Do I pay anything upfront?

No – that's the core feature of a No-Win, No-Fee agreement. Legal fees are not charged in advance.

Can I make a data breach claim on a No-Win, No-Fee basis?

Yes. Many solicitors handling data breach claims offer Conditional Fee Agreements, although availability will depend on the circumstances of the case and the solicitor’s assessment of its merits.

What percentage do solicitors take?

It varies. Any success fee and the method used to calculate it will be set out in your Conditional Fee Agreement. You should review the agreement carefully before proceeding.

What happens if I lose my claim?

You generally won't owe your solicitor's fees. Check your agreement for any provisions around disbursements or ATE insurance.

Explore Our Current Data Breach Claims

Important: Pocket Claim is not a law firm and does not provide legal advice. Where appropriate, we introduce potential claimants to independent solicitors who will assess the merits of a claim and explain any funding arrangements before representation begins.