What is a Conditional Fee Agreement
A conditional fee agreement is also know as a ‘no win – no fee’ agreement. It is an agreement with a Solicitor or a Barrister which makes provision for their fees and expenses to be paid in specified circumstances. (Court and Legal Services Act 1990)
The usual practice is for such legal representatives to waive their fees unless the client wins the case either though settlement or by a court order. The client is frequently required to pay the cost of other expenses or disbursements.
The Requirements of a Conditional Fee Agreement
It must be in written form
It must relate to a case where a conditional fee agreement is permitted (all civil proceedings other than family cases)
It must state the success fee
Most clients are concerned about their liability for the cost of the other side in the event that their claims are unsuccessful. This is usually the case as the general rule is that cost follows the event. A safeguard against this potential liability is for clients to obtain after-the-event insurance policies in order to indemnify them against any possible cost order by the court. The premiums for such policies are reasonable in many cases. It is also possible to obtain an insurance policy on a deferred premium basis which means that the premium does not become payable until the case has been decided.
For more information on:
- Value of a Conditional Fee Agreement
- Conditional Fee Agreement – the way forward