When it comes to personal injury law, you should have in mind that most solicitors nowadays are using the business concept called: no win, no fee. The main problem lies in the idea that people do not understand what this means in reality and practice.
Have in mind that this particular concept became prominent at the beginning of the ’90s of the last century, and it was used for fund employment litigation.
However, civil procedure reforms started in 2013 in which solicitors could separate this particular concept into two types: damage based agreements and conditional fee agreements.
These two types are different based on the very no win no fee solicitors are billing the final process.
- CFA – This particular agreement is the contract between solicitor and client, and it provides the overall costs a client has to pay in case that solicitor is successful. However, it also includes a part in which solicitor is under risk if he is unsuccessful, he/she will not get the fee. Some of them want to compensate for this particular element of risk by implementing a success fee in case of a successful claim, as well as some percentage that will accommodate costs that happened along the way.
- DBA – On the other hand, this particular type of agreement is also between solicitor and client, and the idea is that the client has to make payment so that he can get a benefit based on this matter. The amount of cash is based on the references as well as the financial interest of the personal injury case.
As you can see, these two methods are entirely different, because, under a CFA, the amount solicitor will charge based on the outcome that happens throughout the case. On the other hand, DBA includes providing a straight percentage of the final fee in case of success.
You should also remember that DBAs are not that common in the United Kingdom. You should check here to learn more on personal injury law in general.
Benefits of No Win No Fee Concept
You can see from everything we have mentioned above, that this particular concept is interesting, mainly because you do not have to pay anything in case you lose a PI case. Some things are vital to an understanding before you decide to embark on this journey.
- Solicitor Carries All The Risk – The first thing that you should remember that it doesn’t matter who represents you, because they will pay court and legal costs upfront, and in case that they are not successful, you do not have to pay anything at all. They are risking their capital so that they can reach success, which is the main advantage of this concept that may provide you benefit. Since they carry all the risk, they will take only personal injury case that features preliminary risk assessment so that they can win the case and get the money in the long run. Have in mind that process of bringing this particular type of claim can be distressing and stressful, but if you enter this specific agreement, you can rest assured that your solicitor has faith that they will cover their expenses and provide you the settlement you wanted in the first place.
The question is, why solicitor would pay tens of thousands of dollars and risk not to be paid afterward? The main reason for that is that they can earn a hefty reward that may be huge.
Therefore, these solicitors will not take the complicated case and personal injury action without thoroughly evaluating the entire process so that they can be sure that win is in front of them.
Therefore, they are doing detailed risk assessment and analysis as well as get the value of compensation that you will get so that they can earn more they invested at the very beginning.
If you wish to learn how to make a personal injury claim, you should visit this guide: https://www.wikihow.com/Approach-a-Personal-Injury-Claim.
Since they have an understanding of how the law functions, they will know from the slight reading which case is more functional than others and will provide higher gain for both parties.
The main idea is that you will be able to find someone who will take a chance so that you can get what you wanted. Therefore, you can rest assured and know that when solicitor takes no win, no fee personal injury case for you, it means that you will be well compensated.