What is No Win, No Fee?
Most personal injury firms offer a ‘no win no fee’ scheme for individuals who have suffered major trauma, but what does this actually mean and do all solicitors offer the same terms?
‘No win no fee’ simply means that if your claim is unsuccessful, you will not be charged. Some solicitors do ask their clients to pay for expenses such as medical reports if the claim fails. However, the most likely scenario is that there will be nothing to pay.
What happens in the event of a win?
Since 2013, solicitors have been forced by the government to charge their clients a success fee rather than the insurers.
Some solicitors also arrange an insurance policy to pay for expenses, such as medical report fees, in the event the claim fails.
The insurance premium is then deducted from the damages in the event of a win and premiums can range from £250 to £5000. In addition, some solicitors also ask their clients to pay the shortfall of their costs if they can’t recover all of their costs from the insurance company.
The success fee charged is usually 25% of the compensation recovered. This success fee cannot be more than 25% of damages for injuries and past losses.
What are past losses?
Past losses include loss of earnings and payments for care. Some solicitors also arrange an insurance policy to pay for expenses, such as medical report fees, in the event the claim fails.
The insurance premium is then deducted from the damages in the event of a win and premiums can range from £250 to £5000. In addition, some solicitors also ask their clients to pay the shortfall of their costs if they can’t recover all of their costs from the insurance company.
The ASD approach in Major Trauma cases
At ASD, we insist on transparency, so the client knows exactly what they have to pay and when.
If the claim fails, clients never have to pay a penny unless the claim is fundamentally dishonest.
If the claim succeeds, all the client pays is a fixed success fee.
There are no insurance premiums to pay or loans to take out, ASD funds the claim and if it fails, we pay the expenses. Clients do not have to pay any shortfall if we can’t recover all of our costs.
In a major trauma case, the success fees ASD charges are never 25% but are normally 10% plus VAT of the compensation recovered depending on the value of the claim. They can never be more than 25% of the injury award and past losses.
An example case may be as follows:
Injury Award £100,000
Past losses award £100,000
Future losses award £200,000
Total award £400,000
legal costs £100,000 + vat
Deductions as a result of winning your case:
Shortfall – nil
Success fee – 10% of the value of the claim (but capped at no more than 25% of injury award past losses)
ATE premium – nil
In the above example:
- Shortfall would be £0
- The success fee would be £25,000 including VAT
- ATE premium £0
Total compensation: £400,000
Total deductions: £25,000
A clear policy from a local firm, that still offers a home visit by a solicitor.
How does rehabilitation work?
In line with the Rehabilitation Code laid out in the Civil Procedure Rules, ASD and the insurers jointly instruct a rehabilitation provider that can help with your specific injury.
If an insurer is not available, ASD will instruct the rehabilitation provider directly, so you can get the treatment you need.
To learn more about rehabilitation, visit our Rehabilitation page today.
