No Win No Fee Accident at Work Claims Explained

Most accident at work compensation claims in the UK are handled under a Conditional Fee Agreement (CFA), commonly called no win no fee, provided by Edward and Amaury Limited (trading as Edward & Amaury Solicitors). This page explains clearly what this means, what it costs, and what you should check before signing an agreement.

What does no win no fee mean?

It means your solicitor is paid only if you win. If the claim fails, you pay no solicitor fees. If it succeeds, the solicitor recovers costs from the other side and takes a capped success fee from your damages.

• The agreement is a Conditional Fee Agreement under section 58 of the Courts and Legal Services Act 1990.
• Since 1 April 2013 the success fee is paid from your damages, not by the losing defendant (section 44 of the Legal Aid, Sentencing and Punishment of Offenders Act 2012).
• Solicitors only offer a CFA where they see a reasonable prospect of success.
• If you win, your solicitor charges a success fee, deducted from your compensation. If you lose, you generally pay no solicitor's legal fees.

What is the maximum success fee a solicitor can take from my compensation?

In England and Wales the success fee is capped at 25% of your general damages and past financial losses. Future losses are excluded from the cap.

The cap is a maximum — the percentage agreed can be lower, and often is for claims with good prospects, so ask your solicitor to confirm the exact figure rather than assuming the maximum. The percentage actually charged must be stated in your Conditional Fee Agreement and cannot exceed the cap. As is standard market practice, the cap is usually treated as inclusive of VAT, though your written agreement will confirm exactly how the percentage is calculated in your case.

How much of my compensation will I actually keep?

On a £15,000 award made up of £12,000 general damages and £3,000 past losses, the maximum success fee is £3,750, so you keep at least £11,250 before any ATE premium or unrecovered disbursements set out in your agreement.

Illustration only, not a prediction of your award. Recoverable state benefits repaid to the Compensation Recovery Unit are deducted from damages before the cap is applied.

Are there any upfront costs?

No. You pay no solicitor fees upfront. Your agreement must say who advances case costs such as medical reports and when they are repaid.

• Medical report fees are the most common upfront cost.
• The CFA must state who advances each cost.
• Ask in writing, before signing, whether any cost could be payable if the claim fails.

What are disbursements, and who pays them?

Disbursements are third-party costs of running the claim, such as medical reports, court fees and expert fees. A solicitor usually advances them, and a losing defendant normally reimburses them on success.

• Examples: a medical report fee, an engineer's report, the court issue fee.
• Disbursements are separate from the success fee.
• Your agreement should list which disbursements could be recoverable from you if the claim fails.

What happens if my claim succeeds?

If your claim succeeds, your solicitor will deduct:

• Their success fee (agreed in advance)
• The ATE insurance premium (if applicable)
• Any disbursements not recovered from the other side

Success fees are paid from the claimant's damages, capped at 25% of your general damages and past financial losses. Understand these deductions before you agree to proceed.

What is after-the-event (ATE) insurance and do I need it?

ATE insurance covers the defendant's legal costs and your own disbursements if you lose. It is often not needed in employers' liability claims because QOCS normally protects you from the other side's costs.

• The ATE premium is not recoverable from the losing defendant in most personal injury claims (section 46 of the Legal Aid, Sentencing and Punishment of Offenders Act 2012).
• If an ATE policy is used, the premium is often deferred and paid only on success.
• Your solicitor must tell you in writing, before you sign, whether ATE insurance is arranged in your case and who pays the premium.
• Legal expenses insurance already on your home or motor policy may offer an alternative. Check before signing.

What are your obligations under a CFA?

In return for no-win-no-fee funding, you are expected to cooperate with your claim. Typical obligations set out in a CFA include:

• Giving honest and accurate instructions throughout the claim
• Attending any independent medical examination arranged for your case
• Not settling or negotiating directly with the employer or their insurer without telling your solicitor
• Telling your solicitor promptly if your circumstances or the facts of the accident change
• Keeping to the terms your solicitor sets out for cancelling or withdrawing from the agreement

The exact obligations that apply to you will be set out in your written agreement — read it carefully and ask your solicitor if anything is unclear before you sign.

What happens if my claim fails?

You normally owe your solicitor nothing, and QOCS normally protects you from the other side's costs. Exceptions apply to fundamentally dishonest claims, struck-out claims and any disbursements your agreement specifies.

• You generally pay none of your solicitor's fees, provided you have kept to the agreement.
• ATE insurance, where used, should cover the defendant's costs and your disbursements.
• Breaching your obligations under the agreement can allow the solicitor to end it. Check the wording on what happens if the claim is lost.

Will I have to pay the other side’s legal costs if I lose?

Normally no, in England and Wales. Qualified one-way costs shifting (QOCS) under CPR 44.13 to 44.17 limits any costs order against you to the damages you receive, so you cannot lose money from your own pocket.

Most personal injury claims in England and Wales are covered by QOCS under Part 44 of the Civil Procedure Rules. In broad terms, if your claim fails, the employer’s insurer cannot make you pay its legal costs out of your own pocket. Under rule 44.14, a costs order is enforceable only up to the amount of damages and interest awarded to you. Scotland has its own, similar protection for injured people. Ask your solicitor to explain how costs risks are handled under your agreement.

When does QOCS costs protection not apply?

QOCS can be lost if the claim is struck out, is found fundamentally dishonest, or is brought for the benefit of someone other than the claimant. A rejected settlement offer can also trigger costs consequences, limited to your damages.

For a worked scenario see how could I lose QOCS protection?

Can I cancel or leave a no win no fee agreement?

Yes. You can usually cancel within 14 days of signing without charge and can end the agreement later, although the terms may then affect what you owe.

• A 14-day cancellation right normally applies to agreements made at a distance or off-premises (Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013).
• Ask what happens to costs already incurred if you leave after the cooling-off period.
• Solicitors may end the agreement if your case loses reasonable prospects. The agreement should explain this.
• The client care documents should explain how cancellation applies to your agreement.

The law behind a Conditional Fee Agreement

Conditional Fee Agreements are governed by section 58 of the Courts and Legal Services Act 1990, as amended by the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO), and capped by the Conditional Fee Agreements Order 2013.

• Section 44 of LASPO ended recovery of success fees from losing defendants for CFAs signed on or after 1 April 2013.
• Section 46 of LASPO ended recovery of ATE premiums in most personal injury claims.
• The SRA Transparency Rules require solicitors to publish clear pricing information.

A Conditional Fee Agreement is the legally binding contract that makes no win no fee work: whether and how much you pay is conditional on the outcome. It is the standard way to fund an accident at work claim, but not the only one. You may already have legal expenses insurance, for example as an add-on to a home or motor policy; your solicitor can check whether it applies.

Why should you read your agreement carefully?

Before signing, understand:

• The success fee percentage
• How disbursements are handled
• The ATE premium, if any
• Any circumstances that might mean costs are payable if you lose
• Your right to terminate the agreement

How do I check a no win no fee agreement before signing?

1. Find the success-fee percentage and check it is within the legal cap.
2. Check what the percentage applies to: general damages and past losses only, not future losses.
3. Check who pays disbursements such as medical reports if the claim fails.
4. Check whether after-the-event insurance applies and who pays the premium.
5. Check the cancellation and termination clauses.
6. Check the firm on the SRA register using its SRA number.
7. Keep a signed copy of the agreement and all costs information.

Complicated questions — such as insolvent employers or partial fault — are covered in our expert answers. For how awards are calculated, see compensation.