No win no fee -
explained
The
term "NO WIN NO FEE" is often used to and seldom understood.
It
is essentially an American legal concept that has taken root in the
English & Welsh legal system and now underpins the way civil claims are
administered. Let us try to explain the "no win no fee" concept so that you have an
understanding of what is actually involved.

No win No fee
agreements are also known as CFA's (Conditional Fee Agreements) and
were formally introduced by legislation in 1998. From 2000 onwards
they have become a major part of the civil justice system in England
& Wales. Legal aid has been effectively abolished for all but a
select few causes of action (medical negligence).
The general idea is
that the solicitor acting in a no win no fee compensation claim is only entitled to be paid
his fee if he wins the case. Payment is usually made by the
insurance company of the losing party. There are variations of the
basic form of no win no fee agreements for eg:
Some solicitors will
charge their clients a percentage from their actual compensation and
some will expect the client to pay for all disbursements as the
claim proceeds. Most solicitors will themselves finance all
disbursements and make no percentage deduction from compensation,
ensuring that compensation is paid in full.
If the solicitor wins
the case then he is entitled to a "success fee" which is a bonus
payment to be added to his costs - this reflects the risk taken in
pursuing the claim on a no win no fee basis.
If the case is lost
then the solicitor will lose his opportunity to claim back his legal
fees.