There are numerous accident solicitors and claims firms advertising that they deal with claims on a ‘no win no fee’ basis. But what exactly does this entail and how does it provide access to justice?
How no win no fee works
The formal name for a claim dealt with under this system is a ‘conditional fee arrangement’. The premise is that your solicitor will look at the facts of the case and will make a judgement as to whether or not it stands a reasonable chance of success if brought before the court. In simple terms, the solicitor is ‘gambling’ his/her fees against the chances of success, knowing that if the claim fails, they will not receive any payment for their time. If the claim does succeed, then your solicitor will be able to recover all of their costs from the other side and it is this that allows their client to receive the whole of the compensation amount awarded, without fees being deducted.
How does it benefit injured parties?
Prior to no win no fee arrangements, options for injured parties who wanted to seek compensation were fairly small. Much of the time claims were being brought against companies and corporations, particularly in instances involving accidents at work, or in the case of medical negligence. Often, a claim’s result could hinge not on whether or not the claim was valid, but on which side had the deeper pockets to fund a robust legal attack/defence. Not everyone was able to pay their own legal fees and the risk of being landed with an unmanageable bill was enough to put people off claiming, as it was their own money they were risking. This effectively took access to justice away from the most vulnerable members of society.
No win no fee means that anyone, no matter what they may earn, can bring a claim against someone who has, in acting carelessly or negligently, caused them to be injured. It has levelled the playing field by mostly removing the money issue from the equation.
The disadvantages
The disadvantage of the system is that some borderline claims may not be pursued, as the solicitor may feel that the risk of failure is higher than they are willing to gamble on. There is still the option for a claimant to fund their own case, but again, this requires deep pockets and there are no guarantees. Another disadvantage is that unscrupulous law practitioners may encourage certain claims in the knowledge that, often, a claim is settled just because it is cheaper and easier to settle than to fight through the court, even if there is serious doubt as to the claim’s validity.
Even though no system is going to be perfect and there are always those who will take advantage, on the whole, the system works well for those who need it.