Some Benefits And Drawbacks Of No Win No Fee Agreements

Posted on: 22 January 2015

Although relatively new in countries such as the Untied Kingdom, the idea of being able to hire a legal representative on a no win no fee basis is already established in places such as Australia, or the US. As the term 'no win no fee' suggests, there is no risk for the client, as this risk is undertaken by the solicitor. In cases where a solicitor takes on, and loses, an agreed no win no fee case with a client, the solicitor is liable for any losses. This set up between the solicitor and the client can have both benefits and drawbacks, and this article examines what some of these are.

More Involved Solicitor

The fact that a client is relieved of the burden of paying the solicitor's bills, should the case be unsuccessful, is the major benefit, but the client will also benefit from a more involved solicitor. In situations where the case is taken on, a solicitor has a vested financial interest to win the case, and this should result in them trying a little bit harder to ensure this.

Pressure The Other Party

When you inform the other party that you have a conditional fee agreement (CFA) in place – a no win no fee agreement is an example of a CFA – this can add pressure on to them, as they will be aware that the solicitor will be tenacious in their pursuit of a win. Many agreements and out of court settlements have been agreed to after one party reveals that they have a CFA in place.

Get All The Money

The way the solicitor gets their money means that their fees won't come out of any awards you receive. A solicitor will insert a 'success fee' into the agreement; this is a fee the solicitor will collect from, and is paid by, the losing party. So if you win, the other party will still pay your solicitor's fees.


If you have a CFA in place, most state laws require you to inform the other party of this fact. Additionally, you must provide them with the analysis of risk your own solicitor placed on your case; this can expose any weaknesses and allow the other party to exploit these.


If a solicitor agrees to take on a case, it may be because they have more than a representative interest (a financial one); they may wish to take the case in a direction you don't. This can deviate away from the original reason that you sought representation, and can be frustrating.

Presently, the use of no win no fee agreements are rising in popularity. For more information, contact a firm such as Dwyer Law Group.