In appropriate cases we will share the risk with you through flexible and innovative funding arrangements, including:
• Conditional fee agreements (CFAs) (also known as “no win, no fee” agreements)
• Discounted CFAs (also known as “no win, low fee” agreements)
• Fixed and capped fees
• Affordable hourly rate charges
• Legal expenses (“after-the-event” or “ATE”) insurance to cover the risk of having to pay costs to the other side (and your own expenses) if your claim is unsuccessful
• Disbursement funding for expenses such as court fees and expert’s fees
If your claim is suitable for funding by a full CFA with ATE legal expenses insurance and a disbursement funding loan, it will involve no up-front costs to you and you will have nothing to pay if the claim is unsuccessful. We will talk to you about these options for funding your case but you can find further details below.
Before-the-event legal expenses insurance
Legal expenses insurance to fund the costs of a future claim can be bought “before the event”. This is often included with home or motor insurance policies or with some credit cards or bank accounts. You should check whether you have existing before the event legal expenses cover before instructing a solicitor, or we can help you with this.
No Win, No Fee
A conditional fee agreement or CFA where if you lose your claim, you don’t pay any fees to us. You do pay expenses such as court fees and expert fees, but these can be covered by insurance (see below). If you win, you pay our fees at our normal hourly rates, plus a success fee (a percentage of our fees or your damages). You will also have to pay expenses, VAT and any ATE insurance premium. You may be able to recover some of our fees and expenses (but not the success fee or any ATE insurance premium) from the other party. Because we share the risk in the case with you, we must be satisfied that the claim has sufficiently good prospects of success and value.
No Win, Low Fee
A discounted rate agreement (sometimes called a DFA) is where you pay our fees at agreed discounted hourly rates and expenses. If you lose your claim, you have only paid our fees at the discounted rates. If you win, you pay the difference between the discounted rates and our normal rates, plus a (smaller) success fee. You also pay expenses, VAT and any ATE insurance premium. You may be able to recover some of our fees (at the normal rates) and expenses (but not the success fee or any ATE insurance premium) from the other party.
Damages based agreements (DBAs)
If you win the claim, you pay to us an agreed percentage of any damages (a contingency fee). If you lose, you don’t pay any fees to us, but you will have to pay expenses.
Third party funding
A third party provider funds your claim in return for an agreed percentage of any damages or multiple of costs if the claim is successful.
A straight hourly rate basis, win or lose. You pay an hourly rate for each lawyer working on your case, depending on the seniority and experience of the lawyer and the nature of the case.
An agreed fee for a particular item or stage of work.
THE OTHER PARTY’S COSTS
After-the-event (or ATE) legal expenses insurance
Legal expenses insurance against the risk of having to pay costs to the other party if you lose your claim. It also covers your expenses (including court fees and expert fees). The ATE premium is paid at the end of the claim as percentage of your damages and is self-insuring, meaning you only pay it if you win. The ATE premium cannot be recovered from the other party so will, in effect, reduce your recovery of damages. ATE insurance can be used in conjunction with any of the above methods of funding your own costs.
Funding for disbursements (or expenses), such as court fees and expert fees. A funding arrangement is provided by a third party by way of a loan agreement. Simple interest is charged and the loan is only repayable at the end of the claim. The loan and interest are covered by ATE insurance meaning there is nothing to pay if you lose. Disbursement funding can be used in conjunction with any of the above methods of funding your own costs, but it must be used with ATE.