CONDITIONAL FEE AGREEMENTS

Advantages and Disadvantages of Conditional Fee Agreements for Legal Aids

Advantages and Disadvantages of Conditional Fee Agreements for Legal Aids

Conditional Fee Arrangements are a relative newcomer on the British scene, though they have long been common in the United States. Since 1998 they have become widespread, allowing ordinary people a far greater access to the courts than previously, and allowing anyone to get compensation for an injury which was not their fault, where before it was significantly more difficult (www.helpwithlawexams.co.uk).

A conditional fee is an agreement between a client and a solicitor that is drawn up when the client wishes to make a claim. They were first allowed by section 58 of the Courts and Legal Services Act 1990 in personal injury, insolvency and human rights cases. However by 1998 the use of conditional fees was extended to all civil cases except family cases (www.publications.parliament.uk).

Conditional fee agreements are becoming increasingly popular, this is because if the claimant is unsuccessful he/she will not have to pay the Solicitor for his service, hence, ³no win, no fee.² Therefore it is in the best interest of both parties for the Solicitor to win the case, and the claimant to be awarded the damages (www.lansbury-worthington.co.uk).

When dealing with a civil case it is very difficult to know how much taking the case to court will cost. This is mainly because it is difficult to predict how serious the other party is and how far they are willing to go to defend the case. It is possible that once a court case has started the other party may admit liability, therefore the case does not need to proceed, and so can be settled quickly and comparatively cheaply (lavellecoleman.ie).

However if the case does proceed then the costs of running that case can rise considerably (www.1stclaims.co.uk). A conditional fee agreement allows a solicitor to offer what is called a “no win, no fee” arrangement when taking on new cases. In other words, the solicitor can offer the client a fee structure which means that while they will receive a success fee if they win the case, if their case should be unsuccessful then no fee will be charged (www.accidentconsult.com). The benefit to a client is obvious; it means that a legal claim for compensation is no longer the preserve of those who can afford the services of a good lawyer, and rather than basing your decision on cost, you can pursue a claim for compensation based on the extent of the injury you may have suffered (heinonline.org).

Solicitors make the decision on taking on such cases based on several factors. These can include their experience, either as an individual or as a firm, in dealing with similar cases (www.peterjepson.com).

Another factor which will influence a solicitor's decision on whether or not to take on a case on a conditional fee agreement basis is the likely duration of the case. Obviously the longer a case drags on, the more expensive it is for all concerned in terms of both ...