The words ‘No Win, No Fee‘ are often used by lawyers when talking about legal fees. It is important to understand what this phrase means.
Firstly, it is important to understand the difference between legal fees and legal outlays.
Your total legal costs are a combination of your professional legal fees plus your legal outlays.
If lawyers act on a No Win, No Fee basis, this means the lawyers will not charge for the work they do in acting for a person suffering from personal injuries, unless and until a successful outcome is achieved. A successful outcome generally means settling a claim and recovering damages, but can include other scenarios.
The lawyers’ professional fees for the work they have done are then paid out of the damages.
Legal outlays, being the costs expended by the lawyer to obtain things like records and reports, are also paid out of the damages. It is sometimes the case that if there is not a successful outcome (such that no damages are paid) the lawyer will require the client to reimburse them for any expenses incurred, such as the cost of medical reports, but will not require payment of professional legal fees.
It is important to carefully read any costs agreement provided by a lawyer to understand exactly what is meant by No Win, No Fee, particularly concerning expenses and any interest that may be claimed on these.
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