What Is No Win, No Fee?

Last reviewed: 3rd July 2026

A no win, no fee agreement can allow you to pursue a personal injury or medical negligence claim without paying your solicitor’s ordinary legal fees upfront. Its formal legal name is a conditional fee agreement, often shortened to CFA. Under this type of arrangement, the solicitor’s fees become payable only in the circumstances set out in the written agreement, usually where the claim succeeds.

The phrase “no win, no fee” is helpful shorthand, but it does not mean that there can never be any costs or financial risk. The exact position will depend on the terms of the CFA, any after-the-event insurance policy, the way the claim is conducted and the outcome of the case. A solicitor should explain these matters clearly before the agreement is signed.

Key Points

• A no win, no fee agreement is usually a written conditional fee agreement under which a solicitor agrees not to charge ordinary legal fees if the claim is unsuccessful, provided the client complies with the agreement.
• If the claim succeeds, a success fee and other agreed deductions may be taken from the compensation. In personal injury claims at first instance, the success fee is subject to a statutory cap, but other deductions, such as an insurance premium or an agreed shortfall in legal costs, may also apply.
• Personal injury claimants may also benefit from qualified one-way costs shifting, known as QOCS, which offers important protection against the defendant’s costs.
• That protection is not absolute. Costs consequences may arise in circumstances such as fundamental dishonesty, strike-out, unreasonable conduct or failure to beat a formal settlement offer.
• Every client should therefore understand the agreement, the insurance position and the possible deductions before deciding to proceed.

Conditional fee agreements were introduced to improve access to justice by allowing people to bring claims without privately funding all of the legal work as the case progresses. They are now widely used in personal injury and medical negligence claims. The arrangement involves the solicitor taking on the risk that they may not be paid for their work if the case is unsuccessful.

A CFA is not a standard one-size-fits-all document. The terms can vary between firms and between cases. The agreement should explain what counts as a successful outcome, what happens if the claim fails, how the success fee is calculated, who is responsible for third-party expenses, whether insurance is required and what happens if the agreement ends before the case is concluded.

What Is the Legal Basis for a No Win, No Fee Agreement?

A no win, no fee agreement is legally known as a conditional fee agreement. It is an agreement under which some or all of the solicitor’s fees and expenses become payable only in specified circumstances. To be enforceable, the agreement must be in writing and must comply with the relevant statutory requirements.

In most personal injury claims, the specified circumstance is that the client obtains compensation or another agreed form of success. The agreement should state the success fee and explain how it will operate. It should also make clear what happens if the client does not comply with the agreement, ends the solicitor’s instructions or provides misleading information.

What Do You Pay If You Win?

If the claim succeeds, the defendant will usually be required to make a contribution towards the claimant’s recoverable legal costs. However, the defendant may not pay every cost incurred by the solicitor in running the case. Depending on the terms of the retainer, the client may have to pay a success fee, an after-the-event insurance premium, an agreed shortfall between the costs incurred and the costs recovered from the defendant, or other clearly explained expenses.

These deductions should be explained in writing before the client signs the agreement. Before a settlement is accepted, the solicitor should also provide enough information for the client to understand the likely compensation, the likely deductions and the estimated amount the client will receive.

What Is the Success Fee?

The success fee is an additional amount payable to the solicitor if the claim succeeds. It reflects the risk that the solicitor may receive no payment for their work if the claim is unsuccessful. The percentage must be set out in the CFA and should reflect the risk and circumstances of the individual case.

In personal injury proceedings at first instance, the success fee cannot exceed 25 per cent of the damages awarded for pain, suffering and loss of amenity and past financial losses. The statutory cap is inclusive of VAT. Future financial losses are excluded from the calculation of the cap. Twenty-five per cent is the legal maximum, not an amount that must automatically be charged in every case.

The success fee is usually paid from the client’s compensation and is generally not recoverable from the defendant. The agreement should explain the percentage that will apply and the categories of compensation against which it will be calculated.

What Happens If You Lose?

If the claim is unsuccessful, the client will not normally pay the solicitor’s ordinary legal fees, provided the client has complied with the CFA. The client may still face responsibility for other costs, including medical expert fees, court fees, barristers’ fees, other disbursements or the defendant’s costs in certain circumstances.

Whether these amounts are payable will depend on the CFA, any insurance policy, the reason the claim failed, the client’s conduct and any order made by the court. This is why the funding and insurance arrangements should be considered together rather than treating “no win, no fee” as a guarantee that nothing can ever be payable.

What Are Disbursements?

Disbursements are payments made to third parties during the course of a claim. They can include court fees, medical-record charges, expert-report fees, barristers’ fees, accident reconstruction costs and other specialist expenses needed to investigate or present the case.

Some solicitors fund these costs as the claim progresses. In other cases, insurance may be arranged to cover them, or the client may be asked to pay certain expenses. The CFA and client-care documents should explain who will pay disbursements during the case, whether they can be recovered from the defendant and what happens to them if the claim is unsuccessful or ends early.

What Is After-the-Event Insurance?

After-the-event insurance, commonly called ATE insurance, may be arranged after the accident or dispute has occurred. Depending on the policy, it may cover specified disbursements and certain costs that could become payable to the defendant.

The protection provided by ATE insurance varies from policy to policy. Cover may be subject to limits, exclusions and conditions, including requirements that the client provides honest information, cooperates with the solicitor, follows reasonable legal advice and obtains approval before taking certain steps. The premium may be deferred until the case ends. Under some policies it is payable only if the claim succeeds, while other policies may operate differently.

The premium is not generally recoverable from the defendant in an ordinary personal injury claim and may therefore be deducted from compensation. The solicitor should explain the policy terms and the likely premium before the client agrees to take out the cover.

Will You Have to Pay the Defendant’s Costs If You Lose?

Many personal injury claimants benefit from qualified one-way costs shifting, known as QOCS. QOCS provides important protection against the enforcement of a defendant’s costs order, but it does not mean that a claimant can never be required to pay the defendant’s costs.

Depending on the circumstances, a costs order may be enforceable against damages, interest or costs recovered by the claimant. Greater exposure may arise if the claim is struck out, the proceedings are found to be an abuse of process, the claimant’s conduct obstructs the fair disposal of the case or the claim is found to be fundamentally dishonest. Costs consequences may also arise where a claimant rejects a formal Part 36 offer and later fails to obtain a better result.

ATE insurance may provide additional protection, but only within the terms and limits of the policy. Any formal settlement offer should therefore be considered carefully with the solicitor before it is accepted or rejected.

What Should Clients Check Before Signing?

Before signing a CFA, the client should understand the success fee percentage, whether VAT is included, which parts of the compensation will be used to calculate the fee and whether any legal-cost shortfall may be deducted. The client should also know whether ATE insurance will be arranged, how much the premium may be, who will fund expert and court fees, what happens if the claim is unsuccessful and what costs risks could arise from rejecting settlement advice.

The agreement should also explain the client’s responsibilities during the claim and the consequences of changing solicitors, ending the agreement, failing to cooperate, giving false or incomplete information or refusing to follow reasonable advice. These provisions are important because a client may become responsible for some or all of the solicitor’s fees and expenses if the CFA is ended or breached in circumstances covered by the agreement.

Solicitors must provide information in a way that clients can understand and must give the best possible information about how the matter will be priced, its likely overall cost and the costs incurred as the case progresses.

How Law Lane Solicitors Approaches No Win, No Fee Claims

At Law Lane Solicitors, every claim is assessed individually before a no win, no fee agreement is offered. We consider the legal merits, the available evidence, the applicable time limit, the likely value of the claim, the likely costs and whether the matter is proportionate to pursue.

Where we offer a CFA, we provide written information explaining how the agreement works, the success fee, the treatment of disbursements, any recommended insurance, the client’s responsibilities and the circumstances in which the agreement may end. We also keep the funding position under review as the case develops and explain material changes where necessary.

A no win, no fee agreement can make it easier to pursue a claim, but it remains a formal legal agreement with terms, conditions and possible financial consequences. Clients should read all funding documents carefully and ask questions about anything they do not understand before signing.

Speak to Law Lane Solicitors

If you have suffered an injury and believe that another person, business or healthcare provider may have been responsible, Law Lane Solicitors can carry out an initial assessment of the circumstances. Following a review of the evidence, the relevant time limits and the likely prospects of success, we will explain whether we may be able to assist and what funding options may be available.

This article provides general information only and does not constitute legal advice. The terms, deductions and risks of a no win, no fee arrangement depend on the individual CFA, any insurance policy and the circumstances of the case. Legal rules may also change over time. You should obtain advice about your own position before taking or refraining from any action.

Author – Hakim Zadi

Hakim Zadi is the Assistant Manager of the Clinical Negligence Team and a Clinical Negligence Paralegal at Law Lane Solicitors. She acts for patients and families in clinical negligence claims arising from delayed diagnosis, surgical errors, birth injury, cauda equina syndrome, and GP and hospital negligence across England and Wales.

Hakim is a member of APIL and contributes to clinical negligence commentary on patient safety, birth injury, and access to justice for vulnerable clients. She speaks English, Sindhi, and Urdu.

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