Funding Jargon Explained
No Win, No Fee (or CFA) Agreement
If your claim is unsuccessful you do not have to pay your solicitors fees and if the claim is successful your solicitor is ordinarily entitled to recover your legal fees from the losing Party.
Legal Expense Insurance (LEI)
This is another way of funding your case.
This is a type of policy which covers your legal costs win or lose and is often included within house contents insurance or motor insurance policies
We act for many clients who have such legal cover and we suggest you contact us in the first instance and we can make the necessary enquiries as to whether you have such cover at no cost to you.
After the Event Insurance (ATE)
The general rule in litigation is that if you lose, you have to pay your opponent’s costs. There is, however, an exception to this in claims involving personal injury and / or clinical negligence as generally if you lose, you will not have to pay the Defendant’s costs. This is known as Qualified One Way Cost Shifting.
There are a number of exceptions to this and there are insurance policies that you can take out that may protect you against some of these risks. Such policies may cover you for your opponent’s costs should you lose and also any expenses / disbursements that are incurred on your behalf in pursuance of the claim.
If you do not already have such insurance, you can take out what is known as an “After the Event” policy. Please note if you do decide to take out such a policy, you will be responsible for paying for this if you win but if you lose, generally, you will not have to pay for this.
You will often see in your No Win No Fee Agreements a reference to a ‘Success Fee’. This is an enhancement on the lawyers basic costs to reflect the risk they have taken in pursuing a claim on a no win no fee basis. Unlike most firms, we do not generally charge a success fee meaning we will not make any deduction from your damages for our fees.