In past years, 100% compensation has been advertised and given to clients of law firms on a no win no fee basis. From 1st April 2013 this has become somewhat of a thing of the past, as The Legal Aid, Sentencing and Punishment of Offenders Act (or LASPO) has changed the law so that lawyers cannot obtain a success fee and after the event insurance premiums for most cases from the other side.
What is a success fee?
A success fee is something which law firms charge to increase their fees because their client has succeeded. This helps to fund no win no fee claims as some cannot be won. Before 1st April 2013, this was recovered from the other side; after 1st April 2013, the law changed and these fees cannot be recovered from the other side and law firms can take up to 25% directly from their client’s compensation to cover this fee.
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