Some people are under the impression that the famous No Win, No Fee has been abolished. This isn’t true; but I will explain why some people may be under the impression that it has been stopped.
April 2013 saw the biggest shakeup in years of the personal injury world as the recoverability of certain legal fees has been stopped. This means that most law firms are no longer offering 100% compensation. Before the changes, most law firms for the majority of cases had 100% agreements because lawyers were entitled to recover all reasonable fees directly from the other side. Since the changes, this is no longer the case.
From April 2013, any agreements entered in to mean that the lawyer for the majority of cases cannot recover a Success Fee of an After The Event insurance premium. The Success Fee is part of our costs that helps us to fund No Win, No Fee claims – as we cannot win them all. The insurance premium (abbreviation ATE) is to protect you against having to pay for certain costs, like the opponents costs if something goes south for example.
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