No Win No Fee: 10 Years Old: Triumph Or Failure?

We have approached the ten year anniversary of Conditional fee agreements (CFAs), or no-win no-fee deals-and the advent of media has helped many solicitors to proudly advocate their services. The consensus behind the idea ten years ago was that it would provide better access to justice regardless of the wealth of the claimant.

Personal injury in particular has become the legal field where many solicitors have plied their trade advertising ‘No Win No Fee’. Indeed, the perception of personal injury solicitors has changed a great deal, with the majority of the public seeing them as more akin to salesmen knocking on the door. This view has been reinforced by the sheer glut of television advertisements hitting our screens everyday.

To a great extent, the scheme has met with a maelstrom of negative press over the years although it still has its advocates maintaining ‘No Win No Fee’ is really making a difference. They would maintain that without no-win no-fee, many people who have been seriously injured by negligent employers would have received no compensation at all. No-win no-fee means they can be forced to protect their workers whereas in the past they would have been blasé about stringent health and safety rules.

However, the backlash has been far more vocal with criticisms coming from all corners. One line of argument is that borderline cases are not welcomed by no-win no-fee lawyers. This flies in the face of the idealistic aims of the scheme in the first place and reduced access to justice.

The risk factor has also been a major concern. With regard to cases that are successful, since ‘no win no fee’ cases are a higher risk to claims management companies, they usually charge a ‘success rate’ in addition to their regular charges. These fees come out straight from the compensation award, meaning that many successful claimants have been left with very little by way of ‘compensation’– in some instances they have finished up owing the claims management company money.

Even the statutory regulations designed to curtail that from happening have made little or no difference as the fundamental character of Conditonal Fee Arrangements has stayed the same. The 2006 Compensation Act aspired to introduce regulation of claims management companies. Unfortunately, while the Act made registration compulsory and barred some high-pressure selling devices, the victims can still end up with far less than envisaged.

Saurav is an author of several articles pertaining to No Win No Fee, Compensation Claims, Personal Injury Claims and other legal articles.