Question 1

How is a personal injury claim funded?

Accepted Answer

Most personal injury claims are funded on a no win no fee basis — formally called a Conditional Fee Agreement (CFA). This means you pay nothing upfront and nothing if your claim is unsuccessful. If your claim succeeds, a success fee is deducted from your compensation. The success fee is capped by law at 25% of your damages (excluding any award for future care costs or future losses). We also arrange After the Event (ATE) insurance to protect you against the other side's legal costs if your claim is unsuccessful.

Question 2

What is a Conditional Fee Agreement (CFA)?

Accepted Answer

A Conditional Fee Agreement — commonly known as a no win no fee agreement — is a funding arrangement where your solicitor's fees are only payable if your claim succeeds. If your claim is unsuccessful, you pay nothing to us. If your claim succeeds, we charge a success fee, which is a percentage uplift on our base costs. The success fee is capped at 25% of your general damages and past financial losses. It cannot be taken from any award for future care or future financial losses.

Question 3

What is a Damages Based Agreement (DBA)?

Accepted Answer

A Damages Based Agreement (DBA) is an alternative to a CFA. Under a DBA, our fee is calculated as an agreed percentage of the damages you recover. Like a CFA, you pay nothing if your claim is unsuccessful. If your claim succeeds, the agreed percentage is deducted from your compensation. A DBA must be in writing and must comply with the Damages-Based Agreements Regulations 2013. We will advise you on whether a CFA or DBA is more appropriate for your circumstances.

Question 4

Can I use legal expenses insurance to fund my claim?

Accepted Answer

Yes. If you have legal expenses insurance — sometimes called before the event (BTE) insurance — this may cover the cost of your personal injury claim. BTE insurance is often included in home insurance, car insurance, or as a benefit through a trade union. We will check whether you have BTE insurance at the outset. If you do, we will advise whether it is appropriate to use it for your claim. In many cases, a no win no fee agreement may still be the better option.

Question 5

What if I have a trade union membership?

Accepted Answer

Many trade unions provide legal assistance to members for personal injury claims arising from workplace accidents or industrial diseases. If you are a trade union member, your union may fund your claim directly or refer you to a panel solicitor. We can advise you on your options — including whether to use your union's legal service or instruct us independently on a no win no fee basis.

Question 6

Do I have to pay anything upfront?

Accepted Answer

No. Under a no win no fee agreement, you pay nothing upfront. There are no costs to start your claim. We cover all disbursements (such as medical report fees and court fees) during the claim. If your claim is unsuccessful, you pay nothing. If your claim succeeds, the success fee and ATE insurance premium are deducted from your compensation.

Question 7

What is the success fee and how much is it?

Accepted Answer

The success fee is a percentage uplift on our base costs, charged only if your claim succeeds. It is capped by law at 25% of your general damages and past financial losses. It cannot be deducted from any award for future care costs or future financial losses. The exact success fee percentage will be agreed with you and set out clearly in your Conditional Fee Agreement before any work begins.

Question 8

What is After the Event (ATE) insurance and do I have to pay for it?

Accepted Answer

After the Event (ATE) insurance protects you against the risk of having to pay the other side's legal costs if your claim is unsuccessful. We arrange ATE insurance on your behalf. You do not pay the premium upfront — it is only payable if your claim succeeds, and it is deducted from your compensation. The cost of the premium will be discussed with you before it is taken out. If your claim is unsuccessful, the ATE insurance covers the other side's costs so you pay nothing.

Question 9

What are disbursements?

Accepted Answer

Disbursements are expenses incurred during your claim — such as medical report fees, court fees, expert witness fees, and the cost of obtaining records. Under a no win no fee agreement, we cover disbursements during the claim. If your claim succeeds, disbursements are recovered from the other side as part of your costs. If your claim is unsuccessful, the ATE insurance covers disbursements (provided you have taken out ATE cover). If you decline ATE insurance, you may be required to pay disbursements yourself if the claim is unsuccessful.

Question 10

How much of my compensation will I actually receive?

Accepted Answer

If your claim succeeds, deductions will be made from your compensation before you receive it. Under a CFA, these deductions include the success fee (up to 25% of general damages and past losses) and the ATE insurance premium. Under a DBA, the deduction is the agreed percentage of your total damages. We will explain the likely deductions clearly before you sign any funding agreement, so you know exactly what to expect. We will also tell you the likely range of your compensation before any deductions.

Question 11

What happens to costs if I lose my case?

Accepted Answer

If your claim is unsuccessful, you pay nothing to us under a no win no fee agreement. The ATE insurance policy we arrange covers the other side's legal costs, so you are protected against that risk too. The only exceptions are if you have acted dishonestly, failed to follow our reasonable advice, or declined to take out ATE insurance — all of which we will discuss with you at the outset.

Question 12

What is the "loser pays" rule in personal injury claims?

Accepted Answer

In England and Wales, the general rule in civil litigation is that the losing party pays the winning party's legal costs. In personal injury claims funded by a CFA, the ATE insurance we arrange protects you against this risk. If your claim is unsuccessful, the ATE insurer pays the other side's costs. You do not pay them yourself. This is one of the key reasons why ATE insurance is an important part of the no win no fee arrangement.

Question 13

What is fundamental dishonesty and how does it affect my claim?

Accepted Answer

Fundamental dishonesty is a legal finding that a claimant has been dishonest in a material way — for example, by exaggerating injuries, fabricating losses, or being untruthful about the circumstances of the accident. If a court finds you have been fundamentally dishonest, it can dismiss your claim entirely and order you to pay the defendant's legal costs and our legal costs, even under a no win no fee agreement. This is a serious consequence. We will always advise you to be completely honest and accurate in everything you tell us and the court.

Question 14

Can I recover my legal costs from the other side?

Accepted Answer

Yes. If your claim succeeds, the defendant is usually ordered to pay your legal costs in addition to your compensation. This means that in many cases, the success fee and ATE premium are recovered from the defendant rather than from your damages. However, this is not always the case — particularly in lower-value claims or where costs are disputed. We will explain the likely costs recovery position for your specific claim at the outset.

Question 15

What happens to costs if my claim settles before trial?

Accepted Answer

The majority of personal injury claims settle before trial. When a claim settles, the parties usually agree on both the compensation and the legal costs to be paid. If costs cannot be agreed, they are assessed by the court. We will always seek to recover as much of your legal costs from the other side as possible, minimising the deductions from your compensation.

Question 16

What is a Part 36 offer and how does it affect costs?

Accepted Answer

A Part 36 offer is a formal settlement offer made under Part 36 of the Civil Procedure Rules. If a defendant makes a Part 36 offer and you reject it but then fail to beat it at trial, you may be ordered to pay the defendant's costs from the date the offer expired. Conversely, if you make a Part 36 offer and the defendant fails to beat it at trial, you may be entitled to enhanced costs and interest. We will advise you carefully on any Part 36 offers made during your claim.

Question 17

What is a costs budget and does it affect my claim?

Accepted Answer

In multi-track personal injury cases (generally those worth more than £25,000), the parties are required to file costs budgets with the court. A costs budget sets out the estimated costs for each stage of the litigation. The court approves the budgets and this limits the costs that can be recovered from the other side. We will prepare a detailed costs budget for your case and manage costs carefully to maximise your recovery.

Legal Costs FAQs

The key points about personal injury legal costs

No upfront costs

Nothing to pay if you lose

Success fee capped at 25%

Costs explained upfront

Costs recovered from opponent

SRA regulated

How personal injury claims are funded

What you pay — and when

If your claim is unsuccessful

Costs between the parties

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