How Does No Win, No Fee Work in Practice? A Worked Example
Last reviewed: June 2026 · EA Personal Injury Solicitors
No win, no fee — formally called a Conditional Fee Agreement (CFA) — means you generally pay nothing to your solicitor if your claim is unsuccessful. If your claim succeeds, your solicitor deducts a success fee from your compensation. The success fee is capped at 25% of your damages. Your solicitor must explain the exact terms before you sign.
TL;DR — Quick Summary
Key Points
- The formal name is a Conditional Fee Agreement (CFA)
- Success fee capped at 25% of compensation (excluding future losses element)
- Disbursements (expert fees, court fees) may still be payable if the claim fails unless covered by ATE insurance
- Check for existing Before the Event legal expenses insurance — it may avoid a success fee
- Your solicitor must clearly explain all costs before you sign
The Formal Name: Conditional Fee Agreement
When solicitors say "no win, no fee", they mean a Conditional Fee Agreement (CFA). A CFA is a written agreement between you and your solicitor that sets out the conditions under which fees are payable. The key condition is success — if the claim does not succeed, you generally do not pay the solicitor's base fees.
CFAs were introduced to allow people to access justice without the financial risk of upfront legal costs. Before they existed, bringing a personal injury claim was only realistic for those who could afford to pay a solicitor's hourly rate.
What Happens If You Win?
If your claim succeeds (either through settlement or a court judgment), your solicitor will charge:
- Their base fees — often recovered from the defendant under an inter-partes costs order or as part of the settlement
- A success fee — deducted from your compensation
The success fee is capped by law at 25% of the damages you recover — excluding any element that compensates for future care needs and future losses. Your solicitor must tell you the exact percentage before you sign the CFA, and many solicitors charge less than the maximum.
A Practical Example
Suppose you receive compensation of £10,000 and your success fee is 25%. Your solicitor deducts £2,500 as the success fee, leaving you with £7,500. In many cases the defendant also pays a contribution towards your solicitor's base fees, which reduces the amount coming out of your compensation.
What Happens If You Lose?
If your claim is unsuccessful, you generally do not pay your solicitor's base fees or success fee. However, there are other potential costs to consider:
- Disbursements — out-of-pocket expenses such as medical expert fees, court fees, and barrister fees. These may be recoverable from ATE insurance (see below), but if you do not have ATE cover and the claim fails, you could be liable for them.
- Defendant's costs — in some circumstances (particularly if you reject a reasonable Part 36 offer and fail to beat it at trial) you could be ordered to pay some of the defendant's costs. ATE insurance usually covers this risk.
After the Event (ATE) Insurance
ATE insurance is taken out after a potential claim arises (unlike car or home insurance which is taken out in advance). It covers the risk of adverse costs and disbursements if your claim fails. The premium is usually deferred — meaning you only pay it if the claim succeeds, from your compensation. If the claim fails, the premium is not payable.
Your solicitor should explain whether ATE insurance is appropriate in your case and what it covers before you sign any agreement.
Before the Event (BTE) Insurance — Check Before You Sign a CFA
Many people have Before the Event (BTE) legal expenses insurance without knowing it. It is often included as a standard benefit in:
- Motor insurance policies
- Home contents insurance
- Trade union membership
- Bank account packages
If you have BTE cover that covers your personal injury claim, you may be able to pursue the claim under that policy — without a success fee being deducted from your compensation. It is worth checking before you sign a CFA.
What Should Be in Your Agreement?
Before you sign a CFA, your solicitor should clearly explain:
- The success fee percentage
- What disbursements you might be liable for if the claim fails
- Whether ATE insurance is being arranged and the premium
- What happens if you terminate the agreement
- An estimate of costs to date and going forward
If anything is unclear, ask before you sign. Contact EA Personal Injury Solicitors if you would like to discuss no win, no fee arrangements — we are happy to explain in plain English before you commit to anything. Call 01228 272 395 or use our online enquiry form.