03. What does 'no-win, no-fee' mean?

Under a 'no-win, no-fee' agreement, your solicitor will take on your case on the understanding that if you lose, they will not get paid. But it is important to remember that there is more to the costs of a legal case than your solicitor's fees. And if you lose your case, you may still have to pay:

• your opponent's legal costs; and
• both your and your opponent's 'disbursements' (other expenses or charges, such as fees for expert witnesses if you need to use them).

However, you can (and you should) take out insurance to cover these payments in case you lose. Your solicitor will try to arrange this for you at the start of the case and will tell you if they cannot find an insurer willing to cover you.

If you win your case, you must pay your solicitor's fees as well as their disbursements. But you may be able to get these costs (or most of them) paid by your opponents.

Your solicitor may also charge a 'success fee'. This is meant to compensate the solicitor for:

• the risk of not being paid (if you lose); and
• the delay in getting paid.

The amount of the success fee depends on your chances of winning your case. The riskier your case, the higher the success fee is likely to be. Success fees can mean that you are charged up to twice as much as the solicitor's normal fee.

If you win, the court will usually order your opponents to pay most of your solicitor's fees, disbursements (including the insurance premium) and part of the success fee which covers risk rather than delay, as long as the court thinks these costs are reasonable.