No-win-no-fee terms, explained
Frequently asked questions
What is No win, no fee?
An arrangement where you do not pay your own lawyer's fees if the case is lost. If you win, the lawyer is paid from the result or recovers fees from the other side. Court fees, expert costs and the other side's costs may still apply, so read the agreement.
What is Contingency fee?
The lawyer's fee is a percentage of the money recovered and nothing is due if there is no recovery. The percentage, and whether expenses are deducted before or after it, is set in the written agreement and is limited by local rules in some places.
What is Conditional fee agreement (CFA)?
The lawyer charges normal fees only if you win, plus a success fee on top of those fees. The success fee cannot exceed 100% of the base costs, and in personal injury claims it is capped at 25% of certain damages.
What is Damages-based agreement (DBA)?
The lawyer takes a percentage of the damages you recover instead of hourly fees. The cap, including VAT, is 25% in personal injury claims, 35% in employment claims and 50% in other claims.
What is After-the-event (ATE) insurance?
Insurance bought after a dispute arises that pays the other side's costs, and often your own expenses, if you lose. The premium is frequently deferred and payable only if you win.
What is Adverse costs (loser pays)?
The rule that the losing party pays part of the winner's legal costs. It is why a no-win-no-fee agreement with your own lawyer does not always mean you risk nothing.
What is Litigation funding (third-party funding)?
A company that is not a party to the case pays the legal costs in exchange for a share of the money recovered. Funding is usually non-recourse: if the case is lost, you do not repay the funder.
What is Cuota litis?
An agreement where the lawyer's fee depends on the result, usually a percentage of what is obtained. In Spain the professional ban on it was struck down by the Supreme Court in 2008, so it can be agreed freely in writing.
What is Patto di quota lite?
An agreement giving the lawyer a share of the asset or sum in dispute. Since 2012 Italian law forbids it again, but a fee calculated as a percentage of the value of the case, agreed in writing in advance, is allowed.
What is Erfolgshonorar?
A fee that depends on success. It is generally not allowed for lawyers, with exceptions: for example claims of up to 2,000 euros, certain debt collection work, and cases where the client could not otherwise afford to bring the claim.
What is Honoraire de résultat?
A bonus linked to the result. A fee based only on the result (pacte de quota litis) is not allowed, but a result-based fee can be added to a fixed or hourly fee if it is agreed in writing.
What is Success fee?
Any fee, or part of a fee, that is payable only if the case succeeds. How it is calculated, and whether it is allowed at all, depends on the country.
What is Limitation period?
The deadline for starting a claim. Once it has passed the claim is usually barred, so check it early; periods differ by country and type of claim and can be paused or restarted in some situations.