No Win No Fee agreements and the new developments in this area of the law

No Win No Fee agreements and the new developments in this area of the law


No Win No Fee agreements are sometimes known as No Win No Foal agreements or Contingency agreements is said to spread out from its traditional area of the law which would be Personal injury and Medical Negligence claims for compensation. Although over the last decade No Win No Fee agreements have been found in employment law and now No Win No Fee Agreements are now being introduced into litigation as well.

No win no fee in a general sense can be further explained by calling  at concerning its application to personal injury claims cases.

Number 1 Alba Claims Ltd was recently started in Edinburgh in Scotland to look at the whole area of Litigation and No Win No Fee agreements. Their Managing Director Alistair Dean said recently ““It’s often the case that claims are not pursued either because businesses are not in a financial position to fund the claim or consider that their finances can get a better return elsewhere.

“We want Alba Claims to help level the playing field and reduce the uncertainties of dispute resolution while removing the requirement to pay legal fees on an ongoing basis.”This is a huge change and challenge for the Litigation area of the law. Businesses that get into a commercial dispute now have a cost-free option in order to get satisfaction from the courts.

Many businesses have passed over litigation due to the financial burden of the cost of hiring solicitors and barristers in order to take the offending business to court or to arbitration. For many businesses going down the litigation, route was just not an option due to the cost. Many large and cash-rich companies have earned themselves “Bully” reputations as they will evaluate whether the other business has the financial resources to take them to court if they break their contract.

When there is a No Win No Fee agreement with a litigation solicitor the business has no fees to pay the litigation solicitor in the event of the litigation being lost. This means no cash up front and then regular payments for fees on account to the solicitor during the period of the litigation. Of course, if the business wins the litigation there will be fees to pay the litigation solicitor. These fees to your lawyer, in some jurisdictions, may be heavy as they may be based on a percentage of the award of damages to the business. In other jurisdictions, the percentage system of the damages awarded is not allowed by law.

In countries and areas where No Win No Fee agreements have been introduced in litigation, there has been some marked improvement in the ethics of honoring of contracts.

However, not everything is perfect in No Win No Fee agreements in litigation. Firstly, a solicitor who offers a business such an agreement is going to be really sure that the litigated case is a good one. They are not going to commit the resources of their law firm to a case where the chances are that they will lose the case and earn their firm no fees as a result. Secondly, a No Win No Fee agreement does not protect a business from the legal fees and costs of the other side if by chance the case is lost. These fees and costs may well be substantial and businesses should ask their solicitor to arrange an insurance policy to cover them from any possible liability.

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