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Thanks to anyone who can help me get clear on this. A friend of mine is in part of a no win no fee agreement with a reputable solicitor group. They have treated her very well and she feels very supported by them, however she's staying with me at the moment and she's been talking through the agreement with me.
As I'm sure you will know the agreement is as follows: (based on an old agreement from before April 2013). If she loses the case her ATE insurance will kick in and prevent her from having to pay the other side's legal costs.
There is a good chance of winning..
She's concerned because if she wins the paperwork says she is liable for solicitor's costs and success fee. (of course she understands that they must be paid). It also says she is entitled to claim these back from the defendant and if the defendant appeals and is granted a reduced fee by the judge, then the solicitor's will accept the reduced fee.
Her concern is what if the defendant refuses to pay at all? The paperwork says the solicitors will send the defendant a judgement...but what if they still refuse to pay. Ultimately she is liable.
She remembers being reassured on all this by the solicitor a year ago at the earlier part of the case, but she cannot remember in what respect and now only has the paperwork. The solicitor knows that she does not have the funds involved at all to pay any costs. It's possible the solicitor said they would wipe them out if the defendant refused to pay but that this is highly unlikely to happen. She's been reading all she can about these agreements but nowhere does anyone talk about risk on winning, only on losing.
She's aware that there is a new law out which prevents solicitors getting their success fee from the defendant now and they have to get it from the claimant's compensation, but no more than 25%. She doesn't think this applies to her because her claim began before the new law and her paperwork quite clearly states back then that she can claim back all costs from the defendant. She doesn't mind if she doesn't get much (or any) compensation, she made the claim to make a point to the defendant about a wrongdoing. She is just very worried about ending up in debt.
Anyone have any thoughts/discussion. Thanks.
As I'm sure you will know the agreement is as follows: (based on an old agreement from before April 2013). If she loses the case her ATE insurance will kick in and prevent her from having to pay the other side's legal costs.
There is a good chance of winning..
She's concerned because if she wins the paperwork says she is liable for solicitor's costs and success fee. (of course she understands that they must be paid). It also says she is entitled to claim these back from the defendant and if the defendant appeals and is granted a reduced fee by the judge, then the solicitor's will accept the reduced fee.
Her concern is what if the defendant refuses to pay at all? The paperwork says the solicitors will send the defendant a judgement...but what if they still refuse to pay. Ultimately she is liable.
She remembers being reassured on all this by the solicitor a year ago at the earlier part of the case, but she cannot remember in what respect and now only has the paperwork. The solicitor knows that she does not have the funds involved at all to pay any costs. It's possible the solicitor said they would wipe them out if the defendant refused to pay but that this is highly unlikely to happen. She's been reading all she can about these agreements but nowhere does anyone talk about risk on winning, only on losing.
She's aware that there is a new law out which prevents solicitors getting their success fee from the defendant now and they have to get it from the claimant's compensation, but no more than 25%. She doesn't think this applies to her because her claim began before the new law and her paperwork quite clearly states back then that she can claim back all costs from the defendant. She doesn't mind if she doesn't get much (or any) compensation, she made the claim to make a point to the defendant about a wrongdoing. She is just very worried about ending up in debt.
Anyone have any thoughts/discussion. Thanks.
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