Conditional Fee Agreement in United Kingdom

Definition of Conditional Fee Agreement

In accordance with the work A Dictionary of Law, this is a description of Conditional Fee Agreement : An agreement, which must be in writing, between lawyer and client for legal services in litigation to be provided on the basis that payment is only due if the proceedings are successful (“no win, no fee”). In return for accepting the risk of no fee, the lawyer is entitled to charge a higher fee (by claiming a higher *uplift) if successful. If the claimant loses the case, he may have to pay the other party’s costs. The litigation is therefore not entirely risk-free, although insurance, for which premiums are charged, can be taken out to accommodate this risk. The conditions on which a conditional fee agreement may be made (including the type of proceedings in which they are available and the maximum percentage increase in fees allowed) are prescribed by the Lord Chancellor under the Courts and Legal Services Act 1990 and the Access to Justice Act 1999. For most areas of law conditional fee agreements are unlawful, but they are allowed for certain limited categories of cases, including personal injury cases.

See also contingency fee; maintenance and champerty.