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Access to Justice and Funding

Conditional fee agreements

  • 3 things to know
  • Component 1

Overview

Conditional fee agreement, success fee and after the event insurance.

What you need to know

Answer each one before you reveal it.

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Key term

Explain how a conditional fee agreement works and what a success fee adds to it.

Key term

What is a conditional fee agreement?

Key term

What is a success fee?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    What is a conditional fee agreement?

    Model answer

    A conditional fee agreement is a no win no fee arrangement between a lawyer and a client. The lawyer charges nothing or a reduced fee if the case is lost.

  2. 2

    What is a success fee?

    Model answer

    A success fee is an uplift on the lawyer's normal charges payable when the case is won. The uplift compensates the lawyer for the risk of receiving nothing.

  3. 3

    What is the maximum success fee?

    Model answer

    A success fee cannot exceed 100% of the lawyer's base costs. The percentage should reflect the risk assessed at the outset of the case.

  4. 4

    Which Act first permitted conditional fee agreements?

    Model answer

    Section 58 of the Courts and Legal Services Act 1990 first permitted conditional fee agreements. Agreements came into use for personal injury work in 1995.

  5. 5

    How did the Access to Justice Act 1999 change conditional fees?

    Model answer

    The Access to Justice Act 1999 extended conditional fees to almost all civil claims apart from family. The Act also made the success fee recoverable from the losing party.

  6. 6

    What changed about conditional fees on 1 April 2013?

    Model answer

    Success fees and after the event insurance premiums ceased to be recoverable from the losing party. Sections 44 and 46 of LASPO made the change following the Jackson review.

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