There is no statutory definition of what constitutes a no-win-no-fee arrangement. These agreements are often also referred to as a ‘contingent fee agreement’ in the United States or a ‘conditional fee agreement’ or ‘damages-based agreement’ in the United Kingdom.
In essence what is meant by the expression ‘no win, no fee’ is that a lawyer will provide their services on the basis that the legal fees payable in connection with these services will only fall due to be paid by the client if their case is successful. In personal injuries cases success will involve the client receiving an award of damages from the person responsible for causing their injuries. If they receive this award in damages they are liable to pay their lawyers’ fees; if they don’t, they are not.
*In contentious business, a solicitor may not calculate fees or other charges as a percentage or proportion of any award or settlement.