What happens if I lose my personal injury claim?

When making a compensation claim, one of the most important factors to consider is legal costs. Fortunately, the majority of personal injury solicitors, including Beacon Law will allow you to fund a personal injury case on a no win, no fee basis. This type of funding allows claimants to pursue legal action whilst minimising financial risk. This is because fees will typically only be payable if your solicitor wins your case.

When using this type of funding, claimants will undoubtedly have questions and concerns. One of the questions we hear most often is “what happens if I lose my personal injury claim?” In the majority of cases, if your claim is unsuccessful, it is quite simple – you will not be required to pay any legal fees, and your case will simply be closed. However, there are some exceptions to this rule. #

What is “no win, no fee”, and how does it work?

No win, no fee” is a funding arrangement, officially known as a Conditional Fee Agreement (CFA). A no win, no fee arrangement allows individuals to pursue legal claims without the financial burden of upfront or ongoing legal fees.

With this funding model, your solicitor takes on the financial risk of your case. Put simply, if we lose your case, you will not have to pay your solicitor’s fees. However, if we win your claim, your solicitor will recover their costs from the compensation awarded, typically including a pre-agreed “success fee.”

Success fees in England and Wales are capped at 25% of your compensation, excluding your future losses. You may also be required to pay an amount from your compensation for Legal Expenses Insurance, known as After the Event (ATE) Insurance. This is usually taken out on your behalf to protect you from being liable for the defendant’s legal costs.

The main benefit of using a no win, no fee agreement is that it provides access to justice for those who may not have the resources to pay for legal representation upfront. It eliminates the fear of financial loss in the event of an unsuccessful outcome, making it an attractive option for claimants pursuing personal injury claims.

What happens if I lose my personal injury claim? Will I be liable for any costs?

While “no win, no fee” agreements generally protect claimants from having to pay their solicitor’s fees if the case is unsuccessful, there are still a few considerations to bear in mind, including:

After-the-Event (ATE) Insurance:

Many solicitors require claimants to take out ATE insurance as part of the agreement. ATE insurance is arranged after the incident that caused your injuries and after you have initiated legal proceedings. This type of insurance generally covers the legal costs of the defendant if you lose your case and are ordered by the court to pay their costs. These costs may include court fees or expert witness fees.

In certain cases, ATE insurance may also cover expenses related to your claim, such as court fees and expert witness costs. However, some policies have specific exclusions or limits, so it’s crucial to review the terms with your solicitor to fully understand what your policy covers before proceeding with your claim.

Typically, ATE insurance does not cover your solicitor’s fees if your claim is unsuccessful. However, under a no win, no fee agreement, you are not responsible for paying your solicitor’s fees if you lose.

The cost of this insurance is usually deferred until the end of the case and deducted from your compensation if you win the case. However, if your claim fails, the insurance will cover these costs, ensuring you are not left out of pocket. You are not usually required to pay for the ATE policy unless your case is successful.

ATE insurance provides valuable peace of mind for those pursuing a personal injury claim. It safeguards you from the financial burden of paying the opposing party’s legal fees if your case is unsuccessful, allowing you to focus on your recovery without added financial stress.

Exceptional circumstances:

In rare cases, you may face costs if you have breached the terms of the “no win, no fee” agreement, such as providing false information or failing to cooperate with your solicitor. These circumstances are uncommon and should be clearly outlined in your agreement.

Counterclaims or adverse Costs:

If the defendant files a counterclaim or seeks costs from you for any reason, this is typically covered under ATE insurance. However, your solicitor will explain the specific risks associated with your case before proceeding.

What happens after a lost claim?

If your case is unsuccessful, your solicitor will notify you of the outcome, and the case will be formally closed. Assuming no exceptional circumstances or breaches of agreement, you won’t owe your solicitor any fees. Losing a claim can feel discouraging, however, it is important to remember that pursuing justice is a step toward closure, even if the outcome wasn’t favourable. Your solicitor may provide guidance on next steps or discuss alternative legal options if applicable.

Can I appeal if I lose my personal injury claim?

Yes, you can appeal if you lose a personal injury claim, but there are specific conditions and steps involved. Firstly, you cannot simply appeal because you disagree with the outcome. An appeal must be based on valid legal grounds, such as:

• Errors in Law: If the judge applied the law incorrectly.
• Procedural Errors: If there were mistakes in the way the case was handled that affected the outcome.
• Misinterpretation of Evidence: If the judge misunderstood or ignored critical evidence.

If you are considering an appeal, your first step should be to consult with your solicitor. We will review the judgment and assess whether there are valid grounds for appeal. We can advise you on the likelihood of success and the potential costs involved.

Appeals must be filed within a strict timeframe, which is typically 21 to 28 days from the date of the judgment. Missing this deadline can result in losing your right to appeal, so it is important to act promptly.

Appealing a case can be costly and time consuming. In some circumstances, we may not offer “no win, no fee” arrangements for appeals. Additionally, if your appeal is unsuccessful, you may be ordered to pay the legal costs of the other party.

If an appeal is not viable, you may consider other forms of recourse, such as negotiating a settlement or pursuing alternative dispute resolution methods. Beacon Law will guide you on the best approach based on your circumstances.

Why choose Beacon Law?

If you are still asking the question “what happens if I lose my personal injury claim?” speak to a solicitor at Beacon Law today. We have a team of experienced lawyers and offer no win, no fee personal injury claims on a range of cases.

For a free, no-obligation assessment of your claim with a member of our legal team, please call us today on 0330 1332 857 or complete our online enquiry form and one of our experts will call you back.