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Aaron D
Aaron D, Barrister
Category: Law
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Experience:  LLB, BPTC
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I need to check the conditions of a contract for a no win no

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I need to check the conditions of a contract for a no win no fee claim with a solicitor company and I need to understand if I will have any cost in case I don't win the case and if there are additional cost other than the max 25% max fee on my possible damages/compensation.
Can I ask someone here to check this contract pls?
I do have a letter and there are the general terms of business (general conditions) of the company but I am not sure if when there is a no win no fee agreement there is still the possibility and/or the risk to have to pay something or if with a no win no fee, there is really nothing to pay in case the claim is not successful.
Customer: replied 1 month ago.
I have attached a document Initial Letter to client and then from that letter there is a link to the company terms and conditions (https://www.hayesconnor.co.uk/terms_conditions/) and a link to electronically sign the no win no fee agreement (https://form.jotformeu.com/HCSolicitors/initialdocuments-standard19) .
What I wanted to understand is if, in case there is a no win in the claim, according to that contracts and document, in your opininion, is there the risk and possibility to pay something?
Also I wanted to know if I can have a after the event insurance and where can I get this kind of insurance as I never purchased one before.
Thanks in advance
Hello,

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Hello, thank you for your question. My name is***** am a barrister and will assist you with this issue today.

Please be aware that this is an e-mail service rather than a live chat. Sometimes there will be some delay between responses but I will try to reply as soon as possible.

The "no win no fee" model refers to the costs you would have to pay your solicitors, in this case Haynes.

So, if you win, they have guaranteed within the terms that you keep at least 75% of your compensation. This is so long as you have complied with them i.e. kept in contact etc.

If you lose, the "no win, no fee" arrangements means you do not have to pay YOUR solicitors costs. Again, so long as you have cooperated with them.

However, it does not mean your claim is risk free. Sometimes when you lose a case the court orders you to pay the Defendant's legal costs. The "no win, no fee" agreement does not protect you from this but this is where an After the Event insurance policy comes in (ATE).

Most solicitors insist that you must have an ATE policy in place before they will represent you. An ATE is an insurance premium that covers the amount of any costs order made against you.

So if you truly want to be in a position where you have no risk of having to pay anything out then then you need an ATE policy.

The price of an ATE depends on a lot of factors such as how risky the case is and how much any adverse costs order is likely to be. Your solicitor arranges the ATE policy for you, you don't get it yourself. They will tell you how much it costs etc, it usually isn't a lot and sometimes it is "self insured" which means you don't have to pay it anyway.

I hope this helps, if you can please accept my answer and rate me 5 stars (in the top right of your screen) then Just Answer will credit me for helping you today.

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Customer: replied 1 month ago.
Ok, so if I understand correctly, I can ask Haynes to make this policy ATE, on my behalf so I will be covered for every kind of risk (even if I would be ordered to pay any cost) and I will not have anything to pay (or maybe I pay just the cost for the insurance ATE).
I accept that the no win no fee cost is 25% of the compensation and I understand that, but I am worried and I don't want to be out of pocket, because in their general terms and conditions they say about £400 per hour basic work and I can't understand why they mention this, if I have a no win no fee agreement (and if I would accept of course).
https://www.hayesconnor.co.uk/terms_conditions/
In this link their terms and conditions, when they explain about their legal cost (Your Legal Costs and Disbursements) then they say "Our standard costs" then "Disbursements / other fees", then "Counsel’s Fees" (I understand that if I dont win I will pay nothing for this), then "Estimate of costs".I just want to make sure that I understand correctly and therefore if I follow their advice I will not want to pay anything at all.

Yes that's right. Usually the ATE is the only thing you might have to pay.

It is quite standard for them to set out their hourly costs etc. This is for 2 main reasons. Firstly, these T&Cs are generic and not just for "no win no fee customers" secondly in the even you breach the terms of the agreement they can charge you the full costs. It is also the case that the 25% deduction is the maximum they will take. If you had a really valuable claim 25% of your compensation could be more than the costs they have incurred. This is rare however.

Lets say for example after 2 months they had done loads of work on the case but you decided you didn't want to claim anymore and stopped replying to their messages. In that scenario they would be able to charge you for the work to date and would calculate how much you owed based on the hourly rate.

So, in summary you are agreeing to pay them £400 per hour or 25% of your compensation, whichever is lower. It's almost always going to be the 25%.

I hope that clarifies.

Aaron D, Barrister
Category: Law
Satisfied Customers: 501
Experience: LLB, BPTC
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Customer: replied 1 month ago.
that's great!
It clarify a lot.
Thanks for your help