If you've been injured in a road traffic accident in Liverpool and are worried about legal costs, a conditional fee agreement—commonly called "no win no fee"—may let you pursue compensation without paying solicitor fees upfront. This article explains how these arrangements work under England and Wales law, what protections exist, and what you need to know before instructing a solicitor. related guide related guide related guide related guide related guide

What Is a No Win No Fee Agreement?

A conditional fee agreement (CFA) is a contract between you and your solicitor that ties their payment to the outcome of your claim. If your claim succeeds, the solicitor receives their normal fees plus a "success fee"—a percentage uplift capped by law. If your claim fails, you owe the solicitor nothing for their work.

CFAs are governed by the Courts and Legal Services Act 1990 and subsequent reforms under the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO). LASPO introduced a cap on success fees in personal injury cases: 25 per cent of damages for pain, suffering and loss of amenity, and 25 per cent of damages for past financial losses. Future losses—such as ongoing care costs or future lost earnings—are exempt from this deduction.

This funding model has opened access to justice for claimants who cannot afford hourly solicitor rates, which in Liverpool and across England can range from £150 to over £300 per hour depending on the firm and complexity of the case.

How CFAs Work for Liverpool Road Accident Claims

The Agreement Itself

Before your solicitor begins work, they must provide you with a written CFA that sets out:

  • The success fee percentage (up to 25%)
  • Which categories of damages the fee will be deducted from
  • Your obligations, including cooperation and disclosure
  • What happens if you terminate the agreement early

You should read this document carefully and ask questions about any terms you do not understand. Solicitors are required to explain the agreement in plain language.

What "Success" Means

"Success" is defined in your CFA and typically includes:

  • A negotiated settlement with the defendant's insurer
  • A judgment in your favour at trial
  • An accepted Part 36 offer (a formal settlement proposal under the Civil Procedure Rules)

Even modest awards count as success, triggering the success fee. There is no minimum damages threshold written into the law, though most solicitors will only take cases they consider viable.

What You Pay If You Win

Your solicitor will deduct their success fee from your compensation. Under the LASPO cap, the maximum deduction is 25 per cent of damages for pain, suffering and loss of amenity (general damages), plus 25 per cent of past losses such as lost wages or medical expenses incurred before settlement.

Example: If you receive £10,000 in general damages and £2,000 in past loss of earnings, the solicitor may deduct up to £2,500 (25% of £10,000) plus £500 (25% of £2,000), leaving you with £9,000.

Crucially, damages for future losses—ongoing physiotherapy, future lost earnings, or the cost of adapted housing—are protected and cannot be reduced by the success fee.

What You Pay If You Lose

Under a true CFA, you pay your solicitor nothing if the claim is unsuccessful. However, you may still be liable for:

  • The defendant's legal costs (if the court orders you to pay them)
  • Disbursements (expert fees, court fees, medical reports) unless your CFA states otherwise

Most solicitors offering CFAs will also arrange after-the-event (ATE) insurance to cover the defendant's costs and disbursements if you lose. The ATE premium is typically deferred—payable only if you win—and deducted from your damages alongside the success fee. ATE premiums vary but can range from a few hundred to several thousand pounds depending on claim value and risk.

Always confirm in writing whether your solicitor will cover disbursements if the claim fails, or whether you remain personally liable.

Protections and Regulations in England and Wales

The 25 Per Cent Cap

Since April 2013, when LASPO reforms took effect, success fees in personal injury cases have been capped at 25 per cent of general damages and past losses. This cap applies regardless of what the solicitor's standard hourly rate would have produced.

The cap does not apply to:

  • Clinical negligence claims (different rules)
  • Publication and privacy proceedings
  • Insolvency-related claims

For Liverpool road accident victims, the cap provides certainty: you will retain at least 75 per cent of your pain-and-suffering award and past financial losses.

Transparency Requirements

Solicitors must comply with the Solicitors Regulation Authority (SRA) Code of Conduct, which mandates clear, upfront information about costs. Before you sign a CFA, the solicitor must explain:

  • The likelihood of success (in realistic, not guaranteed, terms)
  • The success fee percentage
  • Any insurance arrangements
  • Potential liability for the defendant's costs

If a solicitor pressures you to sign without adequate explanation, consider seeking a second opinion.

Right to a Cooling-Off Period

While not a statutory requirement for all CFAs, many firms offer a short cooling-off period—typically 14 days—during which you may cancel the agreement without penalty. Check your CFA for this clause.

What This Means for You

What this means for you:
If you've been injured in a road accident in Liverpool, a conditional fee agreement can remove the barrier of upfront legal costs. You will keep at least 75 per cent of your general damages and past losses, and you will owe nothing to your solicitor if the claim fails. Always ask for a written CFA, confirm what happens to disbursements if you lose, and check whether after-the-event insurance is included. Read every clause before signing, and do not hesitate to ask for clarification or seek independent advice.

Finding a Solicitor and What to Ask

Liverpool has numerous personal injury practices offering CFAs. When comparing firms, ask:

  1. What is your success fee percentage? (Anything above 25% of capped damages is unlawful.)
  2. Am I liable for disbursements if I lose?
  3. Is ATE insurance included, and what does the premium cover?
  4. What is your track record with road traffic claims? (Request anonymised case examples or success rates.)
  5. Will the same solicitor handle my case throughout, or will it be delegated?

Do not choose a solicitor based solely on proximity or advertising. The quality of representation—particularly in complex claims involving long-term injury—can significantly affect your final award.

Potential Pitfalls and How to Avoid Them

Hidden Deductions

Some agreements bundle the success fee with ATE insurance premiums and administrative charges, reducing your net compensation further. Request a written breakdown of all deductions before you sign.

Early Settlement Pressure

A small minority of high-volume firms may push for quick settlements to maximise turnover. If you feel rushed or your injuries have not stabilised, seek a second medical opinion and do not agree to settlement until you understand the full extent of your losses.

Switching Solicitors

If you are unhappy with your solicitor, you can usually terminate the CFA, but check the termination clause. Some agreements require you to pay costs up to the point of termination, or a reduced success fee if the claim later succeeds with a new firm. Always get independent advice before switching.

Road Accident Claims: Common Issues in Liverpool

Liverpool's road network—including the M57, M62 corridor, and congested city-centre junctions—sees a significant volume of collisions each year. Common claim types include:

  • Rear-end shunts at traffic lights
  • Roundabout and junction collisions
  • Pedestrian accidents on crossings
  • Cyclist and motorcyclist injuries
  • Passenger claims against drivers

Each scenario raises different questions of liability, evidence (dashcam footage, witness statements, police reports), and quantum (the value of the claim). A CFA does not alter the legal tests for negligence or the need to prove fault; it simply changes how you pay for representation.

If Your Claim Is Rejected or Discontinued

If your solicitor advises that the claim is unlikely to succeed—for example, because liability cannot be proven or your injuries fall below the small claims track threshold—they may offer to discontinue under the CFA. In this situation:

  • You owe no solicitor fees
  • You should not be liable for the defendant's costs if no formal proceedings were issued
  • Disbursements may still be due unless covered by your agreement or insurance

Always request written reasons for discontinuance and consider a second opinion if you believe the claim has merit.

Alternative Funding Options

While CFAs are the most common funding route for road accident claims in Liverpool, alternatives include:

  • Legal expenses insurance (often included in motor or home insurance policies)
  • Trade union legal support (if you are a member)
  • Private funding (paying hourly fees, suitable for high-net-worth claimants or straightforward cases)

Check your existing insurance policies before instructing a solicitor on a CFA; you may already have cover that eliminates the need for a success fee.

Key Takeaways

  • Conditional fee agreements let you pursue a road accident claim without paying solicitor fees upfront.
  • Success fees are capped at 25% of general damages and past losses; future losses are protected.
  • If you lose, you owe your solicitor nothing, but may be liable for the defendant's costs unless you have ATE insurance.
  • Read your CFA carefully and ask about disbursements, insurance, and all potential deductions.
  • Shop around: Liverpool has many personal injury firms, and quality of service varies.

Conditional fee agreements have democratised access to justice, but they are contracts with legal and financial consequences. Take time to understand your obligations, and do not sign any document until you are satisfied that the terms are fair and transparent.

Last reviewed: 2026-07-21

Sources

Disclaimer: This article provides general information about conditional fee agreements and road traffic accident claims in England and Wales. It is not legal advice tailored to your circumstances. Always consult a qualified solicitor before making decisions about funding or pursuing a claim. Outcomes depend on the individual facts of each case, and no article can guarantee success or predict the value of your compensation.