[LAW FIRM NAME] — specialist personal injury and accident claim solicitors in Scotland.
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Quick answer
No win, no fee means that if your personal injury claim is unsuccessful, you will not pay your solicitor's legal fees. If your claim succeeds, a percentage of your compensation — called a success fee — is deducted to cover costs. In Scotland, these arrangements are governed by written agreements and regulated by the Law Society of Scotland.
What Does No Win, No Fee Actually Mean?
"No win, no fee" is not a legally defined term in Scots law — it is a plain English description of a funding arrangement where you do not pay your solicitor's fees if your claim fails. In Scotland, the formal term for the most common version of this arrangement is a speculative fee agreement (sometimes called a damages-based agreement or contingency fee arrangement in other jurisdictions).
Under a speculative fee agreement, your solicitor takes the risk of not being paid if the claim fails. In return, if the claim succeeds, the solicitor is entitled to charge a success fee — an uplift on top of their standard fees. In Scotland, this is typically expressed as a percentage of the damages recovered.
What Happens If You Win?
If your claim succeeds, your solicitor will recover a proportion of their fees from the other side (the defender's insurer). However, you will also be asked to pay the success fee from your damages. The exact amount — and the maximum percentage — will be set out clearly in your written agreement before you proceed. You should always read this agreement carefully and ask your solicitor to explain any terms you do not understand.
What Happens If You Lose?
Under a genuine no win, no fee arrangement, you will not pay your solicitor's fees if the claim is unsuccessful. However, be aware of two important risks:
- Defender's legal costs: In Scotland, if your case proceeds to litigation and you lose, you may be ordered to pay the other side's legal costs. This risk is usually managed through after-the-event (ATE) insurance, which your solicitor can arrange.
- Disbursements: Some agreements require you to pay out-of-pocket expenses (expert reports, court fees, medical records) regardless of outcome. Check your agreement carefully.
No Win, No Fee vs Legal Expenses Insurance
Before signing a no win, no fee agreement, check whether you already have legal expenses insurance (LEI). LEI is often included in:
- Motor insurance policies (as "legal protection" cover)
- Home contents insurance
- Some bank accounts and credit cards
- Trade union membership
If you have LEI cover that applies to your claim, you may be able to use it instead of a no win, no fee agreement — and you may keep more of your compensation as a result. Always check your existing insurance policies before proceeding.
What Is a Success Fee?
A success fee is the additional charge your solicitor can make if your claim succeeds, to compensate them for taking on the risk of an unsuccessful claim. In Scotland, success fees are typically expressed as a percentage of the damages recovered. The Law Society of Scotland regulates the maximum amounts that can be charged. Your solicitor must explain the success fee clearly before you sign any agreement.
What Should I Check Before Signing?
- Is the agreement regulated by the Law Society of Scotland?
- What is the maximum success fee percentage?
- What happens if you wish to terminate the agreement?
- Are disbursements covered if the claim fails?
- Is after-the-event insurance recommended or required?
- Is the solicitor regulated and on the Law Society of Scotland register?
Beware of Claims Management Companies
Claims management companies (CMCs) are not regulated by the Law Society of Scotland and cannot conduct legal proceedings. They often advertise no win, no fee services but then refer your claim to a solicitor while taking a referral fee. Using a regulated solicitor directly — rather than through a CMC — is generally better for clients in Scotland.
