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A conditional fee agreement (CFA) or “no win, no fee” agreement is a popular way to fund litigation, particularly in personal injury cases. Under a CFA, a solicitor agrees to take on a case on the understanding that they will only be paid if the case is successful. If the case is successful, the solicitor`s fees (including any success fee) will be paid by the losing party.

The success fee is a percentage uplift on the solicitor`s normal fees, designed to compensate them for the risk of taking on a case on a “no win, no fee” basis. The percentage uplift is agreed between the solicitor and the client at the start of the case.

Since 2013, the maximum percentage uplift that can be charged in a CFA has been capped at 25% of the solicitor`s normal fees (excluding disbursements). This means that if a solicitor`s normal fees for a case are £10,000, the maximum success fee they can charge is £2,500 (plus VAT).

The cap on the success fee has been controversial, with some arguing that it makes it harder for claimants to find solicitors willing to take on cases on a “no win, no fee” basis. However, the cap was introduced to address concerns about the rising cost of litigation and to ensure that claimants receive a fair share of any compensation awarded.

It`s worth noting that the success fee is only payable if the case is successful. If the case is not successful, the solicitor will not be paid anything, but the claimant may still be liable for any disbursements (such as court fees or expert witness fees) incurred during the case.

In conclusion, the maximum uplift on a CFA success fee is currently 25% of the solicitor`s normal fees (excluding disbursements). While this cap has been controversial, it is designed to ensure that claimants receive a fair share of any compensation awarded and to address concerns about the rising cost of litigation. If you are considering a CFA, it`s important to discuss the potential costs (including any success fee and disbursements) with your solicitor before proceeding.