When a client can't or won't pay by the hour, a CFA — the classic 'no win, no fee' arrangement — lets a solicitor share the risk of litigation. It's a core funding option you'll meet constantly in civil practice, and getting it right matters: a poorly drafted or wrongly advised CFA can leave your firm unpaid and your client out of pocket. This lesson takes you from the basic structure through to the practical traps, so you can set one up properly and explain it clearly to a client.
What this lesson covers:
- Nature of a CFA — what a CFA is, how the 'no win, no fee' structure works, and what a success fee, disbursements and ATE insurance each cover.
- Validity and Permitted Proceedings — the formal requirements a CFA must meet and the types of case where it can and can't be used.
- Success Fee Caps — the overall 100% limit and the tighter 25% cap in personal injury cases.
- Costs Recovery: The LASPO Regime — who pays the success fee and insurance premium after LASPO, what stays recoverable from the loser, and how QOCS protects claimants.
- Solicitor's Professional Obligations — the risk assessment, funding advice and integrity duties you owe before signing.
- Costs Shortfall and Termination — why a client can still face a shortfall on a win, and what happens when a CFA ends early.