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September 23, 2025

What is a conditional fee agreement?

A Conditional Fee Agreement (CFA) is a type of funding arrangement where your solicitor’s fees are only payable if your claim is successful. It is commonly used in cases such as personal injury, accident claims and medical or dental negligence.

How does a conditional fee agreement work?

A Conditional Fee Agreement is the contract between you and your solicitor when you make a claim for compensation against another party.

If your case is successful, your solicitor will deduct a success fee from your compensation, which is usually up to 25% of the damages you recover. This is agreed in advance so you know exactly what to expect.

This means that you carry less risk when making a claim, because you are not left with the bill for the legal work should your claim be unsuccessful.

You should agree the terms of your Conditional Fee Agreement with your solicitor before your claim begins.

If your claim succeeds, the defendant usually pays many of the additional costs, such as court fees, medical reports and barristers’ fees. We will explain which costs are covered and whether you may need insurance to protect against expenses if your case is unsuccessful.

If you lose the case, you will not be required to pay your solicitor and, in most cases, you will not be required to pay the defendant’s legal costs.

Since 2013, success fees are no longer paid by the losing party. Instead, they are deducted from the client’s compensation.

When you sign your Conditional Fee Agreement, you do not have to pay your solicitor any fees upfront, and this is where it differs from other legal services.

Your solicitor will carefully review your case before agreeing to proceed. The reason for this is that if they are not successful, they will not get paid. A key benefit of a Conditional Fee Agreement is that your solicitor will usually only take the case on if they believe you have a good chance of winning. In most cases, you will also be offered a free consultation before proceeding.

Conditional fee agreement

Advantages and Disadvantages

Pros

  • No upfront legal fees
  • You only pay if your case succeeds
  • Your solicitor shares the financial risk with you
  • Free initial consultation in most cases

Cons

  • Some additional costs (e.g. medical experts, reports, insurance) may not be included.
  • If you lose, you may still be responsible for the other side’s costs unless covered by insurance.
  • Success fee (up to 25%) will be deducted from your compensation.

Conclusion:

Depends on the nature of your claim e.g. slipping and tripping claims can often be more straightforward.

What does a conditional fee agreement cover?

As part of your Conditional Fee Agreement, your solicitor will:

  • Meet with you to discuss your claim. You can explain what has happened, the nature of the help you need, how this has affected your day-to-day life, and why another party is to blame.
  • Assess how likely you are to receive compensation from the other party (the defendant).
  • Explain the costs involved, including the firm’s fee structure and any additional costs for medical experts or other specialists.
  • Go through the agreement with you and make sure you are happy and clear about everything before you sign.

A Conditional Fee Agreement is a written contract between you and your solicitor, and is legally binding. You should make sure you understand it fully, and that your solicitor has explained every aspect of it before you proceed.

You should also make sure there are no areas of uncertainty. For example, you need to know whether you are liable to pay a fixed fee if you win the case, or whether the payment will be a percentage of the compensation awarded.

You should not feel pressured to proceed. The Conditional Fee Agreement must be in place before your claim starts, and all fees should be agreed and set out in the agreement.

The agreement covers what percentage of any compensation awarded will be paid to the solicitor for their time and expertise, or whether you will pay a fixed fee.

It is common for cases to be emotionally challenging and time-consuming. While a Conditional Fee Agreement removes much of the financial risk, you should still be aware that your case may take some time to conclude.

Does a conditional fee agreement need to be signed?

A Conditional Fee Agreement must be put in writing and should set out the specific conditions relating to your claim.

If the agreement is not signed, there may still be situations where it is considered legally binding if you later wish to dispute any of its clauses. For this reason, your solicitor should always ensure that both parties sign the agreement as evidence that you have each agreed to its terms.

What is a damages based agreement?

A Damages Based Agreement (DBA) is another type of funding arrangement where your solicitor’s fee is taken as a percentage of the compensation you receive. Under this agreement, your solicitor shares the risk with you, as they are only paid if your claim is successful.

What if my claim is unsuccessful?

Your solicitor will carry out a full analysis to determine how likely your case is to succeed before you start. Of course, there are no guarantees when it comes to compensation claims, and you may want to consider taking out an “after the event” insurance policy.

Some people are already covered for certain legal expenses under existing insurance policies. If not, your solicitor can discuss suitable options with you to give you peace of mind.

Conditional Fee Agreement breach of contract

If you believe the terms of your Conditional Fee Agreement have been breached, you may need to seek separate legal advice. This should set out how the contract has been breached and the extent of any loss you believe you have incurred.

What types of legal claims does the conditional fee agreement relate to?

At Natasha Hall Law, we can act under Conditional Fee Agreements or Damages Based Agreements for a range of claims, including personal injury, medical and clinical negligence, dental negligence and certain housing or landlord claims.

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