Conditional fee agreements
A conditional fee agreement, or CFA, may be considered after assessment. These arrangements are sometimes described colloquially as "no win, no fee", but that phrase can be misleading if it is used without proper explanation. A CFA is not offered automatically and is not a promise that a client can never be responsible for any cost.
Before any CFA is entered into, the written funding documents should explain the terms clearly, including the success fee, any deduction from damages, responsibility for disbursements, the position if the claim is discontinued, and any circumstances in which costs, expenses, cancellation fees or other liabilities could arise.
After-the-event insurance
After-the-event insurance, often called ATE insurance, may be considered alongside a CFA. The purpose of any policy, the risks it is intended to cover, the premium, exclusions and conditions must be explained by reference to the individual case.
Insurance is not a substitute for clear advice about risk. A policy may not respond in every situation, and cover can depend on compliance with the policy terms.
Legal expenses insurance
Some clients have legal expenses insurance attached to home, motor, bank account or other policies. Where available, that cover may help fund clinical negligence advice or investigation. The policy wording, insurer requirements, choice of solicitor provisions and any limit on indemnity need careful review.
Legal aid and other funding routes
Legal aid is limited in clinical negligence work, but it may be relevant in some birth injury cases involving severe neurological injury. Private funding, trade union arrangements or defendant-side funding arrangements may also be relevant depending on the type of potential instruction.
Clear information before any agreement
The suitable funding route depends on the merits, evidence, value, proportionality and risk profile of the potential instruction. The aim is to give clear, accessible information before any agreement is signed, so that the client understands the options available and can make an informed decision.