Conditional Fee Agreement Lexis

If you`re an attorney or a law firm that offers a conditional fee agreement, it`s important to understand the legal terminology surrounding it. These agreements, also known as a “no win, no fee” arrangement, can be a valuable option for clients who may not have the financial means to pay for legal representation upfront. Here`s a guide to the key lexis related to conditional fee agreements.

Conditional Fee Agreement (CFA): This is a contract between a lawyer and their client, which stipulates that the legal fees will only be payable if the case is won. The agreement will typically set out the percentage of the compensation that the lawyer will receive if the case is successful.

Success fee: This is the fee that is paid to the lawyer in the event that the case is won. It`s usually a percentage of the compensation awarded to the client.

After the event (ATE) insurance: This is an insurance policy that a client can take out to cover the legal costs of their case, in case they lose. The premiums for the policy are usually paid upfront by the client, but if the case is won, the premiums may be recoverable from the opposing party.

Before the event (BTE) insurance: This is an insurance policy that a client may already have in place before they need to pursue legal action. It can cover the legal fees associated with litigation, and may be part of an existing insurance policy, such as home or car insurance. If a client has BTE insurance, they may not need to pursue a CFA.

Contingency fee: This is a fee arrangement where the lawyer`s fee is tied to the outcome of the case. It`s different from a CFA because it typically applies to cases where the lawyer is seeking damages on behalf of the client, and the fee is a percentage of the damages awarded.

Hourly rate: This is the fee arrangement most commonly used by lawyers. It involves charging an hourly rate for the time spent on the case, regardless of the outcome.

In summary, understanding the lexis related to conditional fee agreements is essential for lawyers who offer this type of fee arrangement. Clients may not be familiar with the terminology, so it`s important to be able to explain the key concepts clearly and concisely. By doing so, you can help your clients make informed decisions about the best way to finance their legal representation.