Conditional Fee Agreement Template for England and Wales
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What is a Conditional Fee Agreement?
Conditional Fee Agreements were introduced to improve access to justice by allowing clients to pursue legal claims without upfront costs. These agreements, governed by English and Welsh law, specify that legal fees are only payable if the case succeeds, with provisions for a success fee to compensate for the risk taken by the legal service provider. A CFA must clearly define success criteria, payment terms, and termination provisions, while complying with regulatory requirements including caps on success fees and mandatory client care information. The agreement is particularly useful in civil litigation, personal injury cases, and commercial disputes where clients may not have the means to fund litigation traditionally.
About the Conditional Fee Agreement
A Conditional Fee Agreement (CFA) is a legal contract that allows you to pursue litigation without paying your solicitor's fees upfront. Under this arrangement, you only pay legal costs if your case is successful, making legal action accessible even when you cannot afford traditional hourly billing. The solicitor takes on the financial risk of your case in exchange for a potential success fee on top of their base costs if you win.
When do you need this document?
You need a CFA when pursuing civil litigation without the means to pay legal fees upfront. This includes personal injury claims where you're seeking compensation for accidents, clinical negligence cases against healthcare providers, or employment disputes involving unfair dismissal or discrimination. CFAs are also valuable in commercial litigation, property disputes, professional negligence claims, and defamation cases. The agreement is particularly useful when legal aid is unavailable and you want to transfer the financial risk of unsuccessful litigation to your legal team.
Key legal considerations
Your CFA must clearly define what constitutes "success" in your case, whether that's winning at trial, achieving a settlement above a certain threshold, or obtaining specific court orders. The success fee percentage must be clearly stated and cannot exceed 100% of base costs in most cases. You should understand that while you won't pay your solicitor's fees if you lose, you may still be liable for the other side's legal costs and court fees. Consider obtaining After the Event (ATE) insurance to protect against this liability. The agreement must specify which legal services are covered, termination conditions, and your right to terminate the CFA with reasonable notice.
Legal requirements in England and Wales
Under the Courts and Legal Services Act 1990 and subsequent regulations, your CFA must be in writing and satisfy specific formal requirements. The Conditional Fee Agreements Order 2013 mandates that the agreement must state the particular proceedings or parts of proceedings to which it relates, specify circumstances constituting win or loss, and detail the success fee calculation method. Since the Legal Aid, Sentencing and Punishment of Offenders Act 2012, success fees are generally not recoverable from losing parties, meaning you'll pay them from your damages if successful. Your solicitor must provide clear information about the CFA arrangement, potential liability for costs, and available insurance options before you enter the agreement.
GOVERNING LAW
Applicable law
This Conditional Fee Agreement is drafted to comply with England and Wales law. Key legislation includes:
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