Success Fee Agreement Template for England and Wales

A Success Fee Agreement is a conditional fee arrangement that allows legal service providers in England and Wales to charge an additional fee on top of their base costs when they successfully conclude your case. Under this arrangement, you pay standard legal fees regardless of outcome, but your solicitor only receives the success fee if they achieve the defined successful result. This mechanism helps align your solicitor's interests with yours while providing access to quality legal representation.

When do you need this document?

You need a Success Fee Agreement when engaging a solicitor for litigation where the outcome is uncertain but success could justify additional fees. Personal injury claims are the most common application, where solicitors take on cases knowing they will only receive their uplift if they secure compensation for you. Commercial disputes, employment tribunals, and professional negligence claims also frequently use these arrangements. The agreement becomes essential when you want experienced legal representation but need to manage your financial exposure to legal costs.

Key legal considerations

The success fee percentage is capped at 25% of damages in personal injury cases under LASPO 2012, but no statutory cap applies to other types of litigation. Your agreement must clearly define what constitutes "success" - whether it's winning at trial, achieving a settlement above a certain threshold, or avoiding adverse costs. The success fee is no longer recoverable from losing parties since April 2013, meaning it comes from your damages or you pay it separately. You should understand the risk assessment your solicitor has conducted, as this justifies the success fee percentage. After-the-event insurance is often recommended to cover potential liability for the other side's costs if you lose.

Legal requirements in England and Wales

Success Fee Agreements must comply with the Conditional Fee Agreements Order 2013, which requires specific information to be provided before you enter the agreement. Your solicitor must explain the circumstances in which you may be liable for costs, the nature and level of the success fee, and your right to assessment of costs. The agreement must be in writing and signed by you. You have the right to a "cooling-off" period and can challenge the success fee amount through detailed assessment proceedings. The Courts and Legal Services Act 1990 provides the fundamental legal framework, while the Civil Procedure Rules govern disclosure requirements if litigation proceeds. Your solicitor must also comply with Solicitors Regulation Authority requirements regarding client care and fee transparency.