No win no fee is one of the most important developments in access to justice in Scotland. It allows people who have been injured or wronged to pursue a compensation claim without any upfront legal costs or financial risk. But how does it actually work, and what should you know before signing up?
What Does No Win No Fee Mean?
No win no fee — formally known as a Damages-Based Agreement (DBA) or Conditional Fee Agreement (CFA) — is a funding arrangement between you and your solicitor. The key terms are simple:
- If you lose: you pay nothing to your solicitor
- If you win: your solicitor takes a success fee, which is a percentage of your compensation
This means you can pursue a genuine claim regardless of your financial situation. You do not need savings, legal expenses insurance, or any upfront payment to start a claim.
No Win No Fee vs Traditional Fees vs Legal Aid in Scotland
Three ways of funding a compensation claim exist in Scotland. This is how they compare for a typical personal injury claim.
| | No Win No Fee | Traditional (Hourly) Fees | Civil Legal Aid |
|---|
| Upfront cost | None | Fees payable as the case progresses, win or lose | None, but a means-tested contribution may be required |
| Who can use it | Anyone whose claim passes the solicitor's merits assessment | Anyone able to fund the fees | Only those who pass the Scottish Legal Aid Board's means and merits tests |
| If you lose | You pay your solicitor nothing | You pay your solicitor's fees and outlays in full | Your own solicitor's costs are covered by legal aid |
| If you win | A success fee is deducted from your compensation, capped by law at 20% of the first £100,000 of damages (including VAT), 10% of the next £400,000 and 2.5% above that | You keep all of your compensation; the other side normally pays most of your solicitor's expenses | The Scottish Legal Aid Board can recover its costs from your compensation (the “clawback”) where they are not recovered from the other side |
| Other side's expenses if you lose | Protected: qualified one-way costs shifting (QOCS) applies to Scottish personal injury actions, and ATE insurance is usually arranged as a back-stop | QOCS applies, but any exceptions (for example unreasonable conduct) fall on you | Usually not payable, but the court can order a contribution |
| Choice of solicitor | Any firm offering the arrangement | Any firm | Only firms registered for civil legal aid |
| Best suited to | Most injury and compensation claims where liability is reasonably clear | People who can afford the fees and want to keep 100% of damages | People on low incomes with a claim that meets the Board's tests |
Success fee caps are set by the Civil Litigation (Expenses and Group Proceedings) (Scotland) Act 2018 and the Success Fee Agreements (Scotland) Regulations 2020. Legal aid eligibility is assessed by the Scottish Legal Aid Board. Unlike England and Wales, civil legal aid remains available for personal injury claims in Scotland.
What Is the Success Fee?
The success fee is the amount your solicitor charges if your claim succeeds. In personal injury cases in Scotland, the success fee is deducted from your compensation award. The maximum success fee for personal injury claims in Scotland is capped by statute at 20% of your damages, including VAT — this is regulated and cannot be exceeded.
Before you sign anything, your solicitor must tell you clearly what their success fee percentage is. You should be given a written agreement setting this out. At Scottish Claims Helpline, we ensure that every solicitor on our panel is transparent about their fee structure from the outset.
What About Disbursements?
Disbursements are out-of-pocket expenses incurred during the claim — medical reports, court fees, expert witness fees and so on. In most no win no fee arrangements, these are either funded by the solicitor during the case and recovered from the other side if you win, or covered by an After the Event (ATE) insurance policy.
ATE insurance protects you against having to pay the other side's legal costs if your claim fails. Most reputable no win no fee solicitors will arrange this on your behalf as part of the overall funding package.
What Happens to the Other Side's Costs?
In Scottish civil court proceedings, the general rule is that the losing party pays the winning party's legal costs (known as expenses in Scotland). If your claim succeeds, the defendant — or more usually their insurer — pays your solicitor's base costs. The success fee is separate and comes from your own compensation.
If your claim fails, a properly structured no win no fee arrangement with ATE insurance means you should not be liable for the other side's costs either.
Is No Win No Fee Available for All Claim Types?
No win no fee is available for most personal injury and compensation claims in Scotland, including:
- Road traffic accidents
- Workplace accidents
- Medical and clinical negligence
- Industrial disease (mesothelioma, asbestosis, industrial deafness)
- Public place accidents
- Equal pay claims
- Fatal accident claims
Not every claim will be accepted on a no win no fee basis — your solicitor will assess the merits of your case first. Claims with a good prospect of success and a clear defendant with the means to pay are strong candidates.
FCA Regulation and Claims Management Companies
Claims management companies (CMCs) like Scottish Claims Helpline are regulated by the Financial Conduct Authority (FCA). FCA regulation means we are bound by rules on how we handle claims, how we treat customers, and how we communicate fees and charges. You can verify our registration at any time on the FCA Register using FRN 830381.
The solicitors we refer cases to are regulated by the Law Society of Scotland, which sets and enforces professional standards for Scottish solicitors.
What to Watch Out For
While no win no fee is a legitimate and well-regulated funding arrangement, there are a few things to be aware of:
- Always get the success fee percentage in writing before you proceed
- Make sure ATE insurance is in place to protect you against the other side's costs
- Be cautious of any firm that asks for upfront fees before the claim has been assessed
- Check that both the claims management company and the solicitor are properly regulated
Start Your No Win No Fee Claim Today
Scottish Claims Helpline is FCA regulated (FRN 830381) and works exclusively with Law Society of Scotland regulated solicitors. Every claim we handle is on a no win no fee basis — you pay nothing unless you win.
Complete our short form for a free, no obligation assessment of your claim. We will tell you whether you have a viable case, how much it could be worth, and exactly how the no win no fee arrangement works for your specific situation.
About this article: Written by
David Gildea, Claims Manager and qualified Scottish paralegal at Scottish Claims Helpline.
Scottish Claims Helpline is authorised and regulated by the Financial Conduct Authority
(
FRN 830381).