What is a conditional fee agreement?
A Conditional fee agreement is an arrangement where the client and his or her lawyer enter into an arrangement that all or some of that lawyers fees will not be payable by the client unless the claim is successful. The agreement should clearly set out the lawyer's obligations under the agreement. The agreement normally contains an increased fee rate in the event that the claim is successful and an agreement not to charge all or some of the fees in the event that it is not successful. The increase in the fees by law can be an increase of up to 25% of the fees and disbursements. This does not mean that a lawyer is able to claim 25% of your award. It merely means that the fees may be increased by that percentage. In the event that the claim is unsuccessful, the agreement may provide that the lawyer will forgo all or some of the fees and disbursements. This will depend on the exact arrangement that you negotiate with your lawyer.