They are also known as “no-win, no-fee” agreements.
The basic model is directed to claimants i.e. people bringing claims. If the claimant wins, the lawyer recovers fees (including a success fee and the costs of an insurance policy) from the defendant.
If the claimant loses, the lawyer gets nothing and the defendant’s legal costs are paid for by the insurance policy. Either way the claimant does not have to pay any legal costs.
Although the model is claimant based, it can be adapted for use by a defendant. Few lawyers have been willing to offer CFAs to defendants because it is generally much more risky.
We have been at the forefront of defendant CFAs. We have defended numerous successful cases on a CFA. It is a powerful weapon.
CFAs can be used by any individual or company, irrespective of whether they can afford to fight the case without one. We are willing to offer CFAs to commercial publishers in the right case.
Before we can offer a CFA we need to be satisfied that the defence is sufficiently strong.