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Legal Terms - conditional fee agreement (CFA)
A written agreement between the client and the attorney for legal services in litigation, which states that the attorney will not be entitled to all or part of his usual fees in the event that the case is lost. This kind of deal is called a "no win, no fee" agreement. If successful, the attorney is entitled to a greater fee (by claiming a larger *uplift) in exchange for taking on the risk of such an arrangement. The claimant can be required to reimburse the other party's expenses if he loses the case. Therefore, there is some danger associated with the litigation; however, this risk can be managed by purchasing insurance, which has a cost associated with it. The Courts and Legal Services Act 1990, the Access to Justice Act 1999, and the Legal Aid, Sentencing and Punishment of Offenders Act 2012 specify the circumstances under which a conditional fee agreement may be made (that is, the kinds of proceedings in which they are available and the maximum percentage increase in fees permitted). Conditional fee agreements are illegal in most areas of the law, although they are permitted in a few specific types of cases, such as personal injury lawsuits
A written agreement between the client and the attorney for legal services in litigation, which states that the attorney will not be entitled to all or part of his usual fees in the event that the case is lost. This kind of deal is called a "no win, no fee" agreement. If successful, the attorney is entitled to a greater fee (by claiming a larger *uplift) in exchange for taking on the risk of such an arrangement. The claimant can be required to reimburse the other party's expenses if he loses the case. Therefore, there is some danger associated with the litigation; however, this risk can be managed by purchasing insurance, which has a cost associated with it. The Courts and Legal Services Act 1990, the Access to Justice Act 1999, and the Legal Aid, Sentencing and Punishment of Offenders Act 2012 specify the circumstances under which a conditional fee agreement may be made (that is, the kinds of proceedings in which they are available and the maximum percentage increase in fees permitted). Conditional fee agreements are illegal in most areas of the law, although they are permitted in a few specific types of cases, such as personal injury lawsuits
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