As a professional, I am happy to explain the meaning of a conditional fee agreement (CFA).
A conditional fee agreement is an arrangement between a client and a lawyer where the lawyer agrees to take on a case without charging the client any fees upfront. Instead, the lawyer only receives payment if the case is won.
This type of agreement is commonly used in situations where a client may not have the financial resources to pay for a lawyer’s services upfront but still wants to pursue legal action. It allows individuals to access legal services they may not otherwise be able to afford.
If the client loses the case, the lawyer does not receive any payment. However, if the client wins, the lawyer’s fees are typically calculated as a percentage of the compensation awarded to the client.
CFAs are often used in personal injury cases, where the client has suffered harm due to the negligence of another party. They can also be used in employment law cases, such as discrimination or wrongful termination claims.
It is important to note that there may be additional costs associated with a CFA, such as court fees and expenses. These costs are typically paid by the client and are separate from the lawyer’s fees.
In conclusion, a conditional fee agreement is a payment arrangement between a client and a lawyer where the lawyer takes on a case without upfront payment but is only compensated if the case is won. It is a useful option for individuals who cannot afford legal services upfront but still want access to justice.