Assignment of Conditional Fee Agreement: What You Need to Know
If you`ve ever been involved in a legal case, you might have heard of a conditional fee agreement (CFA). This is an agreement between a solicitor and their client, where the solicitor agrees to take on a case on a no-win, no-fee basis. In other words, the client only pays the solicitor`s fees if the case is won.
Sometimes, however, a solicitor might not be able to continue representing a client for various reasons. In such cases, the solicitor might choose to assign the CFA to another solicitor who is willing to take on the case. This is known as an assignment of conditional fee agreement.
If you`re involved in a legal case and your solicitor is considering assigning your CFA, here are some things you need to know:
1. What is an assignment of conditional fee agreement?
An assignment of conditional fee agreement is when a solicitor transfers their interest in a CFA to another solicitor. This means that the new solicitor takes over the case and agrees to act for the client on the same no-win, no-fee basis.
2. Why would a solicitor assign a CFA?
There are several reasons why a solicitor might assign a CFA. For example, the solicitor might have a conflict of interest that prevents them from continuing to act for the client. Alternatively, the solicitor might not have the resources to continue with the case and might want to transfer it to another solicitor who can take it forward.
3. Can a client refuse an assignment of CFA?
Yes, a client can refuse an assignment of CFA. However, if the client refuses, they will need to find another solicitor to take on their case. This can be difficult, especially if the case is complex or if the client has limited financial resources.
4. Do clients need to pay fees to the new solicitor?
No, clients do not need to pay fees to the new solicitor if the case is won. The new solicitor will be entitled to a percentage of the compensation awarded to the client, as agreed in the original CFA.
5. What happens to the original CFA?
The original CFA will remain in force, but the new solicitor will need to be added as a party to the agreement. This means that the client will need to sign a new agreement with the new solicitor, which will include the terms of the original CFA.
In conclusion, an assignment of conditional fee agreement can be a useful option for solicitors and clients alike. However, it`s important to understand the implications of such an assignment and to make sure that the new solicitor is suitable for the job at hand. If you have any questions about CFAs or assignments of CFAs, it`s best to speak to a legal professional who can guide you through the process.