No-win, no-fee claims are filed after a victim has been unjustly injured as a result of someone else’s actions, usually negligence, and in some cases even malicious intent. These claims, which are becoming the norm in the US, are characterized by the fact that legal expenses are paid by the other side’s insurance provider, even when the claim denied. It is a complex, societal issue. Today we will examine some of the pros and cons of this policy.

Pro: Filing a conditional fee claim is a win-win situation for the claimant. If their claim is denied, they don’t lose any money since the other side’s insurance pays their legal expenses. If their claim is accepted, they stand to make a lot of money.

Con: America has developed a reputation as the most litigious country on earth. The liberty our claimants enjoy to sue for free has had an unexpected backlash: Mass abuse. And as economic conditions get worse, the number of frivolous claims increase. In all 50 states, people sue “just for the money,” creating a back-log in the courts and compromising the legitimacy of real cases.

Pro: No-win, no-fee has corrected a huge imbalance in the social justice system. This is because it allows marginalized citizens access to grade A attorneys. Income disparity has always led to inequality of justice; Different applications of the law based on your pay scale. In many parts of the globe, it is still the same way. Take a high profile case from Russia, for example. In July 2011, a wealthy, Russian oligarch killed a pedestrian due to negligence. Her next of kin were too poor to file suit and justice was never served. America used to see cases similar to this (perhaps not as extreme), where the size of your wallet correlated to the degree of justice you would receive. No longer. Today, your lot in life is irrelevant to the courts, and you can be represented by the best attorney around without paying a dime.

Con: The conditional fee system has precipitated a national health care crisis. One of the biggest, so-called “artificial and avoidable” costs of health care are provider insurance policies. Each year, medical expenses increase as providers require more expensive policies. What is the main reason behind the increase? Frivolous medical malpractice lawsuits, filed by self-serving individuals who try to exploit the system. They know they can sue risk-free since hospital insurance has to pay their legal costs.

Pro: Better prospects for individual recovery post-injury. Before no-win, no-fee, you were likely to get a sum just to cover your expenses immediately after the accident. Chronic issues were not taken into consideration because these require multiple, expert testimonies from doctors and sophisticated grasp of the law, such as only a personal injury attorney would have. Overall public health was worse post-injury as people struggled with whiplash and other chronic pains. Now injury claims include treatment, adjusted for inflation, for decades post-injury. Treatment can also be sought from private care physicians, allowing flexibility in practitioners and access to specialists.

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