Advocate Lizzie Beard reviews a significant funding difference between Isle of Man and UK

You have likely seen “no win no fee” advertisements on TV or online and may have wondered why you never see Manx law firms advertising the same. While these arrangements are commonplace in the UK, the Isle of Man takes a different legal approach. This article considers the Island’s prohibition on “no win no fee” arrangements and the alternative funding options available to you.

Conditional fee arrangements

A conditional fee arrangement (CFA) is an arrangement whereby a client and their lawyer agree that the lawyer will not receive part or all of their usual fees if the case is lost but, where the case is won, an uplift on usual fees can be recovered. This is commonly termed as “no win no fee”.

“No win no fee” arrangements are not permitted on the Isle of Man. This stems from the historic prohibition of “champerty”, and the Advocates Practice Rules 2001 confirm that an advocate cannot enter into an arrangement to receive a “contingency fee”. This was the position in the UK before they changed their laws to embrace contingency fees in the mid-1990s. So be wary of any offer as to Isle of Man litigation funded on a no win no fee basis - it is unlawful. Also note that only Manx Advocates are permitted to conduct litigation in the Island, UK solicitors have no rights of audience here.

The absence of no win no fee arrangements on the Isle of Man does not mean that individuals without funds cannot pursue or defend legal claims. Depending on your circumstances, there are a number of ways to obtain and fund legal representation.

So what options do I have?

If you believe you may have a potential claim and require legal representation, there are various alternative funding options available to you:

1. Legal Aid

Civil Legal Aid is available to individuals but not companies, business, clubs or firms. With no residency qualification, individuals living outside the jurisdiction who have cases being processed in the Isle of Man and are subject to Manx law may still apply for legal aid.

Eligibility for legal aid is determined by consideration of both your financial position and the merits of your potential claim. The Isle of Man Government website provides a Civil Legal Aid Calculator (click here for link) which can provide an indication as to the likelihood of meeting the financial eligibility threshold.

Further information in respect of Legal Aid on the Isle of Man can be found at https://www.gov.im/categories/benefits-and-financial-support/legal-aid/

2. Private funding

Where you are not eligible for legal aid, you will need to retain an advocate and fund your representation privately, subject to the relevant terms and conditions in place with your chosen firm. The Isle of Man Law Society has a Directory (click here for link) which allows you to find an Advocate or Law Firm suitable for your potential claim.

3. Legal Expenses Insurance

Prior to instructing an advocate, you should always check any existing insurance policies, whether that be home, household or motor, as they may include legal expense insurance that is applicable to your potential claim. Make it clear to your insurer that you will need Isle of Man (not UK) advice and, if you have one, express a preference for your nominated Manx adviser.

Advocate Lizzie Beard is a member of M&P Legal’s civil litigation team. This article does not constitute legal advice. Always seek specific legal advice on the facts of each particular case.

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