How No Win No Fee Works - Table of Contents
No Win No Fee Agreements: Legal Definition
The no-win, no-fee arrangement was first created in 1994 to improve access to independent legal support for injured persons who couldn’t afford to pay for legal services. Since then, many law firms have created their own version of this legal funding model.
- No-win, no-fee agreements are often used in personal injury cases and other compensation claims in which the client seeks damages for injuries or losses arising from negligence.
- The legal team assumes the risk of the case by providing a financing facility that covers professional fees and, where applicable, disbursements (such as expert reports and court filing fees), to give the client access to legal representation without upfront costs.
- A no-win, no-fee agreement typically includes a cooling-off period during which clients can change their mind.
- In most cases, a cooling-off period of at least five business days must be included in a no-win, no-fee agreement.
Funding for Legal Services
- Injured people can be in a tough financial situation after an accident that wasn’t their fault and struggle to afford a lawyer’s services.
- At such a time, no-win, no-fee agreements are an attractive option.
- Not all lawyers offer no-win, no-fee agreements, and clients should confirm eligibility before proceeding.
This arrangement helps individuals access legal expertise without the burden of upfront costs, levelling the playing field against larger entities.
However, before seeking advice for a no-win, no-fee personal injury claim in Queensland, clients should be aware of potential hidden costs associated with no-win, no-fee agreements, including disbursements and uplift fees.
While a no-win, no-fee policy may seem straightforward to access legal representation and claim compensation entitlements for injuries caused by negligence, there are several important factors to consider before proceeding.
This legal guide explains potential pitfalls and hidden fees in a legal costs agreement.
What is a no win, no fee costs agreement?
- A “no-win, no-fee” agreement is a legally binding contract between a lawyer and a client, under which they only charge fees for a successful outcome.
- Also known as a conditional costs agreement, a solicitor’s professional fees are only payable if a client receives compensation under this arrangement.
- This agreement must be in writing and include clear terms regarding costs and obligations of both parties.
In Queensland, no-win no-fee lawyers use three main types of no-fee, no-win agreements:
- Law firm fees are no-win, no-fee, but you pay outlays and third-party costs, including when you lose.
- Lawyer fees are no-win, no-fee, but you agree to a disbursement loan to cover outlays and third-party costs.
- The law firm covers 100% of fees and costs; you owe nothing if you lose.
What are the obligations for no-win, no-fee agreements?
A no-fee legal cost agreement has specific obligations for both the lawyer and the client, which help ensure transparency, fairness, and clear communication throughout the claim process.
For the lawyer:
- The lawyer must act diligently and professionally in handling the case, working promptly and efficiently to achieve the best possible outcome.
- Keep the client regularly informed about the progress of the claim, including any significant developments or changes.
- Consult the client before incurring any special or unusual expenses that fall outside the normal scope of the agreement.
- Provide a clear explanation of the costs involved, including any potential uplift or success fees, and update the client if estimates change substantially.
- The lawyer should advise the client on the reasonable prospects of success and provide reasonable advice on settlement offers or the risks of proceeding to trial.
For the client:
- Cooperate fully with their lawyer, providing all necessary information and documentation to support the claim.
- Respond promptly to communications and follow reasonable advice given by the lawyer.
- Sign a legal cost agreement that outlines the terms of the no-win, no-fee arrangement, including their obligations and any potential costs.
- Clients should understand that while fees may be deferred until a successful outcome, they might still be responsible for disbursement costs or other expenses. (but not with Splatt Lawyers)
How Are Splatt’s Legal Fees Calculated?
- In Queensland, Splatt’s no-fee compensation lawyers charge only for the work required to resolve a compensation claim.
- This calculation combines hourly rates with individual-item billing.
- Our fees are capped
- Every file is subject to an independent cost assessment to ensure a fair outcome for all parties involved.
What About Disbursement Costs?
Disbursements are additional costs incurred in a legal case, which can include fees for barristers, medical reports, and court fees. They must be clearly set out in a conditional cost agreement or a legal fee costs agreement before proceeding. These costs can include:
- Initial investigative reports
- Expert medical report fees
- Court filing fees and the other party’s costs
- Barrister’s fees
- Other service fees and out-of-pocket expenses
Clients may still be responsible for disbursements, such as court fees and expert report fees, even if they lose their case.
Be sure to understand no-win, no-fee conditional cost agreements, particularly how a lawyer charges legal fees and costs and who pays, win or lose.
Splatt Lawyers works on a 100% No-Win, No-Fee basis, so we fund disbursements until settlement.
- Splatt Lawyers funds disbursement expenses until settlement, and we won’t ask you to pay for expenses incurred if you lose.
- Which means you walk away owing zero if you lose.
- We also do not charge success or uplift fees as explained in our no-win, no-fee policy.
How Much Do No Win No Fee Lawyers Take in QLD?
A common question for people seeking advice for a compensation claim is, “How much do no-win, no-fee lawyers take?” The answer directly impacts how much compensation they receive in a payout.
You can answer this question by checking a lawyer’s no-win, no-fee policy before signing a legal cost agreement. Not only what you pay for a successful outcome, but also the fees charged if you lose. How much you pay will vary depending on:
- The complexity of a legal matter
- How much evidence is required to prove liability
- How long it takes to reach a settlement
Below are the general fee structures for Splatt’s Queensland injury lawyers.
What are Success or Uplift Fees?
- Uplift fees may be charged by lawyers if they win the case, which can be a percentage of the legal fees or a fixed amount.
- Also known as a success fee, it is like an extra charge for delivering a successful outcome
NOTE: Splatt Lawyers do not charge success or uplift fees.
What are Professional Fees?
Professional fees are the legal costs of advising on a personal injury claim.
In Queensland, a compensation lawyer’s fees are legally capped at a percentage of your settlement amount, so you always receive more than your law firm does.
Splatt’s no-win, no-pay solicitors provide capped fees for our clients, as required by Queensland legislation.
What are Disbursements?
Disbursements refer to the expenses of investigative reports for a compensation claim. Expert Medical report fees and other assessments are essential for constructing a compelling legal case. These assessments often cost several thousand dollars each and may include:
• Accounting reports
• Specialist medical evaluations
• Psychological or psychiatric reviews
NOTE: These costs are significantly higher for medical negligence claims.
What is Disbursement Lending?
- If a law firm doesn’t fund disbursements, you will be asked to pay upfront costs or agree to a disbursement loan, which typically has a high interest rate.
- Understanding disbursements and uplift fees is crucial before signing any conditional costs agreement with a personal injury solicitor.
Who Pays if You Lose?
If you lose a compensation case, a legal no-fee agreement will outline what happens next. Usually, there are three possible outcomes:
- You will pay nothing if you choose a law firm that covers lawyer’s fees and disbursement costs. That’s because your law firm carries 100% of the financial risk of your case. If you go to court, there may be an exception – please read the next section below.
- No-win, no-fee covers your lawyer’s fees, but you pay outlays.
- A no-win, no-fee lawyer asks you to pay their legal fees, and you take out a disbursement loan to cover outlays. There will likely be a separate agreement on how those costs are recovered.
Who Pays Court Fees and the Other Party’s Costs?
It is rare for a case to proceed to court, as most compensation cases are mediated in Queensland. A lawyer would not proceed with this action without your instructions. In the case of court action, a barrister would provide legal representation, and barrister’s fees would be deducted from a settlement if you win.
You may be liable for court fees if a case proceeds to court. If you lose, the court will determine if you are responsible for some or all of the other party’s legal costs.
In this situation, a no-win, no-fee agreement outlines who is responsible for the other party’s costs. Under 100% no-win, no-fee agreements, you owe nothing if you lose in court when you follow your lawyer’s instructions.
We Pay Legal Fees and Costs When You Lose
- Splatt Lawyers is a 100% no-win, no-fee Brisbane law firm.
- Our no-win, no-fee cost agreement covers professional fees AND disbursement costs.
- Pay when you win, and zero if you lose.
- We also don’t charge uplift or success fees
This is our no-win, no-fee, no-financial-risk guarantee. Call 1800 700 125
Do No Win No Pay Lawyers Only Accept Cases They Can Win?
Sometimes, lawyers may only take strong cases they believe are likely to succeed under a ‘No Win, No Fee’ arrangement.
- When personal injury law firms represent a client in a legal action, they carry all legal costs and risks.
- Even if a case fails, they still need to cover their costs, including office rental, staff salaries, and other expenses.
- It is fair for them to accept cases they believe have legal merit and a reasonable chance of a favourable outcome.
It’s Free to Know if You Have a Valid Claim
- Splatt Lawyers offers a free initial consultation to explain your legal rights and potential outcomes.
- We charge no upfront costs or ongoing legal fees until settlement.
- This is our no-financial-risk fee guarantee. Call 1800 700 125 or email us
3 Steps to Choosing No-Win, No-Fee Lawyers
1: Review The Legal Costs Agreement
When seeking advice from a Queensland personal injury lawyer you should carefully review their no-win, no-fee agreement. This fee agreement explains how a lawyer or solicitor will work on your behalf, including when and how you pay their fees. Pay particular attention to the following:
• What are my upfront fees for disbursements?
• Is your lawyer asking you to take out a high-interest loan?
• Will you pay disbursements if you lose your case?
• Do they charge uplift or success fees?
Note: The document must also declare that you were advised of your right to seek independent legal advice before signing the contract.
Splatt Lawyers can provide a copy of our legal fee agreement on request..
2: Do They Provide Legal Advice for Your Type of Compensation Claim?
No-win, no-fee personal injury lawyers advise on a range of compensation matters, including:
- Car accident claims
- Workers’ compensation claims
- Public liability claims
- TPD claims
- And other insurance claims
Depending on the type of matter, these can involve physical injuries, mental illness, psychiatric conditions, and other types of illnesses.
When seeking advice from a Brisbane law firm, be sure they have expertise in your type of case.
3: Are They Accredited Specialists in Personal Injury Law?
The legal team at Splatt Lawyers works with the guidance of a Queensland Law Society Accredited Specialist in Personal Injury Law, Kerry Splatt (our practice group leader).
Our Brisbane personal injury lawyers are prepared to navigate the complex legal system, explain your rights, and explain what you must prove for a successful outcome.
How Law Firms Work with a No Win No Fee Policy
Law firms that offer No-Win, No-Fee agreements have a structured fee arrangement that sets out the terms and conditions of the contract. This policy can make all the difference at a time of financial stress and generally includes the following:
- Definition of Success: A clear definition of what constitutes a “successful outcome” or “win” in your case.
- Payment Triggers: Specific circumstances that trigger the obligation to pay the law firm’s professional fees.
- Fee Amounts: Detailed information on the amount of professional fees and disbursements the client will be responsible for paying.
- Independent Legal Advice: You are encouraged to seek independent legal advice to review the fee agreement before signing, ensuring you fully understand the terms.
Clients can carefully review their law firm’s fee agreement and seek independent legal advice from expert lawyers before signing.
QLD Personal Injury Claim No Win No Fee Services
Splatt Lawyers provides no-win, no-fee legal services for a wide range of personal injury compensation claims in Queensland. Our no-financial-risk guarantee covers the following practice areas:
View | Our | Services |
|---|---|---|
Personal Injury Claims | Car Accidents | CTP Claims |
Mental Health Claims | Work Accidents | TPD Claims |
Workers Compensation | WorkCover Claims | Insurance Claims |
Psychological Injury | Work Bullying | Back Injury |
Motorbike Accidents | Work Stress | Severe Injuries |
Pedestrian Accidents | Slips and Falls | PTSD |
Public Liability Claims | Shoulder Injuries | Fatal Accidents |
Table of no-win, no-fee personal injury legal services
Note: Splatt Lawyers does not advise on medical negligence or medical law claims.
Brisbane No Win No Fee Lawyers with No Hidden Fees
If you’re seeking independent advice for a personal injury claim under a no-win, no-fee arrangement (like a workplace injury or motor vehicle accident), you should know the hidden traps. Ensure you understand what you’re getting into before proceeding with Brisbane’s no-win, no-fee lawyers.
- View their no-win, no-fee policy and the terms and conditions of their legal cost agreement.
- Who pays what in each outcome – win or lose- and what legal fees are charged if you proceed to court?
You choose who advises on a legal claim on a no-win, no-fee basis. Qualified legal advice can help you understand your rights when seeking compensation for a loss incurred by the negligence of others.
At Splatt Lawyers, it’s free to understand your options. Call 1800 700 125
QLD No Win No Fee Personal Injury Lawyers Near Me
Splatt Lawyers provides no-win, no-fee legal advice for compensation claims with no upfront legal fees from ten QLD-wide locations.