By entering into no win no fee agreement, you will have the advantage to access legal assistance without paying anything upfront. However, you need to ensure that you are aware of uplift fees, disbursement and risk of paying the other side’s costs if you lose. But if you have chance to leave with something in your hand then it’s better than doing nothing. No win no fee arrangement is helpful in this aspect.
What Is No Win No Fee?
Many personal injury law firms offer to take your case on ‘no win no fee’ basis. This is also called ‘speculative’ basis. The law firms that agree to take your case on no win no fee basis will literally don’t charge you legal fees if you lose your case. They will only charge legal fees if you win your case. What win means in this context is either you obtain a monetary settlement or a judgment in your favour.
When Does No Win No Fee Apply?
No win no fee starts to apply when you enter into a specific costs agreement with your law firm. This is called a conditional costs agreement. You should ensure that the conditional costs agreement specifies terms relating to no win no fee. Once you enter into the conditional costs agreement, you do not need to pay anything upfront.
Although it is not an obligation for law firms to enter into no win no fee agreement but these days many law firms are happy to take your case on no win no fee basis. No win no fee is a favourable option to those who cannot pay legal fees upfront. However, if your case is unlikely to win, the law firms may advise you that the case isn’t worth proceeding.
Are There Anything You Should Be Aware of?
No win no fee is quite simple to understand. But you need to be aware that there are some terms included in the conditional costs agreement.
Uplift fees – Law firms can charge up to an additional 25% of total legal fees. This is allowed under law. The reason for allowing uplift fees is because your law firms are also taking cases on a risk that it may not be successful and if so, they won’t get paid for the hours they spent on your case.
Disbursement – Disbursement are costs involved to progress your personal injury claim, such as obtaining medical records, reports and medico-legal examinations. Disbursement is not legal fees. Some law firms may not include disbursement as part of no win no fee. Therefore, if you lose your case, you won’t have to pay your legal fees but still pay for outstanding disbursement.
May need to pay the other side’s legal costs if you lose – No win no fee means that if you lose you don’t have to pay for your legal fees. But court can order you to pay costs of the other side if you lose at trial. In this instance, you will need to comply with court’s order. In fact, court can order any party who loses at trial to pay the other side’s costs and this does not depend on whether or not no win no fee arrangement is in place.
50/50 Rule
If you enter into the conditional costs agreement, your law firm may be restricted in charging total legal fees in certain circumstance. 50/50 rule generally means that maximum legal fees a law firm can charge is 50% of your compensation after deducting disbursement and statutory refunds such as Centrelink, WorkCover, Medicare and private health insurance.
However, 50/50 rule does not apply if your compensation is large enough to cover total legal fees and you are still left with higher net recovery. The objective of this rule is to protect you to ensure that you are left with legitimate amount of compensation.
Conclusion
By entering into no win no fee agreement, you will have the advantage to access legal assistance without paying anything upfront. However, you need to ensure that you are aware of uplift fees, disbursement and risk of paying the other side’s costs if you lose. But if you have chance to leave with something in your hand then it’s better than doing nothing. No win no fee arrangement is helpful in this aspect. At Park & Co Lawyers, we put our clients in priority and ensure that they are protected.
Written by Paul Bae
If you have any enquiries, contact Paul at [email protected].
[ Park & Co Lawyers – Disclaimer ]
Please note that the above is to be taken as a general guide only, and does not constitute legal advice in any respect. It does not reflect any changes in the relevant law or authorities since the date of publication.
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We are experienced in the different areas of personal injury claims. We work on a no-win-no-fee basis which means that if you don’t win, you don’t have to pay our legal fees. Contact us today for a free, no-obligation initial consultation. We will discuss your case and make sure you know about your legal rights.
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