How does a “no win no fee” arrangement work?
Without no win no fee arrangements many people would not be able to pursue a compensation claim. A “no win no fee” arrangement is an excellent offering as it allows people to access legal representation without any upfront payment of legal fees. When a lawyer offers a no win no fee agreement, it means the payment of their legal fees is dependent on the successful outcome of the case they are acting in. If the case is unsuccessful, the lawyer does not get paid. If the case is successful, the claimant pays the legal fees from the compensation payment.
To enter into a no win no fee agreement, the lawyer is required to give you a written Costs Agreement setting out the terms. This is an important document that will set out how the lawyer will calculate their fees, as well as the fact it is a no win no fee arrangement and the lawyer will only be paid on the successful conclusion of the injury claim.
It is natural to worry what will happen if the legal fees are more than the compensation payment. In this case, it is a requirement in Queensland, that lawyers reduce their fees to a sum that is never more than you are receiving in your hand. With this rule (known as the 50:50 rule), it guarantees that the lawyer can never charge fees that would see them recover more than you walk away with. This rule helps give claimants some peace of mind.
At Trilby Misso we also never charge an uplift fee. Many law firms will charge for the work they do, and they will increase the fees by up to 25% because the fees were deferred on a no win no fee basis. This uplift of 25% can amount to a significant sum out of your pocket. Here at Trilby Misso it is our promise to never charge an uplift fee.
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What types of cases are typically handled on a “no win no fee” basis?
No win no fee arrangements are typically offered for the following types of claims:
- Motor vehicle injury claims
- Motorcycle injury claims
- WorkCover injury claims
- Out of home/public liability injury claims
- Medical negligence claims
- Total and permanent disability (TPD) insurance claims
The nature of being injured means that quite often you require time off work, and you may incur medical expenses seeking treatment for the related injury. This added financial pressure would make the payment of upfront legal fees impossible for many people. Without a no win no fee arrangement many people would simply miss out and not be in a position to pursue their legal rights.
What are the benefits of hiring a “no win no fee” lawyer?
Hiring a no win no fee lawyer to represent you in your injury claim has many benefits. The main benefits of hiring a no win no fee lawyer are:
- No upfront payment of legal fees;
- You are legally represented;
- You only pay fees if your claim is successful;
- The fees you pay are guaranteed to never be more than you receive in your pocket (the lawyer never gets more money than you do, regardless if the work they did exceeds that amount); and
- The lawyer will often carry the cost of specialist medical reports and search fees as part of the agreement.
If no win no fee agreements were not offered, so many deserving Queenslanders would not be in a position to engage a lawyer and seek compensation.
Are there any hidden costs in a “no win no fee” agreement?
When a lawyer offers you a no win no fee arrangement they are also required to put the terms in a written Costs Agreement. It is important that you understand the terms of the agreement as it will set out how you will be charged for the lawyer’s work, when fees will be payable and other important terms of the engagement.
If you have any questions about the Costs Agreement, we recommend asking the lawyer, or more senior person in the firm. You can also get independent legal advice about the agreement.
The agreement will set out how the lawyer charges for their work, for example, it may be a set fee for a task, or an amount charged for the time they spend on your case.
Many lawyers will charge an uplift fee to recognise the delayed nature of them being paid. This is something you should be aware of. The lawyer will set out their fees in the agreement, but if an uplift fee is also charged, this can be up to a 25% increase on the fees, this can be a significant sum of money. At Trilby Misso we NEVER charge an uplift fee.
What happens if I lose my case under a “no win no fee” arrangement?
If you are unsuccessful in your claim for compensation by either walking away with a zero settlement or you go to trial and the Judge does not find in your favour, you will not be liable for legal fees to your lawyer. Your lawyer will only be paid if you are successful in receiving compensation, that is the nature of a no win no fee arrangement. Where a case is unsuccessful the lawyer will “write off” their legal fees and they do not get paid.
There is always a risk that you may be liable to pay the other side’s legal costs if you are unsuccessful in your claim. It is important that you discuss this with your legal representative as they can assess what that risk might be for you so you can make a fully informed decision as to how to best proceed in a claim.
How do lawyers assess whether to take a case on a “no win no fee” basis?
It is common practice for an injury lawyer to meet with you (by phone/or in person) for an obligation free consultation. As part of that initial consultation the lawyer will want to know important details like:
- When the accident happened;
- How the accident happened;
- What injuries you sustained;
- How the injuries are impacting you;
- Your work history and the impact on the injury on your employment.
At this obligation free meeting, the lawyer will be assessing the prospects of your case being successful. If they believe your case is strong enough and likely to succeed they will offer you a no win no fee arrangement. If the lawyer believes the case isn’t strong enough, they may not be prepared to work on a no win no fee basis and in that case, we always recommend getting a second opinion.
What percentage of the compensation will go to the lawyer if I win?
What percentage of the compensation the lawyer will take if you win is a very common question. This idea of the lawyer taking a percentage of the win is a very American concept and is called a contingency fee. Contingency fees are not allowed to be charged in Queensland.
Instead of taking a percentage of the settlement, lawyers in Queensland will raise a fee for the work they did. Lawyers will calculate their fees in accordance with their Costs Agreement. If the matter is resolved quickly and simply, the fees would be expected to be less than a more complex matter that goes over a longer period.
Claimants have a right to be concerned that the lawyer’s fees might exceed the settlement sum. Many years ago a Brisbane law firm settled a claim for a client and their fees exceeded the settlement amount, they sued the client for the balance of the fees. The legal profession was largely outraged at this as it was felt that it wasn’t in the spirit of a no win no fee arrangement. As a result, laws were put in place to ensure that no matter how large or small the settlement sum is, the lawyer can not raise a bill for fees that exceeds what sum the client will receive in their hand. Put simply, the lawyer will never receive more in fees that you do in your pocket. If the lawyer has done an amount of work that means their fees exceed what you are receiving in your hand from the settlement, they will be forced to reduce their fees. Read here for more information.
How long do “no win no fee” cases typically take to resolve?
The length of a no win no fee injury claim case will depend on the specific circumstances of each case.
There are two issues in each claim to consider:
- Liability – the issue of fault; and
- Quantum – that is the question of how much compensation the claim is worth.
Where the issues of liability and quantum are simpler, it is reasonable to expect the claim to take on average 18 months to settle. Where there are more complex issues it can take more time to gather the necessary evidence.
Depending on the circumstances of the accident, liability can be very clear cut and in those cases the insurer may admit liability quite early in the process. In other cases it is not as clear cut and the legal team will work to gather evidence to support your case, this could include:
- Gathering witnesses statements;
- Engineering reports;
- Accident recreation team;
- Obtaining CCTV footage.
In relation to quantum, the dollar value of the claim, the time to resolve the claim will be influenced by how long it takes for the injuries to stabilise. When you settle a claim you want to be sure that all future expenses and consequences of the injury are taken into account. If you are only just injured, the long term prognosis for the injury will be impossible to assess.
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Use this simple online tool and find out if you have a claim in less than thirty seconds. You can choose to remain anonymous.
What happens if I want to switch lawyers during a “no win no fee” case?
When you enter into a no win no fee arrangement you will sign a Costs Agreement. The Agreement will usually set out what will happen if you want to switch lawyers.
Ideally you will have one law firm represent you for the duration of the claim. This is an important partnership and you should feel heard, able to ask questions and reassured your interests are being protected. If for some reason this isn’t the case, it is a good idea to speak to someone more senior in the firm to see if your concerns can be addressed. Sometimes the firm will be able to address your concerns or even transfer your file to another lawyer in the firm. This would save switching firms and the associated time delays.
If the situation arises where you just can’t work with the no win no fee lawyer and you have made a decision to switch law firms it is common practice for the law firm to come to an agreement with your new lawyer that they will be paid for their portion of the work at the successful conclusion of the claim.
What should I ask a lawyer before agreeing to a “no win no fee” arrangement?
Before you enter into a no win no fee arrangement you will most likely have an obligation free appointment with the lawyer. That appointment might be by phone or in person. It is a good idea to use this appointment to ask your questions about:
- The legal process applicable to your situation;
- Your prospects of success;
- Time lines;
- Any important deadlines; and
- The terms of the no win no fee arrangement.
In terms of the no win no fee arrangement, it is important to understand:
- How does the lawyer charge for their work, eg time based, task based;
- When will you be obliged to pay legal fees;
- What happens if you lose your claim;
- Does the law firm fund any legal outlays (eg medical report fees and search fees), or are you expected to fund that upfront;
- If the law firm funds the outlays, do you have to pay for them if you lose your claim;
- Does the law firm charge an uplift fee, and what percentage is that uplift?
Page author
This page was written by Kathryn MacDonell, CEO at Trilby Misso Lawyers.
Kathryn’s journey in the legal field began in 2001 at Trilby Misso as an Article Clerk, leading to her official admission into the Supreme Court of Queensland in 2005. Her career at Trilby Misso saw her rise to the position of Principal Lawyer by 2011, where she was responsible for leading teams across the Sunshine Coast and Brisbane. Despite her management responsibilities, Kathryn remained dedicated to securing compensation for her clients, driven by a passion for assisting Queenslanders. Her legal acumen has been showcased in numerous challenging cases, with her making appearances in the District Court, Supreme Court, Court of Appeal, and even the High Court of Australia.
Here’s how our ‘no win no fee’ process works:
-
We chat
It’s a free consultation. -
We meet
A free detailed discussion. -
We plan
You say ‘go’ – we build your case. -
We lodge
We present
your case. -
We conclude
We reach a settlement.
You pay nothing until you win
We’ll also provide certainty and clarity, with a fair structure that has no ‘uplift’ fee, ever. You’ll pay nothing ‘til your claim is won.
Don’t delay. Speak with Trilby Misso today.
Your next step is a small one. All you need to do is give us a call on 1300 730 845 or complete this form here to arrange a quick chat.
During this initial conversation, we will:
- Have a chat about the circumstances and nature of your injury.
- Give you an indication of your eligibility to make a claim for compensation.
- Explain, in simple terms, how our process works. We will answer
any questions you have about fees, the legal process, and anything else you’re unsure about relating to your injury.
We understand that taking legal action can be stressful, and we’ll do all we can to ease your concerns.
The chat can take place at our place, your place, or by phone. There is no cost, no pressure, and no obligation.
