The phrase “No win, No fee” suggests that legal representation costs will be nothing if a case fails. That impression is understandable, but it is not always accurate. A No Win, No Fee arrangement is usually a type of conditional costs agreement, with specific terms governing when legal fees become payable. Some other expenses may also arise, depending on the matter and the agreement.
This guide explains how these arrangements work, what they may cover, possible exceptions and what you should check before signing.
The No Win, No Fee phrase describes an agreement in which some or all legal costs depend on the successful outcome of a matter. This term is commonly used for civil claims. However, this specific phrase does not assure that every expense disappears if the case is unsuccessful.
The written agreement controls the financial agreement between you and your law practice. It should explain what happens if you win, lose, settle or end the agreement. Before considering the cost, you should separate legal fees from other case-related expenses.
Professional legal costs can be covered in a conditional agreement. However, there are some expenses that cannot be included in your agreement because there may be expenses that will always remain payable irrespective of the outcome of the matter. It all depends on the type of agreement you have made, which is why it is important to ascertain whether such expenses are included or excluded before commencing your case.
These include:
The reason why it is important to determine this is that legal costs might be conditional, but other financial risks will still be there.
Just because you lose the case doesn’t mean that you have to pay your Workers Compensation Lawyers Perth their standard fees in full. It all depends on your agreement. There is another risk that shouldn’t be neglected.
The court can issue an adverse cost order, according to which the losing party will be required to pay something towards the legal costs of the winning party. This type of agreement doesn’t provide any protection against such an order. Before going through the legal process, ask your Public Liability Lawyers Perth about adverse cost risk and insurance.
Even a successful outcome can have costs. Some conditional costs agreements may allow an uplift fee, as per the law. It is an extra charge that becomes payable after the specified successful outcome.
The agreement must include details of how the fee is to be paid. A conditional costs agreement is also different from a contingency fee. A percentage-based contingency fee is not allowed in Australia.
The No Win, No Fee WA arrangement can be helpful, but the effectiveness of the same is largely dependent on its specifics. A proper analysis will help you understand your finances better before the case proceeds any further.
When considering entering into such an arrangement, some of the following questions may arise, which are:
Not all kinds of proceedings can have a conditional costs agreement. The Legal Profession Uniform Law (WA) does not permit conditional agreements in some cases, such as criminal proceedings and proceedings under some family law and child protection legislation.
In cases where the agreement is legally allowed, whether to offer it is entirely the decision of the law practice. Legal practitioners like Personal Injury Lawyers Perth consider the chances of success, complexity, cost of legal service, chances of recovery and the risks involved in the proceedings. The suitability of the “no win, no fee” arrangement therefore depends on the type of case and the costs agreement terms.
Before agreeing to the “No Win, No Fee” agreement, read the agreement of costs and think about getting some independent legal advice. It is important to know what success means, what costs may be paid even if the case fails and what will happen if the case ends prematurely. If there is anything that is not clear in the agreement, ask for an explanation before signing.
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