You should understand the fee structure and any hidden costs if you plan to pursue a no-win, no-fee claim.
What does “No Win, No Fee” mean?
An agreement that no-win, no-fee costs means that a lawyer agrees to not charge the client for any services provided unless and until the client wins.
The lawyer takes on the risk that the case will fail. If this happens, any fees paid by the lawyer are forfeited. If the client wins their case, they agree to pay the lawyer (generally but not always costs can be recovered from another side span>).
Here are some things to keep in mind when you hire a lawyer who is not going to charge you a fee.
The law firm can usually recover expenses (disbursements) in most cases of no-win no-fee lawyer. This includes court filing costs, expert report charges and barristers fees.
* Disbursements should be indicated in the terms of the no win, no-fee cost agreement
* While a lawyer might be willing to take on the risk of not receiving their fee, it is unlikely that they will also have to pay for the legal costs of the other side. In general, the losing side must pay the legal costs of the winning party if the case fails, regardless of whether they have a no-win, no-fee costs agreement with their lawyer.
The Legal Profession Act 2007 (the Act), defines conditional costs agreements as “no win, no fee arrangements”. The Act clarifies that conditional cost agreements allow for payment of part or all legal costs depending on whether the case is successful. (Refer to section 323 span>
Do I need a lawyer to sign a No Win Costs Agreement?
A law firm is not required to take on a matter on a fee-cost basis. Many law firms don’t offer any fee arrangements.
Smith’s Lawyers is Queensland’s first risk-free settlement undertaking. They will pay all costs if settlement negotiations fail or your case is dismissed in court.
What are your rights to claim?
There are certain things you can get compensated for when you make a claim without any fees.
You may be eligible to claim:
* Lost income
* Medical costs
* Rehabilitation charges
* Travel fees
Service fees to go back to work
* Pain & suffering
* Potential loss of future earnings.
Get legal advice on your expected legal fees and compensation. This will help you to manage your expectations.
Conclusion
Because they take away some of the stress associated with litigating, no-win, no-fee agreements are very popular. You can also rest assured that you won’t be required to pay your lawyer if you lose your case. Hidden fees should be known. Before signing any fee agreement, consult your lawyer.