How Does The No Win No Fee Payment Structure Work For Lawyers?

If you’ve heard through the grapevine about lawyers who don’t take fees unless they win the case for their clients, it’s very understandable why you might want to look into it more. This payment structure is actually quite common around Australia, but its almost as commonly misunderstood by those who haven’t engaged with it in any capacity. In this article, we take a closer look at the no win no fee pricing structure to show you what its really about – this way you can avoid any potential nasties that might be involved. 

What’s the no win no fee arrangement all about?

If you’ve been looking for lawyers Canberra, there’s a chance that you may have come across the term “no win no fee.” It’s something that seems like it’s too good to be true, so what does it involve? For starters, this pricing structure is almost exclusively associated with compensation lawyers. This is because a lot of the time compensation cases are quite clear cut – if there is no clear evidence of injury, its likely that the lawyer simply wouldn’t take the case. If your case is taken, then it’s very important to wrap your head around the pricing structure, as it often isn’t what you think. There are actually two different costs involved – professional fees and disbursements. Professional fees are what the “no fees” relates to, as these relate to the time invested by the lawyer. The disbursements, on the other hand, relate to costs charged by third parties for documents and the like – costs you will be responsible for.

When does it actually come time for payment?

The no win no fee structure might sound incredible on paper, but it can cause some surprising issues for people not prepared. For starters, the “no fee” for the most part translates only to professional lawyer fees, so payment is often required to some degree for other costs that might be incurred. It is also the case that some lawyers view no win no fee in very different ways – success can be a concept that is very open to interpretation for some shrewd layers. To ensure that you don’t fall prey to these kinds of practices, it’s always a good idea to very thoroughly read through the proposed agreement, and even if you can’t find something specific you can follow up with questions for extra reassurance. The agreement should also give you a good idea about when and how you need to pay any relevant professional fees, and this can help you a great deal in being more prepared with regards to your finances. 

Always do your research

If you’re thinking of looking into a no win no fee lawyer, it’s important to not just dive in without any prior knowledge of their services and terms. By taking the time to work out these details, there will be far less chance that you’ll be met with any unnecessary (and often very expensive) surprises. Don’t forget that your lawyer is likely your best resource – they’re there to help you, so don’t feel bad asking as many questions as is necessary to give you a clearer understanding of your case.