Is no win no fee legal in Australia?
This article is in partnership with Smith's Lawyers.
Without realising it, we have all heard an advertisement for a law firm on the radio or seen one on TV, meaning we have probably also heard the phrase, 'no win, no fee'. What does that phrase actually mean? Is it legal to offer legal services in Australia under no win, no fee arrangements?
Let's take a step back and consider what no win, no fee means. Generally speaking, it means that a lawyer agrees to take on a client's case and not charge any fees for the services rendered until the case is won, either inside or outside a court of law.
Meaning, that the lawyer agrees to take the risk of running the claim, assuming at best they will win the case. Lawyers will only take on cases they feel they can win and get a worthwhile settlement for the client and for themselves.
It is worth noting that lawyers are not obliged to take on cases under no win, no fee arrangements and some firms simply don't offer them. The measure of a good law firm or lawyer is not determined by the offering of a no win no fee arrangement or not, you will need to seek out the lawyer that has the experience and knowledge for your particular circumstances.
So why do lawyers offer this arrangement and not just directly charge for their services?
The types of legal services that can be offered under this arrangement are mainly within the personal injury law sector which includes car accident insurance claims, motor vehicle accident compensation claims, workers compensation claims, financial planning negligence claims and medical negligence claims.
You can also find lawyers that also offer Estate Litigation Claims and Class Actions claims under no win no fee. Due to the nature of criminal law and family law cases, these legal services cannot be offered under no win, no fee arrangements - there are no real winners in these sorts of cases.
By offering no win no fee structures, it allows more people to access legal services to ensure that justice is received when injuries are caused by someone else's negligence - through no fault of their own.
When you need to access legal services your stress levels can be through the roof, so this setup is designed to help people access legal services without the extra stress associated with trying to find upfront or ongoing fees.
If and when the time comes that you need to consider the services of a lawyer, you will quickly realise there are a lot of law firms to choose from, all of which offer similar services and similar no-win no fee arrangements.
Here are some simple tips to consider when choosing a law firm or lawyer under no win no fee arrangement:
- Be sure to have an obligation-free consultation before you go ahead with your choice of a lawyer
- You have the right to consult as many law firms as you need to get the right fit for you
- Take into consideration all the terms and conditions to any legal agreement before signing on the bottom line you should never sign the legal agreement at your first meeting, take your time with it (within reason of course)
- Ask all the questions you can think of to ensure you feel confident in a successful outcome and settlement
- Make sure the cost agreement you receive for review sets out a clear understanding for professional fees to be paid on settlement of the successful claim
- Request a fee policy and ensure you carefully read it before choosing a lawyer to handle your claim
- Go with your gut, if you feel like you can trust the lawyer you are meeting with your case then they are the right fit for you
- If you have been offered a no win no fee agreement by a law firm, get another lawyer to review the agreement before you sign it. You want to make sure many of the risks we have discussed either don't exist or are in your best interests.
Is no win no fee legal in Australia?
The short answer to this question is yes. Do you have to embark on a legal journey under a no win no fee arrangement, no - you are in the driver's seat and have the ability to choose the best option for you.
There are many law firms in Queensland that offer no win no fee arrangements. Smith's Lawyers is just one such firm that you can talk to about a potential claim.
