There’s a good chance you might have heard about lawyers who don’t charge their clients upfront and wondered – as so many others have – how do these people make money from donating all of their time? It’s actually the case that many lawyers around Australia offer clients this payment model, and its popularity means that there is obviously some value in it. Before you jump headfirst in into a no win no fee agreement, though, you should understand exactly how this cost agreement works. This way, you’ll be able to approach the subject with your lawyer with a lot more confidence. In this article, we take a look at what this arrangement is all about so you can stay better informed.

Understanding the no win no fee arrangement

If you’ve been looking for no win no fee injury lawyers in Canberra, there’s a good chance you’ve been overwhelmed with the sheer number of options available to you. For starters, it is particularly compensation cases that are tied to this model, as it is usually obvious how simple to prove these cases are – if you have no evidence of your injury, there likely won’t be a lot of faith on the lawyers part for your case, so you’ll likely be out of luck very quickly. If you are eligible to enter into a no win no fee arrangement, it is important to know the payment structure. In practical terms, there are two types of legal costs that develop throughout the preparation and conduct of your matter – these are professional fees and disbursements. Professional fees are related to the time that a lawyer spent working on your case, in addition to the time that was contributed to the preparation of your claim by administrative staff. Disbursements, on the other hand, are expenses that third parties charge the law firm in order to provide information or to progress your claim. These might be medical certificates, court fees, freedom of information fees and the like.

When you need to pay

Although you might think no win no fee relates to your entire fee, it actually only applies to your professional fees much of the time. Even then, what some law firms consider a success may be open to interpretation, so it’s best to ask your lawyer these kinds of questions directly. Read your agreement carefully, as this might also stipulate when you need to pay the professional fees and when you don’t. as the no win no fee agreement does not extend to disbursements, you should expect to pay any of these related costs when they are needed. This means that even if you are unsuccessful in your claim, you’ll need to pay for all of these expenses that were incurred during the varying stages of your claim. There are some instances where the cost of disbursement can be attained from insurance bodies like WorkCover or the Transport Accident Commission, but otherwise it is best to assume that you will have to pay for these fees.

Staying aware of no win no fee arrangements

In order to prevent any unnecessary (and unpleasant) surprises at the end of your case, having a good understanding of no win no fee arrangements is an excellent idea. If you need more information, it’s always a good idea to ask your lawyer, as they will be able to provide answers specific to your health case.