How Much Do
No Win No Fee Lawyers Take?

There are various fee costs agreements that can be entered into. One of these fee arrangements is the no win no fee agreement.

The costs of legal action usually outweigh the benefits of a successful outcome. It is for this reason that this fee policy is attractive to many clients. There are various factors that need to be considered before entering into this agreement.

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What Is a No Win No Fee Cost Agreement?
A no win no fee cost agreement is entered into when a lawyer decides that they will not charge the client legal fees for services rendered except and until the client is successful. On some occasions, the winner's legal costs are recoverable from the losing party.

There are some legal requirements that a lawyer must adhere to when the no win no fee agreement is entered into:

- The no win no fee agreement must outline what qualifies as a successful outcome.
- It must provide for disbursements payable, together with potential interest, regardless of the end result.
- It should detail the payment of the uplift fee.
- The agreement must be written, in clear unambiguous language and agreed to by way of the client's signature.
- The agreement must include a statement that the client has been advised of their entitlement to obtain impartial legal advice before entering into the fee agreement.
- It must provide for a cooling-off period of at least five business days during which the client can cancel the agreement by way of written notice to the law firm.

These requirements must be followed but there is no one size fits all agreement. Also, this agreement is not available for every matter.
Is Anyone Eligible To Enter A No Win No Fee Cost Agreement?
Lawyers and clients are entitled to conclude an agreement on a no-win-no-fee basis for all matters. This agreement is usually entered into where there is a high probability that there will be funds available to settle costs after the matter is concluded. These agreements are generally applicable to personal injury claims and certain deceased estate claims.
Law firms are not required to enter into a no-win-no-fee agreement. Certain law firms do not provide for this fee structure at all. It is advisable to seek independent legal advice to enquire about fee structure, funding options, and the law firm's legal know-how. This will ensure that there are no surprises and that the cost implications of the agreement are fully appreciated.
What Is An Uplift Fee?
The professional fees charged on a no-win-no-fee basis may be greater than a typical costs agreement concluded by a lawyer and their client. This is a result of a lawyer assuming the risk associated with a case being unsuccessful and losing out on professional fees that they would otherwise be entitled to.

Lawyers can claim 'uplift fees' in. This is an additional payment that needs to be paid along with the standard professional fees payable to the lawyer.

The uplift fees are only due once the client has won the case. The uplift fee is not usually inclusive of disbursements.

The uplift fees are normally up to 25% of fees owed.

The lawyer should provide the client with the probability of what the uplift fees will be and also discuss the factors considered when calculating the uplift fee. This should be done in the interests of transparency.
What Is The 50/50 Rule?
If the client agreement is entered into on a no-win-no-fee basis and there is a matter pertaining to damages for personal injury claims; there is a legal obligation for the personal injury lawyers to contract in accordance with the 50/50 rule.

The 50/50 rule limits the professional fees payable for personal injury claims. The purpose of the 50/50 rule is to safeguard the claimant from being in a less favorable financial situation after engaging in a valid personal injury claim.

The 50/50 rule places a maximum restriction on the legal costs (inclusive of GST) that personal injury lawyers can charge in a personal injury matter.

The most law firms are able to charge (inclusive of GST) is 50% of the settlement amount after refunds and disbursements have been subtracted.

The 50/50 rule, which is calculated on a speculative basis, is generally the settlement amount less refunds and outlays. This amount is then divided by two. It is important to note that this calculation is used in speculative personal injury matters.
What Percentage Of A Fee Will Smith's Lawyers Charge?
The majority of no win no fee agreements come with a hefty price tag if the case is unsuccessful. In the event of the client losing their matter in court, they will potentially be required to pay for the other side's legal costs. This could be disastrous and the client would be liable for up to hundreds of thousands of dollars.
At Smith's Lawyers the the client receives Queensland's first risk-free pledge -No win, no fee, no catch®. In the highly improbable situation, that the case is unsuccessful, Smith's lawyers will cover the costs. The client will not be liable to Smith's Lawyers or any other third party.

In 25 years, Smith's Lawyers has never left any client out of pocket. They truly embrace the no win no fee policy.

All "no win, no fee" lawyers have varying policies. Smith's Lawyers do not charge a set percentage. They only charge for services actually undertaken and waive professional fees if the claim is unsuccessful. Legislation in Queensland provides that legal fees can never surpass 50% of the compensation owing after statutory refunds and disbursements.

Given the fact that Smith's Lawyers only charge for work completed in finalising the claim, their fees are generally below this threshold. Other law firms are not able to make such a claim or take on such a burden. This makes Smith's Lawyers stand out from the crowd in a highly competitive industry.
Can I Change Law Firms Under A No Win No Fee Costs Agreement?
If the claimant opts for a different lawyer whilst the matter progresses, both law firms are entitled to fees for professional services.

Typically the firm that initially represented the client will hand over the file to the subsequent law firm after an agreement is entered into by the client or the new law firm which states that their account will be settled after the matter is concluded.

Some law firms will not find it in their best interest to be a party to such an agreement. It is important that the cost agreement is perused and that a lawyer is consulted prior to changing law firms. The consequences of changing law firms must be properly understood before opting to do so.

If another law firm is approached to take over the matter and the 50/50 rule is applicable; there might be a disagreement about how much each law firm will receive. Despite this, you are still protected by the 50/50 rule, even with multiple law firms. The Legal Services Commission is of the view that the rule is in place to guarantee that the client acquires a fair share of the settlement or judgment.

The Commission is of the opinion that the rule would limit professional fees due to both firms. The fee-sharing ratio should be discussed and agreed upon commercially by both law firms. In most cases, this amount is shared proportionally by each firm in accordance with the percentage of work undertaken by each firm.
Are There Any Hidden Fees or Charges I Need To Be Aware Of?
Before contracting on a no-win-no-fee basis, it is advisable to consider the following factors:

- Ensure that all the terms of the agreements are understood or broken down.
- There is a five-day cooling-off period to consider the terms of the agreement. If there is uncertainty acquired legal costs from neutral fee lawyers.
- Seek independent legal representation if there is uncertainty as to what a no win no fee agreement entails.
- Understand the uplift fee. This has a bearing on the final costs of the case and the percentage that is recoverable.
- Ponder the approximate costs of the matter and enquire if anything is unclear.
- Ensure that you understand the 50/50 rule.
- Clarify what happens when the claim is unsuccessful, including whether the losing party is responsible for the other party's legal costs.

A law firm assumes the risk of not being able to claim legal costs under a no win no fee costs agreement. They may be allowed to claim for disbursements.

Some firms pay for disbursements from their own pocket and recover the monies from the client after the matter is concluded. Interest costs may be included in some circumstances. If there is interest charged, this should be outlined in the costs agreement.

Other lawyers might request that the client take out a litigation loan from a credit provider which provides for disbursement costs whilst the matter is underway. The capital amount of the loan may have to be settled, together with the interest, upon conclusion of the matter.

A no win no fee agreement provides a client with the benefit of being able to engage in legal action without having to assume the risk of paying the costs of the other party, should the matter be unsuccessful.

This allows the client to litigate freely without having to fear the ramifications of a cost order. That being said, not all fee agreements are equal. It is advisable to consult with Smith's Lawyers who take on most of the risk whilst the client recaps the rewards.
Lodge A "No Win No Fee" Claim
If you suffer injuries while at work, you don't have to worry about the whole process of making your claim or the legal fees involved. Here at Smith's Lawyers, we offer free consultation services for injured workers looking to kickstart their claims. As mentioned before, we also have a no-win no fee, no catch policy.
Get in touch with us to give yourself the best opportunity to receive the maximum compensation possible for your claim.
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Thank you to Yasmine Chalvatzis, Vivian Lee, and to their supportive team members in helping me through this difficult trying time. I am very grateful for their assistance, and happy with the final outcome. I would also like to thank Jeremy Wiltshire, Barrister-at-law, who along with Yasmine, helped to bring a resoluti

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Raymond McKenzie

Absolutely fantastic service from the team at Smith’s from start to finish. Emily was amazing in communicating everything, making sure I was aware of everything and was well informed before making decisions. She took the time to explain the ins and outs of my case and made sure to ease my mind with every concern I had.

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Hayden Wilson

What a beautiful experience to have worked with Smith lawyers! Such a kind and trusting company. I worked with Emily on my case and am blown away with her work and kindness. Very happy! Thank You so much.

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Bhodi Wells

I would like to thank smith's lawyers and especially Stephen for the hard work for my TPD claim. Having you to take the pressure off in this whole accident has been a great relief. I highly recommend to anyone seeking help to contact Stephen and kay at smith's lawyers. Thanks again so much.

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Tammy McGowen

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