Schemes that promise no fee, no win
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Schemes that promise no fee, no win


Schemes that promise no fee, no win


Schemes that promise no fee, no win

If you or someone you know is considering a no-win, no-fee personal injury funding arrangement, it is essential to know the traps involved in this type of legal funding agreement. If you have sustained an injury in an accident, you may be unable to work and struggling to earn an income. As a result, no-win, no-fee financing may appear like a very appealing option.

Although it may seem simply like an easy way to get financial compensation for your injuries, there are several things you will need to consider before you decide to sign away your rights for contingency funding. In this blog post, we'll discuss some possible pitfalls and what you wish to consider before agreeing to this settlement method.

Why is it not a win-win situation?

A no-win, no-fee law firm will handle your injury claim as long as you pay legal fees only if you get a judgment. However, these sorts of attorneys are not glorified personal injury lawyers, meaning you may wonder, What's the catch? No one will do even the smallest thing for nothing. Moreover, should I be worried about something they aren't telling me?

Irrespective of how you feel about it, you must give yourself the right to get your legal entitlements. Choosing the best no-win, no-expense lawyer is a great method to access your settlement without taking any financial risk. Before you decide, view some of the disadvantages of no-win, no pay so you can make an informed decision.

No Win No Fee Funding - What does it mean

Let's say a legal firm saying no-fee funding means you will only have to pay if you win. That firm doesn't make clear who they bill their costs to following your case doesn't work. Before you go to a lawyer with Brisbane no win no pay solicitors, read your contract thoroughly to understand your possibilities and fees in every instance.

Lawyers who provide free legal services may encourage mistaken legal representation, meaning that rate is important to their clients.

As such, they won't always accumulate money until a compromise is reached. Naturally, there are no guarantees they will win, so you should be financially protected in this situation. Otherwise, you will likely have to pay more should you lose, which might not be financially beneficial.

In the event of a loss, who pays?

Your agreement detailing the payment arrangement will be made if you lose your legal payment matter. Typically there are two outcomes.

  • You will not have to compensate your attorney if he chooses a company that funds your financial obligations and legal costs entirely. Your attorney assumes complete financial liability for your case. You may not be required to pay attorney fees if your situation results in a courtroom setting.
  • Your firm will not charge you for their fees if your legal case does not result in a win. If disbursement funding has been agreed upon, a supplement will clarify how you'll be charged for these costs.

Who pays if I go to court?

Going through a court case is another element of financial risk. If you win, the barrister's fees will be taken out of your financial recovery. The real danger of this is the potential for a cost judgment.

When you receive an adverse cost order, who is responsible for paying it?

Consequently, most compensation claims are usually settled out of court. However, if you don't win your case or lose the case, you might have a negative award order. This is a court order that today is certain that you were the cause of some, or all, of the costs accrued in preparation for trial.

In some situations, your costs could exceed the value of your claim. In this case, your legal contract will explain who will cover these costs. It is common for your legal costs to be present on your costs, even when you win your case.

Is it Normal for No Win No Pay Lawyers to only accept matters they can win?

When a law firm is retained to handle your case on no pay, win, no fee basis, you'll bear the financial and legal burden and the risk. If you lose, they will pay the time of their legal staff, the price of their rent, your legal documentation expenditures and more. Thus, it only makes sense for the law firm to accept a legal matter which you can likely win. However, not all attorneys can expect to win every case.


When negotiating a no win no fee arrangement to make a legal claim on account of a personal injury, be aware of the traps you may encounter. Make sure you understand what you're getting into and talk to a professional personal injury lawyer before you sign any legal contract. Ask for a comprehensive illustration of the rules of the contract.

Who pays what in every single outcome, win or lose? That's your decision in making this agreement.

The NSW Pocket Lawyer app is free to download on Apple mobile devices from the App Store. It is supported on iPhones and iPad running iOS 7 and above. Tested and compatible with iOS 8.

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This article has not been reviewed by Odyssey HQ and solely reflects the ideas and opinions of the creator.
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