What Does No Win No Fee Mean?

If you have been injured in Queensland and are thinking about a compensation claim, the phrase “no win no fee” is probably one of the first things you have read. Many personal injury firms in Queensland offer it, but the reality is that no win no fee can mean very different things from one firm to the next. This article explains what no win no fee actually means in Queensland, what is usually included in the agreement, and the questions worth asking before you sign anything.

A Quick Guide to What “No Win No Fee” Means

No win no fee, in general terms, means you do not pay your lawyer’s professional fees unless your claim succeeds. In Queensland, professional fees are governed by the Legal Profession Act 2007 (Qld) and capped at a percentage of the settlement amount. Outlays, uplift fees, and what is defined as a “win” of a“successful outcome” vary from firm to firm. This article explains the broader concept and how Travis Schultz & Partners’ no win no fee approach goes further than the standard arrangement.

What “No Win No Fee” Really Means in Queensland

No win no fee is a costs arrangement, not a guarantee of success. It describes how and when your lawyer is paid. The details of that arrangement are set out in a written cost agreement that you sign at the start of the matter.

The Basic Idea

Under a no win no fee agreement, your lawyer agrees that their professional fees will only be payable if you reach a successful outcome. If the matter does not result in a successful outcome (as defined by the specific costs agreement), then your lawyer does not charge professional fees. This is sometimes also called a conditional cost agreement. The arrangement is permitted in Queensland personal injury matters under the Legal Profession Act 2007 (Qld).

The “win” part of no win no fee usually means your claim is resolved by a payment to you. This typically happens through a negotiated settlement, but it may also occur through a court judgment in your favour or a statutory lump sum. The cost agreement sets out exactly what counts as a “successful outcome” in your matter and this is something you should carefully understand as the definition may differ under different cost agreements.

What “No Win” Covers in Practice

Some no win no fee agreements treat the following situations as “no win”:

• The claim is unsuccessful at trial.
• Liability is denied, and the claim cannot proceed.
• A medical or legal investigation shows the claim cannot be reasonably pursued.

If any of the scenarios considered in the particular cost agreement applies, then your lawyer is not paid for the time spent on your matter. The cost agreement should describe each of these scenarios in plain terms.

What You Still Pay If the Claim Doesn’t Succeed

A no win no fee arrangement generally covers your lawyer’s professional fees. It does not always cover other costs that may arise during the matter. Depending on the firm, you may still be responsible for:

• Outlays your lawyer has paid on your behalf, such as medical reports, expert opinions, court filing fees, or barrister’s fees.
• Interest charged by a third-party litigation lender, if your firm uses one to fund outlays.
• Adverse costs orders if the matter proceeds to a court hearing and is unsuccessful. These are costs payable to the other party.

Adverse costs are rare in well-prepared personal injury matters, but they are worth understanding before you sign. Your firm should explain the risk to you in writing, and you should not feel pressured to pursue the matter further if the prospects don’t support it.

What’s Inside a Queensland No Win No Fee Agreement

The written cost agreement is the document that turns the no win no fee arrangement into specific terms. It should cover three areas in particular.

Professional Fees

Professional fees are the charges for your lawyer’s time. The way that hourly rates are set, and whether your fees are based on time or production of documents or outcomes, likely differs greatly from firm to firm.

The cost agreement should state how the professional fees are calculated, whether any uplift is applied, and the basis on which time is recorded.

Outlays and Disbursements

Outlays (sometimes called disbursements) are the third-party costs that arise during a claim, such as medical reports, expert reports, barrister’s fees, and court filing fees. Outlays add up quickly in personal injury matters and now often run into many thousands of dollars over the life of a claim.

Different firms handle outlays differently. Some ask the client to pay outlays as they arise. Some sign clients up to a third-party litigation lender who charges interest, and it is important you understand what those interest rates are and how that interest will be accounted for at the conclusion of the claim. Others fund the outlays from the firm’s own working capital, so the client never sees a litigation lender, with the actual cost of the outlays invoiced only at the end of a successful claim.

Statutory Caps Under Queensland Law

Queensland law sets limits on what a law firm may charge in a personal injury matter. Under section 347 of the Legal Profession Act 2007 (Qld), professional fees in a speculative personal injury claim cannot exceed 50 per cent of the net amount paid to the client. This is sometimes called the “50/50 rule”, and it is the maximum the law permits, not a recommended position.

Queensland law also caps the uplift fee, which is the additional amount some firms charge for taking on a no win no fee matter. The maximum uplift fee permitted in Queensland is 25 per cent of the professional fees. Many firms charge the full uplift; some firms charge no uplift at all.

The cost agreement should set out exactly how each cap applies in your matter and whether the firm is also applying a lower, self-imposed cap.

Why Our Approach to No Win No Fee Goes Further

A standard no win no fee arrangement tells you that professional fees are conditional on a result. It does not tell you anything about how high those fees can go, how outlays are funded, or whether an uplift is charged. Travis Schultz & Partners’ Lower Fee Promise is a set of five specific commitments that go beyond the standard no win no fee structure to put more of any settlement in the client’s hands.

Federal Court Scale Plus GST (No Premium Markup)

We calculate professional fees using the Federal Court of Australia Scale of Costs, plus GST. We do not add a firm-set premium on top of the scale. The Federal Court publishes the scale, which is the same reference used by independent cost assessors when they audit legal accounts.

No Inflation Indexing of the Scale

Once your cost agreement is signed, the version of the Federal Court Scale that applies to your matter is locked in. If the scale is updated during the life of your claim, we do not re-index your matter to the higher rate. The rate you sign up for is the rate you pay.

We Fund Your Outlays During the Claim

We pay for your out-of-pocket expenses (related to evidence gathering) as they arise during the matter, excluding any personal travel costs you incur. This includes the cost of medical reports, expert opinions, court filing fees, and barrister’s fees. We do not charge interest on the outlays we fund, and we do not sign clients up to a third-party litigation lender. At the end of a successful claim, you are invoiced for the actual outlays themselves, with no markup and no financing charge.

No External Litigation Funders

Many firms use a third-party litigation lender to fund outlays. The lender charges interest, and the interest is paid out of the client’s settlement. We do not use external litigation funders. Funding the outlays ourselves means more of your settlement stays with you.

A One-Third Cap on Professional Fees (Not the 50/50 Default)

The Legal Profession Act 2007 (Qld) permits a law firm to charge professional fees of up to 50 per cent of the net settlement. Most large personal injury firms charge the full 50 per cent. We cap our professional fees at one-third of the net settlement, and our fees are usually well below that cap.

These five commitments are documented in your cost agreement before you sign. They are factual statements about how Travis Schultz & Partners charges, not marketing claims.

How a No Win No Fee Agreement Works Step by Step

Whichever firm you choose, a no win no fee matter usually moves through three stages.

Step 1: The Cost Agreement

Before any work starts, you receive a written cost agreement that sets out the no win no fee terms, the scale and rates that apply, how outlays are funded, and how fees are calculated at the end of a successful claim. Take time to read this document. Ask questions about anything unclear. A good firm will walk you through it and explain which parts affect what you take home at the end.

Step 2: When Fees Are Drawn

During the matter, your lawyer does not draw professional fees from you. The firm funds the time and, in the right structure, the outlays too. Time is recorded against your matter so that, at the end, the bill can be calculated. If your matter resolves with a recovery, your lawyer’s professional fees are paid from the settlement, and the balance is paid to you after outlays.

Step 3: What Happens If You Decide to Accept a Lump Sum Offer

In a workers’ compensation matter, the insurer may make a lump sum offer for permanent impairment. Whether you accept the offer is your decision, and the choice may affect your ability to pursue common law damages for the same injury. Getting independent legal advice before you decide is important.

Please be aware that if you decide to accept the offer of a lump sum, we will not charge you for our time in providing any advice and will simply close our file.

Questions to Ask Before Signing a No Win No Fee Agreement

A no win no fee headline tells you very little about the actual structure of the agreement. The detail matters. Before you sign, it is worth asking the firm the following questions:

• What scale do you charge on/how do you determine your hourly rate, and do you add any premium or markup on top of that scale?
• Do you charge an uplift fee for taking on a no win no fee matter? If so, how much?
• How are outlays handled? Do I pay outlays as they arise, do you use a litigation lender, or does the firm fund them?
• If a litigation lender is used, what interest rate is charged, and how is the interest paid?
• What is your cap on professional fees in a settled matter? Is it the statutory 50 per cent, or something lower?
• Do you charge for advising on a lump sum offer in a workers’ compensation matter, including where I decide to accept it?

The answers should be specific and in writing. If a firm cannot answer these questions clearly, it is reasonable to ask another firm the same questions before you decide.

Frequently Asked Questions About No Win No Fee Agreements in Queensland

Is No Win No Fee the Same at Every Queensland Law Firm?

The headline is similar, but the underlying agreement is not. Different firms calculate professional fees on different scales, charge different uplift amounts, and handle outlays in different ways. Two no win no fee agreements at two different firms may produce very different outcomes for the client on the same settlement. The details are in the written cost agreement.

What Does “No Win” Actually Mean?

“No win” usually means your claim is not resolved by a payment to you. This may happen if liability cannot be established, if the matter is discontinued after a medical or legal investigation, or if a court hearing goes against you. The cost agreement should define a “successful outcome” precisely so you know in advance what counts as a win and what does not.

Do I Pay Anything Upfront?

In a no win no fee matter, you generally do not pay professional fees upfront. Whether you pay outlays upfront depends on the firm’s structure. Some firms ask you to pay outlays as they arise. Some use a litigation lender that charges interest. Others fund outlays from the firm’s own working capital, so you are not billed during the case.

What Are Outlays or Disbursements?

Outlays (also called disbursements) are the third-party costs that come up while a claim is being prepared. Common outlays include medical reports from your treating doctor or a specialist, independent medical examinations, expert reports on liability or economic loss, court filing fees, and barrister’s fees. Outlays are different from your lawyer’s professional fees.

What Happens If I Accept a Lump Sum Offer?

A statutory lump sum offer in a workers’ compensation matter is a payment for permanent impairment from your work injury. Accepting the offer may affect your ability to pursue a common law claim for damages against your employer for the same injury. The decision is yours, and the right answer depends on the severity of your impairment, the strength of any common law claim, and your individual circumstances. We recommend getting legal advice before you accept any lump sum offer. If you decide to accept the offer after our advice, we do not charge you for the advice we provided.

Can a No Win No Fee Agreement Be Cancelled?

A cost agreement may be ended in limited circumstances, and the terms are set out in the agreement itself. Cooling-off rights also apply to some agreements under the Legal Profession Act 2007 (Qld). If you are considering ending a no win no fee agreement, the options can be reviewed with one of our compensation lawyers.

Taking the Next Step on a Queensland Personal Injury Claim

No win no fee is the starting point of a conversation about costs, not the end of it. The headline is the easy part; the cost agreement is where the details live. Two no win no fee agreements at two different firms may leave you with very different amounts at the end of the same settlement, so it is worth taking the time to read the agreement and ask the questions above before you sign. Travis Schultz & Partners’ Lower Fee Promise covers five commitments: Federal Court Scale plus GST, no inflation indexing, firm-funded outlays at cost, no external litigation funders, and a one-third cap on professional fees. Each is documented in every cost agreement we sign.

This article was written by Kelly Phelps, QLS Accredited Specialist in Personal Injury Law at Travis Schultz & Partners. For more information, contact your nearest office in Brisbane, Sunshine Coast, Gold Coast, Cairns, or Innisfail.