Home » Business »

Understanding the No-Win No-Fee Services in Sydney


What is exactly a no-win no-fee service? Well… it sure doesn’t mean you won’t be paying to the lawyer in case you lose the case. Shocking, right!


So, here’s the deal with this service:

A no-win no-fee agreement is known as “conditional costs agreements”, which means you do have to pay some fee even if you lose. Let’s just say that it’s a play on words to give clients the peace of mind that they can pay less if they do not have any financial aid to fight a compensation case.

The Indemnity Principal

The indemnity principal in the courts of Sydney now follows these rules:

  1. The client doesn’t need to pay the compensation lawyer for the case out of his pocket
  2. The compensation lawyer are only allowed to issue a costs order if the settlement was made before hand
  3. The compensation lawyer cannot ask his client to pay more for the legal costs even if the amount received from the unsuccessful party is less

This brings us to the question that why do we need to go for no-win no-fee agreements.

The current rules of the indemnity principal state that the compensation provided by the successful party will go directly to the lawyer. When they have settled their legal costs and other fees, the successful party is given the rest of the money

Not only does this give lawyers the benefit to get their hands on the legal fees first but they are also able to do pro bono cases while still getting a small amount for their services.

The “Win” in the No-Win No-Fee Agreement

As mentioned earlier, the “win” doesn’t exactly come free. There are a few disbursement charges that need to be paid, which include photocopying expenses, court fees, medical report fees, barrister’s fees and title searches. These charges are usually paid by the client in case he loses the case. However, there are a few companies that take the case completely free such as https://www.lawadvice.com.au/no-win-no-fee. On the other hand, if it is a win, the lawyer demands a slightly higher fee as compared to a standard costs agreement. Even in a situation like this, the client cannot be forced by the lawyer to cover legal costs that are above the margin.

In a way, this is a win-win situation for both parties because if the lawyer wins the case, not only is he reimbursed for the money he paid throughout the process but he also gets a slightly high legal fee for taking on a case that was dangling in the grey area.

Cooling Off Period

In case, you change your mind, you have five business days to inform your lawyer that you want to take back the case. You will not be charged any contingency fee or penalties for this.

The definition of a “win” here means that the lawyer guarantees a positive outcome. If the case does go in your favour, only then the lawyer is allowed to ask you for professional charges.



You can be the first one to leave a comment.


Leave a Comment


You must be logged in to post a comment.