The No-Win, No-Fee Agreement: How does it Work?

Everyone has the right to legal representation. But entering into a legal dispute is certainly a costly business, and not everyone can afford it easily. That’s where no-win-no-fee lawyers help people access legal services without needing to stress about the upfront costs of hiring the top lawyers.

According to Global Study on Legal Aid Country Profiles, about 26% of people in Australia received legal assistance to resolve a conflict with someone. Many of these people might have faced financial constraints during their case proceedings due to high legal costs, loss of work, etc.

The no-win, no-fee agreement is designed to ensure that no person is denied justice regardless of their financial status.

The ‘No-Win, No-Fee’ Agreement

Traditionally, a lawyer may ask a client to pay an upfront sum before working on the claim. The lawyers can also request ongoing fees, disbursements, and extra receipts while the claim is being worked on.

Whereas a no-win, no-fee agreement is a contract between a lawyer and client pursuing a claim. Usually, the agreement means that if the client is unsuccessful in pursuing their legal claim, then the no-win, no-fee lawyers will not charge any legal fees for the case.

However, if your claim is successful, the lawyer will charge a legally capped ‘success fee’ that will be taken from the compensation award to cover their costs.

This arrangement is helpful to people with limited financial resources who will not be restricted in hiring any lawyer to pursue their claims for damages.

The Working of No-Win, No-Fee Agreement

No-win, no-fee lawyers usually offer the agreements on a case-by-case basis. Before your case is accepted, the lawyer will tend to see if:

• Your case has any legal merit
• Your case has any chance of succeeding
• You can’t afford to take legal action without a no-win, no-fee agreement
• You are informed about the unlikely repercussions of losing the case, such as paying the other party’s costs.

Benefits of a No-Win, No-Fee Agreement

Financial Benefits

Usually, expensive lawyers can be a major blow to unsuccessful claimants who have to pay their lawyers despite losing the claim. However, you can reduce your financial risk by taking up a lawyer on a no-win, no-fee basis.

Timely Access to Legal Advice

Finding compensation lawyers within your financial capabilities may take time and thus delay the process of starting your claim. This may reduce your chances of success.

No-win, no-fee arrangement can help you get started promptly to access a free consultation and discuss your case. It expedites the process when you don’t have to arrange a lawyer’s fee before getting started.

Protecting Your Best Interests

No-win, no-fee lawyers will always act in your best interests, ensuring that you are aware of the potential outcomes of your case. The lawyers develop a close relationship with the client throughout the claim-making process to make the entire process less complicated. They will give you the best advice for your situation and always keep you informed.

Make the Process Less Stressful

The beginning of claim filing can be utterly stressful and difficult. Supposedly, you have been out of work and can’t pay any expenses incurred. No-win, no-fee lawyers understand your predicament clearly, and thus they always put your interests at the forefront of the process. This would ensure that there is the least amount of stress involved.

Various excellent lawyers charge costly upfront fees for litigations. However, there is no assurance that you will win the case. With no-win no-fee lawyers, you can be assured that they will definitely put in extra work to ensure your success. They are aware of the implications for both parties if the case is unsuccessful.