No win no fee means you pay nothing in legal fees unless your claim is successful. But the phrase covers a lot of ground. How fees are actually calculated, what happens to disbursements if you lose, whether uplift fees apply, and what winning means in personal injury law are all things worth understanding before you sign anything.
What No Win No Fee Actually Means
In Queensland, no win no fee is the common name for what the Legal Profession Act 2007 (QLD) calls a conditional costs agreement. Under this type of agreement, a law firm agrees to act for a client and only charge legal fees if the matter concludes successfully. If the claim is unsuccessful, the client does not pay the firm’s professional fees.
The arrangement exists because personal injury claims can take months or years to resolve. People who have been injured often face lost income, medical expenses, and financial pressure at the same time. Requiring upfront payment for legal representation would mean many eligible claims are never pursued. A conditional costs agreement removes that barrier.
| THE LEGAL TERM |
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| In Queensland, all costs agreements between lawyers and clients are governed by the Legal Profession Act 2007 (QLD) and the Legal Profession Regulation 2017 (QLD). A no win no fee agreement is specifically a conditional costs agreement under Part 3.4 of the Act. It must be in writing, signed by the client, and set out clearly what the lawyer’s fee will be if the matter is successful. |
How Fees Are Calculated
Legal fees under a no win no fee agreement are almost always calculated with reference to a capped percentage of the compensation you receive. The percentage is set out in your costs agreement before work begins. It is one of the most important things to check before signing.
Different firms use different approaches. Some charge on a time basis (hourly rates), with the total capped at a percentage of your compensation. Others apply a fixed percentage from the outset. What matters is that you understand exactly how the number is calculated and what it will look like in dollar terms against a realistic settlement figure.
Capped fees (How most firms charge)
The firm’s fee is calculated either on an hourly rate, or using a schedule of costs, and then capped at a certain percentage. Some firms charge up to 50 per cent of the compensation amount. The percentage should be clearly stated in your costs agreement before you sign. At Best Injury Lawyers, legal fees are capped at 30% plus GST of the compensation received. That cap applies regardless of how long the matter takes or how complex it becomes.
Uplift fees (Additional charges to ask about)
Some firms apply a percentage premium on top of the base fee, either as an uplift fee or as a charge called care and consideration. These are additional amounts added to your final legal bill after the matter concludes. If your base legal fee is $10,000 and a 25% uplift applies, you pay $12,500. At Best Injury Lawyers, no uplift fee charge are applied. The rate stated in the costs agreement is the rate charged.
Disbursements (Separate from legal fees)
Disbursements are out-of-pocket expenses incurred in running your claim: medical reports, expert assessments, court filing fees, process serving, and similar costs. They are separate from legal fees and their treatment varies between firms. At Best Injury Lawyers, disbursements are funded on the client’s behalf throughout the matter and are only repayable if the claim is successful. If the matter is unsuccessful, disbursements are not charged to the client.
Our Conditions of Service
The following is a outline of how Best Injury Lawyers acts for personal injury clients.
How Best Injury Lawyers acts for personal injury clients
✓ No win no fee
We act on a conditional costs agreement. If your matter is unsuccessful, you do not pay our professional fees.
✓ 30% plus GST fee cap
Our fees are capped at 30% plus GST of the compensation you receive. That cap applies across all personal injury matters we handle. Many firms charge more.
✓ No uplift fee
We do not apply an uplift fee. The fee rate in your costs agreement is the fee rate that applies at the end of the matter.
✓ Disbursements funded and only repayable if successful
We fund disbursements throughout the matter using a disbursement funder. If your claim does not succeed, we do not require you to repay disbursements.
✓ Free initial consultation
Your initial consultation with a lawyer is free, without obligation, and without affecting any time limits that may apply to your claim.
What Does Winning Mean?
In personal injury claims, success under a no win no fee agreement typically means reaching a settlement or obtaining a court judgment that results in compensation being paid to you. Your costs agreement should define this clearly. The most common definition is that the matter concludes with a payment of compensation, whether by settlement or judgment.
Some matters settle for less than the full value of the claim. Others settle at the compulsory conference before any court proceedings. The costs agreement should be clear that a negotiated settlement is a successful outcome for fee purposes, provided it results in compensation being paid.
| READ YOUR COSTS AGREEMENT CAREFULLY |
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| The definition of successful outcome in your costs agreement determines when fees become payable. A matter that settles for less than expected is still a success if compensation is received. Ask your lawyer to explain exactly what the fee will be on different settlement amounts before you sign, so the financial picture is clear from the outset. |
Disbursements: The Detail Most People Miss
One of the most significant differences between law firms offering no win no fee services is how they treat disbursements. Disbursements are the out-of-pocket costs of running the claim, as distinct from the firm’s professional fees. Common disbursements in personal injury matters include:
- Medical report fees from treating practitioners and independent specialists
- Independent medical examination fees
- Court filing fees if proceedings are commenced
- Process serving costs
- Expert witness fees for vocational assessors, economists, or engineers
- Transcript and hearing fees
- Search and administrative costs
In some matters these costs are modest. In complex cases involving multiple medical experts or court proceedings, they can be substantial. There are three different approaches you will encounter across different firms.
Three Approaches to Disbursements
Approach 1: Client pays as they arise.
Some firms require clients to pay disbursements as they are incurred, even under a no win no fee arrangement. This means out-of-pocket costs regardless of the outcome.
Approach 2: Funded but repayable if unsuccessful.
The firm funds disbursements throughout, but if the matter is unsuccessful, the client must repay them. This removes the upfront cost but preserves financial risk if the claim fails.
Approach 3: Funded and only repayable if successful.
Disbursements are funded throughout and only repaid from successful compensation. If the matter is unsuccessful, no disbursements are charged to the client. This is the approach Best Injury Lawyers takes.
The Queensland Legal Framework
All costs agreements in Queensland, including no win no fee agreements, are governed by the Legal Profession Act 2007 (QLD). The Act sets out the minimum requirements for a valid costs agreement and the disclosure obligations a lawyer owes to a client before the agreement is signed.
What your costs agreement must contain
Under the Legal Profession Act 2007 (QLD), a costs agreement for personal injury matters must be in writing and must include:
- A clear description of the legal services to be provided
- The basis on which fees will be charged (percentage, hourly, or other method)
- Whether an uplift fee applies and, if so, the percentage
- How disbursements will be treated
- What constitutes a successful outcome for fee purposes
- The circumstances in which the agreement can be terminated
- What happens to fees if you terminate the agreement before the matter concludes
Your right to a costs disclosure
Before work begins, your lawyer is required to provide you with a costs disclosure that gives you a reasonable estimate of the total likely cost of your matter. This disclosure is a legal requirement, not a courtesy.
| TERMINATION RIGHTS |
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| You can terminate your costs agreement and change lawyers at any time. However, if you terminate the agreement after work has been done, the firm may have a right to charge for work performed even if the matter has not yet concluded. Your costs agreement must explain how this works. Understanding the termination provisions before you sign matters, particularly if the matter is a long-running one. |
Questions to Ask Before You Sign
No two costs agreements are identical. Before signing any no win no fee agreement, the following questions are worth getting clear answers to.
| Question | Why it matters |
|---|---|
| What percentage of my compensation will be taken as fees? | Some firms charge up to 50%. Knowing this upfront changes the real value of any settlement figure. |
| Is there an uplift fee? | This is an additional amount applied on top of the base fee. A 25% uplift on a $15,000 bill adds $3,750. Firms that do not charge them are preferable. |
| What happens to disbursements if the matter is unsuccessful? | Some firms require you to repay disbursements even if the claim fails. The answer directly affects your financial risk. |
| What is the definition of a successful outcome in the agreement? | Makes clear exactly when fees become payable and what a negotiated settlement means for fee purposes. |
| What are my options if I want to change lawyers? | Termination provisions affect how much you may owe if you move to a different firm before the matter concludes. |
| What will my approximate legal fee be at different settlement amounts? | Seeing the dollar figure at $100,000, $200,000, and $300,000 settlements puts the percentage in concrete terms. |
Frequently Asked Questions
It depends on your costs agreement. Under a no win no fee arrangement, you do not pay the firm’s professional legal fees if the matter is unsuccessful. What happens to disbursements, the out-of-pocket costs of running the claim, varies between firms. Some firms fund disbursements throughout the matter and do not charge them to the client if the claim fails. Others require the client to repay disbursements even if unsuccessful. At Best Injury Lawyers, disbursements are funded and are only repayable from a successful outcome. If your claim does not succeed, we do not charge you for disbursements.
An uplift fee is an additional percentage charged on top of a firm’s base professional fee, applied at the conclusion of a successful matter. If a firm charges an uplift fee of 25% and the base legal fee is $12,000, the final fee is $15,000.Some firms charge it; others do not. Before signing a costs agreement, ask specifically whether any uplift fee applies. At Best Injury Lawyers, no uplift fee is applied.
Legal fees under no win no fee arrangements in Queensland are most commonly capped as a percentage of the compensation you receive. The percentage varies significantly between firms. Some charge 50% (the legal limit in Queensland under the 50/50 rule) of the compensation amount; others apply lower caps. At Best Injury Lawyers, legal fees are capped at 30% plus GST of the compensation received. Additionally, the presence or absence of uplift fees and how disbursements are treated can significantly affect the total amount taken from your settlement.
A conditional costs agreement is the legal term under the Legal Profession Act 2007 (QLD) for what is commonly called a no win no fee agreement. It is a written agreement between a lawyer and a client under which the lawyer’s right to be paid professional fees is conditional on the matter concluding successfully. The agreement must be in writing, signed by the client, and must set out the basis for calculating fees, the definition of a successful outcome, how disbursements are treated, and the terms on which the agreement can be terminated. All personal injury no win no fee arrangements in Queensland operate within this legislative framework.
Disbursements are the out-of-pocket costs incurred in running a personal injury claim, separate from the lawyer’s professional fees. Common disbursements include medical report fees from treating practitioners, independent medical examination fees, expert witness fees, court filing fees, and process serving costs. In straightforward matters, disbursements may be relatively modest. In complex matters involving multiple specialists or court proceedings, they can be substantial. How disbursements are handled if the matter is unsuccessful is one of the most important questions to ask before signing a costs agreement.
Yes. You can terminate a costs agreement and change lawyers at any time. However, if the agreement has been running and work has been done, the firm may have a right to charge for work performed up to the termination date. The amount owed on termination depends on the specific terms of your costs agreement, which must set out what happens if the agreement ends before the matter concludes. Under the Legal Profession Act 2007 (QLD), clients also have a right to request an itemised bill and to have disputes about legal costs resolved through the costs assessment process.
No win no fee arrangements are most commonly available for personal injury claims where there is a reasonable prospect of success and a defendant who can pay compensation, typically backed by insurance. In Queensland, this covers the main personal injury claim types: WorkCover and workers compensation claims, CTP motor vehicle accident claims, public liability claims, and total and permanent disability (TPD) claims through superannuation. Whether a specific matter is suitable for a no win no fee arrangement is assessed on the individual facts of the claim during an initial consultation.
Legal aid is government-funded legal assistance for people who cannot afford a lawyer and whose matter meets eligibility criteria. Eligibility is means-tested and merit-tested, and legal aid is not generally available for most personal injury compensation claims in Queensland. No win no fee, by contrast, is a private commercial arrangement between a law firm and a client. It is not means-tested. A firm agrees to take on a matter without charging upfront fees, in exchange for payment on fees upon successful outcome. Most personal injury claims in Queensland are handled under no win no fee arrangements rather than through legal aid.
The fee arrangement does not affect the value of your claim or the amount the other party pays. Compensation in personal injury claims is assessed on the specific facts of your injury and losses, independently of how you are paying your lawyer. What the fee arrangement does affect is how much of your compensation you receive in the hand after legal fees are deducted. A lower percentage cap and the absence of uplift fees mean you keep more of your settlement. This is why comparing fee arrangements between firms, not just the existence of no win no fee, is worth doing before you commit to a particular firm.
Questions about our conditions of service?
Our firm practises exclusively in personal injury law across Queensland. We act on a no win no fee basis with a 30% plus GST fee cap, no uplift fees, and disbursements funded and only repayable if your claim succeeds. If you would like further information about how we act for personal injury clients, contact our office. Initial consultations are free.
