The short answer
A no win, no fee arrangement, formally called a conditional costs agreement, means that the law firm only gets paid for its professional time and effort if the claim succeeds. If the claim loses, you don’t pay the firm’s fees.
It is the standard way that personal injury and TPD claims are run in Australia.
What the agreement covers, and what it doesn’t
A conditional costs agreement is specifically about the firm’s professional fees. There are two other categories of cost worth understanding:
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Disbursements: out-of-pocket expenses the firm incurs to run your case (medical reports, court filing fees, expert opinions, barristers’ fees, etc.). Some firms waive these if the claim fails; some don’t. Check the agreement.
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Adverse costs: what you might have to pay the other side if you lose. For most personal injury matters there are statutory protections that limit adverse costs exposure, but it is not zero.
A good costs agreement makes all three of these explicit.
How fees are calculated if you win
If the claim succeeds, the firm’s fees come out of the recovery. This is typically expressed as a percentage, capped by the relevant state’s costs scheme. For most personal injury matters the cap is 50% of the net recovery after disbursements, though many firms charge less than the cap.
The firm’s fees, disbursements, and any adverse costs orders are deducted from the settlement or judgment, and you receive the balance.
“Uplift” fees
Conditional costs agreements often include an uplift of up to 25% on the firm’s standard fees, payable only if you win. This compensates the firm for taking the risk of getting paid nothing if the claim fails. Uplift fees should be disclosed in writing before the agreement is signed.
Our approach
We use a no win, no fee model with a written costs agreement set out before any work starts. We do not bill for the initial assessment and disbursements are reasonable and itemised.