All about no win no fee agreements for personal injury matters in Victoria

No win no fee means your lawyer agrees not to charge professional legal fees unless your matter has a successful outcome. It is usually set out in a written conditional costs agreement.

In Victoria, a no win no fee agreement explains when legal fees become payable, how costs are calculated and what counts as a successful outcome. You should read the agreement carefully before signing.

Not always. Some agreements waive all costs if you lose, while others may still require you to pay disbursements, barrister fees, court fees or other expenses.

No. No win no fee agreements can differ significantly between lawyers, especially around disbursements, uplift fees, successful outcomes and what happens if you change lawyers.

A conditional costs agreement is the formal name for a no win no fee arrangement. It is a legal contract that says certain legal fees are only payable if specified conditions are met.

Yes, the agreement should be in writing and signed before it takes effect. You should make sure you understand the terms before signing.

A good agreement should include an estimate of total legal costs, when costs are payable, a definition of a successful outcome, a cooling off period and your right to independent legal advice.

Yes. In Victoria, no win no fee agreements should advise you that you have the right to seek independent legal advice before signing.

A cooling off period is the time after signing when you can decide to end the agreement. The document explains that this should usually be at least five clear business days.

Yes, you can usually end the agreement during the cooling off period by writing to your lawyer. You should keep a copy of your written notice.

Yes. Clients can negotiate the terms of a cost agreement, including estimated costs, disbursements and any uplift fee.

Ask what costs you may pay if you lose, whether disbursements are covered, how success is defined, what uplift fee applies and what work the agreement covers.

A successful outcome is the event that triggers your liability to pay legal fees. It may include a settlement, an acceptable offer, a benefit being obtained or a costs order in your favour.

No. A successful outcome depends on the wording of the agreement, not just whether you personally feel satisfied with the result.

Possibly. Some agreements may treat an offer your lawyers consider reasonable as a successful outcome, even if you do not want to accept it.

Disbursements are out-of-pocket expenses incurred in running your case, such as medical reports, court filing fees, expert reports, photocopying fees and barrister fees.

Sometimes, but not always. You should ask whether the agreement covers both professional legal fees and disbursements if your claim is unsuccessful.

Disbursements can add up to thousands of dollars. If they are not waived when you lose, you may still face a significant bill even though the agreement is described as no win no fee.

An uplift fee is a percentage increase added to legal fees to reflect the risk the lawyer takes by acting on a no win no fee basis. It is only payable if the agreement allows it and the matter succeeds.

An uplift fee in Victoria may be between 0% and 25% of the lawyer’s fees. It should be based on legal costs, not the compensation amount.

In practical terms, an uplift fee can operate like a success fee. It is an additional amount charged on top of legal fees when a successful outcome occurs.

Contingency fees based on a percentage of an individual settlement are banned in Victoria, except for some class action contexts. Legal fees should be based on work performed, not simply the payout amount.

WorkCover legal costs are commonly calculated using the County Court scale. This is a structured way of charging for legal work performed.

The County Court scale is a standard method for calculating legal costs. It is generally the Supreme Court scale reduced by 20%.

For many Victorian WorkCover matters, the County Court scale is usually appropriate. If your agreement uses the Supreme Court scale, you may want to ask why.

Reasonable and proportionate costs are costs that relate to the work actually performed, the skill involved and the nature of the case. They should not simply be based on the size of your compensation.

The scope of work explains what legal tasks your lawyer will perform under the agreement. It should be clear and specific, rather than broad or vague.

It is often better to separate major stages, such as a serious injury application and a common law claim, into separate agreements. This can make costs clearer and more manageable.

The scope of work affects what you are agreeing to pay for and what costs estimate applies. A broad scope may expose you to a larger costs range than necessary.

Yes, you can usually terminate the agreement and change lawyers. However, you may need to deal with costs and disbursements owed to the first lawyer.

If you terminate the agreement, you may become liable for costs and disbursements incurred to date. The exact result depends on the wording of your agreement.

Yes. It is sensible to speak to a new lawyer first so they can help work out what costs, if any, may be owed to your old lawyers.