Has your business entered a ‘No Win, No Fee’ Arrangement? Engaging with a Cost Lawyer may be your next move.

Has your business entered a ‘No Win, No Fee’ Arrangement? Engaging with a Cost Lawyer may be your next move.

Generally, ‘No Win, No Fee’ arrangements have a success rate of over 90%. Lawyers often offer these arrangements when it is likely they may win. Thus, bearing the upfront cost is less of a financial risk. Many business owners will opt for the arrangement with a cost-effective approach in mind, as it provides them with the legal aid they require without the need to consider the financial detriment.

So, it is common that businesses find themselves unprepared for the financial implications they face once their legal representation has been successful. A Cost Lawyer can help manage the pressure of the unexpected.

What is a ‘No Win, No Fee’ Arrangement?

The ‘No Win, No Fee’ arrangement was introduced in the 1990s in an attempt to improve the accessibility of the justice system, particularly for those who would not otherwise be able to afford upfront legal aid costs.

It is important to understand the terms of your Arrangement and how it will impact your business long-term. A No Win, No Fee Arrangement is a legal contract where the lawyer agrees to represent you legally without paying their professional costs upfront. If they win your case, you will then be obligated to pay.

As it is a legal agreement, the terms of the arrangement must be clear. For example, if you’re agreeing to pay based on a ‘Win’ or a ‘successful outcome’, it must be clear what will define this, so that there is no confusion when it is time to pay. It should also be plainly stated what the total costs are likely to be and how these fees have been calculated.

You should consider what is excluded from your ‘No Win, No Fee’ Arrangement. For example, if your case is unsuccessful (lost), you will not have to pay your lawyer's fees. However, other costs may be incurred, often referred to as disbursements. For business owners, understanding the intricacies of the costs they will face is crucial in managing their financial planning.

Why might I need help navigating my arrangement?

If you have not carefully reviewed and understood your arrangement, you may encounter unexpected consequences. Some common misconceptions of ‘No Win, No Fee’ arrangements include:

• You will not be responsible for paying anything if your case is lost. If your case is lost, you will not be liable to pay your fees. However, other charges may apply. This can be inclusive of, but not limited to, costs for reports and court filing fees, which can range from $100 to several thousand dollars per case.
• There is no risk for the claimant at all. If your case is unsuccessful and you do not need to pay your lawyer's fees or disbursements, you may still be liable to pay for the other party’s legal costs. These terms fall outside of your arrangement.
• All ‘No Win, No Fee’ arrangements look the same. This is not the case. Each Lawyer will outline the terms and conditions of the agreement they offer to you.
• These arrangements are always available as an option. Lawyers will most likely suggest this arrangement if they are quite certain they will win. Even so, these arrangements are usually only available in particular circumstances.
• There are no upfront costs. This can vary depending on your choice of legal aid. While the agreement generally means you won’t pay upfront, some firms may require payment for early expenses.

How can a Cost Lawyer help me with my arrangement?

Navigating the details of your arrangement can be difficult. With a Cost Lawyer by your side, it doesn’t have to be.

A Cost Lawyer can start by reviewing the terms of your arrangement. They are experts in legal billing costs, so they will be able to advise you of an estimation of the costs you will potentially face and when they are likely to be applied. This includes clarifying any hidden disbursements you may not have considered by verifying the terms of your agreement.

Arrangements must be made under fair and legal circumstances. A Cost Lawyer will be able to determine if your fee arrangement is fair and representative of similar cases/circumstances. If you believe your arrangement is not quite right, they can help you negotiate and lodge formal complaints for your costs.

Engaging with a Cost Lawyer can significantly protect your case by ensuring that you are protected and clear on the terms of your agreement. This additional guidance can make the difference between the amount of compensation you receive after the legal costs are incurred, as you will be better prepared to manage other fees you may have otherwise overlooked.

What can Law in Check do for you?

At Law in Check, we have over 30 years of experience in legal costing and are dedicated to making sure you understand the terms of your legal agreements and aim to protect your finances.

We can connect you with a Cost Lawyer who will provide you with expert advice and ensure the terms of your ‘No Win, No Fee’ arrangement are legal and reasonable before your business engages in a legal dispute.

See here for 5 tips to ensure your legal fees remain reasonable.