A question that is frequently asked by new clients in relation to no win, no fee legal services is: how much do no win no fee lawyers take?
Statutory cap that applies to no win no fee lawyers
Under the Legal Profession Act 2007 (Qld) a lawyer can charge no more than 50% of the net settlement amount in a no win no fee case.
What percentage do no win no fee lawyers take?
We often get asked this question and the answer is that it is actually unlawful for a law firm to charge on the basis of a percentage of the outcome. This is an American style of charging for legal services and is called a “contingency fee”. Contingency fees are prohibited under the Legal Profession Act 2007 (Qld). Law firms must charge what is fair and reasonable for their services.
How much do no win no fee lawyers charge?
The fees that a lawyer may charge in a no win no fee personal injury case will depend upon a number of factors. Most law firms charge on the basis of their time taken to do the work and can also charge additional amounts such as an “uplift fee” or “care and consideration”.
After your initial consultation with a no win no fee lawyer, you may be provided a costs agreement. The costs agreement is required to contain an estimate of the legal fees to complete the work and the how fees are charged.
How is the cap on legal fees calculated?
The cap on legal fees in Queensland in personal injury matters is calculated as follows:
What happens if my fees are more than 50% of the net settlement amount?
If your legal fees are greater than the cap under the legislation, the law firm will generally write-off the difference between the total fees and the cap.