Funding your claim · No win, no fee guide
If a professional has failed you — and that failure has caused real harm — one of the first questions people ask is: can I even afford to do anything about this?
It is a fair question. Legal claims can feel financially out of reach, especially when you are already dealing with the fallout of someone else’s mistake. For professional negligence claims in Australia, a no win no fee arrangement often means the cost of taking action is not the barrier it first appears to be.
This guide explains how it works, what it covers, and what to look out for before you sign anything.
A no win no fee arrangement — formally called a conditional fee agreement (CFA) — is a funding model where your lawyer agrees to act for you without charging legal fees upfront. If your claim is unsuccessful, you do not pay your lawyer’s professional fees. If your claim succeeds, fees are either recovered from the losing party or deducted from your compensation.
It is important to understand that “no fee if you lose” refers specifically to your lawyer’s professional fees. Other out-of-pocket costs — known as disbursements — may still apply depending on the terms of your agreement. More on that below.
The process typically follows these stages.
1. Free case assessment
Before any agreement is signed, a specialist lawyer reviews your situation and assesses whether you have reasonable prospects of success. Not every claim will be accepted on a no win no fee basis — the lawyer takes on financial risk, so they assess carefully.
2. You sign a conditional fee agreement
If the lawyer agrees to take your case, you sign a CFA. This document sets out exactly what fees apply, under what conditions, and what happens if the case does not succeed. Read it carefully. Ask questions before you sign.
3. The claim is pursued
Your lawyer manages the claim on your behalf — gathering evidence, engaging experts, negotiating with the other side, and if necessary, taking the matter to court.
4. The outcome
If you win, legal fees are typically recovered from the losing party or deducted from your compensation. You receive the remainder. If you do not win, under the terms of a properly structured CFA, you do not pay your lawyer’s professional fees.
A word on disbursements: Disbursements are out-of-pocket costs such as court filing fees, medical or expert reports, and barrister fees. Some firms absorb these and only recover them if the claim succeeds. Others require you to fund them as the matter progresses. This varies between firms — it is one of the first things to clarify before proceeding.
Yes. Professional negligence is one of the areas where conditional fee arrangements are most commonly used in Australia. Claims in this space tend to involve substantial losses, clear professional duties, and expert evidence — factors that allow experienced lawyers to properly assess viability before taking a case on.
No win no fee arrangements are typically available for:
The common thread: a professional owed you a duty of care, they breached that duty, and you suffered measurable loss as a result. If those elements are present, your claim may be accepted on a no win no fee basis.
Before conditional fee agreements became standard, pursuing a professional negligence claim often required substantial upfront funds — funds that many people simply did not have, particularly after suffering the kind of loss that brings them to a lawyer in the first place. No win no fee removes that barrier.
When a lawyer agrees to act on a no win no fee basis, they are putting their own time and resources on the line. That creates a natural incentive to assess cases honestly and pursue them properly. Your lawyer’s financial outcome is tied to yours.
Because lawyers take on financial risk, they only accept cases they genuinely believe in. If a specialist professional negligence lawyer agrees to take your matter on a CFA, that is itself a considered assessment of your prospects.
Subject to the specific terms of your agreement, a properly structured CFA means that if the claim does not succeed, you will not be billed for your lawyer’s professional fees. For many people, that peace of mind makes the difference between pursuing a legitimate claim and walking away from it.
A conditional fee agreement is a legal contract. Before you sign, make sure you understand what you are agreeing to. The detail matters.
As discussed above, professional fees and disbursements are different. Some firms carry disbursement risk on your behalf and only recover them if the claim succeeds. Others do not. You need to know which arrangement applies to your matter and what your exposure is if the claim is unsuccessful.
Some CFAs include a “success fee” — an additional percentage charged on top of standard fees when the claim succeeds, in recognition of the risk the lawyer took on. Under Australian law, success fees must be disclosed to you clearly before you sign. Make sure you understand what percentage applies and how it will be calculated.
In some matters — particularly where there is a risk of paying the opposing party’s costs if the claim fails — your lawyer may recommend after-the-event (ATE) insurance. This is a policy taken out after the dispute arises to cover that exposure. It carries a premium, and it is worth understanding whether it is recommended for your situation and who funds it.
A CFA covers specific work. Understand what is and is not included — for example, whether it covers court proceedings or just negotiations, and what happens if the matter becomes more complex than originally anticipated.
What happens if you want to change lawyers partway through, or if the firm decides they no longer wish to act? The agreement should set out the consequences clearly. In some cases, if you terminate the agreement, fees may become payable. Know this before you start.
Yes. Conditional fee agreements are legally recognised in every Australian state and territory.
The specific rules governing CFAs vary by jurisdiction. In New South Wales and Victoria, the Legal Profession Uniform Law sets out the requirements for costs agreements, disclosure obligations, and permissible fee structures. Other states operate under their own Legal Profession Acts, which impose similar requirements.
Across the board, lawyers are required to provide you with a costs disclosure before entering into a costs agreement. That disclosure should explain your likely costs, the basis on which fees are charged, and what happens in different outcomes.
The Law Society of NSW, the Law Institute of Victoria, and their equivalents in each state oversee compliance by legal practitioners. If you have concerns about a costs agreement, the relevant Law Society in your state can provide guidance.
Fair Go Australia operates nationally. Whether your matter arises in Sydney, Brisbane, Melbourne, Perth, or a regional area, our network of specialist professional negligence lawyers can a
Act before time runs out. Professional negligence claims in Australia must generally be commenced within three years of the date you became aware — or reasonably should have become aware — of the negligence. This period varies by state and by the nature of the claim. Missing the limitation deadline can permanently extinguish your right to pursue compensation, regardless of how strong your case may be. If you are uncertain whether your time is still open, contact our team for a free assessment as soon as possible.
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If a professional’s failure has cost you — financially, physically, or in the loss of a legal right — you may be entitled to compensation. Understanding whether you have a viable claim costs nothing.
Our team specialises exclusively in professional negligence. When you submit an evaluation request, it goes to lawyers who work in this area every day — who understand the legislation, know the case law, and can give you a genuine assessment of where you stand. The evaluation is free, confidential, and carries no obligation to proceed.
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A no win no fee lawyer acts for you under a conditional fee agreement (CFA) — meaning their professional fees are only payable if your claim succeeds. If the claim is unsuccessful, you do not pay legal fees. It is a funding model designed to give people access to specialist legal help without needing to pay large upfront costs, and it is widely used for professional negligence claims in Australia.
Under a properly structured CFA, you will not be charged your lawyer’s professional fees if the claim is unsuccessful. However, disbursements — out-of-pocket costs such as expert reports, court fees, and barrister fees — are treated separately, and the terms vary between firms. Before signing any agreement, ask specifically what your disbursement exposure is if the claim does not succeed.
Lawyers assess each matter individually before agreeing to a CFA. They look at whether a duty of care existed, whether there is evidence of a breach, whether that breach caused your loss, and whether the likely compensation justifies the work involved. You do not need to have the answers to all of these before making contact — the purpose of a free case evaluation is to help work through exactly these questions.
Compensation in professional negligence claims typically aims to put you back in the position you would have been in had the negligence not occurred. The amount depends on the nature and extent of your loss — financial losses, costs incurred, lost opportunity, and in some cases, pain and suffering. Every matter is different, and any estimate of compensation requires a proper assessment of your specific circumstances. A specialist lawyer can give you a clearer picture after reviewing your case.
In many cases, yes — though the practicalities depend on how far along the matter is and what agreement, if any, you have with your current lawyer. A new firm will need to review the matter and assess whether they are willing to take it on. If you have an existing costs agreement in place, there may be fees owed to your previous lawyer depending on the termination terms. It is worth getting advice on this before making any change.
No. Legal aid is government-funded assistance for people who meet certain means and merits criteria. It is generally limited to specific types of matters — criminal law, family law, and some civil matters — and is not typically available for professional negligence claims. No win no fee is a private funding arrangement between you and your lawyer. The two are entirely separate.