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How No Win No Fee Works

No Win No Fee No Win No Fee

"No Win, No Fee" describes an arrangement where a lawyer or advocate takes on a case for a client and the client is charged upon a successful result being achieved. Cases are settled or taken further on a case by case basis with regard to the merits of the case.

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What is no win no fee?

Describing an arrangement as "no win, no fee" is not enough. There must be written terms of engagement between the client and their advocate or lawyer. The ingredients of the client arrangement will include:

  • Hourly rates, fixed fees, or percentage fees.
  • Court filing fees and disbursements are payable.
  • Unreasonable termination results in fees being payable.
  • Misleading the Firm can result in fees being payable.
  • "No Win, No Fee" may not proceed past negotiation and mediation.
  • The achieving of a Financial Settlement, or money on the table is considered a "win".

If there is reasonable money on the table, we take it, otherwise we continue in taking the case further. Cases are settled or taken further on a case by case basis with regard to the merits of the case. The Firm will take the lead on settlement figures.

Merits of a case

There is always risk in a Firm taking a case on a "no win, no fee" basis. If a case is taken past negotiation and mediation, the problems that may be faced by a litigant may include:

  • The facts of the case may not favour a win.
  • The strength of the defence to the case.
  • Credibility issues with the client.
  • Lack of client commitment, including failure to write a witness statement or provide documents.
  • Inability of a client to quantify losses, or to show mitigation of economic losses.

It is therefore important that a client takes direction from the Firm because if a settlement offer is made by the other party and if it is reasonable, taking the settlement offer is better than possibly losing the case later on.

What if you lose?

If there is nothing reasonable offered to settle the dispute and the case is decided upon and the client loses their case, the client may be liable to contribute to the costs of the defending party. This is why we strongly consider the merits of any case we take on and that we seriously consider offers to settle the dispute. If a client is unreasonable in declining what the Firm considers to be a reasonable settlement offer, the client will be charged for the work performed.


Last Updated: October 3, 2020 0800 WIN KIWI