A no win no fee or conditional costs agreement usually defers legal fees until a successful outcome. It may not cover every cost. Disbursements, uplift fees and adverse costs can still apply, so families should check the written terms carefully.
What the agreement covers
Conditional agreements typically state that professional fees are payable only if the claim succeeds, and they define what success means. Read that definition closely. Some agreements treat a modest settlement as a success, while others set out different terms if the claim ends early or you change lawyers.
Disbursements
Disbursements are out-of-pocket costs such as expert reports, medical record fees, court filing fees and barristers. Expert evidence in birth injury claims can be substantial. Ask whether the firm pays these up front, and whether you must repay them if the claim fails.
Uplift fees and other charges
Some agreements include an uplift: an extra percentage added to professional fees on success to reflect the firm's risk. Whether an uplift is allowed, and any limits on it, depends on the jurisdiction's legal profession rules. Ask how interest, litigation funding or insurance premiums are treated too.
- How success is defined
- Whether disbursements are payable if the claim fails
- Uplift rate and how it is calculated
- Interest on unpaid disbursements
Adverse costs
If a case is lost in court, the losing party may be ordered to pay part of the other side's legal costs. Ask whether the firm or an insurance policy covers this risk, and what happens if you decide to stop the claim partway through.
Written disclosure
Lawyers generally must provide written costs information, including estimates and your rights to dispute a bill. Ask for an estimate of total costs and how it will be updated. If a settlement is proposed, ask what you will actually receive after fees, disbursements and repayments.
For your next conversation
- The full costs agreement and costs disclosure documents
- The agreement's definition of a successful outcome
- A disbursement estimate, especially for expert reports
- Terms that apply if you end the agreement early
- Information about adverse costs cover
Common questions
Does no win no fee mean we will never pay anything?
Not always. Depending on the agreement, you may still owe disbursements, adverse costs if a court case is lost, or fees if you end the agreement early. Read the written terms, and ask the lawyer to explain each possible cost in plain language.
Can legal costs come out of a child's settlement?
Often, yes, although courts commonly review costs where a settlement concerns a child. Ask your lawyer how costs will be assessed, whether court approval is required, and how much of the settlement is likely to be preserved for your child's needs.
Sources & further reading
These references support the topic’s starting points. They do not determine the facts, standard of care or law applicable to an individual matter.