“No Win, No Fee” Explained (CTP Claims, NSW)

“No win, no fee” is one of the most-used phrases in personal injury advertising — and one of the most loosely defined. Here's what it generally means, why it's common in CTP damages claims, and what it doesn't automatically cover.

What it generally means

In a no win, no fee arrangement, your lawyer's professional fees are only payable if your claim succeeds — usually meaning you receive a settlement or an award of damages. If the claim is unsuccessful, you generally don't pay the lawyer's professional fees.

The important word is 'generally'. Arrangements vary between firms, and the phrase itself isn't a single standardised legal product — it's a description of a billing structure that each firm defines in its own costs agreement.

What it may not cover

Professional fees and disbursements are usually two different things. Disbursements are the actual out-of-pocket costs of running a claim — things like independent medical reports, filing fees, or barrister's fees for a hearing. Some no win, no fee agreements cover disbursements as part of the arrangement; others require you to pay them regardless of outcome, or deduct them from your settlement if you win.

This is exactly why a written costs agreement matters — it should spell out, in plain terms, what “no win” actually protects you from, and what it doesn't.

Why it's common in CTP damages claims

Maximum legal costs for common law damages claims in the NSW CTP scheme are capped by regulation, which gives lawyers a known ceiling to structure a no win, no fee offer around. It's also a natural fit for personal injury work generally: claims can take months or years, and most injured people aren't in a position to pay ongoing legal fees while they're also dealing with medical costs and lost income.

Statutory benefits vs damages

No win, no fee usually applies to common law damages claims — the lump sum track. Statutory benefits (weekly payments, treatment funding) work differently: legal costs there are recoverable from the insurer only in limited circumstances, so a lawyer's fee arrangement for that stage of a claim can look quite different. Ask specifically how your lawyer charges for each part of your claim, not just the headline no win, no fee offer.

“Conditional” costs agreements and uplift fees

No win, no fee is generally a type of conditional costs agreement — fees are conditional on a successful outcome. In some areas of law, conditional agreements can include an extra “uplift” fee on top of standard professional fees. Whether anything like that can apply, and how, is governed by the legal profession rules and the CTP costs rules, and the regulated caps on CTP damages costs still apply. The simplest approach is to ask directly whether the agreement includes any uplift or success fee, and get the answer in writing.

What if you change your mind partway through?

Sometimes people want to switch lawyers, or stop a claim, partway through a no win, no fee arrangement. What happens to fees and disbursements already incurred in that situation is entirely governed by your costs agreement — ask about it upfront, even though it's not the conversation anyone wants to have at the start. A clear answer here, in writing, before you sign, saves a much harder conversation later.

What we can and can't promise

We can explain what no win, no fee means and tell you that many motor accident lawyers offer it. What we can't do is promise that a particular lawyer will act for you on that basis, or that your claim will succeed — no one honestly can, before your case has been properly assessed. What we can promise is that our claim check is free and there's no obligation. Any lawyer you speak with should set out their costs terms in writing before you agree to anything.