Risks of “No Win No Fee” on Compensation matters.

Risks of “No Win No Fee” on Compensation matters.

Did you know that if your claim for compensation fails against insurance company, you will have to pay their legal costs? In litigation, there is no such thing as guaranteed win and the general rule is that “costs follow the event”.
Our client engaged services of “XYZ” law firm to act on their personal injury matter on a “No Win No Fee basis”. The court dismissed our client’s case and our client was ordered to pay costs of the insurance Company in the sum of around $100K.
The client than engaged our law firm and we made a claim that the “XYZ” law firm who acted for our client should be liable to pay the costs and not our client. We further pressed that the “XYZ” law firm has been “grossly negligent” based on various evidence on hand.
Yesterday, we were successful in settling the matter with LawCover in the District Court of NSW where by consent they agreed to pay all the costs of insurance Company allowing our client to walk away from making any payment.

PS – This is for general advice
By Ajay Singh
Principal Solicitor LL.M
Redline Legal
Parramatta Lawyers