This is not the same as the American system, where the lawyer takes a percentage of the winnings. Rather it is a no-win, no-fee system. The client does not pay his own lawyer if he loses, but would still be up for the fees of the other side.
The Melbourne firm’s action follows a recommendation in the Access to Justice report that came out in May, but it is not especially new. In Canberra, for example, firms have been quietly doing the right thing by poor clients for decades. It would be fair to say that in personal injuries cases in Canberra, no-one with a reasonable case would be denied legal representation just because they did not have enough money. The trouble is, lawyers have either not trumpeted their good works, or the rules about advertising have prevented them from making the practice more widely known.
The practice varies. Some say they will only charge if they win. Others say they will not require payment until the outcome is known (maybe years later), but clients will be required to pay if they lose. Also, the practice varies on disbursements (doctors’ reports and other out-of-pocket expenses). Barristers, too, often work on a no-win, no-fee basis.
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