No win, no fee vs Hourly fees
Under no win, no fee you pay your own lawyer nothing if you lose, but give up a share of a win. Paying by the hour costs money whatever the outcome, but you keep the whole award. No win, no fee suits claimants who cannot or do not want to fund the risk.
- If you lose
- No win, no fee: No fee to your own lawyer (expenses and the other side's costs may apply). Hourly fees: All your lawyer's fees, plus possibly the other side's costs.
- If you win
- No win, no fee: A share of the recovery or a success fee. Hourly fees: The fees already paid; you keep the whole award.
- Cash needed during the case
- No win, no fee: Little or none. Hourly fees: Regular invoices, often from the start.
- Who carries the risk
- No win, no fee: Mostly the lawyer. Hourly fees: You.
- Case selection
- No win, no fee: The lawyer only takes cases with good prospects. Hourly fees: The lawyer can act on cases with lower prospects.
Frequently asked questions
Is no win no fee really free if I lose?
You pay your own lawyer nothing if the agreement says so, but you may still owe expenses such as court fees and experts, and in most countries outside the US the other side's costs. Ask who covers these before signing.
Why would a lawyer turn down my case on no win no fee?
Because they are taking the risk. Lawyers look at the chances of winning, the amount at stake, whether the other side can pay, and the time it will take.
Can I switch from hourly fees to no win no fee?
Sometimes, with a new written agreement. A new firm may also take over a case on success terms after reviewing it.