At Your Claim Lawyers, our motto is ‘maximum claim, minimum fuss’. Our job is to maximise your compensation, while keeping your legal fees and outlays as low as possible, so that you get the most you can from your settlement.
We have explained some important rules about legal fees below, so that you understand the process, and why Your Claim Lawyers are the best in the business.
What is the 50/50 rule?
The 50/50 rule is a legislative protection for clients. It operates irrespective of our 30% cap, and applies to all law firms in Queensland.
The purpose of the rule is to protect clients from having their compensation unfairly depleted by legal fees. It prevents a situation where a client owes their lawyer money after settlement.
In general, the rule means that a lawyer cannot receive more in fees, than you receive ‘in the hand’, from your settlement.
Example: Your personal injury claim settles for $100,000.00 (including costs).
- Let’s pretend that your legal outlays (medical reports, barrister’s fees, records etc.), plus any refunds (Medicare, Centrelink, private health etc.) = $20,000.00
- This leaves $80,000.00 left to be divided between lawyer and client
- Even if the lawyer did $75,000.00 worth of work, the maximum they could charge in this scenario would be $40,000.00 – because they cannot leave with more than you get ‘in the hand’.
- So, the lawyer has to write off $35,000.00 worth of work – that is the risk of no win no fee!
For more information, see section 347 of the Legal Profession Act 2007.
What is the 30% cap, and why is it so good?
Many other personal injury firms are bound only by the 50/50 rule in relation to their fees.
We go one step further, and cap our fees at 30% (plus GST). But why is this so good?
Let’s apply the above example, where your personal injury claim settles for $100,000.00 (including costs).
- We will still pretend that your legal outlays (medical reports, barrister’s fees, records etc.), plus any refunds (Medicare, Centrelink, private health etc.) = $20,000.00
- A lawyer bound only by the 50/50 rule could charge a maximum of $40,000.00
- With our cap, we would only charge $30,000.00 plus GST
The bigger your claim is, the bigger that saving becomes! Think about what that saving could mean to you, and your family…