Legal Costs For A Common Law WorkCover Claim In Queensland
Legal costs are among the most common questions injured workers ask about. Queensland law sets clear rules on how personal injury legal costs can be charged, and firms can structure their fees in various ways.
The information below explains how costs generally work and how much personal injury lawyers cost in Queensland.
No Win, No Fee
Most Queensland personal injury law firms act in common law WorkCover claims on a no-win, no-fee (speculative) basis under a conditional costs agreement. In general terms, this means you are not charged professional fees unless your claim is successful.
Conditional cost agreements in Queensland carry a cooling-off period of at least five business days, and you are entitled to obtain independent legal advice before you sign one.
How Professional Fees Are Usually Calculated
Most Queensland personal injury law firms charge professional fees on a time-billing basis. Work is recorded in six-minute units and charged at an hourly rate, with GST added, and many conditional cost agreements also include an uplift fee. Hourly rates in Queensland personal injury practice commonly range from between $300 to $600 per hour.
Because a time-billed account grows with the amount of time recorded, professional fees under this model can build up over the life of a claim.
How Claimwise Charges
Claimwise uses a capped-fee structure rather than an open-ended time-billed account. Our professional fees for a common law workers’ compensation claim are capped by reference to the stage at which the matter resolves:
- $2,000 + GST for the initial work
- $15,000 + GST if the matter resolves through informal negotiations
- $20,000 + GST if the matter resolves at a compulsory conference
- $40,000 + GST if the matter resolves at, or in the lead-up to mediation (after proceedings have started in court)
- $60,000 + GST if the matter resolves at, or in the lead-up to, trial (after a Request for Trial Date is served)
These caps apply regardless of how complex the matter becomes or how much additional support a client needs along the way.
Where the “50/50 rule” applies (explained below), Claimwise caps its professional fees at 25% of your net recovery.
Disbursements and Outlays
Disbursements – Are out-of-pocket expenses paid to third parties as a claim progresses, for example, medical reports, independent medico-legal reports, clinical and treatment records, court filing fees and barrister’s fees. Like most Queensland firms, Claimwise pays disbursements as the claim progresses and is reimbursed for them from the compensation if the claim is successful.
Outlays – Are a firm’s internal administrative costs, such as printing, photocopying, scanning and file storage. Claimwise does not charge clients for outlays.
Queensland’s Fee Rules and Consumer Protections
Queensland law contains a number of rules and protections about how personal injury legal costs can be charged. They include:
- No Contingency (“Percentage of Settlement”) Fees: Under the Legal Profession Act 2007 (Qld), a Queensland law practice cannot charge a fee that is calculated as a straight percentage of your settlement or award.
- A Cap On Uplift Fees: If a firm charges an uplift fee under a conditional costs agreement for a litigious matter, that uplift cannot exceed 25% of the professional fees, excluding disbursements.
- The “50/50 Rule”: In many Queensland personal injury matters, the legal costs a firm can charge and recover for the claim are limited to 50% of what you recover after refunds and disbursements are deducted. It is a cap, not a standard fee, and firms can still charge very different amounts below it.
- Written Costs Disclosure: Your lawyer must provide you with a written disclosure explaining the estimated costs, how you will be billed, your rights, and the main factors that may affect your fees.
- A Cooling-Off Period: A no-win, no-fee agreement generally carries a cooling-off period of at least five business days.
- Your Right To Know About Legal Costs: Your lawyer must give you the consumer guide on legal costs when you sign a costs agreement, and again when you sign a costs agreement, and again when your matter is finalised.
If you are unsure about a costs agreement, you are entitled to obtain independent legal advice before you sign it.