Costs: How a Medical Negligence Claim Is Paid For
If the claim succeeds, fees and expenses are paid out of the compensation at the end. You do not pay them from your own pocket.
*If a claim goes to court and loses, the court can order you to pay the other side’s costs. See the one risk to know about.
Medical negligence claims at Peter Evans & Associates are run under a conditional costs agreement, often called “no win, no fee”. You pay nothing upfront and nothing while the claim runs. If the claim succeeds, legal fees, a 25% uplift and the costs of running the claim are paid out of the compensation. If it does not succeed, you do not pay legal fees or those costs. Everything is set out in writing before any work starts, and you have five business days to change your mind.
Worry about cost stops many people from asking whether they have a claim at all. They imagine large bills arriving before anything has been decided.
That is not how most medical negligence claims work. This page explains how claims are usually funded, what you pay and when, what happens if a claim does not succeed, and your rights before and after you sign.
Do I need money to start?
No. The first conversation, and an early view on whether there may be a claim, is free. If you go ahead, the claim is run under a conditional costs agreement, so you do not pay anything as the claim progresses. Find out about a free case review.
How a conditional costs agreement works
A conditional costs agreement means legal fees are only payable if the claim has a successful outcome. It is often described as “no win, no fee”. Under the agreement:
- you do not pay legal fees while the claim is running
- the costs of running the claim are paid as they arise, and repaid at the end if the claim succeeds
- if the claim succeeds, legal fees and costs are paid out of the compensation
- if the claim does not succeed, you do not pay legal fees or those costs under the agreement
This is defined in the costs agreement. It usually includes a court decision in your favour, a settlement, or compensation from another scheme. It can also include a reasonable settlement offer that your lawyer or barrister recommends you accept. Read this part of any agreement carefully, and ask about it.
Legal fees and the uplift fee
Legal fees are based on the time spent on the claim, recorded in six-minute units, at hourly rates set out in the agreement. You receive a written estimate of the total fees at the start, broken into stages, and you are told if that estimate changes significantly.
Because the law practice carries the risk of the claim not succeeding, and waits until the end to be paid, the agreement includes an uplift fee. If the claim succeeds, a 25% uplift is added to the professional fees. In New South Wales, the law caps uplift fees at 25%, and they cannot be calculated as a percentage of your compensation.
Disbursements: the costs of running a claim
Disbursements are the out-of-pocket costs of running a claim. In medical negligence, the largest are usually expert reports. They can include:
Evidence
- medical and hospital records
- independent expert reports
- medical reports on your condition
Running the claim
- barristers’ fees
- court filing fees and process servers
- transcripts and travel
Disbursements are paid as they arise, either by the law practice or by a separate disbursement funder, so you are not asked to pay them upfront. If the claim succeeds, they are repaid at the end. Interest may be charged on disbursements paid on your behalf, at a rate capped by the legal profession rules. You can choose to pay disbursements as they arise instead, to avoid interest.
If the claim does not succeed
Under a conditional costs agreement, you do not pay the law practice’s legal fees or disbursements if the claim is unsuccessful.
If a claim goes to court and loses, the court may order you to pay the other side’s legal costs. There is a similar risk if you reject a settlement offer and the court later awards you less than that offer. This is one reason claims are assessed carefully before court proceedings start, and why every offer is explained to you in writing.
Costs recovered from the other side
When a claim succeeds, the other side usually contributes to your legal costs. These recovered costs are worked out on a court scale, so they rarely cover all of the fees in your costs agreement. The difference comes out of your compensation. How recovered costs are applied is set out in the agreement.
Where the money goes when a claim settles
Before you agree to a settlement, you receive an estimate of the costs payable and the amount you can expect to receive. When the compensation is paid:
- it is paid into the law practice’s trust account, which is regulated and audited
- legal fees, the uplift fee and disbursements are paid, after any costs recovered from the other side are applied
- any amounts that must legally be repaid, such as to Medicare, Centrelink, the NDIA or a health fund, are paid
- the balance is paid to you
Read what compensation can cover.
Your rights
Before you sign. You receive a written costs agreement and a costs disclosure statement. You can ask questions, get independent legal advice, and negotiate the terms. Once signed, you have a cooling-off period of five business days to change your mind.
During the claim. You are told as soon as practicable about any significant change to the costs estimate. You can end the agreement at any time, although you may then need to pay for work already done.
If you disagree with a bill. In New South Wales, you can raise it with the law practice first, then with the Office of the NSW Legal Services Commissioner, or apply to the Supreme Court of NSW for the costs to be assessed.
In my practice
Nobody should have to choose between finding out what happened to them and paying their bills. That is why I run medical negligence claims under a conditional costs agreement, and why I do not take on a claim unless I believe it has real prospects.
Before you sign anything, I will go through the costs agreement with you line by line. If something is unclear, ask me. You should never be surprised by a bill.
With care,
Rosemary
Frequently asked questions
Do I have to pay anything upfront?
No. Under a conditional costs agreement, you pay nothing upfront and nothing while the claim runs. Legal fees are only payable if the claim succeeds, and the costs of running the claim are covered until the end.
What happens if I lose?
Under a conditional costs agreement, you do not pay the law practice’s legal fees or disbursements if the claim is unsuccessful. If the claim went to court, the court may order you to pay the other side’s costs, which is why that risk is discussed with you before proceedings start.
What is an uplift fee?
An extra amount added to legal fees if the claim succeeds, to reflect the risk of not being paid and the wait until the end of the claim. In New South Wales, it is capped at 25% of the legal fees and cannot be based on the amount of your compensation.
How much will my claim cost?
It depends on the claim. You receive a written estimate, broken into stages, before any work starts, and an estimate of what you will receive before you agree to any settlement.
Can I change my mind after signing?
Yes. There is a cooling-off period of five business days after signing. After that, you can still end the agreement, but you may need to pay for work already done.
Questions about costs?
A short, confidential conversation can help you understand whether you have a claim and how it would be funded. There is no cost to find out where you stand.
- Free claim checker: is it worth a closer look?
- Time limits: how long do I have?
- Compensation: what can I claim for?
- How a claim works, step by step
- Costs: how a claim is paid for (you are here)
- Free case review
Written by Dr Rosemary Listing, PhD (Law). Rosemary is a medical negligence lawyer and Of Counsel at Peter Evans & Associates. She has practised since 2013 and worked on many hundreds of claims. Her doctoral research examined patterns of failure in medical negligence, and she is a Sessional Lecturer in Health Law at the University of Newcastle. She is responsible for all content published under her name. Read the editorial standards.
This page describes how costs usually work for medical negligence claims at Peter Evans & Associates in New South Wales. The terms that apply to you are those in your own written costs agreement. Legal information reflects the law as at the review date.
Last updated 27 October 2026. First published 27 October 2026. Next review April 2027.
This page is general information only. It is not legal advice about your situation, and reading it does not create a lawyer and client relationship. If you are in crisis, call 000 or Lifeline on 13 11 14. Legal services are provided by Peter Evans & Associates.