Clauses to check in a personal injury costs agreement (2026)
A personal injury costs agreement on a “no win, no fee” basis must be in writing, in plain language and signed by you. Under the Legal Profession Act 2007, it must define a successful outcome. It must also mention your right to independent advice and allow at least 5 clear business days to cool off.
Key takeaways
What a personal injury costs agreement is
A personal injury costs agreement is a contract about how you will pay your lawyer. The Legal Services Commission (LSC) calls a properly made costs agreement “a contract for the payment of legal costs”. Under s 326 of the Legal Profession Act 2007 (LPA), you and the firm can enforce it like other contracts, subject to the Act.
Under s 322, it must be in writing or have written evidence. You can accept a general costs agreement by conduct. However, you must sign a “no win, no fee” agreement. This checklist goes clause by clause. For the wider fee rules, see our guide to personal injury lawyer fees in Queensland.
Required clauses in a personal injury costs agreement
Most injury claims run on a conditional, or “no win, no fee”, basis. For those agreements, s 323 sets firm requirements. Use this table as a checklist when you read a personal injury costs agreement.
|
Clause |
What to look for |
Law |
|---|---|---|
|
Successful outcome |
A clear description of what counts as success, so you know when fees become payable |
s 323(3)(a) |
|
Disbursements |
Whether you pay disbursements whatever the outcome |
s 323(3)(b) |
|
Form |
In writing, in clear plain language, and signed by you |
s 323(3)(c) |
|
Independent advice |
A statement that you were told of your right to independent legal advice before signing |
s 323(3)(d) |
|
Cooling-off |
At least 5 clear business days to end the agreement by written notice |
s 323(3)(e) |
|
Uplift fee (if any) |
The basis of calculation, separately identified, plus an estimate or range |
s 324(2)–(3) |
How success is defined in a personal injury costs agreement
The definition of a successful outcome is the core of the deal. It decides when you owe fees. For example, check whether a settlement of any size counts, or only an outcome above some level. Also check what happens if the claim ends part way through.
If the wording is unclear, ask the firm to explain it in writing. The law requires plain language, so you have a right to understand it.
Uplift fee clauses in a personal injury costs agreement
Some agreements add an uplift fee: an extra charge if the claim succeeds. Under s 324, the agreement must identify how the firm calculates it and estimate it. In a litigious matter, it can’t exceed 25% of the legal costs, excluding disbursements.
Before you sign, the firm must also tell you in writing its reasons for the uplift fee (s 313). Our uplift fee guide explains the rules in detail.
Terms a personal injury costs agreement can’t include
The Act bans some terms. Watch for clauses that:
What happens if a banned term is used
A costs agreement that breaches these rules is void (s 327). If it breaches the uplift rules, the firm can’t recover the uplift fee. Worse, a breach of the contingency fee ban means the firm can’t recover anything for its legal services. In each case, it must repay what it received.
The costs disclosure that comes with it
Firms often build costs disclosure into a personal injury costs agreement. If so, under s 310A(5), it must sit in a prominent position at the beginning. Detailed disclosure applies where legal costs are likely to exceed $3,000, excluding disbursements and GST (LSC: Costs disclosure). Under s 308, it must include:
Billing, interest and security clauses
Check how your personal injury costs agreement deals with billing. Under s 321, a firm can charge interest on unpaid costs if the agreement allows it. Otherwise, it can do so 30 days after giving a bill. The bill must state that interest is payable and the rate. Also, the rate can’t exceed a cap set by regulation. That cap follows a rate set under the Civil Proceedings Act 2011.
A firm may also take reasonable security for its costs (s 320). In addition, you can ask for a free itemised bill after a lump sum bill (s 332; LSC: Billing).
The 50/50 cap and settlement estimates
In a speculative personal injury claim, the 50/50 rule in s 347 caps total claim-related costs. A clause can’t override that cap. So look for a clause that explains how the firm applies it. Our 50/50 rule guide has the formula.
Also, before a litigious matter settles, the firm must estimate the legal costs you will pay (s 312). It must also estimate any contribution from the other side. Ask for this in writing before you accept an offer.
The cooling-off period for a personal injury costs agreement
A conditional personal injury costs agreement must give you at least 5 clear business days to cool off. You end it by written notice. If you do, s 323(5) limits the firm to costs for work you knew about and asked for. It can’t recover any uplift fee.
If your personal injury costs agreement seems unfair
You have several options. First, raise it with the firm. Second, if the firm didn’t make required disclosures, you need not pay until there is a costs assessment (s 316). Third, the Supreme Court or QCAT can set the agreement aside if it is not fair or reasonable (s 328).
Finally, you can generally seek a costs assessment within 12 months of a bill (s 335; LSC: Costs assessments). You also have the right to independent legal advice at any stage.
Frequently asked questions
Sources
Related guides
About the author
Marshall Fenech, Editor
Marshall Fenech is the editor of Compare Personal Injury Lawyer QLD. He researches Queensland personal injury law firms and claim rules, checks every fact against public sources such as the Queensland Law Society, MAIC, WorkCover Queensland and Queensland legislation, and dates each check. He does not give legal advice.
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