Fee Structures

There are two ways in which an Attorney will act for you:

  1. On contingency i.e. No Merits – No claim, No Claim – No Fee basis, or
  2. In terms of a fee agreement

1. Legal Fees on Contingency:

Many Attorneys will take your case on contingency and/or will agree to wait for payment of all their costs, out of the proceeds of your claim. This means that you will not have to pay until the end of the care after the RAF has paid your compensation to your Attorney. The first time you meet with your attorney, you must find out how your case will be funded.

If your Attorney is prepared to act on contingency, an agreement must be signed by both you and your Attorney. You are entitled to a copy of this agreement. An Attorney acting on contingency is allowed to take up to 25% of the money paid out by the RAF, to cover his / her fees and own client costs.

2. Legal Fees on Agreement:

An Attorney acting in terms of a fee agreement (not on contingency) is entitled to charge you, in terms of the agreement.  This includes all the work that has been done and all the expenses incurred in making your claim. In this case, the Attorney may also be prepared to wait until the end of the case to recover all the costs, including expenses.

Some Attorneys may want you to pay some of the costs as your case proceeds. If you do not understand the fee or contingency agreement then make sure for the Attorney to explain the agreement to you.

The Attorney will also explain the difference between an attorney and own client costs, party and party costs, and capital. The RAF only pays capital, party, and party costs, which means that some of your capital will always be used to make up the difference between party and party costs and attorney and own client costs.