15/09/2026
⚖️ NO WIN, NO FEE… BUT WHAT DOES THE LAW ACTUALLY SAY?
You may have heard the phrase “No Win, No Fee” when it comes to legal claims.
But did you know that contingency fee arrangements in South Africa are specifically regulated by the Contingency Fees Act 66 of 1997?
📢 LET’S BREAK IT DOWN!
A contingency fee agreement is an agreement between a legal practitioner and a client where the attorney's entitlement to fees is linked to the successful outcome of the matter.
Under section 2 of the Contingency Fees Act, a legal practitioner may enter into such an agreement if, in their opinion, there are reasonable prospects that the client may be successful in the proceedings.
⚖️ WHAT DOES THIS MEAN?
Depending on the agreement, it may provide that:
🔹 The legal practitioner will not be entitled to fees for services rendered unless the client is successful to the extent specified in the agreement; OR
🔹 The legal practitioner will be entitled to their normal fees, or fees higher than their normal fees, if the client is successful.
However, where the fees are higher than the legal practitioner's normal fees, the Act places important limitations on the amount that may be charged.
🚨 THE FEES - 25% OR DOUBLE THE NORMAL FEES
The agreement may entitle an attorney to his or her normal fees for services rendered, if the client’s claim is successful. In this case, there’s no statutory cap on the fee amount.
Alternatively, the agreement may entitle the attorney to a success fee, in addition to the normal fee.
By law, the total fee in this case is limited to 25% (VAT inclusive) of the capital sum (damages) recovered or double the lawyer’s normal fees – whichever is the lesser. South African courts have upheld this cap, declaring contingency fee agreements that don’t comply with the Act invalid.
Like any legal fee, a success fee is calculated with reference to work actually done.
Expenses/disbursements are excluded from both fee calculations.
📝 IT MUST BE IN WRITING
A contingency fee agreement must be properly recorded and signed.
The Act requires the agreement to be signed by the client and the attorney. Where an advocate is briefed, the advocate must also countersign the agreement and becomes a party to it.
The agreement should clearly set out the basis upon which the legal practitioner's fees will be calculated and the circumstances in which those fees become payable.
❌ IS EVERY MATTER A “NO WIN, NO FEE” MATTER?
No.
The Contingency Fees Act does not provide a blanket right to a contingency fee arrangement for every type of legal matter.
The Act specifically excludes criminal proceedings and proceedings in respect of family law matters from its definition of proceedings to which a contingency fee agreement may apply.
A legal practitioner must also consider whether there are reasonable prospects of success before entering into such an agreement.
💡 BEFORE YOU SIGN…
If you are considering a contingency fee agreement, make sure you understand:
✔️ What constitutes “success” in your matter
✔️ When the attorney's fees become payable
✔️ How the fees will be calculated
✔️ What happens if the matter is unsuccessful
✔️ What happens to legal costs and disbursements
✔️ Whether the proposed arrangement complies with the Contingency Fees Act
✔️ What amount you can ultimately expect to receive
“NO WIN, NO FEE” MAY SOUND SIMPLE — BUT THE AGREEMENT IS IMPORTANT.
Don't sign an agreement simply because it says “No Win, No Fee”. Understand the terms, understand the costs, and understand your rights.
⚖️ Need advice about a potential claim or contingency fee agreement? Speak to a legal practitioner before proceeding.
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