Can you imagine a world where all lawyers work on a no win no fee basis?

At the moment, personal injury lawyers are the only group of lawyers that work on a no win no fee basis.

If you are using the service of a bankruptcy lawyer, divorce lawyer or criminal defense lawyer, you would have paid the retainer for the service of these lawyers. You will be charged an hourly rate or a flat rate for the service.

You can hardly tell the lawyers to work on a no win no fee basis.

Let us understand the concept of no win no fee basis. We shall see why personal injury attorneys use this compensation scheme instead of the normal hourly rate scheme.

No win no fee basis means that you do not have to pay any money. Even when the lawyer wins the case for you, you will not need to fork out money from your own pocket.

Let us suppose that a man suffers an injury at work. He hires a personal injury attorney to fight for higher insurance payout.

The personal injury attorney will pay for his medical examination without charging him a single cent. The lawyer will also hire an investigator to look into his case.

The lawyer pays for all the associated costs, without billing the injured man.

Once the lawyer comes to a settlement with the insurance company, the lawyer will charge a commission on the insurance payout.

If the commission is a third of the total payout, the personal injury attorney will earn a million dollars if the payout is three million dollars.

That is how the no win no fee basis works.

Why do personal injury attorneys use this no win no fee scheme?

The reason is that personal injury cases are often settled out of court. The personal injury attorneys know that the success rate of a settlement is very high. It makes sense for them to wait longer in order to earn higher commission.

This method encourages the lawyer to get the maximum settlement for their clients. That is why no win no fee basis works well for both parties.

However, this method does not work if you deal with a criminal defense attorney or a divorce attorney.

There is no way to measure a successful divorce case.

The time and energy into the preparation for a criminal defense make the no win no fee basis impossible to implement.

If you ask the criminal defense attorney to use no win no fee basis, you will find that no lawyer wants your case.

You would have to do your own defense or use the service of the public defender.