Litigation and dispute resolution can be a costly and time-consuming business. Clients looking for reassurance from their legal advisers would often like those advisors to "put their money where their mouth is" and shoulder at least some of the financial risks of the legal action by working under a so-called no win – no fee payment arrangement. However, such arrangements are not as simple as their name suggests and those considering such arrangements would be wise to remember that "if it looks too good to be true, it probably is". For example, a losing party will generally be required by the court to meet the costs of the other side. Such costs would not be affected by a no win – no fee arrangement. Accordingly, no win would nevertheless still result in a significant financial outlay for the losing party, even if they did not have to pay their advisor' fees.
