Deferred Fee Arrangements for Commercial and Estate Disputes in Melbourne
Pentana Stanton's fees withheld service allows eligible clients to defer professional fee payments until their matter is resolved. Eligibility depends on the merits of the case, the value of the potential outcome, and whether the required security arrangements can be established.
Discuss Eligibility All Funding OptionsWhat Is a Fees Withheld Arrangement?
A fees withheld arrangement is a form of deferred payment structure. Professional fees accrue during the course of the matter in the usual way, but payment is deferred — typically until settlement, judgment, or another identified event. The deferred fees are usually secured against settlement proceeds, a judgment sum, or another asset, which are directed through the firm's trust account at resolution.
This is distinct from a no win no fee arrangement. Under a fees withheld structure, fees remain owing regardless of outcome — but you do not need to fund them upfront. The arrangement is only available where appropriate security can be established and the matter meets the firm's eligibility criteria.
If your matter does not qualify for a deferred arrangement, we will advise you of this early and outline the staged or standard fee options available for your matter.
How a Fees Withheld Arrangement Works
Assessment and Security Review
During your initial consultation, we assess your matter and determine whether the security criteria for a deferred arrangement can be met. This includes reviewing the evidence, the likely value of the outcome, and how fees would be secured at resolution. You receive a clear answer at the end of this session.
Written Costs Agreement
If your matter qualifies, we confirm the arrangement in a written costs agreement compliant with the Legal Profession Uniform Law (Victoria). The agreement sets out the fee structure, when and how fees are payable, what disbursements remain your responsibility, and what happens if the matter settles, proceeds to judgment, or is discontinued.
Representation with Deferred Payment
We run your matter with full focus and transparency. You are kept informed of progress, strategy changes, and any adjustments to the expected outcome at every stage. At resolution, fees are deducted from the settlement or judgment sum as agreed, and the remainder is released to you.
What Matters Are Typically Eligible?
Fees withheld arrangements are most appropriate for disputes where resolution is likely to involve a financial settlement or judgment that can secure the deferred fees. The following matter types are commonly considered.
Contested Estate Disputes
Family provision claims, challenges to the validity of a will, and executor disputes where the estate holds assets from which fees can be secured at resolution.
Commercial Litigation
Shareholder disputes, breach of contract claims, and director liability matters where damages are quantifiable and the potential recovery justifies the structure.
Trust and Business Disputes
Discretionary trust disputes, joint venture breakdowns, and business succession conflicts where assets or equity interests provide the basis for security.
Property and Asset Recovery
Civil fraud, tracing claims, and asset recovery proceedings where the disputed asset or a portion of it provides natural security for deferred fees.
Fees Withheld Versus Outcome-Based Fees: What Is the Difference?
| Feature | Fees Withheld (Deferred) | Outcome-Based (No Win No Fee) |
|---|---|---|
| Are fees payable if the matter is unsuccessful? | Yes — fees accrue regardless of outcome, but payment is deferred | No — professional fees are only payable on success |
| When are fees paid? | At resolution, from settlement proceeds or judgment sum | On successful conclusion of the matter |
| Is security required? | Yes — typically settlement proceeds directed through trust | No security requirement, but matter must meet merit criteria |
| Are disbursements payable upfront? | Yes — court fees, experts, and other costs are typically payable as incurred | Yes — disbursements are typically the client's responsibility throughout |
| Who carries the fee risk? | The client — fees are owing regardless of outcome | The firm — fees are lost if the matter is unsuccessful |
| Best suited for | High-value disputes where settlement is likely and security exists | Matters with clear evidence and strong prospects of success |
Common Questions About Deferred Fee Arrangements in Victoria
What is a fees withheld arrangement and how does it work in Victoria?
A fees withheld arrangement is a deferred payment structure under which professional fees accrue during the matter but are not payable until resolution. In Victoria, such arrangements must comply with the Legal Profession Uniform Law and be set out in a written costs agreement. The deferred fees are typically secured against settlement proceeds or a judgment sum, which are directed through the firm's trust account at resolution before the balance is released to the client.
What is the difference between fees withheld and no win no fee?
Under a fees withheld arrangement, fees are owed by the client regardless of the outcome — the payment is simply deferred until resolution and secured against assets or proceeds. Under a no win no fee arrangement, the firm's professional fees are only payable if the matter is successful. Both structures defer payment, but they carry very different financial consequences for the client if the matter does not succeed. Pentana Stanton will advise which is appropriate for your matter during an initial assessment.
Do I still have to pay anything under a fees withheld arrangement?
Yes. Disbursements — including court filing fees, barrister fees, expert reports, and other out-of-pocket costs — remain the client's responsibility and are typically payable as they arise, even under a deferred fee arrangement. Professional fees are the component that is withheld until resolution. All payment obligations are set out clearly in the written costs agreement before any work begins.
What happens to my fees withheld arrangement if my case does not settle?
If the matter proceeds to judgment rather than settlement, fees are payable from the judgment sum. If the matter is discontinued, fees accrued to that point remain owing and a payment plan will be discussed. The costs agreement sets out the specific terms for each of these scenarios, and Pentana Stanton discusses these circumstances clearly with clients before the arrangement is entered into.
Can I transfer to a fees withheld arrangement if I have already started my matter?
In some cases, yes. If your matter is already underway and you believe a deferred fee structure may be appropriate, contact our Melbourne team to discuss whether the eligibility and security criteria can be met at this stage. The viability of transitioning depends on the progress of the matter, the evidence available, and whether adequate security arrangements can be established going forward.
What types of disputes does Pentana Stanton accept on a fees withheld basis?
Pentana Stanton considers deferred fee arrangements for commercial litigation, contested estate and probate disputes, trust and business disputes, and civil asset recovery matters in Victoria. Each matter is assessed individually. We do not offer blanket deferred fee arrangements across all practice areas — suitability depends on the merits, value, and security profile of the specific matter.
Find Out Whether a Deferred Fee Arrangement Is Right for Your Matter
Book an initial consultation with our Melbourne team. We will review your matter, assess the eligibility and security criteria, and give you direct advice on whether a fees withheld arrangement — or another structured fee option — is appropriate for your situation.
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