Sample Retainer with Cost Structures

Your Ref
 
 
 
 
 
 
 
 
 
 
 
 
our Ref
ACK:***
24 August 2009
***
 

 

Dear ***
 
RE:     PROVISION OF LEGAL SERVICES - AK COMPENSATION LAWYERS
 
The provisions of the Legal Profession Act 2007 encourage us to enter into a written agreement with you.  AK Compensation Lawyers provides the Retainer to the client as an offer of The Law Practice to act on your behalf on the terms set out in the Retainer.  If you sign the Retainer you are accepting the basis upon which we will act for you.
 
This agreement sets out the work that we will undertake and the terms and conditions of our retainer.   It is important that you read this agreement carefully before signing and returning one copy to our office.  If you wish to discuss any aspect of the agreement please contact us.
 
Enclosed are the following:
 
1.                       Retainer Agreement (in duplicate);
2.                       A copy of the relevant Court Scales of Costs;
3.                       Trust Account Authority.
 
Various documents form part of our Retainer Agreement.  These include:
 
1.                       “Important Notice” and “Legal Costs Your Right to Know”;
2.                       A sample of our tax invoice;
3.                       Details of our complaints handling procedure;
4.                       Details of the way that we will work with you.
 
Our Retainer Agreement also specifies who will be principally performing the work on your file.  Please note that any other person in our office may do some work on your file depending upon time constraints, administrative matters, and other factors that may effect our handling of your matter.
 
We confirm your retainer ***is/is not on a speculative basis ***and AK Compensation Lawyers will meet your disbursement expenses it considers appropriate, at this time.  In circumstances where the primary author responsible for your matter is changed for any significant period of time you will be notified of this change (and of the details of the new person dealing with your matter).  If, however, the person dealing with your matter merely goes on holidays for a short period this will not occur.
 
Amanda Karpeles is your designated client care officer who is the Principal in the firm.  Please make sure we have contact details for you that are current at all times.  Sometimes we may need to get urgent instructions from you.
 
You have the right, and we advise you to, to seek independent legal advice regarding the meaning and effect of our Retainer Agreement.  If, however, you are happy with the contents of this document and do not wish to seek independent legal advice you are entitled to sign the same and return one copy to us.
 
 
Yours faithfully
 
 
 
Amanda Karpeles
PRINCIPAL
AK COMPENSATION LAWYERS
 
Enc.
 


HIGHLIGHTS from a sample RETAINER AGREEMENT
Estimate of PROFESSIONAL FEES AND Costs
13.1       The Law Practice estimate that the total fees and costs of the Work likely to be performed for the Client will be in the range of $8,000.00 to $12,000.00 (exclusive of outlays) for your matter.   The Law Practice is not bound by this estimate.
13.2       In this matter The Law Practice will have the invoice for professional costs and disbursements drawn internally or may, if it considers preferable, have the file by reviewed by independent costs assessors.
If the file is independently assessed The Law Practice will obtain a solicitor and own client professional fee summary from either Law Costs or QICS or another assessor if not available and provide this to the Client. The cost of this fee summary is a disbursement or outlay on the file and paid for by the Client.
 
              The Law Practice’s professional costs will be costed on the Supreme Court Scale of fees and costs with attendances charged at the hourly rate outlined below.
13.3               The parties agree that The Law Practice is not bound by this estimate as any change in instructions or the Client’s needs, the discovery of further information, the actions of other parties, or the need for unanticipated legal proceedings or interlocutory steps may: vary or increase the scope of the Work; result in an increase in the amount of time The Law Practice may need to devote to the Work; or increase the anticipated outlays involved in conducting the Work.
13.4               The hourly rates charged by each person, and the section they work in, are as follows:
Amanda Karpeles (Partner) – In accordance with the Court Scale as set out below save for attendances to be calculated at a rate of $300.00.
Monica Flynn (Solicitor) – In accordance with the Court Scale as set out below for attendances to be calculated at a rate of $290.00.
Kate Brodnik (Solicitor) – In accordance with the Court Scale as set out below for attendances to be calculated at a rate of $290.00.
Michelle Shaw (para-legal) – In accordance with the Court Scale as set out below for attendances to be calculated at a rate of $150.00.
In the event that a person other than one listed above performs part of the Work, they will be charged out at their usual rate under the relevant court scale.  Usually you will be promptly notified of this person’s details and hourly rate if they undertake any substantial part of the Work.
 
Goods and Services Tax
14.1       The Client agrees to pay all Goods and Services Tax ("GST") that may arise, or relate to, the accounts or outlays of The Law Practice as if the same were an outlay of The Law Practice pursuant to this Agreement.
14.2       The professional fees, outlays and estimates provided in this Agreement are base amounts which do not include GST.   The Client acknowledges, and agrees to pay to The Law Practice all GST in addition to these base amounts.  The Client will be provided with a "Tax Invoice" in the form in Schedule “C” to enable the Client to claim any Input Tax Credits if applicable.  Where calculated on the Supreme Court Scale such fees are inclusive of GST.
14.3       For the purposes of all work conducted by The Law Practice, the Client appoints the firm to act as the Client's agent for the purpose of paying any Stamp Duty or Department of Natural Resources Lodgement Fees that are specified in the determination of the Treasurer made pursuant to Division 81 of the A New Tax System (Goods and Services Tax) Act 1999.  All other outlays of The Law Practice are made by The Law Practice in their capacity as principal.
 
COSTS AND OUTLAYS
15.1       In addition to professional fees, the Client will pay all costs and outlays properly incurred ("costs") by, or on behalf of, The Law Practice in relation to the Work.  Services The Law Practice (or an associated company) may use on the Client's behalf, and will charge for, include:

 

Service
Fee
Photocopying
In accordance with the Supreme Court Scale
Facsimile - within local call areas
$1.00 per page for the first 10 pages and 50c per page for each page thereafter (for each facsimile sent)
Facsimile - interstate
As above
Facsimile – international
$2.00 per page for the first 10 pages and $2.00 per page for each page thereafter (for each facsimile sent)
Telephone - within local call areas
$0.25 per call
Telephone – Mobile, STD and ISD calls
$0.25 per call or at the rate charged to The Law Practice

 

 
15.2       The costs may include Court filing fees, process server’s fees, Titles Office fees, Corporate Affairs Office search fees, expert report fees, courier fees, medical reports, telephone calls, banking charges, Government Revenue charges, postage, investigator's fees, agent's fees including interstate lawyer's fees and costs, barrister's fees, transcript fees, travelling fees, witness fees, external consultants, cost assessors etc.  Funds will be required to cover these costs before they are incurred by The Law Practice on behalf of the Client.  Even if the Client expects to be reimbursed by another person for part or all of The Law Practice's costs, the Client must still pay The Law Practice even though the reimbursement is delayed or the Client fails to get any money from the other person.
15.3       Extraordinary items not normally done for other similar Work must be expressly approved by the Client.  The Client acknowledges that the charges for such items may not be recovered from another party to the action or transaction.
 
SPECULATIVE MATTERS
16.1               If The Law Practice agrees to perform the Work on a speculative basis with respect to The Law Practice’s professional fees the same must be specified in writing and in this case the costs charged to the Client shall be increased by 15% upon the total professional costs assessed in accordance with Clause 13.6 above.
16.2               Interlocutory applications are initially costed in accordance with paragraph 10.9 and are otherwise speculative and fall within this paragraph to the extent monies are outstanding, or not payable within paragraph 10.9.
16.3               The Client agrees to pay all accounts for disbursements and/or outlays (including anticipated disbursements and/or outlays) forwarded by The Law Practice within 14 days of the same being posted to the last known address of the Client.
16.4               If The Law Practice agrees to meet the disbursements and/or outlays on a speculative basis the same must be specified in writing and interest shall be payable on those costs at a rate of 9.5% per annum.
16.5               Whilst The Law Practice will charge professional fees and, if agreed, disbursements and/or outlays during the course of performing the Work, the Client will not be required to pay any account, or that part of an account, for those professional fees and outlays as agreed until:
16.3.1  Judgment is given in favour of the Client, or on terms no less favourable than advised by The Law Practice from time to time; or
16.3.2  A Settlement is agreed to by the Client; or
16.3.3  If the Work relates to a specific transaction or series of transactions, that transaction or series of transactions is/are completed; or
16.3.4  The Client abandons the proceedings or otherwise decides not to proceed with, or prosecute, the Work under this Agreement; or
16.3.5  The Client withdraws The Law Practice’s instructions or changes to another lawyer; or
16.3.6  The Client otherwise consents to The Law Practice withdrawing their agreement to perform the Work on a speculative basis; or
16.3.7  This Agreement is terminated by either party; or
16.3.8  As otherwise permitted under the Legal Profession Act 2007.
16.3.9  The above 16.3.4 to 16.3.8 to the extent they relate to speculative personal injures matters shall not operate until 16.3.1, 16.3.2 or 16.3.3 applies.
16.7     The maximum that The Law Practice can charge the Client in personal injuries matters for professional fees inclusive of GST (but exclusive of any outlays) is as follows:
 

 

Maximum professional fees
excluding disbursements
=
(
Amount awarded or recovered
+
Costs due from other party(ies)
)
–
(
Refunds required by law to any
other entity
+
Disbursements incurred on your behalf in perusing the claim
)

 

2
party/party or standard costs
17.1        In the pre-proceeding stage generally each party bears their own costs.
17.2        If the Client is not successful in his/her litigation the Client may be required to pay another party’s fees and costs.  The Firm estimates the amount the Client may have to pay another party would be between $2,500.00 and $20,000.00.  Fees may also be payable if the client fails to comply with time frames or the legislation and an application is brought against the client to compel the client to comply, or the date is unsuccessful in an application brought against the other side.
 
 
 
Legal Costs - your right to know 
Legal Profession Act 2007  –  Queensland
This notice does not apply to costs in Family Court matters.  The rules for disputing costs in those matters are summarised in the Family Court of Australia Costs Notice, which is available at www.familycourt.gov.au.  Different time limits may apply, please speak to the Family Court for further information.  
 

 

Part 1
Your right to negotiate

 

 
You can negotiate with your lawyer about the amount that your lawyer will charge you.    Make sure that you understand what you are agreeing to, and ask questions if you are unsure about the costs agreement. You will have to pay the costs that you have agreed to, unless the agreement is set aside (see Part 5 below).
 
There will be 2 types of cost agreements:
 
  • Conditional Cost Agreement – this agreement will advise of the fees and outlays you will be required to pay ONLY if there is a successful outcome to your matter. These agreements are known as “no win no fee”. 
 
  • Cost Agreement – For all other legal work and will set out the fees and outlays you will be required to pay as the matter proceeds irrespective of the outcome.
 
Further your lawyer must, in writing make disclosure of:
 
·         the basis on which the legal costs you will pay will be calculated (this includes notification of any scale of costs);
 
  • A realistic estimate of the total legal costs (or a range of estimates) with an explanation of the major variables affecting the calculation of the costs;
 
  • Your right to:
    • Negotiate the costs agreement
    • Receive a bill (see Part 2 below)
    • Request and itemised bill (see Part 2 below)
    • Be notified of any substantial changes to the matters already disclosed (see Part 3 below)
    • Be provided with Progress Reports (see Part 4 below)
    • Have a cost assessment if you dispute the bill and the time limits that apply (see Part 5 below)
    • To apply to the Supreme Court to set aside the costs agreement
 
  • The intervals at when you will be billed;
 
  • The rate of interest you will be charged for overdue legal costs;
 
  • The identity of the person in the legal practice for you to contact to discuss costs;
 
  • The rate of the uplift fee (conditional cost agreements only) and the reasons why the uplift fee is warranted. An uplift fee must not exceed 25% of the costs excluding disbursements;
 
  • A cooling-off period of 5 clear days (conditional cost agreements only);
 
  • If your matter is a litigious matter (a matter where proceedings are to be commenced in a Court or tribunal) then the legal practice must also disclose the range of costs that you may expect to recover if successful and the range of costs you may expect to pay if your matter is unsuccessful;
 
Your lawyer does not have to make disclosure to you if the legal work is less than $750 exclusive of GST.
 

 

Part 2
Your right to receive bills

 

 
You have a right to receive a bill before you pay for legal work. Usually, the bill gives a summary of the work and asks you to pay the full amount. If you want more information about how the costs were calculated, you can ask for a detailed account (an itemised bill) that sets out what work your lawyer did and how much your lawyer has charged for each item of work. Your lawyer cannot charge for preparing the itemised bill, however, it is possible that the total amount of the bill may increase once each piece of work is itemised.  Your lawyer is to provide the itemised bill within 28 days of your request.
 
Your lawyer may take court action against you if you fail to pay your bill.  However, your lawyer cannot start legal action against you until 30 days after giving you the bill (or 30 days after giving you an itemised bill, if you have requested one) or during a costs assessment.   A notice telling you about your rights to challenge legal costs must be sent with the bill. 
 
You also have the right to accept or reject any notification your lawyer gives requesting interstate cost laws to apply to your matter and alternatively you have the right to notify your lawyer if you require interstate costs laws to apply to your matter. (This right only applies when matters extend across state boundaries – see Part 6).
 

 

Part 3
Your right to be notified of changes

 

 
It can be difficult to predict the exact cost of litigation in advance. The cost of a court case will vary depending on the actions of other parties, orders made by the court and other factors.  Your lawyer must give you a realistic estimate, but often cannot tell you the exact cost up front.  
 
If there is a substantial change to anything that your lawyer has told you previously about your costs, the lawyer must tell you of the change as soon as s/he can.  
 

 

Part 4
Your right to request written progress reports

 

 
You can ask your lawyer for a written report about (a) the progress of your matter, and (b) the legal costs you have run up in total, or since your last bill.  Your lawyer can charge for the progress reports, but is not allowed to charge for the update on legal costs. 
 
 

 

Part 5
What to do if you are unhappy with your legal costs

 

 
There are time limits that apply to taking particular action in relation to legal costs.  You should read this fact sheet carefully, and seek advice if you are unsure about anything in it.        
 
Discuss your concerns with your lawyer:  Most clients resolve their concerns about their legal costs simply by discussing their concerns with their lawyer.  If you are not happy with a bill, your first step should be to do this, either before or after receiving an itemised bill.  Once your lawyer has understood your concerns s/he may agree to review the bill.  
 
Mediation:  If negotiating with your lawyer does not work you should consider costs mediation.  Costs mediation may be formal or informal, and provides you with an opportunity to discuss your concerns with the assistance of an independent facilitator.  Mediation is generally a quicker and cheaper alternative to costs assessment.  Mediators cannot give legal advice during the mediation, and cannot decide on the fairness or reasonableness of the costs. Contact the Dispute Resolution Centre at the Department of Justice & Attorney-General on 32396269 (if phoning from Brisbane) or 1800 017288 (other than Brisbane)  for more information.
 
Costs assessment:  This is where an independent court-appointed person considers the bill and your objections to it.  The costs assessor will decide what is a fair and reasonable amount for you to pay.  You have 12 months from the bill being given to you (or a request for payment being made, or when you paid the costs) to apply for costs assessment.  Extensions of time will only be granted in special circumstances.
 
Setting aside the costs agreement:  If you believe that your costs agreement is not fair or reasonable, you can apply to the Supreme Court to have the agreement set aside.  If the costs agreement is set aside, the costs assessor will then decide how much you should pay for the legal work.  
 
There may be other ways you can resolve your concerns about legal costs.  You should seek legal advice if you feel that the avenues set out above are not appropriate for you.  
 
A separate fact sheet: Legal Costs – your right to challenge legal costs provides further information.
  

 

Part 6
Which law will apply?

 

 
Ordinarily, the law that will apply to your dealings with your lawyer will be the law of the State or Territory in which you first engaged the lawyer.  However, the law of another State or Territory may apply if your matter has a substantial connection to that other State or Territory, and you and your lawyer agree that law of that other State or Territory will apply.  
 

 

Part 7
Who to contact for more information

 

 
 Courts of Queensland
 

 

A full list of the Courts in Queensland giving locations and contact details can be found at the Queensland Government’s Courts website at:
 

 

 
 Legal Profession Regulators
 

 

Office of the Legal Services Commissioner
Ph: (07) 34067737
Freecall: 1300 655 754 
More fact sheets available. 
Client Relations Centre of the Queensland Law Society
Ph: (07) 38425843
 

 

 
 
Legal and Procedural Advice - the following organisations provide free legal advice:
 

 

Community Legal Centres (CLCs)
A list of CLCs in your area is available by visiting their website at
 

 

 
 
 


Your right to challenge legal costs 
Legal Profession Act 2007 – Queensland 
This notice does not apply to costs in Family Court matters.  The rules for disputing costs in those matters are summarised in the Family Court of Australia Costs Notice, which is available at www.familycourt.gov.au.  Different time limits may apply. Please speak to the Family Court for further information.  
 
There are different reasons why a client may become unhappy with a bill from his/her lawyers.  This document seeks to identify areas that might assist in resolving any problems.There are time limits that apply to taking particular action in relation to legal costs.  You should read this fact sheet carefully, and seek advice if you are unsure about anything in it.  
 

 

Part 1
Talking to your lawyer 

 

 
Most clients resolve their concerns about their legal costs simply by discussing their concerns with their lawyer.  If you are not happy with a bill, your first step should be to do this, either before or after receiving an itemised bill (see Part 2). Once your lawyer has understood your concerns s/he may agree to review the bill.  
 
If you are not happy with the outcome of the discussions, you can consider using the avenues set out below in Parts 3-6.  
 

 

Part 2
Lump sum and itemised bills

 

 
A bill usually summarises the work your lawyer has done and gives the total amount being charged for that work.  However, you may request an itemised bill that lists each item of work that has been done and the amount charged for each item.  Reviewing an itemised bill might help you to work out which part(s) of the legal costs you may be unhappy about.  Your lawyer cannot charge for preparing the itemised bill, however, it is possible that the total amount of the bill may increase once each piece of work is itemised.   
 

 

Part 3 
Costs mediation

 

 
Costs mediation may be formal or informal, and provides you with an opportunity to discuss your concerns with the assistance of an independent facilitator.  Mediation is generally a quicker and cheaper alternative to costs assessment.  Mediators cannot give legal advice during the mediation, and cannot decide on the fairness or reasonableness of the costs.    
 
In Queensland the Department of Justice & Attorney General provides a free mediation service through its Dispute Resolution Centres. Contact details are as follows:
 
Brisbane                                   32396269
Other than Brisbane                  1800 017288
 
However, you should act quickly and make sure you leave yourself enough time to contact the Court if mediation fails.
 

 

Part 4
Costs assessment

 

 
Costs assessment is where an independent court-appointed person (a costs assessor) considers the bill and your objections to it.  The costs assessor will decide what is a fair and reasonable amount for you to pay.  You have 12 months from the bill being given to you (or a request for payment being made, or when you paid the costs if neither a bill was given to you, nor a request made of you) to apply for a costs assessment. 
 
Your bill cannot be assessed unless it is an itemised bill. If the bill is not an itemised bill, you can request your lawyer to give you an itemised bill and the lawyer must comply with your request within 28 days. Your lawyer is not entitled to charge you for the preparation of an itemised bill.
 
You can apply for costs assessment even if you have paid all or part of your legal costs, or if you have paid them without receiving a bill.  There is a fee for applying for costs assessment.  However, if the bill is reduced by 15% or more, or your lawyer did not make proper costs disclosure, your lawyer may be required to pay the costs of the assessment.  
 
To apply for a costs assessment you must make an application in the way provided under the Uniform Civil Procedure Rules to the relevant Court (either the Supreme, District or Magistrates Court, depending on the amount. The Court will appoint a costs assessor to assess the bill. You are also required to give notice of the costs application to the law practice that issued the bill.
 
The costs assessor must assess the disputed costs in accordance with the provisions of the costs agreement provided the agreement specifies an amount or rate of charging and provided the agreement has not been set aside by Order of the Supreme Court.
 
In conducting an assessment the costs assessor must consider a number of matters including whether the work was required, whether it was carried out in a reasonable way and the fairness and reasonableness of the costs. The costs assessor will also have regard to whether the law practice disclosed realistic estimates of costs to you and kept you informed of any substantial changes to costs.  
 
The relevant Courts in your local area can provide further details of the assessment process.
 

 

Part 5
Setting aside a costs agreement

 

 
It is possible to make an application to the Supreme Court to challenge the validity of a costs agreement. Before doing so, you should consider obtaining independent legal advice.
 
You should not apply to the relevant Court for a costs assessment if you wish to challenge the validity of a costs agreement as the making of such an application may result in you forfeiting your right to challenge the validity of the costs agreement. 
 

 

Part 6
Other avenues for challenging legal costs

 

 
There may be other ways you can resolve your concerns about legal costs.  You should seek legal advice if you feel that the avenues set out above are not appropriate for you.  
 
Your lawyer may take court action against you if you fail to pay your bill.  However, your lawyer cannot start legal action against you until 30 days after giving you the bill (or 30 days after giving you an itemised bill, if you have requested one) or during a costs assessment.  
 

 

Part 7
Who to contact for more information

 

 
Courts of Queensland
 

 

A full list of the Courts in Queensland giving locations and contact details can be found at the Queensland Government’s Courts website at:
 

 

 
 Legal profession regulators
 

 

Office of the Legal Services Commissioner
Ph: (07) 34067737
Freecall: 1300 655 754 
More fact sheets available. 
Client Relations Centre of the Queensland Law Society
Ph: (07) 38425843
 

 

 
By way of general information the Legal Services Commissioner or the Client Relations Centre may be able to negotiate a quick resolution on your behalf. Staff in both organisations cannot give legal advice nor can they make any determination as to the fairness or reasonableness of your bill. 
 
Legal advice - the following organisations provide free legal advice:
 

 

Community Legal Centres (CLCs)
A list of CLCs in your area is available by visiting their website at
 

 

 
Received this                            day of                2007.
 
 
 
 
___________________________________
Client
 
 
 

 
 
Schedule C
 

 

Date
 
To: Client Name
Address
 
TAX INVOICE
ABN
 
 
Your Ref:
 
 
Our Ref:
 
 
BILL:
 
 
 

 

 
RE:
 

 

Professional Costs
 
 
$
 
 
 
 
Disbursements
$
 
 
 
 
 
$
 
 
 
 
GST
 
 
$
 
 
 
 
Amount Due
 
 
$

 

 
 
With compliments
AK Compensation Lawyers
 
 
 
1.   PAYMENT TERMS STRICTLY 14 DAYS FROM DATE OF THIS BILL (or as agreed)
 
 
 
Disbursement Details
 

 

Taxable
Date
Narration
Amount
Fax
 
 
 
Photocopying
 
 
 
Postage
 
 
 
Other Disbursements
 
 
 
 
 
 
$


 

TRUST ACCOUNT AUTHORITY
 
 
TO:        AK Compensation Lawyers
              1/ 2 Old Cleveland Rd
              Stones Corner 4120
 
Dear Sirs
 
 
 
You are expressly authorised and directed to make payments from any monies deposited or held in your Trust Account on my/our behalf for the purposes of:
 
(a)          reimbursing yourselves for any outlays you have incurred with respect to any work you conduct for me now, or in the future;
 
(b)          paying directly any outlays or payments you consider necessary or that are required with respect to work conducted for me;
 
(c)          paying your accounts 48 hours after monies have been deposited unless otherwise notified in writing;
 
 
Dated this                     day of                           2009.
 
 
 
 
 
_______________________________         
Client


Schedule D - If the Client Succeeds at Trial and beats our mandatory final offer:
 
 

 

If the Court awards $30,000 or less in damages:
 
(a)                if the amount awarded is less than the claimant’s mandatory final offer but more than the respondent’s or the respondents’ mandatory final offer, no costs will be awarded;
(b)               if the amount awarded is equal to, or more than, the claimant’s mandatory final offer, costs are to be awarded to the claimant on an indemnity basis as from the day on which the proceeding started, but no award is to be made for costs up to that date.
 
If the Court awards more than $30,000 but not more than $50,000:-
 
(a)                if the amount awarded is less than the claimant’s mandatory final offer but more than the respondent(s)’ mandatory final offer, costs are to be awarded to the claimant on a standard basis up to a maximum of $2500;
(b)               if the amount awarded is equal to, or more than, the claimant’s mandatory final offer, costs are to be awarded to the claimant on the following basis:
(i)                 costs up to date on which the proceeding started are to be awarded on a standard basis up to a limit of $2500;
(ii)               costs on or after the date on which the proceeding started are to be awarded on an indemnity basis.
 
If the Court awards more than $50,000
The legislation does not specifically mention costs.  However the court can take into consideration mandatory final offers in making decisions about costs.  Generally speaking if you better your offer you will be awarded costs.  Indemnity costs can also be sought where appropriate, otherwise standard costs in accordance with the relevant court scale applies. 
                      

 

           


Schedule E -  If the Client Succeeds at Trial but does not beat our mandatory final offer:
 

 

If the Court awards $30,000 or less in damages:
if the amount awarded is equal to, or less than, the respondent’s or the respondents’ mandatory final offer, costs are to be awarded to the respondent or respondents on a standard basis as from the day on which the proceeding started, but no award is to be made for costs up to that date.
 
If the Court awards more than $30,000 but not more than $50,000
if the amount awarded is equal to, or less than, the respondent’s or the respondent’s mandatory final offer, costs are to be awarded on the following basis:-
(a)                costs up to the day on which the proceeding started are to be awarded to the claimant on a standard basis up to a limit of $2500;
(b)               costs on or after the day on which the proceeding started are to be awarded to the respondent or respondents on a standard basis.
 
If the Court awards more than $50,000
The legislation does not specifically mention costs.  However the court can take into consideration mandatory final offers in making decisions about costs.  Generally speaking if the respondent offer more than what the court award you may have to pay their costs from the date of the offer.  Indemnity costs can also be sought where appropriate, otherwise standard costs in accordance with the relevant court scale applies. 
 


 

Form 1
Legal Profession Act 2007 (s 308(5))
FORM OF DISCLOSURE OF COSTS TO CLIENTS
Legal Costs – Your Right to Know
You have the right to:
·                     Negotiate a costs agreement with The Law Practice
·                     Receive a bill of costs from The Law Practice
·                           Request an itemised bill of costs after you receive a lump sum bill from The Law Practice
·                           Request written reports about the progress of your matter and the costs incurred in your matter
·                           Apply for costs to be assessed within 12 months if you are unhappy with our costs
·                           Apply for the costs agreement to be set aside
·                           Accept or reject any offer we make for an interstate costs law to apply to your matter
·                           Notify us that you require an interstate costs law to apply to your matter.
 
For more information about your rights, please read the fact sheet titled Legal Costs – Your Right to Know.  You can ask us for a copy or obtain it from your local law society or law institute (or download it from their website).


Form 2
Legal Profession Act 2007 (s 331(3))
FORM OF NOTIFICATION OF CLIENTS RIGHTS
Your rights in relation to legal costs
The following avenues are available to you if you are not happy with this bill:
·                           Requesting an itemised bill
·                           Discussing your concerns with The Law Practice
·                           Having our costs assessed
·                           Applying to set aside our costs agreement.
 
There may be other avenues available in your State or Territory (such as mediation).
For more information about your rights, please read the fact sheet titled Legal Costs – Your Right to Know.  You can ask us for a copy or obtain it from your local law society or law institute (or download it from their website).