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- Solicitor/client costs and costs agreements
Costs agreements with clients
A costs agreement is a contract between a solicitor and client are governed by the legislation regulating the legal profession in the State or Territory in which the solicitor practices. As in any contract, a costs agreement must state that it is an offer which is accepted by the client, either by way of writing (usually by the client signing the agreement) or by conduct (the client giving instructions after the agreement is received).
A costs agreement sets out how and when a client will be charged in family law proceedings.
Costs incurred by a client may include:
- • professional fees and expenses;
- • disbursements such as photocopying and facsimile charges;
- • fees for medical reports or other expert reports;
- • court filing fees;
- • fees of process servers/agents; and
- • barrister’s fees.
A costs agreement must be fair and reasonable. The existence of a costs agreement between solicitor and client does not preclude disciplinary proceedings against a solicitor for overcharging.
The State and Territory legislation which should be considered is:
- • New South Wales — Legal Profession Uniform Law 2014 No 16A (NSW);
- • Queensland — Legal Profession Act 2007 (Qld);
- • Victoria — Legal Profession Uniform Law Application Act 2014 (Vic);
- • Australian Capital Territory — Legal Profession Act 2006 (ACT);
- • Northern Territory — Legal Profession Act 2006 (NT);
- • South Australia — Legal Practitioners Act 1981 (SA);
- • Western Australia — Legal Profession Act 2008 (WA) (but note that WA has announced its commitment to adopting Uniform Law. Practitioners should consult the Law Society of WA to find out further details about when the Bill is intended to be introduced and proposed commencement dates); and
- • Tasmania — Legal Profession Act 2007 (Tas).
Solicitor/client costs (including the regulation of costs agreements and costs dispute resolution) in the Family Court are governed by the legislation regulating the legal profession in the state or territory in which the solicitor practices.
New South Wales and Victoria have adopted the Legal Profession Uniform Law to regulate the legal profession, the contents of a costs agreement and the management of complaints.
See Costs agreements with clients.
