28 September 2017

I’ll have the bigger one please

Practice Management
Victoria

Asked

Legal costs - Itemised bill exceeds lump sum bill - Recovery of additional costs

If the amount of an itemised bill of costs that is requested after receipt of a lump sum bill exceeds the latter, can the firm recover the higher amount?

Answered

Thank you for the question.

Rule 74 of the Legal Profession Uniform General Rules 2015 details what happens when an itemised bill is higher than the lump sum bill. In this case, the additional costs may be recovered by the law practice only if:

  • when the lump sum bill was given, the law practice made an appropriately worded disclosure in writing to the client indicating that the total amount of the legal costs specified in any itemised bill may be higher than the amount specified in the lump sum bill; and
  • the costs are determined to be payable after a costs assessment or after a binding determination under s 292 of the Legal Profession Uniform Law Application Act 2014.

Regards

Mentor