If you believe your lawyer has charged legal costs that are not fair and reasonable, you are not without options. In New South Wales, a client who is unhappy with a legal bill can ask for a detailed breakdown or apply to have the costs assessed by an independent assessor.

This guide explains how to challenge legal costs charged by a lawyer in NSW, the steps involved. The processes described apply to legal costs in NSW under the Legal Profession Uniform Law. Other states and the federal courts have their own rules, so it is worth confirming which regime applies if your matter crosses jurisdictions.

What Counts as Excessive Under the Legal Profession Uniform Law?

Under section 172 of the Uniform Law, a law practice must charge costs that are no more than fair and reasonable in all circumstances. In particular, the costs must be:

  • proportionately and reasonably incurred, and

  • proportionate and reasonable in amount.

This means a bill is not excessive simply because it is large. A complex, high-value matter may justify substantial fees.

Some common signs that costs may be open to challenge include:

  • charges for work that does not appear to have been necessary or was duplicated

  • hourly rates higher than what was disclosed or agreed

  • a final bill significantly higher than the original estimate, without explanation

  • a failure to provide proper costs disclosure

A failure to disclose costs properly is significant. Where a law practice has not complied with its disclosure obligations, the client is not required to pay the costs until they have been assessed, and the conduct may have further consequences for the practitioner.

Can You Request an Itemised Bill Before Deciding Whether to Challenge?

Yes. If you have received a lump sum bill, which simply states a total without explaining how it was calculated, you are entitled to request an itemised bill that sets out the costs in detail. This is often the sensible first step, because it lets you see exactly what you are being charged for before deciding whether to take the matter further.

A few key points about itemised bills in NSW:

  • A lump sum bill describes the services and states the total amount. An itemised bill specifies in detail how the legal costs are made up.

  • You must request the itemised bill within 30 days after the legal costs become payable.

  • Once you request it, the law practice must provide the itemised bill within 21 days

  • In certain circumstances, a law practice may be able to recover the higher costs detailed in an itemised bill than a lower lump sum bill, following costs assessment or a determination by the local regulatory authority.

How Do You Apply for a Costs Assessment of Your Solicitor’s Bill in NSW?

Costs assessment is the formal process for having an independent costs assessor decide whether your legal costs are fair and reasonable. In NSW, you apply to the Supreme Court, and the assessor is an experienced solicitor or barrister appointed by the Chief Justice.

The general steps are as follows:

  1. Complete the application for costs assessment in the approved form and attach the bill you are challenging.

  2. Lodge the application with the Supreme Court, together with the applicable filing fee.

  3. The assessment proceeds, with both you and your lawyer given the opportunity to make submissions about the costs.

  4. The assessor issues a determination of the fair and reasonable amount, supported by a certificate.

There is an important time limit. A client must generally apply for a costs assessment within 12 months after the bill was given, the request for payment was made, or the costs were paid. Applications outside that period are only allowed in limited circumstances, where the Manager, Costs Assessment decides it is just and fair to permit it. Because the window can close quickly, it is wise to act promptly once you decide to challenge a bill.

If you are unsure whether assessment is the right path, Blue Ribbon Legal’s costs assessment service can review your bill and advise on the strongest way forward.

What Role Does the Office of the Legal Services Commissioner Play?

A complaint to the OLSC about costs is time-sensitive. As a general guide, a complaint must be raised within 60 days after the costs become payable, or within 30 days after a requested itemised bill is provided. If the dispute cannot be resolved, the Commissioner can, in appropriate cases, make a determination about the costs.

What Evidence Do You Need to Support Your Challenge?

Before you apply for assessment, gather the following:

  • the costs agreement

  • any costs disclosure the lawyer gave you

  • all invoices received, including the lump sum bill and any itemised bill

  • correspondence about costs, including any estimates or updates

  • a clear list of the specific items you dispute and why

What Outcomes Can You Realistically Expect from a Costs Assessment?

A costs assessment can result in your legal costs being reduced or left largely unchanged. The assessor determines the fair and reasonable amount, which may be lower than the amount billed if items are found to be unreasonable or disproportionate.

Possible outcomes to keep in mind:

  • Reduction. If the assessor finds some of the costs charged were not fair and reasonable, the amount you owe can be reduced accordingly.

  • Confirmation. If the costs are found to be fair and reasonable, the amount will be confirmed as charged.

  • Costs of the assessment. The outcome is one factor in who pays the cost of the assessment itself.

There is no guarantee of a reduction, and every matter turns on its own facts and circumstances.

Frequently Asked Questions (FAQs)

How long do I have to challenge my lawyer’s bill in NSW?

As a general rule, you have 12 months from when the bill was given, the request for payment was made, or the costs were paid to apply for a costs assessment. A separate, shorter time limit applies to making a complaint to the OLSC.

Do I have to pay the bill before I can challenge it?

Not necessarily. You can generally apply for an assessment whether the bill is paid or unpaid. If your lawyer has not complied with their costs disclosure obligations, you may not be required to pay until the costs have been assessed.

What does it cost to challenge legal fees?

An application for costs assessment involves a filing fee, and the costs assessor’s fees. The assessment outcome may impact the assessor’s decision of who ultimately bears the cost of the process.

Can I challenge my lawyer’s costs if I already paid them?

Yes. You can generally apply for a costs assessment even after paying, provided you are within the relevant time limit, which usually runs for 12 months from payment where no bill or request for payment was given. The same fair and reasonable test applies whether or not the bill has been paid.