The costs recovery process is influenced by several factors, including whether you have completed formal costs assessment.
If you have unpaid invoices or other costs you want to recover, you may not know if it is too late to act. Read on to learn more about recovering costs and how we can help.
When can you recover costs?
Recovering costs under a court order is not subject to a time limit in NSW. This means the court will not reject an application for assessment simply because too much time has passed after the orders were made.
For costs assessments that do not arise from a court order, different rules apply. These include practitioner/client, practitioner/practitioner, and third-party assessments. Under the Legal Profession Uniform Law, you must file an application within 12 months of the final invoice. In some cases, a court may allow a late application after this period.
At Blue Ribbon Legal, we manage all types of costs assessments. We draft and file applications, serve documents, prepare submissions, review determinations, and advise you on next steps.
The assessment process differs from court proceedings to recover costs. Those proceedings operate more like debt recovery action.
Once the costs assessment is finalised, the court issues a determination. You can register this determination as a judgment. This has the same effect as a court judgment in your favour. In NSW, you can enforce judgment debts for 12 years from the date of judgment.
If a solicitor issues an unpaid invoice and no costs assessment is made, different time limits apply. After 12 months, the solicitor may commence court proceedings to recover the debt. Most debts fall under a 6-year limitation period under the Limitation Act (NSW). At Blue Ribbon Legal, we also provide debt recovery services of this kind.
At Blue Ribbon Legal, we also assist with enforcement action. This includes garnishee orders and bankruptcy proceedings. Enforcement options vary depending on the circumstances. The Sheriff’s Office may also become involved. You may also seek orders over property owned by the debtor. One option is a garnishee order, explained below.
What is a garnishee order?
A garnishee order is a court order that requires a third party to pay money owed to you on behalf of the debtor. This third party may be a bank or an employer. You must apply to the court for the order. You can apply for multiple garnishee orders until the debt is fully repaid.
How can we help?
At Blue Ribbon Legal, we provide services including costs recovery proceedings, costs assessments, and enforcement action. If you need help with a costs dispute, we encourage you to get in touch. Our team can provide expert advice and guide you on the best course of action for your situation.
If you would like to arrange a consultation, please don’t hesitate to get in touch or call us on (02) 8599 3100.