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Disputing Your Solicitor's Bill

Disputing Your Solicitor's Bill

If you are unhappy about your solicitor's bill you may dispute the amount charged. Apart from negotiating directly with your solicitors, there are two ways of attempting to resolve such a dispute.

Legal Services Commissioner

If your solicitor’s bill is $25,000 or less, your complaint may be handled by the Legal Services Commissioner (Phone 1300 796 344).

There are time limits related to when you can make a complaint to the Legal Services Commissioner. It is recommended that you make enquiries at the earliest possible time as to those time limits and the process when making a complaint.

Assessment of costs

If your solicitor’s bill is more than $25,000, you may be able to apply to have the amount charged by your solicitor assessed by the Costs Court in the Supreme Court (Family Court costs matters where you first engaged your solicitor prior to 1 July 2008 are dealt with by the Family Court of Australia).

You may also request the Costs Court to assess your solicitor’s bill even if the amount of the bill is less than $25,000.

The Costs Court may reduce the costs if:

• costs are not reasonably incurred or
• costs are considered excessive.

The process of assessment is called a “taxation.”

Due to changes in legislation, if you first instructed a solicitor to act on your behalf in relation to a particular matter (retained the solicitor) before 12 December 2005, then the Costs Court cannot assess the bill if a costs’ agreement was signed with the solicitor where costs were not calculated according to a court scale (for example, if costs were charged on an hourly rate).

Legal representation in taxation hearings

You may represent yourself at a taxation hearing before the Costs Court. It is recommended however that you seek legal advice from either another solicitor or a cost expert/consultant given that the law in respect of cost matters is very complex and technical.

The Law Institute may be able to provide you with the contact details for individuals who practice in this area (Phone 9607 9311)

Time limits

You have 12 months from when you receive a bill to seek a taxation of it.

Application in time (within time limit sets out in legislation)

You need to prepare and file 3 copies of a Summons for Taxation. A copy of the solicitor’s bill also needs to be filed at the time of filing the Summons. These documents must be filed with the Supreme Court Registry, either in person at the Registry or by mail to:

Supreme Court Registry
Level 2
436 Lonsdale Street
Melbourne VIC 3000

The Registry will seal the Summons for Taxation retaining one copy for the court file. The Registry will also set down a date for the first hearing in the taxation process (date returnable of Summons).

In relation to the other two Summons documents:

• one is to be served on the solicitor/s (Respondent/s)
• one is to be kept for your own records.

If you have an itemised bill, 7 days prior to the first hearing date, a notice identifying each item in the bill to which you object should be filed with the Costs Court, specifically and concisely setting out the grounds (reasons) of objection to each item identified.

Application out of time (outside 12 months)

If 12 months have elapsed from receipt of the bill, an application to the Supreme Court can be made to extend the time. The Court will have to consider the reason for the delay and whether or not it is just and fair for the application to be dealt with after the 12 month period.

A fee may be required for this application.  This application must be accompanied by an affidavit by you setting out the reasons why the Summons for Taxation is being filed out of time and why it is just and fair to extend the time limit.

Itemised accounts

If no itemised account is received from the solicitor/s, an itemised bill can be requested if the request is made within 30 days of receiving a lump sum bill (total amount). The solicitor must provide an itemised account within 21 days of the request.

If it has been more than 30 days since receiving a lump sum bill, on the first hearing of the Summons for Taxation (first return date of Summons) a request can be made to the Costs Court for an order that the solicitor/s file with the court and serve upon you, an itemised bill.

Cost of taxation hearing

There is no fee payable to the court for filing an application for a Summons for Taxation within time.

Fees are payable if seeking to file an application for leave to file a Summons for Taxation out of time.  Fees payable are available under Related Pages.

If the Costs Court reduces the bill by:

• more than one sixth (if you first instructed your solicitors prior to 12 December 2005), or
• more than 15% (if you first instructed your solicitors on or after 12 December 2005)

the Costs Court may order that the solicitor/s (Respondent/s) pay the costs of the taxation process.

If, however, the bill is not reduced by:

• more than one sixth (if you first instructed your solicitors prior to 12 December 2005) or
• by more than 15% (if you first instructed your solicitors on or after 12 December 2005)

the Costs Court may order that you pay the costs which your solicitor/s has incurred because of the taxation process.

Contacts

Legal Services Commissioner
9/330 Collins Street
Melbourne VIC 3000
Tel: 03 9679 8001
Tel: 1300 796 344 (local call within Victoria)

 

Law Institute of Victoria

470 Bourke Street,

Melbourne VIC 3000

Tel: 03 9607 9311