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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 (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 Taxing Master of the Supreme Court (Family Court costs matters are dealt with by the Family Court of Australia).

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

The Taxing Master may reduce the costs if:

• costs were not reasonably incurred or
• costs were 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 (retained the solicitor) before 12 December 2005, then the Taxing Master 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 Taxing Master. 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.

Time limits

Due to changes in legislation, there are different time limits that determine when you must file an application to have your costs assessed.

If you first instructed your solicitor to act on your behalf (retained the solicitor) prior to 12 December 2005 (previous legislation), an application for assessment of costs must be made within 2 months of receiving the solicitor’s bill.

If you first instructed your solicitor to act on your behalf (retained the solicitor) on or after 12 December 2005 (current legislation), the time limit varies according to when you received the bill of costs:

• If you received the bill of costs prior to 9 May 2007, an application for assessment of costs must be made within 60 days of receiving the solicitor’s bill
• If you received the bill of costs on or after 9 May 2007, an application for assessment of costs must be made within 12 months of receiving the solicitor’s bill.

Application in time (within time limits 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 to be served on the solicitor/s (Defendant/s)
• one 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 Taxing Master’s Associate, specifically and concisely setting out the grounds (reasons) of objection to each item identified.

Exception to application out of time procedure

If:

• you first instructed a solicitor to act on your behalf (retained the solicitor) on or after 12 December 2005, and
• you received your bill before 9 May 2007

the Taxing Master must deal with an application (Summons for Taxation) made out of time unless he/she considers that it may be unfair to your solicitors to do so. In this limited circumstance, a Summons for Taxation may be filed as described in the application in time section above. There is no fee for this out of time application.

In this circumstance, it is recommended that you also file an affidavit setting out the reasons why the Summons for Taxation is being filed out of time, even though there is no legislative requirement to do so.

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 Taxing Master for him/her to make 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 Taxing Master 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 Taxing Master may order that the solicitor/s (Defendant/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 Taxing Master may order that you pay the costs which your solicitor/s has incurred because of the taxation process.