How the Costs Court Works: Your Guide to Legal Fee Disputes

By Law in Check

Disputes over legal fees can be stressful and confusing. Whether you've received a surprisingly high bill from your lawyer or you're unsure if the fees charged are fair, the Costs Court offers a way to have those charges independently reviewed. This guide explains how the Costs Court works and what you can expect if you're considering challenging a legal bill.

What Is the Costs Court?

The Costs Court is a specialist court within the Supreme Court that deals specifically with disputes about legal costs. It operates as an independent forum where clients, lawyers, and other parties can have costs assessed or disputes about costs resolved. It plays a vital role in ensuring legal billing is fair, transparent, and consistent with legal industry standards.

When Can You Go to the Costs Court?

You may be able to take your matter to the Costs Court if:

You've received a bill from your lawyer and believe it's excessive or unreasonable.
There's a dispute about who should pay legal costs (for example, after a court case).
You're involved in a legal matter where the costs need to be assessed by an independent party.

Common examples include:

A former client challenging their lawyer's bill.
A party to litigation disputing the costs awarded by a court.
A solicitor seeking payment from a client who refuses to pay.

Step-by-Step: How the Process Works

Here’s what typically happens if you bring a legal costs dispute to the Costs Court:

1. Filing an Application for Assessment

The process usually starts by filing an application for assessment with the court registry. Time limits apply—often 12 months from receiving a final bill or a costs order, so act quickly.

2. Providing Supporting Documents

You’ll need to provide the court with:

The bill in dispute
Any costs agreements
Correspondence with your lawyer
A statement of objections (if you're the client)

3. Appointment of a Costs Assessor or Costs Registrar

The court appoints a Costs Registrar (or in some cases, a costs assessor) who is responsible for examining the bill. They may seek clarification or further documents from both parties.

4. Conference or Hearing

Some disputes are resolved in informal conferences, while others go to a formal hearing. At this stage, each side can make submissions, present arguments, and provide evidence about the fairness of the fees charged.

5. Assessment and Determination

The Costs Registrar assesses the bill line-by-line to determine what charges are fair and reasonable. They can reduce or disallow charges they consider excessive or unjustified. The outcome is typically a certificate setting out what amount is payable.

What Types of Fees Get Scrutinised?

The Costs Court carefully examines:

Hourly rates charged (are they consistent with market rates?)
Time spent on tasks (was it excessive or duplicated?)
Disbursements (were they necessary and properly incurred?)
Administrative charges
(e.g., copying, phone calls, postage)

What Are the Possible Outcomes?

You may get the bill significantly reduced.
The court may uphold the lawyer’s bill if it finds the charges are fair.
In some cases, the lawyer may be required to pay your costs of the assessment process if the overcharging is substantial.

Tips Before Going to the Costs Court

Request an itemised bill: Lawyers must provide this on request.
Try negotiating first: Many disputes are resolved through direct negotiation.
Seek advice from a legal costs expert: They can assess the bill and help you navigate the process.

Why It Matters

Legal fees can be a significant financial burden. The Costs Court helps ensure clients are not unfairly overcharged and gives transparency to legal billing practices. If you suspect you've been charged too much, don’t ignore it—you have options.

See here for 5 tips to ensure your legal fees remain reasonable.

Should you require any help with understanding or challenging your legal fees,
call Law in Check on 1800 529 462 or send us an email at info@lawincheck.com.au.
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