Legal Costs Assessment: What Is It and Why It's Your Secret Weapon

BWhen a legal bill arrives and feels unfair or excessive, many clients feel powerless. But there's a powerful tool available under the Legal Profession Uniform Law (LPUL): the Legal Costs Assessment. This independent review process can help reduce inflated lawyer bills and provide real accountability for lawyers overcharging clients.

In this post, we’ll explain what a Legal Costs Assessment is, how it works, and why it might be your best option if you suspect you've been overcharged.

What Is a Legal Costs Assessment?

A Legal Costs Assessment is a formal process where an independent expert—called a costs assessor—reviews your lawyer’s bill. Their job is to determine whether the fees charged were fair, reasonable, and proportionate to the work done.

This isn’t just a technical procedure—it’s your legal right. If you’re questioning lawyer bills, especially in cases of vague charges or inflated hourly rates, this process can help you challenge and potentially reduce what you owe.

When Should You Apply for a Legal Costs Assessment?

You can request a Legal Costs Assessment when:

• You believe you’ve been overcharged by your lawyer
• The fees charged seem excessive for the work performed
• You didn’t receive a proper costs disclosure or agreement
• You want an independent opinion before paying a large bill



Under the LPUL, you generally have 12 months from the time:

• The final bill was issued

What Happens During the Process?

1. Lodging the Application

You’ll file a formal application for a Legal Costs Assessment with the appropriate authority in your state (for example, the Supreme Court in NSW).

2. Providing Documentation

You’ll need to submit the bill, any costs agreements, correspondence, and any itemised invoices.

3. The Assessor Reviews the Bill

An independent costs assessor will evaluate whether the charges are fair and in line with the work done. They consider:

• The complexity of the matter
• The time spent
• The outcome achieved
• Whether proper disclosure was made

4. Outcome

The assessor may:

• Reduce the total amount payable
• Order a refund for overpaid fees
• Require the lawyer to cover the costs of the assessment if overcharging is proven

Why It's Your Secret Weapon

Most people don’t realise they can dispute lawyer bills without going to court. A Legal Costs Assessment is a powerful yet underused process that puts you on even footing with your solicitor.

• It’s independent, not handled by the lawyer or their firm
• It can lead to real savings and legal fee refunds
• It holds lawyers accountable for their billing practices

Real-World Example

A family lawyer in Victoria charged fees totalling $502,406.74 for work carried out over 1 year and 8 months.

We filed a summons for taxation in the Supreme Court of Victoria, Costs Court. We reached settlement after preparation of a detailed notice of objection and attending mediation represented a reduction of $97,656.74 from the fees charged by the solicitor. In addition to this the solicitor also contributed $25,000.00 towards the costs charged by us.

As $42,656.74 of the fees charged by the solicitor was unpaid by our client, the solicitor waived this amount, and paid or refunded $80,000.00 (($97,656.74 less $42,656.74) + $25,000.00).

How We Can Help

If you suspect lawyers overcharging clients or feel uneasy about your legal bill, don’t just pay it. We specialise in:

• Reviewing lawyer bills
• Advising whether a costs assessment is worthwhile
• Representing clients through the process




Don’t be afraid to challenge a legal bill—especially when your rights are clearly protected. Contact us today to discuss your options for a Legal Costs Assessment and ensure you're not paying more than you should.

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