Our client engaged a law firm in May 2024 to pursue a professional negligence claim. At the commencement of the retainer, the client received an initial costs estimate of $10,000.
As the matter progressed, the scope of work expanded, resulting in substantially higher legal costs. The client later became concerned about the fees that had been charged, including whether appropriate costs disclosure had been provided as the costs increased.
In addition to disputing the legal fees, the client was also facing debt recovery proceedings commenced by the former law firm in the Magistrates' Court.
Seeking independent advice, the client instructed Law In Check to review the legal costs and advise on the available options.
After reviewing the costs agreements, disclosure statements, invoices and related documents, we identified several issues requiring further investigation.
We provided preliminary advice to the client and attempted to resolve the dispute directly with the former law firm. As settlement could not immediately be reached, we commenced proceedings in the Supreme Court of Victoria Costs Court by filing a Summons for Taxation.
Throughout the matter, we managed the Costs Court proceeding, advised the client in relation to the parallel debt recovery proceedings, negotiated with the former solicitors, prepared the necessary court documents and represented the client's interests during the procedural stages of the dispute.
The Court made directions requiring the former law firm to provide its bills, costs agreements, disclosure documents and cash account, while also listing the matter for mediation.
Before the matter proceeded to mediation or a full costs assessment hearing, the parties successfully negotiated a commercial resolution.
The dispute settled on agreed terms, with the former legal costs being resolved for $24,000, payable by instalments under consent orders approved by the Court.
As part of the settlement, the scheduled Costs Court mediation was vacated and the proceedings were brought to an end without the need for a contested taxation hearing.
Many clients assume that once a solicitor commences debt recovery proceedings, there is little they can do to challenge the legal fees.
This matter demonstrates that clients still have options. Even where court proceedings have already commenced, it may be possible to dispute legal costs through the Supreme Court Costs Court while negotiating a commercial outcome that avoids the time, expense and uncertainty of a contested hearing.
If you are concerned that your lawyer has overcharged you, or you are facing legal action to recover unpaid legal fees, Law In Check can review your matter, explain your options and assist you in challenging legal costs where appropriate.