What Should You Be Paying For in Commercial Law Proceedings?

When it comes to legal fees and the breakdown of your costs, they can be hard to navigate and understand, especially when it is left to the moment when you receive a legal bill that looks much larger in amount than you expected. It’s important to understand your legal costs during commercial law proceedings to avoid unnecessary stress and surprise when you receive your bill.

At Law In Check, we don’t want to leave you in the dark about the truth behind your commercial law proceedings and the costs involved. So, let’s break down what you can expect and how to navigate your finances to ensure your business isn’t impacted.

Break Down Your Invoice

There are two main components of your legal invoice, made up of two legal costs: professional fees and disbursements. What do these mean for your commercial law proceeding?

Professional Fees:

Professional fees are a summary of the cost for the lawyer’s time and experience. Depending on the lawyer, these costs can be charged differently. They can be charged by hourly rates, where you’ll be charged according to the hours you require your lawyer’s work and their level of experience (Law Partner, Junior Lawyer, etc). Or, you may be charged by Fixed Fees, which are more common when a proceeding is more straightforward and can be agreed upon by a standard contract.

Disbursements:

Disbursements refer to any expenses your lawyer may have incurred on your behalf. These can include:

• Court Filing Fees
• Barrister’s Fees (accumulated by court appearances and advice)
• Photocopying, travel or other administrative expenses



These expenses will be included and detailed in your final invoice. So, depending on how many services you’ve used and the reliance you’ve had on your lawyer, your invoice will look different.

What Are The Extras?

Other factors will drive up the cost of your final invoice. So, when your final bill arrives, you may notice additional charges, which can be due to:

• The complexity of your case: For more complex disputes that aren’t as straightforward as debt recovery, you will incur higher charges.
• Opponents: If the other side of your case is uncooperative or challenging, it can prolong the process and the case, increasing your costs.
• Urgency: If your case was urgent and required work from your lawyer outside of business hours, you will incur higher rates.
• Your Lawyer/ Firm’s Experience: Top-tier firms and highly experienced lawyers tend to charge much higher than smaller firms, and you will recognise these differences in your final bill.
• Direct Communication: During your case, it is important to keep communication with your lawyer precise and clear so they can make your case straightforward. If instructions are unclear, it can lead to wasted time and higher costs that compensate for the time.

What You Need To Know:

A common misconception is that if you win your case, then most of your legal costs will be covered by the opposing party. However, this is not the case, and you may still be entitled to pay for some expenses yourself. That’s why it is important to pay close attention to the expenses you’re racking up during your commercial law proceedings.

How Do You Manage Your Fees?

So, there are multiple factors that will drive up the costs and expenses of your legal advice. But how can you manage what you should be paying for when it comes to your invoice? To stay on top of your legal spending, you can:

• Ask for a Costs Agreement: It is your legal right to request this if you feel that you need some guidance on what you will be entitled to pay for. It will break down the costs you are likely to incur in detail.
• Request Updates: Throughout your case and process, you can ask for invoices that detail what you have incurred thus far so you can stay in the loop and ensure you’re not shocked at the end.
• Discuss Your Budget: It’s important to be transparent with your lawyer, and this includes your budget. So, discuss the estimated costs with your lawyer and outline what you can realistically afford to pay for.
• Contact our Team: Our Cost Lawyers can help you navigate your legal expenses to ensure that you are aware of your costs and any concerns can be addressed. Our experts are trained to navigate your legal proceedings for you and identify if there is anything you shouldn’t be paying for, and help you minimise the costs you incur. By reviewing your invoices, agreements and documents, we can help ensure that you’re not shocked with your final invoice through regulated management of the process.

Check What You’re Paying For With Law In Check

Our team of Cost Lawyers are equipped to help you manage your legal costs before it’s too late. There are things you can do to self-manage your process and ensure you’re in control of your spending. However, it’s always best to let the experts manage the ins and outs of legal proceedings that can often catch you by surprise.

You can give us a call for a quick chat about your situation today on 1800 529 462. Or, send us an email at info@lawincheck.com.au