Your client has rights when it comes to their legal costs. For most matters, you must give your client a ‘costs disclosure statement’ in writing as soon as possible after your client engages you. In it you must explain:
(For relevant legislation see Legal Profession Uniform Law schedule 1 section 174).
With a complex matter, you don’t have to provide one estimate for the whole matter. You can provide a costs estimate for each of the different stages of the matter instead.
The only times you don't have to provide a costs disclosure statement to your client are:
If your client’s legal matter is likely to be between $750 and $3,000, you can use the standard short-form costs disclosure template. This will save you time and effort, and meet your disclosure requirements. If your estimate will exceed $3,000, you must provide a full costs disclosure statement.
You need to be sure your client understands how you plan to handle their matter and what their legal costs will be. This will help them make an informed choice about their options and the associated costs. You must also give your client an updated disclosure statement in writing if there are any significant changes to your last estimate.
If you have negotiated a settlement for your client, you must give your client an estimate of the costs they will have to pay before you finalise the settlement. This must include any legal costs payable for another party.
If you don’t properly disclose your costs to your client, or you fail to give them any disclosure at all, your costs agreement (if any) will be void. You won't be able to try to recover the costs until they are assessed, or we have determined any costs dispute . You may also face disciplinary action for breaching your obligations to your clients.