You have most likely had experience with the process of recovering legal costs, whether from a client or on behalf of a client. We are fortunate in New South Wales to have access to the Costs Assessment Scheme which makes the recovery of costs rather simple.
What you may not know is that there are easy ways to increase the costs that you are likely to recover through the costs assessment process. We have put together below, our top 5 ways to help increase the legal costs recoverable by your firm and/or your clients.
1. Be specific in your time entries as you enter time. Try to split the entries into separate tasks rather than a bulk time entry for multiple hours. An entry such as:
“call to client, write letter to other side, meeting with colleague, discussion with barrister, attend to file: 4 hours”
is difficult to substantiate or hold up against an objection in a costs assessment. It is much harder for the costs respondent to object to separate items that include descriptions of what correspondence was in relation to, and the length of any documents drafted or reviewed.
2. Substantiate why an internal discussion is billable if you are seeking to claim it. Numerous time entries for “internal discussions” are often disallowed on costs assessment. It is accepted that sometimes internal discussions with colleagues are necessary to advance a case. If it was necessary, and a fair and reasonable charge, explain why.
3. If it was necessary or cost effective to have more than one solicitor working on a file, explain why that is the case. Was the matter complex, or required specific skills? Was the fact that a partner worked on a file with the junior solicitor a cost-effective alternative to briefing a barrister? If so, make sure that is clear to the costs assessor.
4. Number 4 needs to be considered long before a party/party costs assessment, but keep in mind whether the circumstances of a case would give rise to the making of an application for security for costs. There is not much worse than representing a successful party to litigation, only for the opponent to file for bankruptcy and your client remain out of pocket for all legal expenses.
5. Number 5 is the most important factor in recovering costs against a non-paying client. In every matter your firm takes on, ensure you have properly disclosed to the client in respect of costs. Have a read through of Part 4.3 of the Legal Profession Uniform Law (NSW) 2014 and ensure your firm has a standard costs agreement that complies with its disclosure requirements under the Uniform Law. Our solicitors are more than happy to review your standard costs disclosure and costs agreement to ensure it complies with the Uniform Law, if you require.
The above tips are non-exhaustive, but they are simple ways to increase the likely costs recoverable in a costs assessment. The costs assessment process is sometimes tedious, time intensive, and can take your attention away from important client matters. Our solicitors handle costs assessment matters for you, from advice, or the preparation of a bill of costs, to the entire assessment applications and related responses.
Call us today on 02 9054 3180 to find out how we can assist your firm in obtaining the best result for you and your clients.
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