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NSW · Litigation

Preparing a NSW costs assessment application

Costs assessment is the formal process for quantifying costs in NSW. Party/party assessments determine the amount recoverable under a costs order, while solicitor/client assessments review the fairness and reasonableness of legal costs charged to a client.

In short

This is an 8-step workflow for preparing a NSW costs assessment application under the Legal Profession Uniform Law Application Act 2014 (NSW), whether for party/party costs or solicitor/client costs.

Time: 15-40 hours depending on the volume of costs and whether it is contested.
Audience: NSW litigation lawyers preparing either a party/party or solicitor/client costs assessment application.
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Prerequisites

Before you start

  • Sealed costs order (for party/party)
  • Costs agreement and invoices (for solicitor/client)
  • Time records and disbursement vouchers collated
  • Client instructions on the quantum sought or challenged
8 steps

The workflow

1

Identify the assessment type

Identify whether the assessment is party/party under s 70 or solicitor/client under s 198 of the Legal Profession Uniform Law Application Act 2014 (NSW).

Tools: Quillio
Legal Profession Uniform Law Application Act 2014 (NSW) s 70
2

Prepare the bill of costs

Prepare an itemised bill of costs in the form required by the Uniform Civil Procedure Rules, listing time entries, hourly rates, and disbursements.

Tools: Quillio
Uniform Civil Procedure Rules 2005 (NSW) Part 52
3

Collate supporting material

Collate the costs agreement, disclosure statement, invoices, trust statements, and time records that will be tendered in support of the bill.

4

Complete the application form

Complete the Application for a Costs Assessment and supporting affidavit. Calculate the filing fee (based on claim quantum) and prepare payment.

5

File within time limits

File within the 12-month limit under s 198(3) for solicitor/client assessments, or as required for party/party assessments after the costs order.

Legal Profession Uniform Law Application Act 2014 (NSW) s 198
6

Serve on the paying party

Serve the application and bill on the paying party and file proof of service. The paying party has 21 days to file a notice of objection.

7

Engage with the costs assessor

Engage with the costs assessor — respond to requests for further information, attend conferences, and address any provisional determinations.

Tools: Quillio
8

Review the determination

Review the determination and advise on review under s 84 (by another assessor) or appeal to the District Court on a question of law.

Legal Profession Uniform Law Application Act 2014 (NSW) s 84
Outcome

What you will have at the end

A certificate of determination setting out the amount of costs assessed. The certificate can be filed as a judgment if unpaid.

Common issues

  • Missing the 12-month time limit for solicitor/client assessments
  • Incomplete itemisation in the bill of costs
  • Failing to tender the costs agreement and disclosure statement
  • Not addressing any indemnity costs order
  • Overlooking review and appeal rights within the 30-day window
Use with Quillio

Run this workflow on a real matter

Quillio drafts the bill of costs, affidavits, and written objections, and benchmarks entries against the applicable costs rules. See /practice-areas/litigation-lawyers or start a free trial.

This workflow is a general guide for NSW. Other jurisdictions have different costs assessment regimes.

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Quillio can run this workflow on a real matter, with citations to current AU authority on every step. The free trial requires no credit card.

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