Recovering your costs

If your client, or an associated third party, does not pay for the work you did for them, you can take legal action to recover your costs under certain conditions.

Costs disclosure and bills

You can only seek to recover your legal costs if you gave your client full costs disclosure when you were first retained (for matters above $750). If you did not, you will need to wait until the costs are assessed, or we have determined any costs dispute your client may raise with us.

Making a costs agreement

Your client has the right to negotiate the way costs are charged to them by you; and you may make them a written offer as part of a costs agreement.

You can only charge costs that are fair and reasonable for the work involved in the legal matter. Your costs must also be reasonable and proportionate to the work involved.

A costs agreement is a formal agreement between your legal practice and your client covering how you will structure the costs of your work.

Your client has rights when it comes to their legal costs. For most matters, you must give your client a written statement disclosing costs soon after they engage you.  

A costs disclosure statement should be a genuine and reasonable estimate of what you anticipate their total legal costs will be, based on the information and instructions you have when you disclose.   

Billing

You can give your client either:

• a lump sum bill covering their entire legal matter, or 
• an itemised bill identifying the different fees incurred.

You don’t have to wait until your client’s matter has finished. You can give them an interim bill (in either a lump sum or in itemised format), which covers part of your legal services.

You cannot charge for preparing or giving your client a bill.

Setting up a new law practice

In Victoria there are several different types of law practices. While they must all abide by the same legal profession rules and regulations, some must take further steps to meet our requirements. Some of these steps must be done before the practice can open for business.

Occasionally, a legal practice either fails to, or is unable to protect the interests of its clients. This might happen because of a lawyer’s alleged improper conduct, insolvency, ill health or death.

In such situations, we have the power to take steps to intervene in the operation of the practice to protect client funds and their ongoing legal matters.

Becoming a principal lawyer

If you want to begin your own law practice, you will need to apply for a principal practising certificate. Before we issue a new principal certificate, you must show us you have the skills and experience needed to run a law practice.