That's the number one question most of us have when deciding to seek legal advice!
Your solicitor has an obligation to provide you with information about what they are charging you for, how they will charge you and what your rights are in relation to their costs. They must also let you know if the estimated costs for the work are likely to change and why.
Your cost estimate
Once you have engaged your solicitor they have an obligation to provide you with an estimate of the expected costs for your matter as soon as possible.
If the estimated cost is likely to be more than $1,500 excluding GST then your solicitor must provide you with written cost disclosure. This will include information about:
- how costs will be calculated
- a realistic estimate of total costs or a range of estimates for the total costs and what variables can impact this
- your rights in relation to legal costs
- the intervals at which you’ll be billed
Keeping within a budget
If your solicitor is uncertain as to how your case will progress you can ask them to provide a cost range (for example an estimate between $1,500 and $2,500). Having a range of costs gives you an idea of the upper end of how much the work might cost, so you can budget for it accordingly.
You can also ask your solicitor to set a spending limit. This means they must let you know when the work they have done is approaching the limit and check that you are happy to proceed further.
Changes to costs
Sometimes costs change during the course of your legal matter, usually when new information or new developments have arisen. Your solicitor has a duty to keep you informed of any likely changes to the cost of their services, and let you know what your options for proceeding are. If you have a spending limit in place they must consult you before doing any further work beyond this limit. In the case of a fixed fee agreement, you should also check your costs agreement regarding whether your solicitor can charge additional fees.
Top tip
If you can’t afford a solicitor, you may be able to receive legal aid or pro bono services.
Find out moreWhat will my solicitor charge me for?
There are two types of fees your solicitor will charge
- Professional fees are charged for the solicitor’s time and expertise e.g. drafting correspondence, preparing legal documentation, liaising with other parties. They can can be fixed hourly fees (or agreed retainers) or conditional cost agreements (e.g. based on the successful outcome of a case).
- Disbursements are expenses that the solicitor has spent on your behalf in the course of their work on your matter. These can include:
- court filing fees
- experts fees
- couriers fees
- search fees
- attendance fees if they are required to serve or collect documents in person
Different types of billing methods
The most common type of conditional fee billing are 'no win / no fee' arrangements. Generally, this means a solicitor does not charge you a fee unless they win your case.
However, this does not necessarily mean you will not have to pay anything at all if you don't win. You could still have to pay for things like court filing fees, barrister and expert reports, and the other side's legal costs.
This is because 'no fee' only applies to your own solicitor's fee. Make sure you know what your agreement covers if you choose a 'no win, no fee' arrangement.
What are your rights regarding your solicitor's costs?
Your solicitor must provide you with information about your rights using the following forms and fact sheets or other documents that contain the same information:
They also need to inform you of your rights if there is a dispute about solicitor’s costs using the following forms or other documents that contain the same information:
What if I disagree with the costs?
If you have spoken to your solicitor about the costs and are still not happy, you can apply to the court to appoint a cost assessor. They will decide the fair and reasonable amount for you to pay, but this will not be binding unless the cost assessment was ordered by a court.
The court you apply to depends on the amount of the legal bill:
Magistrates Court if the bill is less than $150,000
District Court if the bill is between $150,000 and $750,000
Supreme Court if the bill is over $750,000.
More information can be found on the Costs assessment page on the Legal Services Commission website.