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A Costs Dispute

Compliance that enables, not blocks you.

We provide objective, calm and sensible advice so you can put the cost dispute behind you. We can then help you put compliant costs agreements and training in place to prevent future occurrences.

A Costs Dispute
OVERVIEW

A Costs Dispute

A complaint or a client disputing their bill can really throw you off your game - it's both commercially frustrating and professionally unsettling. How these disputes are handled often determines whether they resolve quickly or escalate. We’ll give you pragmatic, practical and compassionate advice on how you can address the issue and move forward. We’ll also help you identify areas for improvement and train your team to prevent further communication breakdown regarding costs.

The Process

The Steps:

Step 1:
BOOK AN INITIAL DISCOVERY SESSION

The dispute begins when a client's dissatisfaction with a bill goes beyond something you're able to talk through with them. You feel that trust has been lost, and the client may seek advice elsewhere or approach your local regulator to make a complaint. Then you get the email or letter notifying you of the complaint or raising the possibility of a formal assessment. This is the stage to take a breath and gather your documentation. We'll work out where you're at and what we need to do.

Step 2:
PROPOSE PLAN OF ACTION

We'll provide you with a proposed plan of action and an estimate of costs for our legal advice.

Step 3:
Document Review & Risk Assessment

We'll help you carefully review your costs agreement, updates, invoices, and file notes. We'll also assess whether there are any possible disciplinary issues raised in the complaint and how they can best be dealt with. An independent assessment helps clarify your exposure, identify weaknesses, and determine the best response strategy — whether negotiation, settlement, or formal defence.

Step 4:
Formal Response

You submit a measured, well-supported response to the client or regulator, addressing each point of contention. Procedural precision here is critical, as mistakes can escalate the dispute unnecessarily.

Step 5:
Negotiation or Mediation

Many disputes are resolved at this stage. Through structured negotiation or mediation, it’s often possible to reach a proportionate settlement that preserves revenue, avoids formal assessment, and limits reputational risk.

Step 6:

Outcomes you can expect

Benefits from our advice:

A Costs Dispute

  • Our expertise prevents reactive decisions that can escalate the dispute unnecessarily.
  • We ensure the matter is handled in a way that reduces the risk of disciplinary scrutiny.
  • We help you determine when to defend, when to negotiate, and how to resolve the matter proportionately — preserving income while avoiding reputational damage.
  • Our guidance improves the likelihood of a commercially sensible outcome and helps you avoid future problems.
  • Costs disputes are rarely just about money. They can feel personal and destabilising. We provide steady, confidential support focused on protecting your position and preventing future complaints.

FAQs

These are the common questions from lawyers in a similar situation to you, ask us:

What should we do if a client disputes our legal costs?

The first step is to remain measured and avoid a reactive response. In many jurisdictions, the client must first attempt to resolve the dispute with you. It's wise to settle at this point if possible to avoid the time and emotional cost of a complaint to the regulator. If you feel angry and affronted, take on board what the client says, and tell them you'll get back to them. You'll need a bit of time to gain some emotional distance so you can make a wise commercial decision. Costs disputes often arise from misunderstandings about scope, estimates, or expectations — not necessarily overcharging. Before responding, it is important to review your costs disclosure, retainer agreement, file notes, and invoices to assess your position objectively. How you respond early can determine whether the matter resolves quickly or escalates to assessment or a complaint.

Can a client challenge our costs through our state regulator?

It depends on your jurisdiction. Clients may seek a formal costs assessment through a local court or tribunal or, depending on which state you are in, raise the dispute within the regulator. Under the Uniform Law, the regulator has the power to make a formal determination of costs under a certain jurisdictional limit. Even where your costs are properly incurred, procedural missteps or disclosure deficiencies can complicate the outcome. Early advice ensures your position is protected.

What are the risks if the dispute escalates?

If not managed carefully, a costs dispute can lead to a formal costs assessment or determination, further delaying payment and involving you in a time-consuming and stressful process. In some cases, costs disputes can involve disciplinary aspects, including failure to make proper disclosure or another such breach. Strategic management reduces the risk of the matter becoming larger than it needs to be.

Should we pursue recovery proceedings while the dispute is ongoing?

Generally no, but it depends on the regulatory regime. If a complaint has been made under the Uniform Law or similar legislation, you are usually not allowed to commence proceedings once you have received notification. In any case, it is generally unwise and can be counterproductive to take proceedings while negotiations are underway.

How can we resolve a costs dispute efficiently and commercially?

The most effective outcomes begin with early, objective risk assessment. This includes reviewing compliance with disclosure obligations, evaluating likely outcomes in a formal assessment, and identifying whether negotiated resolution is commercially sensible. The goal is not simply to “win” the dispute — but to protect your practising position, contain risk, and resolve the issue without unnecessary escalation.

Can you act for me in the Costs Court or in a formal assessment?

We work with some great specialist costs lawyers and will refer formal assessments rather than managing them ourselves.

What should we do if a client disputes our legal costs?

The first step is to remain measured and avoid a reactive response. In many jurisdictions, the client must first attempt to resolve the dispute with you. It's wise to settle at this point if possible to avoid the time and emotional cost of a complaint to the regulator. If you feel angry and affronted, take on board what the client says, and tell them you'll get back to them. You'll need a bit of time to gain some emotional distance so you can make a wise commercial decision. Costs disputes often arise from misunderstandings about scope, estimates, or expectations — not necessarily overcharging. Before responding, it is important to review your costs disclosure, retainer agreement, file notes, and invoices to assess your position objectively. How you respond early can determine whether the matter resolves quickly or escalates to assessment or a complaint.

Can a client challenge our costs through our state regulator?

It depends on your jurisdiction. Clients may seek a formal costs assessment through a local court or tribunal or, depending on which state you are in, raise the dispute within the regulator. Under the Uniform Law, the regulator has the power to make a formal determination of costs under a certain jurisdictional limit. Even where your costs are properly incurred, procedural missteps or disclosure deficiencies can complicate the outcome. Early advice ensures your position is protected.

What are the risks if the dispute escalates?

If not managed carefully, a costs dispute can lead to a formal costs assessment or determination, further delaying payment and involving you in a time-consuming and stressful process. In some cases, costs disputes can involve disciplinary aspects, including failure to make proper disclosure or another such breach. Strategic management reduces the risk of the matter becoming larger than it needs to be.

Should we pursue recovery proceedings while the dispute is ongoing?

Generally no, but it depends on the regulatory regime. If a complaint has been made under the Uniform Law or similar legislation, you are usually not allowed to commence proceedings once you have received notification. In any case, it is generally unwise and can be counterproductive to take proceedings while negotiations are underway.

How can we resolve a costs dispute efficiently and commercially?

The most effective outcomes begin with early, objective risk assessment. This includes reviewing compliance with disclosure obligations, evaluating likely outcomes in a formal assessment, and identifying whether negotiated resolution is commercially sensible. The goal is not simply to “win” the dispute — but to protect your practising position, contain risk, and resolve the issue without unnecessary escalation.

Can you act for me in the Costs Court or in a formal assessment?

We work with some great specialist costs lawyers and will refer formal assessments rather than managing them ourselves.

Still have an unanswered question?

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