Understanding legal costs in a personal injury claim in New South Wales
Published on July 12, 2024 by Hanaan Indari
Understanding what legal costs mean is crucial for anyone seeking compensation for injuries sustained due to someone else’s negligence. In this article, we’ll explore the various components of legal costs in the context of a personal injury claim in NSW.
Legal costs
Legal costs are the primary costs incurred when engaging a lawyer to handle your personal injury claim.
It is important to note that this article does not cover the legal costs payable for providing advice and pursuing a dispute in the Personal Injury Commission related to no-fault benefits claimed to be payable for persons injured in motor accidents (after 1 December 2017) and in work accidents. We will never charge you legal costs for acting in these claims for no-fault benefits given these legal costs are typically payable by the insurer of the other side or, in the case of most workers compensation claims, by the Independent Review Office (IRO).
They are made up of professional fees and disbursements.
i. Professional fees
These costs are charged for the work that your lawyer does in your matter. The amount of fees can vary depending on several factors such as the complexity of your case, the relevant experience of your legal representative, and the fee billing structure. Generally, legal fees are charged on an hourly basis plus GST.
ii. Disbursements
Disbursements are additional expenses incurred during the legal process, which are separate from professional costs. These expenses may include court filing fees, medical report fees, expert witness fees, and other costs associated with gathering the evidence to support your claim. It’s essential to discuss potential disbursements with your lawyer upfront to properly understand how they will impact the overall cost of your case.
iii. Conditional fee agreements
In NSW, lawyers may offer conditional fee agreements, also known as “no win, no fee” arrangements, for personal injury claims. Under a conditional fee agreement, the lawyer agrees to waive their legal fees if your case is unsuccessful, but they may still be entitled to recover disbursements. If the case is successful, the lawyer’s fees are typically higher or there is an uplift fee to account for the risk they assumed by taking on the case on a no win, no fee basis.
iv. Costs assessments
If there is a dispute over the amount of legal costs charged in your matter, you have the right to seek assistance from the NSW Legal Services Commissioner in relation to any dispute about your legal costs.
You also have the right to seek an independent assessment of all or part of your legal costs by applying to the Manager of the Costs Assessment Section of the NSW Supreme Court.
Time limits apply to disputing your legal costs through some of these avenues so it’s important to talk to your lawyer if you have any concerns. Furthermore, applying for a costs assessment also involves additional expenses, which may be recoverable if the assessment is in your favour.
v. Costs orders
In some cases, the court may order the losing party to pay a portion of the winning party’s legal costs. These costs orders can help offset the expenses incurred during the litigation process. However, it’s important to note that costs orders do not usually cover the full extent of the legal fees and, in some cases, there is no guarantee that the losing party will be able to pay.
There is typically no risk that you will be required to pay the other party’s legal costs in the Personal Injury Commission (PIC) unless these proceedings continue beyond the PIC.
Navigating the legal costs associated with a personal injury claim in NSW requires careful consideration of various factors and it is important to seek advice from a qualified personal injury lawyer to understand your rights and obligations regarding legal costs and to ensure you receive fair compensation for your injuries. If you have any questions about your legal costs, you should speak to the lawyer handling your matter.
Please note that this article does not constitute legal advice. If you are seeking professional advice on any legal matters, you can contact Carroll & O’Dea Lawyers on 1800 059 278 or via our Contact Page and one of our lawyers will be able to assist you.
