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8 - Lawyers' Fees and Costs: Billing and Over-Charging

Christine Parker
Affiliation:
University of Melbourne
Adrian Evans
Affiliation:
Monash University, Victoria
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Summary

Introduction: Legal Fees and Access to Justice

Clients are more likely to complain about their lawyers' fees and costs than any other issue, and even the most conscientious lawyers have trouble controlling costs and explaining them to clients. Typical complaints include that the lawyer has failed to make proper disclosure of likely costs at the commencement of the matter, failed to even provide a written bill, failed to provide an itemised bill once requested, or charged for the preparation of an itemised bill. Deliberate gross over-charging also features prominently among client complaints, as does the withdrawal of costs from a client's trust account without their permission, or in the absence of a proper bill. Clients complain about lawyers who charge costs in relation to litigation matters that amount to more than the amount actually recovered in litigation. Also featuring prominently among client complaints about lawyers are complaints about excessive hourly billing rates and exploitation of ‘no-win, no fee’ agreements. Clients routinely complain that they have been promised that they will incur no fees unless they win, but find themselves losing and having to pay the costs of the other side, or disagreeing with their lawyer about whether there has been a ‘win’. One Queensland lawyer was suspended for twelve months for gross over-charging for billing a ‘no-win, no fee’ client $300 per hour plus a premium of 25% for all work done by any employee of the firm, from partner to paralegal to secretary.

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Publisher: Cambridge University Press
Print publication year: 2007

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References

Pont, G E Dal, Lawyers' Professional Responsibility (Lawbook Co, Pyrmont, NSW, 3 edn, 2006) ‘Part III: Costs’.Google Scholar
Legal Fees Review Panel, Discussion Paper: Lawyer's Costs and the Time Billing [sic] (2004) Lawlink New South Wales <http://www.lawlink.nsw.gov.au/lawlink/olsc/ ll_olsc.nsf/vwPreviewActivePages/OLSC_lfrp> at 29 May 2006.
Legal Fees Review Panel, Report: Legal Costs in New South Wales (2005) Lawlink New South Wales <http://www.lawlink.nsw.gov.au/lawlink/legislation_policy/ll_lpd.nsf/ pages/lp_publications> at 29 May 2006.
Lerman, Lisa, ‘Gross Profits? Questions About Lawyer Billing Practices’ (1994) 22 Hofstra Law Review645.Google Scholar
Authors, Various, ‘Forum: Stopping the Clock? The Future of the Billable Hour’ (2004) 27 University of New South Wales Law Journal 198, 198–249.Google Scholar

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