Victorian Consolidated Legislation

Legal Profession Act 2004 - SECT 3.4.38.

3.4.38. Application by clients or third party payers for costs review

(1) A client may apply to the Costs Court for a review of the whole or any
part of legal costs.

(2) A third party payer may apply to the Costs Court for a review of the whole
or any part of legal costs payable by the third party payer.

(3) An application for a costs review may be made even if the legal costs have
been wholly or partly paid.

(4) If any legal costs have been paid without a bill, the client or third
party payer may nevertheless apply for a costs review.

(5) An application by a client or third party payer for a costs review under
this section must be made within 12 months after-

   (a)  the bill was given or the request for payment was made to the client
        or third party payer; or

   (b)  the costs were paid if neither a bill was given nor a request was
        made.

(6) However, an application that is made out of time, otherwise than by-

   (a)  a sophisticated client; or

   (b)  a third party payer who would be a sophisticated client if the third
        party payer were a client of the law practice concerned-

may be dealt with by the Costs Court if the Supreme Court constituted by a
Judge of the Court within the meaning of the Supreme Court Act 1986, on
referral by a Costs Judge or the client or third party payer who made the
application for review, determines, after having regard to the delay and the
reasons for the delay, that it is just and fair for the application for review
to be dealt with after the 12 month period.

(7) If the third party payer is a non-associated third party payer, the law
practice must provide the third party payer, on the written request of the
third party payer, with sufficient information to allow the third party payer
to consider making, and if thought fit to make, an application for a costs
review under this section.

(8) If there is an associated third party payer for a client of a law
practice-

   (a)  nothing in this section prevents-

   (i)  the client from making one or more applications for review under this
        section in relation to costs for which the client is solely liable;
        and

   (ii) the associated third party payer from making one or more applications
        for review under this section in relation to costs for which the
        associated third party payer is solely liable- and those applications
        may be made by them at the same time or at different times and may be
        dealt with jointly or separately; and

   (b)  the client or the associated third party payer-

   (i)  may participate in the costs review process where the other of them
        makes an application for review under this section in relation to
        costs for which they are both liable; and

   (ii) is taken to be a party to the review and is bound by the review; and

   (c)  the law practice-

   (i)  must participate in the costs review process where an application is
        made under this section by the associated third party payer in the
        same way as the practice must participate in the process where an
        application is made under this section by a client; and

   (ii) is taken to be a party to the review and is bound by the review.

(9) If there is a non-associated third party payer for a client of a law
practice-

   (a)  nothing in this section prevents-

   (i)  the client from making one or more applications for review under this
        section in relation to costs for which the client is liable; and

   (ii) the non-associated third party payer from making one or more
        applications for review under this section in relation to costs for
        which the non-associated third party payer is liable- and those
        applications may be made by them at the same time or at different
        times but must be dealt with separately; and

   (b)  the client-

   (i)  may participate in the costs review process where the non-associated
        third party payer makes an application under this section in relation
        to costs for which the non-associated third party payer is liable; and

   (ii) is taken to be a party to the review and is bound by the review; and

   (c)  the law practice-

   (i)  must participate in the costs review process; and

   (ii) is taken to be a party to the review; and

   (d)  despite any other provision of this Division, the review of the costs
        payable by the non-associated third party payer does not affect the
        amount of legal costs payable by the client to the law practice.

(10) In this section-

client includes the following-

   (a)  an executor or administrator of a client;

   (b)  a trustee of the estate of a client; third party payer includes-

   (a)  an executor or administrator of a third party payer;

   (b)  a trustee of the estate of a third party payer.