Cost notices
Continuing our series on the changes introduced in the Federal Circuit and Family Court of Australia (Family Law) Rules, this week we look at cost notices.
What is a cost notice?
A cost notice is a document provided to a client, the Court and other party which outlines what legal fees, disbursements and third-party costs have been incurred in the matter.
Why does the Court require costs notices?
The Rules have placed an emphasis on ensuring parties, and the Court, are fully aware of the cost of running family law matters. The core principles contained in the Central Practice Direction have specifically refer to our obligations as lawyers to inform our clients about costs.
CORE PRINCIPLE 7 – Lawyers’ obligations about costs
3.12 Parties and their lawyers are expected to take a sensible and pragmatic approach to litigation, and to incur only such costs as are fair, reasonable and proportionate to the issues that are genuinely in dispute. Lawyers are expected to act consistently with costs estimates provided to their clients, and regularly inform their clients and the Court of the actual costs they have incurred and are likely to incur (see Part 12.3 of the Family Law Rules).
What should be included in the cost notice?
There is no specific form for a cost notice to be provided to a client or the Court And there are slightly different requirements for what needs to be included in a cost notice depending on when it is being given to a client or the Court.
Generally, a cost notice should include: -
The total costs a client has incurred to date, including any disbursements such as valuation fees, Court fees, and barrister fees.
An estimate of the costs the client may incur at each stage of the proceedings. In our cost estimate we include estimates for interim hearings if we believe one will be required, mediation, and preparing a matter to the Compliance and Readiness Hearing which includes the preparation of the material required for the final hearing.
An estimate of how many days the final hearing is likely to take.
An estimate of the costs the client will incur to the remainder of the proceedings.
When does a cost notice need to be provided?
Cost notices need to be provided to a client, filed with the Court and served on the other party before every Court event. This includes directions hearings, interim hearings, and final hearings.
Cost notices are also to be exchanged before a mediation/Conciliation Conference and, if the parties are attending a private mediation, after the mediation.
Cost notices are also to be given to a client when offers are being made.
Please note: the information in this article is general in nature and is not legal advice. For specific advice about your circumstances, contact us to make an appointment with one of our solicitors.