In this latest insight, Legal Costs Manager Darius Self examines a case that highlights the importance of proportionality, reasonableness, and timing when pursuing costs in litigation. Even where damages awarded fall short of expectations, a party may still achieve some success. Our latest blog unpacks the costs assessment process and offers guidance on how to approach it strategically to ensure your client’s recovery is maximised.
Summary of costs claimed and recovered:
Total claimed: $535,196.72
Total allowed: $471,705.57
Interest: $63,301.32
Costs of assessment – Filing fee apportioned: $4,717.06
Total allowed including interest: $539,723.94
The substantive proceedings were conducted in the Supreme Court of New South Wales and concluded in November 2023. The dispute involved seven parties in total, comprising four corporate entities operated by the remaining three individual parties. At the heart of the proceedings were several commercial agreements entered into between the directors, which ultimately failed to hold. This breakdown led to the initiation of formal litigation.
The Court ordered that the client’s costs be assessed on the ordinary basis. While this generally results in a 15–30% reduction to the amounts claimed, Rose Legal approached the assessment process with a deliberate and strategic focus on maximising recovery. As is standard across all matters Rose Legal is instructed in, the firm prioritised precision, clarity, and proportionality throughout. A key factor in the outcome was the efficient and considered manner in which the instructing solicitor conducted the proceedings, ensuring that unnecessary costs were avoided wherever possible.
Objections Raised by the Costs Respondent:
- Hourly rates
- Lack of delegation
- Excessive time
- Insufficient detail
- Scope
This was a complex and vigorously contested dispute concerning high-value company shares, involving a combination of individuals and corporate entities. Upon
receiving detailed objections exceeding 200 pages, Rose Legal prepared and filed comprehensive submissions to rebut the claims advanced.
In November 2024, Rose Legal served an itemised bill of costs totalling $535,196.72, comprised of:
- $233,664.75 in professional fees;
- and $301,531.97 in disbursements, including fees for both senior and junior counsel.
The Costs Respondent raised objections amounting to $348,085.79, equating to an allowance of only 35%. Rose Legal responded with concise submissions, given the comprehensive level of detail already contained in the itemised bill. This measured approach reduced the overall costs of the assessment process for the client, while still clearly demonstrating the reasonableness and necessity of the claimed costs. In support of these targeted responses, Rose Legal also prepared general submissions addressing the nature of the costs incurred, the practices adopted throughout the matter, and the principles relevant to the costs of assessment.
Outcome and Key Figures
Crucially, the success of the client’s recovery was underpinned by a well-structured and meticulously detailed bill of costs prepared by Rose Legal. The bill set out 1,683 individual items, each clearly narrated and supported by comprehensive descriptions of the work undertaken across various claims. This deliberate and disciplined approach provided the necessary transparency and clarity for the Costs Assessor.
Following a period of approximately five months, in April 2025, the Assessor made their determination:
- $198,913.22 in professional fees; and
- $272,792.35 in disbursements —
amounting to a total of $471,705.57, or approximately 88% of the sum claimed.
Rose Legal also secured an award of $63,301.32 in interest pursuant to section 101(4) of the Civil Procedure Act 2005. In addition, the Costs Assessor permitted a proportion of the filing fee, calculated at 1% of the allowed costs, resulting in a total determination amount of $539,723.94. Notably, this outcome equates to approximately 101% of the total costs originally claimed, a rare and highly favourable result that underscores the strength of Rose Legal’s submission and strategic approach throughout the costs assessment process.
Key Takeaways
- A well-prepared bill of costs is critical: The clarity, narrative, and structural integrity of a properly drafted bill are central to maximising cost recovery, particularly when the order is on the ordinary basis.
- Avoid relying solely on invoices: Simply filing invoices for assessment can significantly reduce your client’s recoverable costs. A comprehensive itemisation is essential.
- A detailed bill minimises the need for further submissions: Proper itemisation reduces the necessity for extensive supporting submissions, which in turn minimises additional costs incurred in the assessment process.
- Interest is not a minor consideration: Interest, exceeding $63,000 in this matter, had a material impact on the outcome. It should be pursued strategically, not treated as an afterthought.
- Ordinary basis assessments can still yield excellent results: With strategic planning and well-prepared documentation, even ordinary costs orders can result in close to full commercial recovery, as demonstrated in this case.
This result was more than a procedural success; it was a strategic win for our client. By investing early in the detail and structure of the bill, and by responding to objections in a proportionate and strategic manner, Rose Legal secured an outcome that exceeded expectations. This outcome reaffirmed the importance of a meticulously drawn Bill of Costs and the value of maintaining proportionality throughout the costs assessment process.
If your client has obtained an order for costs, or if you are managing any costs- related issues, Rose Legal is well positioned to provide strategic guidance and expert support throughout the assessment process.
About the Author Darius Self
Darius is a Legal Costs Manager at Rose Legal with extensive experience in costs litigation, including assisting in high-profile assessments and advising solicitors and barristers on strategic costs issues. Known for his sharp legal mind and precision in submissions, Darius regularly assists Joe Rose, Principal Solicitor, in various matters within the Supreme Court and District Court of NSW.
