Our client was awarded a costs order in litigation, entitling them to recover legal costs from the opposing party. Under the standard process, these costs must be assessed by a court-appointed costs assessor to determine the reasonable amount payable. Once assessed, the costs determination can be registered as a judgment and enforced against the other party.
However, in this case, it became apparent that the judgment debtor was unlikely to pay, and the costs assessment process itself would incur further legal fees, potentially leaving our client worse off financially. To address this, we took a strategic approach to protect our client’s position and maximise recovery.
We advised the client to file a costs assessment application against their former law firm, on the basis that some of the legal fees previously charged were excessive. This allowed the client to potentially recover part of those fees.
Simultaneously, we filed a Notice of Motion with the Court to:
- Explain the client’s situation;
- Inform the Court of the existing costs assessment determination against the prior law practice; and
- Request that the Court directly determine the reasonable legal costs payable by the judgment debtor, without requiring a separate assessment.
This dual-track strategy achieved two key outcomes for our client:
- Recover part of the excessive legal fees from the former law firm;
- Obtain a binding judgment for a fixed amount of costs against the judgment debtor — without incurring the additional costs of a formal assessment.
If the debtor company fails to pay, our client has grounds to commence winding up proceedings. Our tailored approach saved the client time, money, and uncertainty, while securing enforceable legal and financial outcomes.