Conditional Costs Agreement Template for Australia
Generate a bespoke document
What is a Conditional Costs Agreement?
The Conditional Costs Agreement is a fundamental document in Australian legal practice, particularly utilized in litigation matters where clients may not have the immediate means to pay for legal services. This agreement type, regulated under the Legal Profession Uniform Law and equivalent state legislation, enables access to justice by allowing legal fees to be contingent upon successful outcomes. The document must include specific elements such as success criteria, fee structures, and mandatory disclosures. Common applications include personal injury claims, commercial litigation, and class actions. The Conditional Costs Agreement requires careful drafting to ensure compliance with jurisdictional requirements, including cooling-off periods and uplift fee restrictions where applicable. It serves as a risk-sharing mechanism between law practices and clients, promoting transparency in legal costs while protecting both parties' interests.
Trusted by high-performance teams
About the Conditional Costs Agreement
A Conditional Costs Agreement is a specialised legal document that allows you to engage legal services where your lawyer's fees depend on achieving a successful outcome in your matter. Under Australian law, these agreements are strictly regulated by the Legal Profession Uniform Law and state-specific legislation, ensuring transparency and protecting both clients and legal practitioners.
When do you need this document?
You'll need a Conditional Costs Agreement when pursuing litigation but lack the immediate funds to pay legal fees upfront. This is particularly common in personal injury claims where you're seeking compensation, commercial disputes involving significant financial stakes, or class action lawsuits. The agreement is also essential when engaging litigation funders or third-party funders who provide financial backing for your case. Many law practices offer these agreements for matters with strong prospects of success, as they share the financial risk with you while providing access to quality legal representation.
Key legal considerations
Your agreement must clearly define what constitutes 'success' in your matter, whether it's a court judgment, settlement, or specific monetary outcome. The document should specify the percentage of any recovery that will be paid as legal fees, any uplift fees that may apply, and how disbursements will be handled. Pay careful attention to the cooling-off period provisions, which give you the right to withdraw from the agreement within a specified timeframe without penalty. The agreement must also address what happens if your matter is unsuccessful, including whether you'll be liable for the other party's legal costs and any arrangements for after-the-event insurance.
Legal requirements in Australia
Under the Legal Profession Uniform Law, your lawyer must provide detailed cost disclosures before you enter into the agreement, including estimates of likely disbursements and potential liability for adverse costs. The agreement must be in writing and include mandatory warnings about the risks involved in conditional fee arrangements. In participating jurisdictions, there are restrictions on uplift fees (typically capped at 25% of the base fee), and certain types of matters may be prohibited from conditional fee arrangements. Your lawyer must also provide you with information about alternatives to conditional costs agreements, including legal aid eligibility and other funding options. The document must comply with Australian Consumer Law requirements for fair contract terms, ensuring you understand your rights and obligations throughout the legal process.
GOVERNING LAW
Applicable law
This Conditional Costs Agreement is drafted to comply with Australia law. Key legislation includes:
Legal Profession Uniform General Rules 2015: Provides detailed regulations implementing the LPUL, including specific requirements for costs agreements and disclosure obligations
Australian Consumer Law: Governs consumer protection and fair trading practices, relevant to service agreements between lawyers and clients
State-specific Legal Profession Acts: Relevant for non-participating jurisdictions (e.g., South Australia, Western Australia) that have their own legal profession regulations
Civil Procedure Act: Governs court procedures and costs orders, relevant for conditional costs agreements related to litigation
Australian Solicitors' Conduct Rules: Professional conduct rules that include obligations regarding costs and client relations
Explore 208,390+ legal templates
Explore 208,390+ legal templates
Genie's Security Promise
Genie is the safest place to draft. Here's how we prioritise your privacy and security.
Your data is private:
We do not train on your data; Genie's AI improves independently
All data stored on Genie is private to your organisation
Your documents are protected:
Your documents are protected by ultra-secure 256-bit encryption
We are ISO27001 certified, so your data is secure
Organizational security:
You retain IP ownership of your documents and their information
You have full control over your data and who gets to see it