Conditional costs agreements involving uplift fees
26 Conditional costs agreements involving uplift fees
Subject to subclause (1a), a conditional costs agreement may provide for the payment of an uplift fee.
Subclause (1) does not apply to a conditional costs agreement relating to proceedings under the Migration
Act 1958 of the Commonwealth.
The basis of calculation of the uplift fee must be separately identified in the agreement.
The agreement must contain an estimate of the uplift fee or, if that is not reasonably practicable—
a range of estimates of the uplift fee; and
an explanation of the major variables that will affect the calculation of the uplift fee.
If a conditional costs agreement relates to a litigious matter—
the agreement must not provide for the payment of an uplift fee unless the risk of the claim failing, and of the client having to meet his or her own costs, is significant; and
the uplift fee must not exceed 25% of the legal costs (excluding disbursements) otherwise payable.
A law practice must not enter into a costs agreement in contravention of this clause.
Maximum penalty: $50 000.
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