As a costs lawyer in Western Australia, I have observed numerous instances where lawyers have failed to provide their clients with updated costs estimates.

This failure can lead to a lack of transparency, frustration, and disputes between lawyers and their clients.

One recent case from New South Wales, Bevan v Bingham & Ors [2023] NSWSC 19, provides a useful illustration of the importance of providing costs updates.

In this case, a barrister (the plaintiff) was retained by a solicitor (the first defendant) to represent the second defendant in proceedings related to the Bankruptcy Act 1966 (Cth).

The plaintiff entered into a costs agreement with the first defendant, in accordance with section 180(1)(c) of the Legal Profession Uniform Law (NSW) (LPUL).

The plaintiff provided an initial costs estimate of $60,000 (although the agreement's breakdown actually totalled $56,000) for the anticipated work.

However, the plaintiff ultimately billed the first defendant a total of $349,360, without providing any ongoing updates of his estimated costs.

The court found that the plaintiff's failure to provide these updates constituted a contravention of the prescribed disclosure obligations under the LPUL.

According to section 178(a) of the LPUL, a costs agreement is void if a law practice contravenes the prescribed disclosure obligations.

The court determined that the plaintiff's agreement was void due to the failure to provide updated costs estimates.

This conclusion was consistent with the objectives of the LPUL, which include empowering clients to make informed choices about the legal services they access and the costs involved.

The Bevan case highlights the importance of lawyers providing regular costs updates to their clients.

Failing to do so not only contravenes the LPUL but also undermines the ability of clients to make informed decisions about their legal representation.

As this case demonstrates, the consequences of not providing costs updates can be severe, including the voiding of a costs agreement and potential disputes with clients.

In light of this case, it is essential for lawyers to ensure that they maintain open and transparent communication with their clients regarding costs.

This includes providing regular updates on costs estimates and promptly informing clients of any changes that may affect the overall costs of their legal representation.

By doing so, lawyers can help to foster trust, avoid disputes, and ensure that their clients are well-informed and confident in their decision-making.