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Demand Letter Cost for Australia

Demand Letter Cost Template for Australia

A Demand Letter for Costs is a formal legal document used in Australian jurisdictions to request payment of legal costs owed by one party to another. This document serves as a formal notice and typically precedes legal enforcement actions. It details the costs incurred, the basis for the claim, and provides a clear deadline for payment. The letter must comply with Australian federal and state legislation regarding debt collection practices and legal costs recovery, including the Legal Profession Uniform Law where applicable. It forms an important part of the cost recovery process and can be used as evidence in subsequent legal proceedings.

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What is a Demand Letter Cost?

A Demand Letter for Costs is a crucial document in Australian legal practice used when seeking to recover legal costs from another party. It is typically issued after the conclusion of legal proceedings or following the provision of legal services where costs remain unpaid. The letter must comply with Australian legal requirements and professional conduct rules, including those relating to costs disclosure and debt collection practices. A properly drafted Demand Letter for Costs should clearly state the amount owed, provide sufficient detail about how the costs were incurred, and give the recipient a reasonable timeframe for payment. This document is often the first step in formal cost recovery proceedings and may be used in subsequent legal actions if payment is not received.

What sections should be included in a Demand Letter Cost?

1. Recipient Details: Full name and address of the recipient, including any reference numbers

2. Matter Reference: Clear identification of the legal matter or case to which the costs relate

3. Outstanding Amount: Clear statement of the total amount being demanded

4. Basis of Costs: Explanation of how the costs were incurred and the legal basis for claiming them

5. Payment Terms: Specific timeframe for payment and acceptable payment methods

6. Consequences of Non-Payment: Clear statement of what actions will be taken if payment is not received by the deadline

What sections are optional to include in a Demand Letter Cost?

1. Interest Calculation: Include when claiming statutory interest on overdue amounts

2. Previous Correspondence: Reference to prior attempts to recover the costs, if applicable

3. Settlement Offer: Include if offering a discount for prompt payment or payment plan options

4. Third Party Costs: Include when claiming costs paid to third parties such as expert witnesses or counsel

5. Dispute Resolution Process: Include when offering a process for disputing the costs claimed

What schedules should be included in a Demand Letter Cost?

1. Schedule A - Itemized Bill of Costs: Detailed breakdown of all costs being claimed with dates and descriptions

2. Schedule B - Copy of Costs Agreement: If costs are being claimed pursuant to a costs agreement

3. Schedule C - Court Orders: Copies of relevant court orders relating to costs, if applicable

4. Schedule D - Time Records: Detailed time entries supporting the professional fees claimed

5. Schedule E - Disbursements: Receipts and invoices for disbursements being claimed

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Australia

Publisher

Ƶ

Document Type

Demand Letter

Sector

Cost

Free to use
Relevant legal definitions




















Clauses















Relevant Industries

Legal Services

Professional Services

Financial Services

Insurance

Banking

Construction

Real Estate

Healthcare

Mining

Manufacturing

Retail

Technology

Relevant Teams

Legal

Finance

Accounts Receivable

Credit Control

Debt Recovery

Practice Management

Corporate Services

Compliance

Risk Management

Operations

Relevant Roles

Lawyer

Legal Partner

Practice Manager

Financial Controller

Accounts Receivable Manager

Cost Lawyer

Legal Costs Manager

Billing Coordinator

Credit Controller

Debt Recovery Officer

Managing Partner

Chief Financial Officer

Company Secretary

In-house Counsel

General Counsel

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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