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ARTICLE · 25 NOVEMBER 2019

Recovering costs for work performed by in-house lawyers

Work performed by in-house lawyers representing their employer in litigation can be recovered by a successful party.

AustraliaLitigation, Mediation & Arbitration

The High Court of Australia in Bell Lawyers Pty Ltd v Pentelow (2019) 93 ALJR 1007; [2019] HCA 29 has confirmed that work performed by in-house lawyers representing their employer in litigation can be recovered by a successful party.

The general rule for costs recovery is that successful litigants are entitled to recovery of the costs of professional legal services actually incurred in litigation. However, a self-represented litigant may not obtain recompense for the value of their time spent in litigation. An exception to the general rule, known as the Chorley exception, permitted a self-represented litigant who is a solicitor to recover their professional costs of acting in the litigation. In Bell, the High Court decided that the Chorley exception no longer applies in Australia.

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