The laws and rules governing the professional obligations of lawyers, including the allocation of legal costs, vary between different Australian jurisdictions. This chapter will explain the different types of legal costs and discuss generally how courts deal with costs disputes between lawyers and their clients (solicitor-client costs). This chapter will also consider how courts allocate costs between parties in litigation (party-party costs and indemnity costs), including the important impact of settlement offers on costs consequences and the growing role of litigation funders. This chapter will also consider the use of costs as both a compensatory and deterrent mechanism, including in the context of interlocutory skirmishes and personal liability of legal practitioners for costs.
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