---
title: "Check a costs agreement does not calculate the fee from the outcome"
url: "https://ailawframework.com/obligations/costs-billing-and-litigation-funding/check-a-costs-agreement-does-not-calculate-the-fee-from-the-outcome"
type: "task"
site: "AI Law Framework"
id: "A42-PE20261022-24"
practice_area: "Costs, billing & litigation funding"
tier: "yellow"
lawyer_review: "required"
last_reviewed: "2026-10-22"
---

# Check a costs agreement does not calculate the fee from the outcome

> Read the costs agreement the lawyer supplies and flag any clause under which the amount payable to the law practice, or any part of it, is calculated by reference to the amount of any award or settlement or the value…

Canonical page: https://ailawframework.com/obligations/costs-billing-and-litigation-funding/check-a-costs-agreement-does-not-calculate-the-fee-from-the-outcome  
Last reviewed: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Costs, billing & litigation funding](https://ailawframework.com/obligations/costs-billing-and-litigation-funding.md) |
| Human involvement | Yellow: Lawyer and AI draft together |
| How AI is used | Read the costs agreement the lawyer supplies and flag any clause under which the amount payable to the law practice, or any part of it, is calculated by reference to the amount of any award or settlement or the value of any property that may be recovered in proceedings to which the agreement relates. Record the exception to the extent the agreement adopts an applicable fixed costs legislative provision, without stating what that provision says. Record that a contravention is capable of constituting unsatisfactory professional conduct or professional misconduct by a principal or associate involved. Do not convert the stated civil penalty into dollars. |
| What the lawyer must review | The lawyer decides whether a clause calculates the fee from the outcome, whether the fixed-costs exception applies, and whether the agreement can be made. |
| Written for / versions | 1 jurisdiction versions below |

## Checking plan

**Source-by-source verification**

Trace relied-on content to independent sources and check for relevant material the output has missed.

- What the AI does: Read the costs agreement the lawyer supplies and flag any clause under which the amount payable to the law practice, or any part of it, is calculated by reference to the amount of any award or settlement or the value of any property that may be recovered in proceedings to which the agreement relates. Record the exception to the extent the agreement adopts an applicable fixed costs legislative provision, without stating what that provision says. Record that a contravention is capable of constituting unsatisfactory professional conduct or professional misconduct by a principal or associate involved. Do not convert the stated civil penalty into dollars.
- What the lawyer does: The lawyer decides whether a clause calculates the fee from the outcome, whether the fixed-costs exception applies, and whether the agreement can be made.
- Who reviews: Responsible lawyer with competence in the matter
- Basis: Practical workflow informed by the linked primary sources; the traffic light and working checks are editorial guidance, not a court classification.
- Why: The level reflects what the work is, the consequence of an error, and how much of the output the lawyer must independently re-derive.

## Checks the lawyer makes

1. A clause is flagged only where the fee, or part of it, is calculated from an award, a settlement, or the value of property that may be recovered.
2. An uplift on the practice's own fees is not treated as this prohibition.
3. The fixed-costs exception is recorded as an exception whose content was not opened.
4. The civil penalty stays as 100 penalty units.

## Notes

- These are suggested working checks. Confirm the required checking with the responsible lawyer before work starts; the checking approach does not establish permission to use AI.

## Sources

- [Legal Profession Uniform Law (NSW) s 183, contingency fees prohibited](https://classic.austlii.edu.au/au/legis/nsw/consol_act/lpul333/s183.html) (checked 2026-10-22)

## Jurisdiction versions

| Jurisdiction | Level |
| --- | --- |
| [United States](https://ailawframework.com/obligations/costs-billing-and-litigation-funding/check-a-costs-agreement-does-not-calculate-the-fee-from-the-outcome/united-states.md) | Yellow |

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*