---
title: "Disclose New South Wales costs before a settlement is executed"
url: "https://ailawframework.com/obligations/costs-billing-and-litigation-funding/disclose-the-costs-estimates-before-a-settlement-is-executed/new-south-wales"
type: "task_jurisdiction_version"
site: "AI Law Framework"
id: "A42-PE20261022-23-NSW"
practice_area: "Costs, billing & litigation funding"
tier: "yellow"
lawyer_review: "required"
jurisdictions: ["NSW"]
last_reviewed: "2026-10-25"
---

# Disclose New South Wales costs before a settlement is executed

> From the figures the lawyer supplies, assemble the section 177 estimates of the client's legal costs if the matter settles, including another party's costs the client is to pay, and of likely contributions, and record…

Canonical page: https://ailawframework.com/obligations/costs-billing-and-litigation-funding/disclose-the-costs-estimates-before-a-settlement-is-executed/new-south-wales  
Last reviewed: 2026-10-25

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 | From the figures the lawyer supplies, assemble the section 177 estimates of the client's legal costs if the matter settles, including another party's costs the client is to pay, and of likely contributions, and record the exception where another practice retains this one. Do not draft the settlement. |
| What the lawyer must review | Decide the estimates and whether the matter is litigious Apply the section 177(2) exception only if the other practice will disclose before execution See that this disclosure is given before the settlement is executed |
| Written for | New South Wales |
| Applies to | [Disclose the costs estimates before a settlement is executed](https://ailawframework.com/obligations/costs-billing-and-litigation-funding/disclose-the-costs-estimates-before-a-settlement-is-executed.md) |

## Checking plan

**Verify against sources**

Section 177 of the Legal Profession Uniform Law (NSW) requires the two estimates before execution, with an exception where the retaining practice discloses.

- What the AI does: From the figures the lawyer supplies, assemble the section 177 estimates of the client's legal costs if the matter settles, including another party's costs the client is to pay, and of likely contributions, and record the exception where another practice retains this one. Do not draft the settlement.
- What the lawyer does: The lawyer decides the estimates and whether the exception applies, and makes the disclosure before execution.
- Who reviews: Lawyer competent in this practice area
- Basis: Checked against the linked sources on 23 October 2026. Confirm the current instrument before reliance.

## Checks the lawyer makes

1. Disclose before execution a reasonable estimate of legal costs payable by the client if the matter settles, including another party's costs the client is to pay.
2. Disclose a reasonable estimate of contributions towards those costs likely to be received from another party.
3. A practice retained by another practice need not disclose if the other practice does so before execution.
4. Do not treat this note as the settlement deed or as a court offer.

## Notes

- Section 174 disclosure should already have been given. Section 177 is additional.
- The client receives the disclosure. Practice Note SC Gen 23 applies to a later court document, not to this disclosure itself.

## Practical guide

Jurisdiction: Legal Profession Uniform Law (NSW)

**Deliverable**: A section 177 disclosure note using only the lawyer's figures.

**Inputs**

- Lawyer's estimates
- Whether another practice retains this practice
- Proposed execution date

**Example**: Illustrative example: The lawyer supplies both estimates the day before a deed is to be signed. The note sets them out and records that they must reach the client before execution. It does not draft the deed.

**Stop and escalate when**

- One of the two estimates is missing.
- Execution is arranged before the disclosure is given.

Checked 2026-10-23.

## Sources

- [Legal Profession Uniform Law s 177, disclosure before settlement of a litigious matter](https://classic.austlii.edu.au/au/legis/nsw/consol_act/lpul333/s177.html) (checked 2026-10-23)
- [Legal Profession Uniform Law s 174, disclosure obligations of a law practice](https://classic.austlii.edu.au/au/legis/nsw/consol_act/lpul333/s174.html) (checked 2026-10-23)

## Forms and precedents for this task

| Form or precedent | Kind | AI level | Summary |
| --- | --- | --- | --- |
| [Matter closure checklist](https://ailawframework.com/precedents/personal-injury-and-compensation/firm-matter-closure-checklist.md) | Checklist | Yellow | Closing a plaintiff injury file: the settlement costs disclosure was given before execution, the bill, scheme steps, tool copies, trust money, and a risk assessment before any destruction. |
| [Disclosure of costs before a settlement is signed](https://ailawframework.com/precedents/costs-billing-and-litigation-funding/settlement-costs-disclosure.md) | Letter | Yellow | A letter giving the two costs estimates before a settlement of a litigious matter is signed, under the Uniform Law or the Queensland Act. The lawyer removes the statute that does not apply. |
| [Queensland speculative personal injury costs cap worksheet](https://ailawframework.com/precedents/costs-billing-and-litigation-funding/qld-speculative-costs-cap-worksheet.md) | Checklist | Yellow | A Queensland worksheet for the section 347 maximum on claim-related costs. The lawyer applies the formula in the current section, and half the settlement is not the fee. |

Signed-in accounts can read the full text of each one.

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