---
title: "Disclose Victorian 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/victoria"
type: "task_jurisdiction_version"
site: "AI Law Framework"
id: "A42-PE20261022-23-VIC"
practice_area: "Costs, billing & litigation funding"
tier: "yellow"
lawyer_review: "required"
jurisdictions: ["VIC"]
last_reviewed: "2026-10-25"
---

# Disclose Victorian 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 contributions likely to be…

Canonical page: https://ailawframework.com/obligations/costs-billing-and-litigation-funding/disclose-the-costs-estimates-before-a-settlement-is-executed/victoria  
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 contributions likely to be received, and record that the disclosure is before execution. Do not draft the settlement. |
| What the lawyer must review | Decide the estimates and whether the matter is litigious If this practice was retained by another practice, decide whether that practice will make the disclosure See that this disclosure is given before the settlement is executed |
| Written for | Victoria |
| 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 requires two reasonable estimates before a litigious settlement is executed. A practice retained by another practice need not disclose if the other practice does.

- 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 contributions likely to be received, and record that the disclosure is before execution. Do not draft the settlement.
- What the lawyer does: The lawyer decides the estimates, 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. Make the disclosure before the settlement is executed, not after.
2. Include a reasonable estimate of the client's legal costs if the matter settles, including another party's costs the client is to pay.
3. Include a reasonable estimate of contributions towards those costs likely to be received from another party.
4. Section 177(2) removes the duty of a practice retained by another practice if that other practice discloses before execution.

## Notes

- Victoria applies the Uniform Law. The text opened is that Law. This disclosure is in addition to section 174.
- The client receives the disclosure. The tool does not draft the settlement terms.

## Practical guide

Jurisdiction: Legal Profession Uniform Law as applied in Victoria

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

**Inputs**

- Lawyer's estimate of the client's costs on settlement
- Lawyer's estimate of costs recoverable or payable to another party
- Whether another law practice retains this practice

**Example**: Illustrative example: The lawyer supplies a costs figure and a party-party contribution. The note sets out both and states that it must be given before execution. It does not draft the release.

**Stop and escalate when**

- Either estimate is missing.
- The settlement is about to be executed and the disclosure has not been 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.*