---
title: "Explain what a New South Wales client pays if a personal injury claim does not succeed"
url: "https://ailawframework.com/obligations/costs-billing-and-litigation-funding/explain-what-the-client-pays-if-a-personal-injury-claim-does-not-succeed/new-south-wales"
type: "task_jurisdiction_version"
site: "AI Law Framework"
id: "A42-CS20261023-12-NSW"
practice_area: "Costs, billing & litigation funding"
tier: "yellow"
lawyer_review: "required"
jurisdictions: ["NSW"]
last_reviewed: "2026-10-25"
---

# Explain what a New South Wales client pays if a personal injury claim does not succeed

> From the settled agreement, draft a short letter on fees, any uplift and disbursements, and keep section 8.10(5) to a statutory benefits claim. Do not send the letter.

Canonical page: https://ailawframework.com/obligations/costs-billing-and-litigation-funding/explain-what-the-client-pays-if-a-personal-injury-claim-does-not-succeed/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 settled agreement, draft a short letter on fees, any uplift and disbursements, and keep section 8.10(5) to a statutory benefits claim. Do not send the letter. |
| What the lawyer must review | Follow the successful-outcome clause for fees and any uplift. State disbursements as still payable only if the agreement says so. Use section 8.10(5) only for a statutory benefits claimant. Do not invent a failed-claim formula. |
| Written for | New South Wales |
| Applies to | [Explain what the client pays if a personal injury claim does not succeed](https://ailawframework.com/obligations/costs-billing-and-litigation-funding/explain-what-the-client-pays-if-a-personal-injury-claim-does-not-succeed.md) |

## Checking plan

**New South Wales costs if the claim fails**

The tool drafts the letter from the agreement. The lawyer keeps the statutory-benefits protection in its lane.

- What the AI does: From the settled agreement, draft a short letter on fees, any uplift and disbursements, and keep section 8.10(5) to a statutory benefits claim. Do not send the letter.
- What the lawyer does: Approve the letter and decide what adverse-costs exposure to state.
- 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. Section 181(6) allows the agreement to make disbursements payable irrespective of the outcome.
2. An uplift under section 182 is part of the conditional costs. It is not payable where the success condition fails.
3. No separate failed-claim formula was opened.
4. Section 8.10(5) says an insurer is not entitled to recover from a claimant for statutory benefits any legal costs, or other costs and expenses, of the insurer in relation to the claim. It is not protection on a common law damages claim.

## Notes

- Adverse costs on a common law claim are stated only in the terms the lawyer adopts. No figure is invented.
- Keep medical details in the firm's system. Apply ASCR rule 9 and APP 11, and check whether a Privacy Act 1988 (Cth) breach is notifiable.

## Practical guide

Jurisdiction: New South Wales. A conditional personal injury retainer, and a statutory benefits claim where section 8.10(5) applies.

**Deliverable**: A short letter for the lawyer to settle.

**Inputs**

- The settled costs agreement
- Whether the claim is for statutory benefits
- Disbursements paid

**Example**: Illustrative example: A common law letter says the insurer can never recover its costs, citing section 8.10(5). The lawyer removes that sentence. The section is about statutory benefits.

**Stop and escalate when**

- Section 8.10(5) is applied to a common law damages claim.
- The letter contradicts the disbursement clause in the agreement.

Checked 2026-10-23.

## Sources

- [Legal Profession Uniform Law (NSW) s 181, conditional costs agreements](https://classic.austlii.edu.au/au/legis/nsw/consol_act/lpul333/s181.html) (checked 2026-10-23)
- [Legal Profession Uniform Law (NSW) s 182, uplift fees](https://classic.austlii.edu.au/au/legis/nsw/consol_act/lpul333/s182.html) (checked 2026-10-23)
- [Motor Accident Injuries Act 2017 (NSW) s 8.10, statutory benefits costs](https://www7.austlii.edu.au/cgi-bin/viewdoc/au/legis/nsw/consol_act/maia2017245/s8.10.html) (checked 2026-10-23)

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