---
title: "Record that section 77 requires the recovered money to be paid into court"
url: "https://ailawframework.com/practice/personal-injury-and-compensation/compare-who-is-to-hold-damages-recovered-for-a-child-or-a-person-who-can/new-south-wales"
type: "task_jurisdiction_version"
site: "AI Law Framework"
id: "A21-ST20261023-3-NSW"
practice_area: "Personal Injury & Compensation (workers compensation, CTP/TAC, medical negligence)"
tier: "yellow"
lawyer_review: "required"
jurisdictions: ["NSW"]
last_reviewed: "2026-10-25"
---

# Record that section 77 requires the recovered money to be paid into court

> Set out who section 77 says is to hold money recovered for a person under legal incapacity, and that payment other than into court needs the court's direction. Write nothing that is filed or signed.…

Canonical page: https://ailawframework.com/practice/personal-injury-and-compensation/compare-who-is-to-hold-damages-recovered-for-a-child-or-a-person-who-can/new-south-wales  
Last reviewed: 2026-10-25

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

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Personal Injury & Compensation (workers compensation, CTP/TAC, medical negligence)](https://ailawframework.com/practice/personal-injury-and-compensation.md) |
| Human involvement | Yellow: Lawyer and AI draft together |
| How AI is used | Set out who section 77 says is to hold money recovered for a person under legal incapacity, and that payment other than into court needs the court's direction. Write nothing that is filed or signed. Do not treat payment to the solicitor as permitted. |
| What the lawyer must review | Section 77(2) requires the money to be paid into court A direction under section 77(3) is the court's, not the tool's Do not name the solicitor or the tutor as the holder |
| Written for | New South Wales |
| Applies to | [Compare who is to hold damages recovered for a child or a person who cannot manage them](https://ailawframework.com/practice/personal-injury-and-compensation/compare-who-is-to-hold-damages-recovered-for-a-child-or-a-person-who-can.md) |

## Checking plan

**Verify against sources**

The note states the holding rule. It does not direct a payment.

- What the AI does: Set out who section 77 says is to hold money recovered for a person under legal incapacity, and that payment other than into court needs the court's direction. Write nothing that is filed or signed. Do not treat payment to the solicitor as permitted.
- What the lawyer does: Decide who may be paid, and only by an order the court makes.
- 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 77 applies to money recovered in proceedings on behalf of a person under legal incapacity, a person who becomes one during the proceedings, or a person the court has found under section 76(1)(c) to be incapable of managing their affairs.
2. Section 77(2) says all money recovered on behalf of such a person is to be paid into court. Section 77(3) says the court may instead order payment of the whole or part to such person as the court directs, including the NSW Trustee and Guardian if the person is a minor, or the manager of the estate if the person is a protected person.
3. The bench book says an application under section 41 of the NSW Trustee and Guardian Act 2009, after approval for a plaintiff whose incapacity is not solely minority, does not affect section 77(2). It says a section 77(3) direction should not be made before that application is determined, other than for non-discretionary payments required by statute or the terms of settlement.
4. Section 59 lists purposes for which the NSW Trustee may apply money of a managed estate. It is not a reason to pay the recovery to the solicitor or the tutor.

## Notes

- Health and wage records stay in a firm-controlled tool. The lawyer applies ASCR r 9 and APP 11, and decides whether any breach is notifiable under the Privacy Act 1988 (Cth).
- The bench book says that, for greater caution, the approval order may direct that the balance after statutory or agreed deductions be paid into court.

## Practical guide

Jurisdiction: New South Wales

**Deliverable**: A note of the section 77 holding rule, naming no payee.

**Inputs**

- Whether the person is under legal incapacity
- Whether the lawyer says the incapacity is solely minority

**Example**: Illustrative example: Damages are recovered for a child. The note says section 77(2) requires payment into court. It does not direct payment to the tutor.

**Stop and escalate when**

- The tool would direct payment to the solicitor.
- The money was not recovered on behalf of a person in section 77(1).

Checked 2026-10-23.

## Sources

- [Civil Procedure Act 2005 (NSW), section 77](https://classic.austlii.edu.au/au/legis/nsw/consol_act/cpa2005167/s77.html) (checked 2026-10-23)
- [Judicial Commission of NSW, Civil Bench Book, payment into court](https://www.judcom.nsw.gov.au/publications/benchbks/civil/persons_under_legal_incapacity.html) (checked 2026-10-23)
- [NSW Trustee and Guardian Act 2009, section 59](https://classic.austlii.edu.au/au/legis/nsw/consol_act/ntaga2009258/s59.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.*