---
title: "Retainer letter and conditional costs agreement for a representative applicant (Federal Court class action)"
url: "https://ailawframework.com/precedents/class-actions-representative-proceedings/representative-applicant-retainer-and-costs-letter"
type: "precedent"
site: "AI Law Framework"
id: "a7-representative-applicant-retainer-and-costs-letter"
area_id: "A7"
kind: "letter"
ai_level: "yellow"
version: 1
law_stated_as_at: "2026-10-18"
---

# Retainer letter and conditional costs agreement for a representative applicant (Federal Court class action)

> Engagement letter and conditional costs agreement for the person who will be the representative applicant: their role and duties to group members, adverse costs exposure, funder arrangements, uplift limits, cooling-off…

Canonical page: https://ailawframework.com/precedents/class-actions-representative-proceedings/representative-applicant-retainer-and-costs-letter  
Law stated as at: 2026-10-18

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

Engagement letter and conditional costs agreement for the person who will be the representative applicant: their role and duties to group members, adverse costs exposure, funder arrangements, uplift limits, cooling-off and conflicts.

## Key facts

- Kind: Letter. A letter or email you adapt and send.
- Practice area: [Class Actions / Representative Proceedings](https://ailawframework.com/precedents/class-actions-representative-proceedings.md)
- Jurisdictions: Australia, Commonwealth, New South Wales
- AI level: Yellow. AI can help in set ways. A lawyer checks specific points before use.
- Law stated as at: 2026-10-18
- Status: Maintained. Checked on 2026-10-18 against the 5 authorities it cites, for Australia, Commonwealth and New South Wales.

## When to use it

Use before filing, when the firm is retained by the proposed representative applicant in a Part IVA proceeding on a conditional ("no win, no fee") basis, with or without a litigation funder. It must be signed before work under it starts and disclosed to the Court as the class actions practice note requires.

## How AI may be used

AI may assemble the letter from the firm's approved costs agreement and the matter details; a lawyer settles the costs terms, the successful outcome definition and the conflicts provisions, and checks the estimates.

**AI may:**

- Fill the parties, proceeding description, rates and estimate tables from the matter file and the firm's approved rates
- Cross-check the letter against the litigation funding agreement for inconsistent terms on adverse costs, security, termination and settlement
- Produce a plain-language summary table of costs and risks for the client to read alongside the agreement

**AI must not:**

- Must not include a fee calculated by reference to the amount recovered, unless the matter is in a court and regime that permits it and the lawyer has confirmed it
- Must not set or estimate the uplift percentage, or state that a successful outcome is likely
- Must not describe the funder's commission or the adverse costs indemnity other than as stated in the signed funding agreement

**The lawyer checks:**

- The agreement meets every requirement of Uniform Law s 181, and any uplift meets s 182 (reasonable belief recorded, no more than 25%, basis and estimate given)
- The successful outcome definition fits the class action (judgment, settlement approved under s 33V, or both) and is unambiguous
- Conflicts between the applicant, group members, the firm and the funder are identified and a management process is written in, as GPN-CA para 5.9 requires
- The client understands their personal adverse costs exposure and what the funder's indemnity does and does not cover

## Authorities

- [Federal Court of Australia Act 1976 (Cth) ss 33V, 33W, 33X and 43(1A) (court approval of settlement; settlement of the representative party's own claim; notices; no costs against group members except under ss 33Q and 33R)](https://www.legislation.gov.au/C2004A01586/latest/text)
- [Federal Court of Australia, Class Actions Practice Note (GPN-CA) paras 5.1 to 5.10 (costs agreements in writing, disclosure of legal costs and funding charges to class members, categories of costs, conflicts of interest) and para 6 (disclosure to the Court)](https://www.fedcourt.gov.au/law-and-practice/practice-documents/practice-notes/gpn-ca)
- [Legal Profession Uniform Law (NSW) s 181 (conditional costs agreements: writing, plain language, successful outcome, signed by client, statement about independent advice, 5 clear business day cooling-off)](https://classic.austlii.edu.au/au/legis/nsw/consol_act/lpul333/s181.html)
- [Legal Profession Uniform Law (NSW) s 182 (uplift fees: reasonable belief of a successful outcome; no more than 25% of legal costs excluding disbursements; basis and estimate)](https://classic.austlii.edu.au/au/legis/nsw/consol_act/lpul333/s182.html)
- [Legal Profession Uniform Law (NSW) s 183 (contingency fees prohibited)](https://classic.austlii.edu.au/au/legis/nsw/consol_act/lpul333/s183.html)

## Full text and drafting notes

The full text and the drafting notes are not part of this public page. Signed-in firm accounts can read them at https://ailawframework.com/precedents/class-actions-representative-proceedings/representative-applicant-retainer-and-costs-letter and through the signed-in MCP connector https://ailawframework.com/mcp/firm.

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