Letter · Costs, billing & litigation funding
Disclosure to an associated third party payer, and of another law practice
Written disclosure to an associated third party payer of the costs that payer must pay, and a separate disclosure to the client of the costs of a barrister or other law practice the firm will retain.
- Kind
- Letter. A letter or email you adapt and send.
- Where it applies
- New South Wales
- AI use
- Yellow You and the tool draft together, with you directing. You check every statement you rely on.
- Law stated as at
- 22 October 2026
- Status
- Maintained. Checked on 22 October 2026 against the 5 authorities it cites, for New South Wales.
- Version
- 1
- Source
- Written for this library
When to use it
Use when someone other than the client is obliged to the practice to pay the legal costs, or when the practice will retain a barrister or another law practice. Do not use Part A for a person whose obligation is owed only to the client and not to the practice.
Used for these tasks
Each task page says how far AI may help with the task and what the lawyer must review.
How AI may be used
AI may draft the letters from the costs disclosure and from the other practice's figures. The principal decides who is an associated payer and approves both letters.
AI may
- Copy the basis of charging and the estimate from the client disclosure, limited to costs the principal says the payer must pay
- Insert the other practice's rates and estimate from that practice's written disclosure to us
AI must not
- Must not decide that a person is an associated third party payer
- Must not send the client's advice or the full client disclosure to the payer
- Must not omit the other practice's estimate because it has not arrived
The lawyer checks
- The payer's obligation is owed to the practice, not only to the client, or Part A is not used
- Part A matches the client disclosure so far as it relates to costs that payer must pay, and it is in writing
- The client has received the s 174(1) details for the second law practice, taken from that practice's disclosure to us
Method: how the Green, Yellow and Red levels are decided. This is guidance for planning, not legal advice.
Read the full text
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The summary, the law it rests on and the AI-use guidance above stay public. Privacy.
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All precedents for Costs, billing & litigation funding · Tasks and AI use in this area