---
title: "Disclosure to an associated third party payer, and of another law practice"
url: "https://ailawframework.com/precedents/costs-billing-and-litigation-funding/associated-payer-and-counsel-disclosure"
type: "precedent"
site: "AI Law Framework"
id: "a42-associated-payer-and-counsel-disclosure"
area_id: "A42"
kind: "letter"
ai_level: "yellow"
version: 1
task_ids: ["A42-T1-R1"]
law_stated_as_at: "2026-10-22"
---

# 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.

Canonical page: https://ailawframework.com/precedents/costs-billing-and-litigation-funding/associated-payer-and-counsel-disclosure  
Law stated as at: 2026-10-22

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

## Key facts

- Kind: Letter. A letter or email you adapt and send.
- Practice area: [Costs, billing & litigation funding](https://ailawframework.com/precedents/costs-billing-and-litigation-funding.md)
- Jurisdictions: New South Wales
- AI level: Yellow. You and the tool draft together, with you directing. You check every statement you rely on.
- Law stated as at: 2026-10-22
- Status: Maintained. Checked on 2026-10-22 against the 5 authorities it cites, for New South Wales.

## 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

- [Draft a costs disclosure from the matter scope and the scale or estimate](https://ailawframework.com/obligations/costs-billing-and-litigation-funding/draft-a-costs-disclosure-from-the-matter-scope-and-the-scale-or-estimate.md)

## 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

## Authorities

- [Legal Profession Uniform Law (NSW) s 171 (third party payer, associated and non-associated)](https://classic.austlii.edu.au/au/legis/nsw/consol_act/lpul333/s171.html)
- [Legal Profession Uniform Law (NSW) s 174 (disclosure to the client: basis, total estimate, and the client's rights)](https://classic.austlii.edu.au/au/legis/nsw/consol_act/lpul333/s174.html)
- [Legal Profession Uniform Law (NSW) s 175 (disclosure where another law practice is to be retained)](https://classic.austlii.edu.au/au/legis/nsw/consol_act/lpul333/s175.html)
- [Legal Profession Uniform Law (NSW) s 176 (the same disclosure to an associated third party payer, in writing, to the extent relevant)](https://classic.austlii.edu.au/au/legis/nsw/consol_act/lpul333/s176.html)
- [Legal Profession Uniform Law (NSW) s 178 (effect of not complying, including where disclosure was made to one person but not the other)](https://classic.austlii.edu.au/au/legis/nsw/consol_act/lpul333/s178.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/costs-billing-and-litigation-funding/associated-payer-and-counsel-disclosure 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.*