When Lawyers Cost More Than the Debt
A Lesson in Legal Oversight
(2 min reading)
When a lawyer’s bill balloons from an estimate of $6,400 to nearly $300,000, something has gone seriously wrong. This isn't a cautionary tale from overseas—it happened right here in Australia, and it could happen to you.
In a recent New South Wales Court of Appeal decision, Hartnett TAS Hartnett Lawyers v Bell as Executor of the Estate of Deakin-Bell [2023] NSWCA 244, a lawyer was ordered to repay more than $250,000 to an estate after charging what the court found to be excessive and unjustified legal fees. The original debt? Just $30,000.
The case centred on a family property dispute. A modest home in West Ballina was mortgaged. When the mortgagee died, her solicitor, Mr Hartnett, proceeded to recover the debt from the mortgagor’s estate. The legal proceedings were undefended and relatively straightforward. Yet over time, the solicitor issued 20 invoices, including a 25% “uplift fee” and charges amounting to almost the entire sale price of the property.
The lawyer even resisted requests for itemised invoices and tried to block the estate’s executor from challenging the charges. It took years, a costs assessment, and a decision from the Court of Appeal for the executor to recover the funds—at significant cost and delay.
What’s the Takeaway for Business Owners?
This case highlights something every businessperson needs to understand: your legal team is your responsibility. Even if you trust your lawyer, it is critical to:
Get costs agreements in writing and ensure they’re signed.
Question unclear or open-ended estimates.
Monitor legal strategy - even in simple, undefended matters.
Demand transparency in billing and be prepared to challenge unexplained charges.
Understand that courts can intervene - as they did here, when solicitors overstep ethical or professional bounds.
Managing a lawyer isn't about distrust, it's about accountability. Just like you would oversee your accountant, contractor, or project manager, your solicitor's work should be scoped, scrutinised, and tracked.
Because in the end, if you're not watching the bill, the bill might consume everything.
Disclaimer: This page is intended to provide general information only and is not legal advice. The contents may not reflect the most current legal developments and do not take into account your individual circumstances. You should not act or refrain from acting on the basis of this information without obtaining legal advice tailored to your situation.