A New South Wales Supreme Court decision has confirmed a costs assessment panel’s ruling that permitted a law firm employee to charge higher hourly rates, despite lacking formal legal qualifications. The court rejected the client’s appeal in Troost v Coleman Greig Lawyers Pty Ltd [2026] NSWSC 1109.

The case originated from family law proceedings involving property and parenting disputes. The client engaged the defendant firm around 3 December 2021 after previously instructing another practice. During the engagement, the firm submitted 15 invoices totaling $1,572,696.78. A costs assessor permitted the work of an employee of the law practice, who was not a qualified legal practitioner, at a specific hourly rate. In a determination dated 9 December 2024, the review panel allowed the work at higher hourly rates.

Under Section 89(1)(b) of the Legal Profession Uniform Law Application Act 2014, the client sought leave to appeal. As the disputed amount was under $100,000, the client needed and requested leave to appeal on two grounds. The law practice objected to the client’s request for leave to appeal.

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The client’s first argument claimed the panel had erred by approving rates of $380 per hour until 20 August 2022, $395 per hour up to 11 November 2022, and $410 per hour thereafter. The court rejected this, stating the panel had discretion to evaluate the employee’s contributions—particularly since much of her work involved legal tasks beyond routine administrative duties.

The second challenge focused on the client’s failure to object to the rates during earlier assessments. The court noted that the client’s inconsistent approach could be a relevant matter within the scope of review, such that the review panel could consider that approach an implicit acceptance of the rate’s fairness and reasonableness on some occasions.

The Supreme Court’s ruling reflects a trend in legal cost assessments, where courts generally defer to panel decisions unless clear errors or injustices are identified.