Costs (LPUL Act) Flashcards
(17 cards)
s 169 – Objectives
the objectives of this Part are to (a) ensure clients of law practices are able to make informed choices about their legal options and the costs of pursuing those options, (b) provide that law practices must not charge more than what is fair and reasonable, and (c) provide a framework for assessing legal costs.
s 170 – Commercial or government clients
This Part does not apply to a commercial or government client, or a third party payer who would be a commercial or govt client if the third party client were a client of the law practice concerned.
s 171 – Third party payers
a person is a third party payer in relation to a client of a law practice if that person is not a client and is under an obligation to pay for all or part of legal costs, or has already paid all or part of legal costs.
s 172 –Legal costs must be fair and reasonable
a law practice must charge costs that are no more than fair and reasonable in all the circumstances.
s 173 – Avoidance of increased legal costs
A law practice must not act in a way that unnecessarily results in increased legal costs payable by a client, and must act reasonably to avoid unnecessary delay resulting in increased legal costs.
s 174 – Main disclosure requirement
A law practice must
(a) as soon as practicable after instructions are initially given, provide the client with information disclosing the basis on which legal costs will be calculated in the matter and an estimate of total legal costs, AND
(b) provide the client with additional information as soon as practicable where there is any significant change to costs.
s 175 – Disclosure obligations if another law practice is to be retained
where a law practice intends to retain another law firm on behalf of client, the first law practice must disclose it to the client.
s 176 – Disclosure obligations of law practice regarding associated third party payers
if a law practice is required to make a disclosure under s 174 or s 175, they must also make that disclosure to third party payers.
s 177 – Disclosure obligations regarding settlement of litigious matters
if a law practice negotiates a settlement on behalf of a client, the law practice must make disclosure to the client before settlement is executed.
s 178 – c non-compliance with disclosure obligations
if a law practice contravenes the disclosure obligations in this part: (a) costs agreement is void, (b) the client is not required to pay legal costs until costs dispute has been determined, and (c) the law practice must not commence proceedings for recovery of any legal costs until they have been assessed or any costs dispute has been determined.
s 179 - client’s right to require/negotiate costs agreement
client has a right to require and negotiate a costs agreement with a law practice.
s 180 – making of costs agreements
Costs agreements can be made by client and law practice, or by 2 law practices on behalf of a client. The costs agreement must be in writing.
s 181 – Conditional costs agreements
a costs agreement may provide that some or all of the costs are conditional on the successful outcome of the matter to which the costs relate to.
s 182 – Conditional costs agreements involving uplift fees
a conditional costs agreement may provide for payment of an uplift fee. The uplift fee must not exceed 25% of the legal costs (excluding disbursements).
s 183 – Contingency fees are prohibited
a law practice must not enter into a costs agreement under which the amount payable is calculated by reference to an award or settlement value of any property that may be recovered in any proceeding to which the agreement relies.
s 184 - Effect of costs agreement
costs agreement is enforceable like a contract.
s 185 - Certain costs agreements are void
costs agreements made in contravention of the Act are void.
