New South Wales Consolidated Acts

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PROFESSIONAL STANDARDS ACT 1994 - SECT 23

Limitation of liability by multiple of charges

23 Limitation of liability by multiple of charges

(1) A scheme may provide that if a person to whom the scheme applies and against whom a proceeding relating to occupational liability is brought is able to satisfy the court:
(a) that the person has the benefit of an insurance policy:
(i) insuring the person against that occupational liability, and
(ii) under which the amount payable in respect of that occupational liability is not less than an amount (
"the limitation amount" ), being a reasonable charge for the services provided by the person or which the person failed to provide and to which the cause of action relates, multiplied by the multiple specified in the scheme in relation to the class of person and the kind of work to which the cause of action relates, or
(b) that person has business assets the net current market value of which is not less than the limitation amount, or
(c) that:
(i) the person has business assets and the benefit of an insurance policy insuring the person against that occupational liability, and
(ii) the net current market value of the assets and the amount payable under the policy in respect of that occupational liability, if combined, would total an amount that is not less than the limitation amount,
the person is not liable in damages in relation to that cause of action above the limitation amount or, if the scheme specifies a minimum cap determined by the Council for the purposes of the scheme that is higher than the limitation amount, above the amount of the minimum cap so specified.
(2) In determining the amount of a reasonable charge for the purposes of such a provision, a court is to have regard to any amount actually charged and to:
(a) the amount that would ordinarily be charged in accordance with a scale of charges accepted by the occupational association of which the person is a member, or
(b) if there is no such scale, the amount that a competent person of the same qualifications and experience as the person would be likely to charge in the same circumstances.
(3) This section does not limit an amount of damages to which a person is liable if the amount is less than the amount specified for the purpose in the scheme in relation to the class of person and the kind of work concerned.



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