New South Wales Consolidated Regulations

LEGAL PROFESSION UNIFORM GENERAL RULES 2015 - REG 42

42 Withdrawal of trust money for payment of legal costs

(1) This rule prescribes, for the purposes of Division 2 of Part 4.2 of the Uniform Law (see section 144(2)(b) of that Law), the procedure for the withdrawal of trust money held in a general trust account or controlled money account of a law practice for payment of legal costs owing to the law practice by the person for whom the trust money was paid into the account.

(2) The trust money may be withdrawn in accordance with the procedure set out in any applicable subrule of this rule.

(3) The law practice may withdraw the trust money if the law practice has given the person a bill relating to the money and referring to the proposed withdrawal, and--

(a) if the person does not, at the end of the period of 7 business days after the person was given the bill, object to the amount specified in the bill, or

(b) if the person objects to the amount specified in the bill within the period of 7 business days after being given the bill but has not referred the matter to the designated local regulatory authority or for costs assessment, and the period of 30 days after the later of the following dates has expired--

(i) the date on which the person was given the bill,

(ii) the date on which the person received an itemised bill following a request made in accordance with section 187 of the Uniform Law, or

(c) if the money otherwise becomes legally payable.

(4) The law practice may withdraw the trust money (whether or not the law practice has given the person a bill relating to the money)--

(a) if the money is withdrawn in accordance with instructions that have been received by the law practice and that authorise the withdrawal, and

(b) if, before effecting the withdrawal, the law practice gives or sends to the person--

(i) a request for payment, referring to the proposed withdrawal, or

(ii) a written notice of withdrawal.

Note : See also subrule (7), which relates to subrule (4).

(5) The law practice may withdraw the trust money--

(a) if the money is owed to the law practice by way of reimbursement of money already paid by the law practice on behalf of the person, and

(b) if, before effecting the withdrawal, the law practice gives or sends to the person--

(i) a request for payment, referring to the proposed withdrawal, or

(ii) a written notice of withdrawal.

Note : See also subrule (8), which relates to subrule (5).

(6) If the law practice has given the person who is a commercial or government client a bill specifying the amount payable by the person for legal costs, the law practice may withdraw the money so long as--

(a) the money is withdrawn in accordance with a costs agreement between the law practice and the person, and

(b) the costs agreement complies with the legislation under which it is made and authorises the withdrawal, and

(c) before effecting the withdrawal, the law practice gives or sends to the person a request for payment, referring to the proposed withdrawal.

(7) In relation to subrule (4)--

(a) if the authorisation referred to in subrule (4)(a) authorises withdrawal of part only of the money--

(i) the law practice may withdraw the money to that extent only, and

(ii) if the law practice has given the person a bill relating to the money as referred to in subrule (3)(a)--subrule (3)(b)(i) and (ii) are taken to apply to the remaining part of the amount specified in the bill, and

(b) instructions referred to in subrule (4)--

(i) if given in writing, must be kept as a permanent record, or

(ii) if not given in writing, must be confirmed in writing either before, or not later than 5 working days after, the law practice effects the withdrawal and a copy must be kept as a permanent record.

(8) For the purposes of subrule (5), money is taken to have been paid by the law practice on behalf of the person when the relevant account of the law practice has been debited.

Note : Rule 73 provides for the giving of bills.