Queensland Consolidated Acts

LEGAL PROFESSION ACT 2007 - SECT 347

347 Maximum amount law practice may charge and recover for conduct of speculative personal injury claim

(1) The maximum amount of claim-related costs (inclusive of GST) that a law practice may charge and recover from a client for work done in relation to a speculative personal injury claim, as worked out under the costs agreement with the client or this Act, must not be more than the amount worked out using the formula—

where—

"E" means the amount to which the client is entitled under a judgment or settlement, including an amount the client is entitled to receive for costs under the judgment or settlement.

"R" means the total amount the client must, under an Act, a law of the Commonwealth or another jurisdiction, or otherwise, refund on receipt of the amount to which the client is entitled under the judgment or settlement.

"D" means the total amount of disbursements or expenses for which the client is liable if that liability is incurred by or on behalf of the client either by the law practice or on the advice or recommendation of the law practice, in obtaining goods or services (other than legal services from that law practice) for the purpose of investigating or progressing the client’s claim, regardless of how or by whom those disbursements or expenses are paid, but does not include additional amounts for the claim or interest on the disbursements or expenses.

Examples for D—

1 The disbursements or expenses may be paid by the client direct or through a law practice or by a person funding the client for those disbursements or expenses.

2 If a client obtains a loan to fund the payment of disbursements and expenses on the firm’s recommendation and pays for medical and expert reports direct to the provider, the expenses fall within D (but the interest payable by the client on those expenses do not).

Note—

See also the Motor Accident Insurance Act 1994 , section 79 and the Personal Injuries Proceedings Act 2002 , section 71E .

(2) If—

(a) the amount of legal costs that a law practice may charge and recover from a client is more than the amount calculated under subsection (1) ; and

(b) the law practice wishes to charge and recover the amount (the
"greater amount" ) from the client;

the law practice may apply under subsection (3) for approval to charge and recover the greater amount.

(3) The application must be made in writing to—

(a) if the law practice is a barrister—the bar association; or

(b) otherwise—the law society.

(4) A relevant regulatory authority may, in writing, approve an application made to it for an amount up to the greater amount.

(5) This section applies to a barrister only if the barrister has not been retained by another law practice.

(6) This section applies despite section 319 and division 5 .

(7) Also, this section applies to any request for payment made on or after the day this section commences, whether or not a client agreement was entered into before that date.

(8) In this section—

"additional amounts" , in relation to a law practice’s conduct of a client’s speculative personal injury claim—

(a) means—

(i) an amount paid or payable to an entity other than the law practice for obtaining instructions or preparing statements in relation to the claim; and

(ii) interest or fees paid or payable by the client for a loan or credit facility obtained on the advice or recommendation of, or facilitated by, the law practice, to fund the payment of disbursements or expenses relating to the claim; and

(iii) interest or fees paid or payable by the client to the law practice for the use of an overdraft facility or other credit facility held by the law practice to fund the payment of disbursements or expenses relating to the claim; and

(iv) other disbursements or expenses prescribed by regulation; but

(b) does not include an amount mentioned in sub paragraph (a) (i) paid or payable to a barrister engaged by the law practice for services provided—

(i) after notice of the claim is given under the Motor Accident Insurance Act 1994 , section 37 ; or

(ii) after notice of the claim is given under the Personal Injuries Proceedings Act 2002 , section 9 or 9A ; or

(iii) after a notice of claim is given for the claim under the Workers’ Compensation and Rehabilitation Act 2003 , section 275 ; or

(iv) before a notice mentioned in subparagraph (ii) or (iii) is given, if an urgent proceeding is started for the claim under—

(A) the Personal Injuries Proceedings Act 2002 , chapter 2 , part 1 , division 5 ; or

(B) the Workers’ Compensation and Rehabilitation Act 2003 , section 276 or chapter 5 , part 7 , division 1 .

"claim-related costs" , that a law practice may charge and recover from a client for work done in relation to a speculative personal injury claim, means the total of—

(a) the legal costs for the claim; and

(b) the additional amounts for the claim.

"legal costs" means amounts that a person has been or may be charged by, or is or may become liable to pay to, a law practice for the provision of legal services including interest on the amounts, but excluding disbursements and interest on disbursements.