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PERSONAL INJURIES PROCEEDINGS ACT 2002 - SECT 71
Giving or receiving consideration for claim referrals
71 Giving or receiving consideration for claim referrals
(1) A person (a
"payer" ) must not give, agree to give or allow or cause someone else to give
consideration to another person (a
"payee" ) for a claim referral or potential claim referral. Penalty—
Maximum penalty—300 penalty units.
(2) A person (also a
"payee" ) must not receive, agree to receive or allow or cause someone else to
receive consideration from another person (also a
"payer" ) for a claim referral or potential claim referral. Penalty—
Maximum penalty—300 penalty units.
(3) This section does not apply if—
(a) the payee is a law practice (the
"current practice" ) that is selling all or part of the law practice’s
business to another law practice (the
"new practice" ); and
(b) the new practice gives, agrees to give or allows or
causes someone else to give the current practice an amount for the referral of
a claimant to the new practice; and
(c) the amount is not more than the
current legal costs for the claimant; and
(d) the new practice discloses
payment of the amount to the claimant in a costs agreement.
(4) In this
section—
"claimant" includes a potential claimant.
"consideration" , for a claim referral or potential claim referral, see
section 71A .
"legal costs" , for a claimant, means the fees and costs, including
disbursements, a law practice is entitled to charge and recover from the
claimant in relation to the claimant’s claim or potential claim.
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