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LEGAL PROFESSION ACT 2008 (NO. 21 OF 2008) - SECT 260

260 .         Disclosure of costs to clients

        (1)         A law practice must disclose to a client in accordance with this Division —

            (a)         the basis on which legal costs will be calculated, including whether a costs determination applies to any of the legal costs; and

            (b)         the client’s right to —

                  (i)         negotiate a costs agreement with the law practice; and

                  (ii)         receive a bill from the law practice; and

                  (iii)         request an itemised bill after receipt of a lump sum bill; and

                  (iv)         be notified under section 267 of any substantial change to the matters disclosed under this section;

                and

            (c)         an estimate of the total legal costs if reasonably practicable or, if that is not reasonably practicable —

                  (i)         a range of estimates of the total legal costs; and

                  (ii)         an explanation of the major variables that will affect the calculation of those costs;

                and

            (d)         details of the intervals (if any) at which the client will be billed; and

            (e)         the rate of interest (if any) that the law practice charges on overdue legal costs, whether that rate is a specific rate of interest or is a benchmark rate of interest (as referred to in subsection (2)); and

            (f)         if the matter is a litigious matter, an estimate of —

                  (i)         the range of costs that may be recovered if the client is successful in the litigation; and

                  (ii)         the range of costs the client may be ordered to pay if the client is unsuccessful;

                and

            (g)         the client’s right to progress reports in accordance with section 269; and

            (h)         details of the person whom the client may contact to discuss the legal costs; and

                  (i)         the following avenues that are open to the client in the event of a dispute in relation to legal costs —

                  (i)         costs assessment under Division 8;

                  (ii)         the setting aside of a costs agreement under section 288;

                  (iii)         making a complaint under Part 13;

                and

            (j)         any time limits that apply to the taking of any action referred to in paragraph (i); and

            (k)         that the law of this jurisdiction applies to legal costs in relation to the matter; and

            (l)         information about the client’s right —

                  (i)         to accept under a corresponding law a written offer to enter into an agreement with the law practice that the corresponding provisions of the corresponding law apply to the matter; and

                  (ii)         to notify under a corresponding law (and within the time allowed by the corresponding law) the law practice in writing that the client requires the corresponding provisions of the corresponding law to apply to the matter.

        (2)         For the purposes of subsection (1)(e), a benchmark rate of interest” is a rate of interest for the time being equal to or calculated by reference to a rate of interest that is specified or determined from time to time by an ADI or another body or organisation, or by or under other legislation, and that is publicly available.

        (3)         The regulations may make provision for or with respect to the use of benchmark rates of interest, and in particular for or with respect to permitting, regulating or preventing the use of particular benchmark rates or particular kinds of benchmark rates.

        (4)         For the purposes of subsection (1)(f), the disclosure must include —

            (a)         a statement that an order by a court for the payment of costs in favour of the client will not necessarily cover the whole of the client’s legal costs; and

            (b)         if applicable, a statement that disbursements may be payable by the client even if the client enters into a conditional costs agreement.

        (5)         A law practice is taken to have complied with the requirement to disclose the details referred to in subsection (1)(b)(i), (ii) and (iii), (g), (i), (j) and (l) if it provides a written statement in or to the effect of a form prescribed by the regulations for the purposes of this subsection at the same time as the other details are disclosed as required by this section.

        (6)         A form prescribed for the purposes of subsection (5) may, instead of itself containing details of the kind referred to in that subsection, refer to publicly accessible sources of information (such as an internet website) from which those details can be obtained.

        (7)         The regulations may require the Board to develop a statement of the relevant details and to revise it as necessary to keep it up to date.



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