(1) If a law practice
negotiates the settlement of a litigious matter on behalf of a client, the law
practice must disclose to the client, before the settlement is
executed —
(a) a
reasonable estimate of the amount of legal costs payable by the client if the
matter is settled (including any legal costs of another party that the client
is to pay); and
(b) a
reasonable estimate of any contributions towards those costs likely to be
received from another party.
(2) A law practice
retained on behalf of a client by another law practice is not required to make
a disclosure to the client under subsection (1) if the other law practice
makes the disclosure to the client before the settlement is executed.