Problem questions: LPA Flashcards
Townsville Lawyers has offered you brief to appear on a sentence before the Townsville District Court. The sentence is in a few weeks. You have not been briefed by this firm before. The solicitor has explained that he is charging the client $3,500 excluding GST and is currently preparing his cost agreement.
The instructing solicitor has requested that you provide your cost documents as possible because he would like to get the documents finalised and arrange a conference with the client.
The instructing solicitor explains he is not certain about whether he is required to provide the client your cost documents, if at all, or whether you are meant to send them directly to the client…and when, if at all, that should occur.
Discuss.
(3 marks)
I would explain given the estimated legal fees for the solicitor are likely to exceed the detailed disclosure amount (s 300 - $3000 excluding gst and disbarments) the solicitor would need to disclose as per s 308 LPA.
Further, I would explain that given he retaining me on behalf of the client he will need to disclose my legal costs and billing arrangements as per s 309(2) which is in addition to his disclosure (s 309A). I am not required to disclose directly to the client but I am required to provide him with the necessary information in order to allow him to comply with s 308 (see s 309(2)).
The disclosure must be made for both him and I as soon as practicable (s 310(1) and (2)).
Question: You are brief to appear at settlement of a personal injuries matter. The respondent has admitted fault and the settlement is regarding quantum of damages to be paid. Your client has paralysed because of negligent driving by the respondent. Your client’s life expectancy has been significantly reduced.
After days of negotiation, the Respondent has made an offer to settle this matter which your client is happy with.
The instructing solicitor asked whether prior to execution of settlement whether any additional disclosure is required?
I would explain to the instructing solicitor that given this is a litigious matter (s 300 LPA) given proceedings may be likely to commence in a court should the matter not settle…s 312 requires additional disclosure to the client prior to the execution of the settlement namely, (a) reasonable estimate of legal costs to be paid by the client should the matter settle and (b) a reasonable estimate of contributions towards those costs likely to be paid by from the other party.
The effect of failing to do so may mean the client does not have to pay legal fees s 316 unless they have been assessed under div 7.
What type of disclosure will a law practice be required to make in the following scenarios?
(1) Where the estimate legal fees are likely to exceed $2,000 excluding GST and disbursements;
(2) Where the estimated legal fees are not likely rto exceed $1,250 excluding gst and disbursements;
(3) The estimated legal fees are likely to exceed $30,000 excluding gst and disbursement; and
(4) Where the work is being conducted on a pro bono basis.
You are working on a matter and the fees are not likely to exceed $2,750 excluding gst and disbursements. You make disclosure under s 307B. Due to unforeseen problems you explain over the phone to your client the legal fees are now likely to be around $9,000 excluding gst and disclosure.
Are you required to make any further disclosure other than notifying the client about the change in costs?
S 315 must disclose in writing the substantial change to the estimate fees which was outlined in the original cost agreement.
Further, as per s 310(2) given disclosure would have been made under s 307B which is now longer applicable…disclosure must now bee made under s 308 as soon as practicable now that s 307B no longer applies.
A solicitor has been approached by a former client for further commercial law work (i.e drafting documents). The estimated legal fees of which are not likely to exceed $7,700. The solicitor just finished work for this client two weeks ago and provided cost disclosure for that matter.
The client is really keen to get straight to work and says in an email don’t worry about further cost disclosure I am have a copy of the last agreement.
The client after some weeks now wants a progress report regarding legal costs incurred.
The solicitor wants to know whether the client has any right to a progress report, and if he has done everything right so far.
S 311(1)(b) disclosure is not required where the client has received more than 1 costs dislcsure under the LPA within the last 12 months, and agrees in writing to wavei right to further disclosure, and the pricncipal of the law practice considers it reasonable to not disclose further when regard is hard to the nature of the previous discosue sand the relevant circumstances…and (3)-(4) a written records is kept of the law principles decision to not disclose…
Here it would appear the client ahs waived right to further disclosure, however we are not aware of whether the law principle has considered it reasonable etc, however given that he work is sounds the same probably would be fine need further information … in any event if that is satisfied and disclosure is not required under s 311 nothing takes away from the clients right to request a progress report under s 317 as pers s 311(5)(a).
