Victorian Consolidated Legislation

Legal Profession Act 2004 - SECT 3.4.9.

Disclosure of costs to clients

3.4.9. 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
        practitioner remuneration order or scale of costs applies to any of
        the legal costs; and

   (b)  the client's right to-

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

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

   (ii) request an itemised bill within 30 days after receipt of a lump sum
        bill; and

   (iii) be notified under section 3.4.16 of any substantial change to the
        matters disclosed under this section; and

   (c)  an estimate of the total legal costs 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

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

   (f)  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 (1A)); and

   (g)  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

   (h)  the client's right to progress reports in accordance with section
        3.4.18; and

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

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

   (i)  costs review under Division 7;

   (ii) the setting aside of a costs agreement under section 3.4.32;

   (iii) making a complaint under Chapter 4; and

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

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

   (m)  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; or

   (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. Note The client's right to enter into an
        agreement or give a notification as mentioned in paragraph (m) will be
        under provisions of the law of the other jurisdiction that correspond
        to section 3.4.4.

(1A) For the purposes of subsection (1)(f), 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.

(1B) 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.

(2) For the purposes of subsection (1)(g), 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.

(3) A law practice is taken to have complied with the requirement to disclose
the details referred to in subsection (1)(b)(i), (ia) and (ii), (h), (j), (k)
and (m) 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.

(4) A regulation prescribing a form for the purposes of subsection (3) may
provide for the form to refer to fact sheets or other documents (whether as
current at the time the regulation commences or any earlier time or as in
force for the time being) that contain details of the kind referred to in that
subsection.

(5) The regulation may-

   (a)  require the Commissioner to produce and maintain fact sheets or other
        documents that are referred to in the form and to make them available
        on the Internet; and

   (b)  require the fact sheets or other documents to be developed in
        consultation with the professional associations.