Pascoe Legal - Costs Lawyers’ Post

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Decision delivered yesterday which is a timely reminder to practitioners to ensure compliance with their costs disclosure obligations to clients. While this was a determination made pursuant to the LPA, the LPUL as it applies in WA can be more detrimental in its effect. While the consequences as a result of any lack of costs disclosure under the LPA proceeds down a discretionary path of the Court, the LPUL is more stringent and voids the costs agreement. In this case, her Honour found that there were a number of breaches of the costs disclosure requirements of the LPA, and the effect was to render the costs agreement not fair or reasonable. This included the failure to comply with section 260(1), in particular the disclosure upon which the legal costs will be calculated, including the failure to indicate the applicable Scale to the subject matter and the prospect of recovery of costs. However, it is to be borne in mind that there were other factors which played a part in the Court excercising its discretion to set aside the costs agreement, including: - the vulnerability of the client in a complicated family law dispute; - the lack of explanation on the part of the law practice as to the consequences of entering into the costs agreement (as opposed to the Scale) - lack of information contained in the invoices; - the long intervals between rendering invoices to the client; and - the lack of ongoing updates to the legal costs.

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