The Law Society of New South Wales Professional Standards Scheme (Scheme) is a legal instrument, established pursuant to the Professional Standards Act 1994 (NSW) (the Act). Solicitor Members, Life Members, and ILP Members of the Law Society of NSW (the Law Society) engaging in private legal practice are eligible to participate in the Scheme.
The Professional Standards Councils has approved the Scheme, which will commence on 22 November 2024.
The Scheme is intended to apply in New South Wales and in all States and Territories where mutual recognition provisions exist (Western Australia, Victoria, Northern Territory, South Australia, Australian Capital Territory, Queensland and Tasmania) for a period of five years.
The Law Society has continuously administered Schemes as an exclusive benefit for its Members in private practice since 1996.
The benefit to consumers of the Scheme is an assurance that the professional standards of participating members meet those required by:
- the Law Society
- relevant legal profession legislation and
- the Professional Standards Councils.
Compliance with these standards help ensure clients are well served by ethical and competent solicitors.
How does the Scheme operate?
The Scheme caps the civil liability or damages Scheme participants may be required to pay if a Court upholds a claim against them.
In principle, if proceedings are brought against a Scheme participant relating to occupational liability for damages arising from a single cause of action, a Court, in awarding damages, will limit those damages to the relevant liability cap specified in the Scheme if the Scheme participant is able to show:
- a) they are a Member of the Law Society and participant in the Scheme at the time the cause of action arose
- b) they have the requisite professional indemnity insurance cover insuring against occupational liability to which the cause of action relates, and
- c) The amount payable under the insurance policy is no less than the amount of the relevant limitation of liability specified by the Scheme.
Liability limited by the Scheme is to the extent permitted by the Act.
Detailed information about the Scheme can be found in our factsheet here.
Cost
An annual participation administration fee of $105 is payable for each Solicitor Member or Life Member, and $50 for each ILP Member. However, the Law Society does not charge a fee for ILP Law Society Membership.
Enhancing the professional standards of participating members through the administration of the Scheme plays a critical role in supporting the availability of sustainable and affordable professional indemnity insurance for participating members, which in turn benefits consumers seeking redress for any claim made.
Find out more
If you would like any assistance or more information about the Scheme, please call one of our friendly Scheme Administration Team members on (02) 9926 0189 or email us at [email protected]
