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Snapshot

  • The Legal Profession Uniform Law has been in operation for almost two years. It has introduced significant changes to some aspects of legal costs, including the concept of a ‘commercial or government client’ and time limits for applying for costs assessment.
  • The concept of a ‘commercial or government client’ is specifically defined. Practitioners will need to know the client they are dealing with as this informs the content of the disclosure obligations required and what remedies solicitors and clients may have in a costs dispute.
  • Both clients and law practices now have only 12 months in which to apply for assessment. A client can apply for an extension of time; a solicitor cannot.
  • There are difficulties arising in the way the law operates, and all practitioners will need to be aware of them.

The Legal Profession Uniform Law has been in operation for almost two years. It has introduced significant changes to some aspects of legal costs. Two are considered in this article: the concept of a ‘commercial or government client’ and time limits for applying for costs assessment.

The difficulties with the ‘commercial or government client’

All references in this article are to the Legal Profession Uniform Law No 16a (NSW) (‘LPUL‘), unless otherwise specified. The costs provisions are contained within Part 4.3 of the LPUL. The objectives in s 169 are clear:

  • to ensure that clients of law practices can make informed choices about their legal options and the costs associated with pursuing those options;
  • to provide that law practices must not charge more than fair and reasonable amounts for legal costs; and
  • to provide a framework for assessment of legal costs.

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