By Marina Dulhunty -
Snapshot
- When it comes to solicitor/client costs assessments, a common complaint is that the costs billed for a matter substantially exceed the original estimate of total legal costs and are grossly excessive, even where the original estimate was regularly updated.
- What needs to be included in the estimate so that it complies with section 174(1) of the Legal Profession Uniform Law? Must it be a single figure or can it be a range? When should you update it?
- This article unpacks the case law on these questions, including two recent decisions seemingly at odds with settled law, and provides guidance on how to present costs estimates.
Historically, section 309 (1)(c) of the Legal Profession Act 2004 (NSW) (‘LPA’) allowed for a range of estimates of total legal costs to be given if it was not reasonably practicable for an estimate of total legal costs to be given. Currently, however, section 174(1)(a) of the Legal Profession Uniform Law (NSW) (‘LPUL’) only refers to an estimate of total legal costs. While the singular includes the plural under section 8(b) of the Interpretation Act 1987 (NSW), that would encompass several estimates but would be unlikely to encompass a range of estimates.
The LPUL increases the consumer protections given to clients who do not come within section 170. Pursuant to sections 3 and 169, greater precision about disclosing what a whole matter will cost is required so clients can make informed choices about their legal options and the costs associated with those options. Despite the difficulties in providing an estimate at the outset of instructions, that is what the legislation requires.
