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Q. If a client
lodges a complaint with the Legal Practitioners Conduct Board in
relation to my account, can I institute legal proceedings to recover
my costs?
A.
There is no legal bar to a legal practitioner instituting legal
proceedings when a client lodges a complaint with the Legal Practitioners
Conduct Board in relation to their account. Before instituting legal
proceedings legal practitioners must ensure that they satisfy their
obligations under Section 41 of the Legal Practitioners Act 1981,
in that they provide a bill to the client specifying the total amount
of legal costs and describe the legal work done in relation to those
costs.
If a client
requests an itemised account, the legal practitioner is an under
an obligation, at any time within six months after delivery of a
bill of costs, to provide that itemised account stating the date,
a description of the work done (eg number of pages of letters and
the amount of time spent at an attendance) and an amount for each
item. The provision of an itemised account is to be provided at
no cost to the client.
However,
it may not be conducive to resolution of the complaint lodged with
the Legal Practitioners Conduct Board if legal proceedings are instituted.
The Board's practice is to defer investigation of complaints when
legal proceedings are instituted. The legal practitioner may wish
to consider attending conciliation at the Legal Practitioners Conduct
Board in an attempt to resolve the matter. However, attendance at
conciliation is voluntary.
Q.
If there is a dispute with a legal practitioner representing another
party over costs, does the Legal Practitioners Conduct Board have
jurisdiction?
A.
The Legal Practitioners Conduct Board has jurisdiction to
deal with overcharging under section 77A of the Legal Practitioners
Act 1981. The Board has interpreted this section to require them
to investigate solicitor/client cost disputes, not disputes in relation
to party/party costs.
Q.
If another legal practitioner makes a disparaging remark verbally
or in correspondence about your professionalism, is that misconduct
that can be investigated by the Legal Practitioners Conduct Board?
A.
The Board has power to investigate allegations of unprofessional
and unsatisfactory conduct in relation to legal practitioners.
"Unprofessional conduct" and
"unsatisfactory conduct" are defined in section
5 of the Legal Practitioners Act 1981.
Rule 21
of the Rules of Professional Conduct and Practice deals with communication
between practitioners. The rule provides that practitioners in communicating
with other practitioners "must
take all reasonable care to maintain the integrity and reputation
of the legal profession by ensuring that the practitioner's communications
are courteous and that the practitioner avoids offensive or provocative
language or conduct".
It is
a question of degree to be determined on the facts of each case.
However,
it would be hoped that if statements made in the heat of legal argument
result in offence to a legal practitioner, that they could raise
those concerns directly with the legal practitioner in question
in the hope that the matter can be resolved without leading to a
complaint.
Q.
Can I claim or charge legal costs if I do not have a costs agreement
in place with the client?
A.
A solicitor is not precluded from sending an account to a
client if there is no costs agreement in place. However, under Rule
41 of the Rules of Professional Conduct and Practice a solicitor
is required as soon as practicable after taking first instructions
from a client to provide the client with written advice as to the
reasonably estimated range of costs and disbursements that the client
may incur by pursuing the legal activity and the basis on which
those costs will be charged ie time or Scale. Therefore, while a
solicitor is not precluded from sending an account and may recover
their legal costs, it may amount to a breach of the Rules of Professional
Conduct & Practice which would need to be considered by the
Board. Failure to communicate about costs may amount to unprofessional
or unsatisfactory conduct.
You should
also refer to the Costs
section of this website.
Click
here for Frequently Asked Questions for the general public.
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