Costs Agreement for the Law Society's Pro Bono - Law Society of NSW

Costs Agreement Only For the Law Society’s Pro Bono Scheme -
Civil Matters (excluding Family Law Act Matters)
DATE:
TO:
ADDRESS:
1. This document (and the accompanying form) discloses information about the costs of
my/our legal services, and your rights, as required by the Legal Profession Act 2004
NSW (the Act). It is also an offer to enter into a costs agreement with you.
2. My/our costs are set out in clause 6 and the costs estimates in clause 7. These
costs only become payable upon the successful outcome of the matter as defined in
clause 5.1. These costs will be identical with and the same amount as that recovered
from the other party (or other source) upon the successful outcome of the matter.
3. Independent Legal Advice
(Does not apply to sophisticated clients)
You have the right to obtain independent legal advice before entering into this costs
agreement.
4. The Work
The work I/we have been instructed to do is:
5. Basis of retainer (successful outcome of the matter)
5.1. I/We confirm that I/we will be retained in this matter on a pro bono basis and my/our
right to payment of fees will arise upon any one of the following events, namely, your
obtaining a verdict, award or settlement in your favour inclusive or exclusive of costs
as the case may be upon the successful outcome of the matter.
5.2 My/our right to payment of fees will be calculated on one of the bases set out in
clause 6 and in accordance with the estimates set out in clause 7. (Delete whichever
is inapplicable)
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6 Costs: how calculated for the purposes of clause 5.1
6.1 Professional Fees
I/We will charge you professional fees for the work I/we do either:
6.1.1 (a) the lump sum of: $
OR
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(b) GST $
(c) TOTAL $
6.1.2 (a) an hourly rate of $ (plus 10% GST) for a
partner.
(b) an hourly rate of $._________(plus 10% GST) for
an employed solicitor
(c) an hourly rate of $__________(plus 10% GST) for a
paralegal.
This rate will be proportionately charged for work involving shorter
periods of less than an hour. My/our time charging is structured in 6
minute units. For example, the time charged for an attendance of up
to 6 minutes will be 6 minutes. The time charged for an attendance
between 6 minutes and 12 minutes will be 12 minutes.
6.2 Charges
6.2.1 I/We will charge you for services I/we use or supply. My/Our rates
are:
(a) photocopying : $ per page (plus 10% GST)
(b) faxes : $ per page (plus 10% GST)
(c) etc : $ (plus 10% GST)
These charges will be payable only if they are not approved for payment by
the Trustees of the Pro Bono Disbursement Trust Fund as expenses or
disbursements under clause 6.3 below.
6.3 Expenses & Disbursements
I/We will incur expenses and disbursements (being money which I/We pay or
are liable to pay) to others on your behalf. These may include:
Court filing fees, medical reports, registration and subpoena fees, translation
fees, searches, transcript fees and agency fees
If the Law Society reimburses our expenses and disbursements out of the Pro
Bono Disbursement Trust Fund, you will be required to sign a separate
agreement (attached) to reimburse the Trust Fund of these expenses and
disbursements out of any damages or monetary verdict awarded by the court
upon the successful outcome of the matter as defined in clause 5.1.

7. Costs-estimates
The following estimate is based on the information available to me/us to date.
It is an estimate, not a quotation and subject to change. (Delete whichever
alternative is inapplicable.)
Either:
7.1 I/We estimate the cost of the work to be:
OR
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Professional fees: $
Charges: $
Expenses & Disbursements subject to GST : $
SUBTOTAL : $
GST: $
GST free Expenses & Disbursements: $
TOTAL (GST inclusive): $
7.2 It is not possible at this time to provide an accurate estimate of the total costs.
Instead a range of estimates is provided.
Stage 1 : Instructions and investigation of the matter : $
(GST inclusive)
Stage 2 : $
(GSTinclusive)
Stage 3 : $ (GST Inclusive)
These estimates are made on the information available to me/us at this time.
These estimates may, and probably will, change when more information is
available to me/us. The major factors which will affect the estimates are:
7.2.1
7.2.2
7.2.3
8. Billing arrangements
� You are not liable for any of my/our costs if the outcome of the matter is not
successful as set out in clause 5.1
� However, on the successful outcome of the matter, these costs will be
identical with and the same amount as that recovered from the other party (or
other source).

� Where a verdict, award or settlement in your favour is inclusive of costs, I/we
will provide you with a bill of costs/ tax invoice (based on clause 6). These
costs will be based by me/us on the fair and reasonable costs usually allowed
by costs assessors on assessment of costs between parties in litigation
matters. Where a barrister is retained, the barrister may enter into a similar
arrangement with you.
� You have the right to assessment of my/our costs if you are not satisfied with
my/our bill of costs or that of the barrister.
� In the event that you obtain a verdict award or settlement exclusive of costs,
I/we will accept a sum of money equivalent to the amount recovered from the
other party (or other source) as payment of your costs in full and final
settlement of my/our costs. Where a barrister is retained, the barrister may
enter into a similar arrangement with you.
� The expenses and disbursements repayable to the Law Society’s Pro Bono
Trust Fund are payable separately by you to the Trust Fund.
9. Costs in court proceedings
9.1 If court proceedings are taken on your behalf, the court may order the other
party to pay your costs of the proceedings. It is possible that the court may
make an order that you pay the other party’s costs (if, for instance, you lose
the case). These costs are payable by you to the other party.
9.2 If you are successful (as per clause 5.1) in the litigation the following is the
range of costs that may be recovered from the other party. The sums given
below are merely estimates and are not firm quotations.
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9.2.1 prior to hearing: $
9.2.2 up to and including single day’s hearing: $
9.2.3 up to and including three days hearing: $
9.2.4 ………………………………………………. $
(GST Inclusive)
9.3 If you are unsuccessful in the litigation you may be ordered to pay the other
party’s costs. In this case you will not have to pay my/our costs.
The following is a range of costs that may be payable by you to the other
party. The sums given below are merely estimates, based on my/our
estimate of what the other party’s law practice may charge.
8.3.1 prior to hearing: $
8.3.2 up to and including a single day’s hearing: $
8.3.3 up to and including three days’ hearing: $
8.3.4 …………………………………………… $
(GST Inclusive)
9.4 If settlement of your claim is being negotiated, I/we will provide you before
settlement with:

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9.4.1 a reasonable estimate of my/our costs and a reasonable estimate of
the costs you may obtain from the other party if the settlement is
favourable to you;
OR
9.4.2 a reasonable estimate of the costs you may have to pay the other party (eg.
Your case is weak, etc). In this case you will not have to pay my/our
costs.
10. Persons responsible for the Work
Mr/Ms will be responsible for the work
described in Clause 1 under the supervision of Mr/Ms .
You may contact either one of them regarding your matter and your legal costs.
OR
You may contact me/us regarding your matter and your legal costs.
11. Engagement of a Barrister
It may be necessary for you to engage, on your behalf, the services of a barrister to
provide specialist advice or services, including advocacy services. I/we will inform
you if it is necessary to do so. You should then contact the Bar Association’s Legal
Assistance Referral Scheme to retain the services of a barrister. The barrister
engaged may enter into a similar costs agreement with you to recover counsel’s fees
recoverable from the other party (or other source).
12. Substantial changes to disclosure
You will be informed of any substantial changes to anything contained in this
disclosure document.
13. Authorisation to Transfer Money from Trust Account
You authorise me/us to receive directly into my/our trust account any judgement or
settlement money, or money received from any source in furtherance of your work,
upon the successful outcome of the matter as set out in clause 5.1, and to pay
myself/ourselves my/our costs as set out in clause 6.2; the Pro Bono Disbursement
Trust Fund’s expenses and disbursements as set out in clause 6.3 and the costs of
any barrister engaged by you as set out in clause 11.
14. Acceptance of Offer
If you accept this offer, you must sign and return this document to me/us. I/we will not
do any work on this matter until this is done. If you do so, you have entered into a
conditional costs agreement with me/us. This means that you will be bound by the
terms and conditions in this agreement, including being billed in accordance with it.
Failure to accept my/our offer within seven (7) days of dispatch of this document can
result in the immediate withdrawal of my/our offer to act on your behalf.
15. Cooling Off Period (Does not apply to sophisticated clients).
If you wish to terminate this agreement, you may do so within five (5) clear working
days of signing the conditional costs agreement. The “cooling off” period ends at
5 pm on the fifth business day after the day on which this agreement was signed by
you. If you do so, I/we will only charge you the costs incurred for work done up to
termination that were performed on your instructions and with your knowledge.

16. Termination of Agreement
16.1 I/We will not continue to do the work:
� if you fail to accept the advice I/we give you or the Barrister gives you;
� if you engage another law practice (including a Barrister) to advise you on this
matter without my/our consent;
� if you fail to provide me/us with adequate instructions within a reasonable
time;
� if you give instructions that are deliberately false or intentionally misleading;
� if you fail to accept an offer of settlement which I/we think is reasonable;
� if I/we have a conflict of interest;
� if you indicate to me/us that I/we have lost your confidence; or
� for any other just cause.
I/We will give you at least fourteen (14) days’ notice of my/our intention to
terminate this agreement, and of the grounds on which the notice is based.
16.2 If I/we terminate this agreement for any of the reasons set out under clause
16.1, or you terminate the agreement at any time after the cooling off
period under clause 15, and if you proceed with your action, upon a
successful outcome of the matter you agree to pay my/our costs incurred up to
the time of termination. These costs will only be payable on the ultimate
outcome of the matter and to the extent negotiated with the party (or other
source) liable to pay such costs.
17. Retention of your documents
I/We will, on completion of the work, retain any papers to which you are entitled, but
leave in my/our possession (except documents deposited in safe custody) for no
more than seven (7) years, and on the undertaking that I/we have your authority to
destroy the file seven (7) years after the date of the final bill rendered by me/us in this
matter.
18. Applicable law
The law of NSW applies to legal costs regarding this matter. The accompanying
Form sets out your rights as to choice of law.
19. Privacy Protection
Personal information about you, provided by you and other sources is protected
under the Privacy Amendment (Private Sector) Act 2000. Disclosure of such
information may be compelled by law (eg. under the Social Security Act). You also
authorise me/us to disclose such information where necessary to others in
furtherance of your claim/matter (eg. within the firm, to the Court, the other party or
parties to litigation, to valuers, experts, barristers etc).
20. I have read, understood and agree to be bound by this agreement
(Not mandatory for a sophisticated client)
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Signed:
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Client Date
Solicitor Date

Form of disclosure of costs to clients (part of conditional costs
agreement)
(Clause 109A Legal Profession Regulation 2005- Form 2)
Legal costs: your right to know
You have the right to:
� Negotiate a costs agreement with us
� Receive a bill of costs from us
� Request an itemized bill of costs after you receive a lump sum bill from us
� Request written reports about the progress of your matter and the costs incurred in
your matter
� Apply for costs to be assessed within 12 months if you are unhappy with our costs
� Apply for the costs agreement to be set aside
� Accept or reject any offer we make for an interstate costs law to apply to your matter
� Notify us that you require an interstate costs law to apply to your matter.
For more information about your rights, please read the fact sheet titled Legal Costs – your
right to know. You can ask us for a copy, or obtain it from your local law society or law
institute (or download it from their website).
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