Retainers

When a solicitor and a client enter into a commercial relationship they are bound by a contract. This contract does not need to be in writing but a prudent practitioner should require the client to read and sign a retainer document informing the client of their rights. This commercial relationship requires that in exchange for a solicitor’s professional advice and time the client pays a fee.

Disclosure

Before entering into a retainer practitioners in NSW and VIC are statute bound to disclose prescribed issues relating to costs. According to the relevant NSW legislation a practitioner must disclose the following to their client/s:

• The basis upon which legal costs will be calculated, and whether a fixed cost provision applies.
• A client’s right to:
  • Negotiate a costs agreement
  • Receive a bill
  • Request an itemised bill within 30 days o Be notified under s 316 of any substantial change to the matters disclosed in the costs agreement
• An estimate of the costs or if not possible the basis upon which professional fees will be calculated
• Details of when the practitioner will bill the client
• The rate of interest on any overdue amounts owing
• If it is a litigious matter:
  • The amount of costs the client may be able to recover if successful
  • The amount of costs the client may be ordered to pay if unsuccessful
• The clients rights to progress reports
• Details of the person the client should contact to discuss legal costs
• The avenues open to the client in the event of a dispute
  • Costs assessment
  • The setting aside of a costs assessment
  • Mediation
• Time limits that may apply to having the matter referred
• The law of NSW applies to the agreement
• The right of the client to
  • Sign under a corresponding law
  • Notify under a corresponding law

< Back