The Legal Profession Uniform Law applies in Western Australia from 1 July 2022.
Overview
The Legal Profession Uniform Law Application Act 2022 applies the existing national Legal Profession Uniform Law (LPUL) in WA, together with subordinate legislation. it is intended to simplify and standardise regulation for legal practitioners. It brings WA into line with New South Wales and Victoria. The Uniform Law replaces the Legal Profession Act 2008 (WA).
The Uniform Law is governed by the Legal Services Council and the office of the Commissioner for Uniform Legal Services Regulation. Each participating jurisdiction has a representative on the council.
The council establishes the rules and policies that underpin the Uniform Law. The Commissioner oversees the dispute resolution and compliance functions of the Uniform Law.
The WA Legal Services and Complaints Committee and the Legal Practice Board continue to carry out complaint and investigation functions, grant practising certificates, and provide professional development.
While the Uniform Law makes many sweeping changes, the main effects on everyday practice concern costs disclosure and billing.
Costs disclosure
Disclosure obligations vary depending on the estimated legal costs in a matter.
Disclosure is not required where the total legal costs are not expected to exceed $750 excluding GST and disbursements. Where the total legal costs are not expected to exceed $3,000 excluding GST and disbursements, a law practice may use the prescribed uniform standard disclosure form contained in Schedule 1 of the Legal Profession Uniform General Rules.
Costs disclosure must be in writing and given to the client when instructions are taken, or as soon as reasonably practical after. It must include the basis on which legal costs will be calculated and an estimate of the total legal costs. It must include information about the client’s rights to negotiate the costs agreement, receive a bill, request an itemised bill, negotiate the billing method, and whether the costs are subject to a costs determination.
If there is any significant change the disclosure must be updated.
If a law practice fails to meet its disclosure obligations any cost agreement is void and the client is not required to pay the costs. The law practice cannot then commence or maintain any proceedings for recovery of costs until they are assessed, or any dispute determined by the Legal Practice Board. A contravention can also result in disciplinary action.
Where disclosure is made under the main disclosure requirements of the Uniform Law, a law practice must take all reasonable steps to satisfy itself that the client has understood and given consent to the proposed course of action for the conduct of the matter and the proposed costs.
Billing
The billing provisions of the Uniform Law do not apply if the client is a commercial organisation or government authority.
A bill may be expressed as a lump sum, or itemised. A client receiving a lump sum bill may request an itemised bill. The request must be made within 30 days after the date on which the legal costs became payable, and must be complied with within 21 days after receiving the request.
If the total amount of legal costs specified in an itemised bill is higher than the amount previously specified in a lump sum bill, the additional costs are only recoverable if the law practice previously told the client in writing that could be the case.
Each bill or covering letter accompanying each bill must be signed by a principal of the law practice, or nominate a principal of the law practice as the responsible principal for the bill.
A client may request progress reports on costs which must be provided within a reasonable period.
Lawyers may not charge for preparing or giving a bill or a progress report.
Bills must include a written statement setting out the client’s options to dispute the legal and the time limits applicable.
Interest may be charged on unpaid costs 30 days after a complying bill has been given if the bill contains a statement that interest will be payable and the rate chargeable. The maximum rate is prescribed, currently 2% above the cash rate target specified by the Reserve Bank of Australia at the time the bill was given.
By Lawyers updates
By Lawyers have made the introduction of the Legal Profession Uniform Law easy for our WA subscribers. Changes to By Lawyers publications to cover the LPUL include:
- New costs agreements and short form costs disclosure for all WA guides and Federal guides. These are also available in 101 Costs Answers.
- Updates to the Example Invoice Incorporating Notification of Client’s Rights – WA and the stand-alone Notification of Client’s Rights – WA precedents available on all WA and Federal matter plans.
- Updates to the commentary on the requirements for professional executors in the Probate and Letters of Administration publications for WA.
- Updates to the costs section in the Wills commentary including the Conflicts concerning practitioner’s own interests section and the Solicitors as executors section.
- Updates to the WA trusts accounting section in the Practice Management guide
- Relevant updates to 101 Costs Answers.