269Disclosure of costs to clients

269 Disclosure of costs to clients (1) A law practice must disclose to a client in accordance with this division— (a) the basis on which legal costs will be worked out, including whether a scale of costs applies to any of the legal costs; and (b) the client’s right to— (i) negotiate a costs agreement with the law practice; and (ii) receive a bill from the law practice; and (iii) request an itemised bill if the client receives a lump sum bill for more than the threshold amount; and (iv) be notified under section 276 (Ongoing obligation to disclose etc) of any substantial change to the matters disclosed under this section; and (c) that the client is not entitled to request an itemised bill if the bill is for an amount equal to or less than the threshold amount; and (d) an estimate of the total legal costs, if reasonably practicable or, if it is not reasonably practicable to estimate the total legal costs, a range of estimates of the total legal costs and an explanation of the major variables that will affect the working out of the costs; and (e) details of the intervals (if any) at which the client will be billed; and (f) the rate of interest (if any) that the law practice charges on unpaid legal costs, whether the rate is a specific rate of interest or is a benchmark rate of interest; and Note For interest a law practice may charge on unpaid legal costs, see s 281 (Interest on unpaid legal costs). (g) if the matter is a litigious matter, an estimate of— (i) the range of costs that may be recovered if the client is successful in the litigation; and (ii) the range of costs the client may be ordered to pay if the client is unsuccessful; and (h) the client’s right to progress reports in accordance with section 278 (Progress reports); and (i) details of the person whom the client may contact to discuss the legal costs; and (j) the following avenues that are open to the client if there is a dispute in relation to legal costs: (i) costs assessment under division 3.2.7; (ii) the setting aside of a costs agreement under section 288 (Setting aside costs agreements); and (k) any time limits that apply to the taking of any action mentioned in paragraph (j); and (l) that ACT law applies to legal costs in relation to the matter; and (m) information about the client’s right— (i) to accept under a corresponding law a written offer to enter into an agreement with the law practice that the corresponding provisions of the corresponding law apply to the matter; or (ii) to notify under a corresponding law (and within the time allowed by the corresponding law) the law practice in writing that the client requires the corresponding provisions of the corresponding law to apply to the matter. Note The client’s right to enter into an agreement or give a notification as mentioned in par (m) will be under provisions of the law of the other jurisdiction that correspond to s 264 (Pt 3.2 also applies by agreement or at client’s election). (2) For subsection (1) (f), a benchmark rate of interest is a rate of interest for the time being equal to or worked out by reference to a rate of interest that is specified or determined by an ADI or another entity and that is publicly available. (3) A regulation may make provision in relation to the use of benchmark rates of interest, and in particular in relation to permitting, regulating or preventing the use of particular benchmark rates. (4) For subsection (1) (g), the disclosure must include— (a) a statement that an order by a court for the payment of costs in favour of the client will not necessarily cover all of the client’s legal costs; and (b) if applicable, a statement that disbursements may be payable by the client even if the client enters a conditional costs agreement. (5) A law practice may disclose any or all of the details mentioned in subsection (1) (b) (i) to (iii), (h), (j), (k) and (m) in a form approved by the law society council under section 587 and if it does so at the time the other details are disclosed as required by this section the practice is taken to have complied with this section in relation to the details disclosed. threshold amount—see section 292 (10).