24Disclosures for costs agreements in personal injury damages matters

24 Disclosures for costs agreements in personal injury damages matters

24 Disclosures for costs agreements in personal injury damages matters

(1) This section applies to a costs agreement between a client and a law practice retained by the client in relation to a claim for personal injury damages.

(2) For the Act, Schedule 1, clause 4(2), the law practice must disclose the following information about the effect of the costs agreement in relation to the operation of that schedule to the client—

(a) a statement that the Act, Schedule 1 would, but for the costs agreement, limit the maximum costs for legal services provided to the client in connection with the claim,

(b) information about the way in which the maximum costs are calculated,

(c) a statement that making the costs agreement will exclude the operation of the Act, Schedule 1,

(d) information about the way in which legal costs will be calculated if the costs agreement is made,

(e) a statement that—

(i) the costs agreement will only relate to costs payable between the client and the law practice, and

(ii) if costs are recoverable against the other party to the claim, the maximum costs recoverable against the other party will be the costs fixed under the Act, Schedule 1.

(3) The law practice must disclose the information—

(a) in writing, and

(b) before, or as soon as practicable after, the law practice is retained by the client, and

(c) before the costs agreement is entered into.

(4) This section does not apply if, when a costs agreement relating to a matter was entered into, the law practice could not have reasonably expected the matter to involve a claim for personal injury damages.

(5) For the Act, Schedule 1, clause 4(3), a law practice’s failure to comply with the requirements of this section disentitles the law practice to the benefit of the Act, Schedule 1, clause 4.