171Third party payers

171 Third party payers

171 Third party payers

(1) For the purposes of this Law—

(a) a person is a third party payer, in relation to a client of a law practice, if the person is not the client and—

(i) is under a legal obligation to pay all or any part of the legal costs for legal services provided to the client; or

(ii) has already paid all or a part of those legal costs under such an obligation; and

(b) a third party payer is an associated third party payer if the legal obligation referred to in paragraph (a) is owed to the law practice, whether or not it is also owed to the client or another person; and

(c) a third party payer is a non-associated third party payer if the legal obligation referred to in paragraph (a) is owed to the client or another person but not the law practice.

(2) The legal obligation referred to in subsection (1) can arise by or under contract or legislation or otherwise.

(3) A law practice that retains another law practice on behalf of a client is not on that account a third party payer in relation to that client.

(4) The Uniform Rules may provide that particular references in this Law to a client include references to an associated third party payer.