182Conditional costs agreements involving uplift fees

182 Conditional costs agreements involving uplift fees

182 Conditional costs agreements involving uplift fees

(1) A conditional costs agreement may provide for the payment of an uplift fee.

(2) If a conditional costs agreement relates to a litigious matter—

(a) the agreement must not provide for the payment of an uplift fee unless the law practice has a reasonable belief that a successful outcome of the matter is reasonably likely; and

(b) the uplift fee must not exceed 25% of the legal costs (excluding disbursements) otherwise payable.

(3) A conditional costs agreement that includes an uplift fee—

(a) must identify the basis on which the uplift fee is to be calculated; and

(b) must include an estimate of the uplift fee or, if that is not reasonably practical—

(i) a range of estimates for the uplift fee; and

(ii) an explanation of the major variables that may affect the calculation of the uplift fee.

(4) A law practice must not enter into a costs agreement in contravention of this section or of the Uniform Rules relating to uplift fees.

Civil penalty: 100 penalty units.