41Referral fees

41 Referral fees

41 Referral fees

(1) An Australian legal practitioner has a duty not to receive consideration for referring a claimant (who is represented by the Australian legal practitioner) to a person for the purposes of a service being provided in respect of the claimant’s claim.

(2) An Australian legal practitioner is taken to receive consideration if a close associate of the Australian legal practitioner receives the consideration.

(3) An Australian legal practitioner has a duty not to give consideration for the referral of a person to the Australian legal practitioner for the purposes of the Australian legal practitioner representing the person in relation to a claim.

(4) An Australian legal practitioner is taken to give consideration if a close associate or close relative of the Australian legal practitioner gives the consideration.

(5) In this clause—

close associate of an Australian legal practitioner means—

(a) an employer of the Australian legal practitioner (including, if the employer is a corporation, a director of the corporation), or

(b) a partner, or a close relative of the partner, of a law firm of which the Australian legal practitioner is also a partner, or

(c) an employee or agent of the Australian legal practitioner or of a person referred to in paragraph (a) or (b), or

(d) a close relative of the Australian legal practitioner.

close relative of a person means—

(a) a spouse or de facto partner of the person, or

(b) a parent, grandparent, child or step-child of the person, or

(c) a sibling (including a half-sister, half-brother and step-sibling) of the person, or

(d) an aunt, uncle, cousin, niece or nephew of the person.

consideration includes a fee or any other financial benefit but does not include hospitality that is reasonable in the circumstances.

cl 41: Ins 2017 (639), Sch 1 [3].