8Contracting out—practitioner and client costs

#### 8 Contracting out—practitioner and client costs 8 Contracting out—practitioner and client costs > > (1) Schedule 1 does not apply to costs in a motor accidents matter to the extent that they are payable on a practitioner and client basis if— > > > > > (a) an Australian legal practitioner makes a disclosure under Division 3 of Part 4.3 of the [Legal Profession Uniform Law (NSW)](/view/html/inforce/current/act-2014-16a) to a party to the matter with respect to the costs, and > > > > > (b) the practitioner enters into a costs agreement with that party as to those costs in accordance with Division 4 of that Part, and > > > > > (c) before entering into the costs agreement, the practitioner advises the party in a separate written document that, even if costs are awarded in favour of the party, the party will be liable to pay the amount of the costs provided for in the costs agreement that exceeds the amount that would be payable under the Act in the absence of a costs agreement, and > > > > > (d) where the party is a claimant—the practitioner provides to the Authority, at the time and in the way approved by the Authority, a costs breakdown in relation to the claim when the claim is finalised, and > > > > > (e) the amount paid in resolution of the claim by way of settlement or an award of damages is more than $50,000. > > > (2) However, the maximum costs recoverable in the matter on a practitioner and client basis are fixed at the amount calculated by subtracting $50,000 from the amount paid in resolution of the claim. > > > (3) For the purposes of subclause (2), the amount paid in resolution of a claim includes the amount (if any) payable in connection with the claim on a party and party basis. > > > (4) The maximum costs specified in subclause (2) include all legal services provided in the course of the claim during the period commencing on the acceptance of the retainer and ending on the resolution of the claim. > > > (5) A costs agreement referred to in subclause (1)(b) does not include a conditional costs agreement, within the meaning of Part 4.3 of the [Legal Profession Uniform Law (NSW)](/view/html/inforce/current/act-2014-16a), that provides for the payment of a premium on the successful outcome of the matter concerned. > > > (6) Subclause (1)(e) and (2)–(4) do not apply if the party is an insurer. > > > (7) This clause does not apply to costs involving a compensation matter application, as referred to in Schedule 1, clause 2A. > > **cl 8:** Am 2020 (744), Sch 2\[5\].