The Uniform Legal Profession Laws - Changes to Legal Practice
Monday 22 June 2015 @ 2.15 p.m. | Judiciary, Legal Profession & Procedure | Legal Research
On 19 June 2015, the Legal Profession Uniform Law Application Act 2014 (No. 16 of 2014) and Legal Profession Uniform Law Application Legislation Amendment Act 2015 (No. 7 of 2015) of NSW were both proclaimed to commence on 1 July 2015. This completes the remaining commencements for the new uniform legal profession laws for New South Wales.
How will the Uniform Law Affect Lawyers in Practice?
According to the New South Wales Law Society Website, there will be many benefits for different groups of lawyers.
Benefits for Small firms include the following:
- Role of legal profession in regulation;
- Costs disclosure changes;
- Time Limits for costs;
- Complaints for costs;
- Compliance Audits;
- Liability of principals; and
- Advertising for personal injury legal services.
Benefits for Large firms include the following:
- Role of the legal profession in regulation;
- Uniform requirements across States;
- Mobility between jurisdictions;
- Compliance audits;
- Foreign Lawyers;
- Insurance Arrangements;
- Changes to Business Structures;
- Costs disclosures; and
- Liability of principals.
Benefits for corporate and government lawyers include the following:
- Role of the legal profession in regulation;
- Mobility between jurisdictions;
- Volunteer practising certificates;
- Fidelity fund contribution changes;
- Insurance requirements;
- Related entities; and
- Changes to practising certificates.
Discussion of the Changes
According to NSW Legal Services Commissioner, John McKenzie:
“There are changes in relation to do’s and don’ts [around] legal fees and costs to clients...Cost disclosure is being overhauled, to a certain extent."
A “new fundamental principle” will govern billing practices under the Uniform Law:
“There must be informed consent by the client about the course that the matter is going to take and how it is going to be run, but also about the estimated costs. If, during the course of the matter… [an] earlier estimate is no longer accurate but will be exceeded, then the lawyer has an ongoing responsibility to make sure they communicate that to the client...This means more than providing clients with “huge, multipage, finely printed cost-disclosure forms."
Lawyers are required to make sure the client understands what is being proposed, for instance with a face-to-face or at least a telephone conversation:
“That is perhaps the biggest day-to-day change that the legal profession is going to experience once the Uniform Law comes into operation."
The Uniform Laws will also put new thresholds in place for cost disclosure. Lawyers will not be required to formally notify clients about costs if estimated to be less than $750. If matters fall between $750 and the upper limit of $3,000, there is a new short form for cost disclosure. Clients must be fully informed of fees that are estimated to exceed $3,000.
Another change lawyers and clients should be aware of is the reduction in time limits around complaint processes.
All new legislation is due to commence by 1 July 2015.
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Sources:
Legal Profession Uniform Law Application Act 2014 (No. 16 of 2014) and Legal Profession Uniform Law Application Legislation Amendment Act 2015 (No. 7 of 2015) as reproduced on TimeBase LawOne
