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CIVIL LAW (WRONGS) ACT 2002 - SECT 181

Maximum costs for claims of $50 000 or less

    (1)     This section applies if the amount recovered on a claim for personal injury damages is $50 000 or less.

    (2)     If this section applies—

        (a)     a lawyer is not entitled to be paid; and

        (b)     a court (or a taxing officer) must not decide that a lawyer is entitled to be paid; and

        (c)     a court must not order anyone to pay to a lawyer;

an amount for legal services in relation to the claim that (or that together with other amounts) is more than the maximum costs allowable under this section.

    (3)     Subsection (2) is subject to the following sections:

              •     section 182 (Costs incurred after offer of compromise not accepted)

              •     section 183 (Exclusion of costs unnecessarily incurred etc)

              •     section 184 (Court discretion to allow additional costs).

    (4)     The maximum costs allowable for legal services provided to the plaintiff in relation to the claim are the greater of—

        (a)     the relevant percentage of the amount recovered; and

        (b)     the relevant amount.

    (5)     The maximum costs allowable for legal services provided to the defendant in relation to the claim are the greater of—

        (a)     the relevant percentage of the amount sought to be recovered by the plaintiff; and

        (b)     the relevant amount.

    (6)     In this section:

"amount recovered", on a claim—

        (a)     includes an amount paid under a compromise or settlement of the claim, whether or not an action has been begun; but

        (b)     does not include an amount attributable to costs or to the addition of interest.

"amount sought to be recovered" by a plaintiff means, if an action is begun—

        (a)     the amount sought to be proved by the plaintiff at the hearing of the claim; or

        (b)     if the claim is for unliquidated damages—the amount that the court (or a taxing officer) decides is, for this section, the amount sought to be recovered by the plaintiff on the claim.

"relevant amount" means $10 000 or, if another amount is prescribed by regulation for this definition, the prescribed amount.

"relevant percentage" means 20% or, if another percentage is prescribed by regulation for this definition, the prescribed percentage.



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