Australian Capital Territory Current Acts

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LEGAL PROFESSION ACT 2006 - SECT 284

Conditional costs agreements involving uplift fees

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

Note     The Civil Law (Wrongs) Act 2002

, pt 14.1 (Maximum costs for certain personal injury damages claims) and pt 14.2 (Costs in damages claims if no reasonable prospects of success) contain limitations on legal costs.

    (2)     The basis for working out the uplift fee must be separately identified in the agreement.

    (3)     The agreement must contain an estimate of the uplift fee or, if that is not reasonably practicable—

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

        (b)     an explanation of the major variables that will affect the amount of the uplift fee.

    (4)     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.

    (5)     A law practice must not enter into a costs agreement in contravention of this section.

    (6)     If a law practice that is an Australian legal practitioner who is a sole practitioner, or an incorporated legal practice, contravenes subsection (5), the practitioner or practice commits an offence.

Maximum penalty: 50 penalty units.

    (7)     If a law practice that is a law firm, or a multidisciplinary partnership, contravenes subsection (5), each principal of the practice commits an offence

Maximum penalty: 50 penalty units.

Note     For this part, a reference to a law practice includes the principals of the law practice (see s 307 (Liability of principals of law practices under pt 3.2)).



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