(1)  If a law practice negotiates the settlement of a litigious matter on behalf of a client, the law practice must disclose to the client, before the settlement is executed –

(a) a reasonable estimate of the amount of legal costs payable by the client if the matter is settled (including any legal costs of another party that the client is to pay); and

(b) a reasonable estimate of any contributions towards those costs likely to be received from another party.

(2)  A law practice retained on behalf of a client by another law practice is not required to make a disclosure to the client under subsection (1) , if the other law practice makes the disclosure to the client before the settlement is executed.