Claim Farming Practices Prohibition Act 2025

This Act is the Claim Farming Practices Prohibition Act 2025.

This Act commences on the date of assent to this Act.

In this Act—

associate, of a law practice, has the same meaning as in the Legal Profession Uniform Law (NSW).

claim includes a potential claim.

consideration means a fee or other benefit.

law practice has the same meaning as in the Legal Profession Uniform Law (NSW).

legal services has the same meaning as in the Legal Profession Uniform Law (NSW).

potential claimant—see section 5(1).

Note—

The Interpretation Act 1987 contains definitions and other provisions that affect the interpretation and application of this Act.

In this Act, a reference to a law practice, other than a reference to a purchasing law practice, includes a reference to an associate of a law practice.

This part—

applies to claims for personal injury damages, within the meaning of the Civil Liability Act 2002, section 11, other than claims related to a kind of civil liability referred to in that Act, section 3B(1)(b)–(h), and

is intended to have extraterritorial application as far as the legislative powers of the State permit.

A person commits an offence if the person—

contacts another person (a potential claimant) to solicit the potential claimant to make a claim, and

the person making the contact—

receives consideration because of the contact, or

agrees or expects to receive consideration because of the contact, or

asks for someone else to receive consideration because of the contact, or

agrees to someone else receiving consideration because of the contact.

Maximum penalty—500 penalty units.

A person commits an offence if the person—

contacts a potential claimant to refer the potential claimant to another person to provide a service in relation to a claim, and

the person making the contact—

receives consideration because of the contact, or

agrees or expects to receive consideration because of the contact, or

asks for someone else to receive consideration because of the contact, or

agrees to someone else receiving consideration because of the contact.

Maximum penalty—500 penalty units.

A person must not arrange for a third party to contact a potential claimant in contravention of subsection (1) or (2).

Maximum penalty—500 penalty units.

This section does not apply—

if a potential claimant is contacted by a notice given under the Civil Procedure Act 2005, section 175, or a corresponding law, in relation to representative proceedings, however described, or

if a law practice—

contacts a potential claimant that the practice has provided legal services to, and

reasonably believes the potential claimant will not object to the contact, or

if a law practice contacts a potential claimant after receiving—

a request to do so by a representative of a community legal service or industrial organisation, and

confirmation the representative reasonably believes the potential claimant will not object to the contact.

Subsection (4) places an evidential burden on the accused.

This section applies regardless of whether the potential claimant—

is entitled to make a claim, or

has decided to make, or has made, a claim.

In this section—

community legal service has the same meaning as in the Legal Profession Uniform Law (NSW).

contact a potential claimant includes personally approaching or contacting the claimant—

in person or by mail, telephone, email or another form of electronic communication, and

individually or as a member of a class of persons.

corresponding law means the following—

the Federal Court of Australia Act 1976 of the Commonwealth, Part IVA,

a law of another State or Territory that relates to representative proceedings, however described,

another law prescribed by the regulations.

industrial organisation has the same meaning as in the Industrial Relations Act 1996.

solicit includes induce.

A person must not—

receive consideration for referring a claim to another person, or

agree to receive consideration for referring a claim to another person, or

arrange for a third party to receive consideration for the person referring a claim to another person.

Maximum penalty—500 penalty units.

A person (the payer) must not—

provide consideration to another person for the referral of a claim, or

agree to provide consideration to another person for the referral of a claim, or

arrange for a third party to provide consideration to another person for the referral of a claim.

Maximum penalty—500 penalty units.

Subsection (2) applies whether a claim is referred for the purpose of—

the payer providing a service in relation to the claim, or

someone else providing a service for the claimant.

This section does not apply—

if, in acting for a claimant, a law practice refers a matter relating to a claim to another person to provide a service in relation to the claim, or

if all or part of a law practice is being sold to a purchasing law practice and—

the referral, including details of the consideration, is disclosed to the claimant, and

the consideration provided by the purchasing law practice is not more than the unbilled legal costs of the claimant at the time of the sale of all or part of the practice, and

the claimant is advised the referral may be refused, and

the claimant approves the referral.

Subsection (4) places an evidential burden on the accused.

In this section—

claimant includes a potential claimant.

legal costs has the same meaning as in the Legal Profession Uniform Law (NSW).

referral, in relation to a claim, includes—

a referral arising from services provided to a claimant, and

the disclosure of a claimant’s personal details.

sale, of a law practice, includes the referral of the files of a retiring associate of the law practice.

A person does not commit an offence under this part by—

advertising, marketing or promoting a law practice to the public, or

providing or receiving consideration relating to advertising, marketing or promoting a law practice to the public.

Proceedings for an offence under this Act may be commenced—

within but not later than 2 years after the date on which the offence is alleged to have been committed, or

within but not later than 2 years after the date on which evidence of the alleged offence first came to the attention of a police officer.

If subsection (1)(b) is relied on, the court attendance notice—

must contain particulars of the date on which evidence of the offence first came to the attention of the police officer, and

is not required to contain particulars of the date on which the offence was committed.

The date on which evidence first came to the attention of a police officer is the date specified in the court attendance notice unless another date is established.

This section applies despite any provision of the Criminal Procedure Act 1986 or another Act.

Proceedings for an offence under this Act may be dealt with summarily before the Local Court.

The Minister must review the operation of this Act to determine whether—

the policy objectives of the Act remain valid, and

the terms of the Act remain appropriate for securing the policy objectives.

The review must be undertaken as soon as practicable after the period of 2 years from the commencement of this Act.

A report on the outcome of the review must be tabled in each House of Parliament as soon as practicable after the review is undertaken.

The Governor may make regulations about a matter that is—

required or permitted by this Act to be prescribed, or

necessary or convenient to be prescribed for carrying out or giving effect to this Act.

The regulations may contain provisions of a savings or transitional nature consequent on the commencement of—

a provision of this Act, or

a provision amending this Act.

A savings or transitional provision consequent on the commencement of a provision must not be made more than 2 years after the commencement.

A savings or transitional provision made consequent on the commencement of a provision is repealed 2 years after the commencement.

A savings or transitional provision made consequent on the commencement of a provision may take effect before the commencement but not before—

for a provision of this Act—the date of assent to this Act, or

for a provision amending this Act—the date of assent to the amending Act.

A savings or transitional provision taking effect before its publication on the NSW legislation website does not—

affect the rights of a person existing before the publication in a way prejudicial to the person, or

impose liabilities on a person for anything done or omitted to be done before the publication.

In this section—

person does not include the State or an authority of the State.