Additional disclosure – settlement of litigious matters
307 Additional disclosure – settlement of litigious matters
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 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
a reasonable estimate of any contributions towards those costs likely to be received from another party.
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.
This Act’s bill:Explanatory statementSecond reading speech
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