Terms relating to third party payers
301 Terms relating to third party payers
A person is a third party payer, in relation to a client of a law practice, if the person is not the client and—
is under a legal obligation to pay all or any part of the legal costs for legal services provided to the client; or
being under that obligation, has already paid all or a part of those legal costs.
A third party payer is an associated third party payer if the legal obligation mentioned in subsection (1)(a) is owed to the law practice, whether or not it is also owed to the client or another person.
A third party payer is a non-associated third party payer if the legal obligation mentioned in subsection (1)(a) is owed to the client or another person but not the law practice.
A legal obligation mentioned in subsection (1) can arise by or under contract or legislation or otherwise.
A law practice that retains another law practice on behalf of a client is not on that account a third party payer in relation to that client.
This Act’s bill:Explanatory memorandum
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