Justice and Other Legislation Amendment Bill 2023

On 25 May 2023 the Queensland Government introduced a Bill amongst other things to amend the Legal Profession Act 2007. The primary purpose of the amendments to the Legal Profession Act is to amend when Costs Disclosure is required in respect to smaller amounts. It further clarifies when clients’ files may be destroyed.

Amendments to Costs Disclosure threshold

The new bill adds the definition of detailed disclosure threshold amount (Costs Agreement under s308). Effectively no disclosure is required for professional fees up to $750 and “abbreviated” disclosure is required for professional fees between $750 and $3,000 (s307(B)). (Hansard (at 1687)) Any other estimated fees above $3,000 requires a Costs Agreement (s308).

s300 detailed disclosure threshold amount means—

(a)the amount prescribed by regulation for this definition; or

(b)if no amount is prescribed—$3,000.

disclosure threshold amount means—

(a)the amount prescribed by regulation for this definition; or

(b)if no amount is prescribed—$750.

307A and B When disclosure is not required and what must be disclosed 307A and when disclosure is not required

S307A and B adds additional sections dealing with what type of disclosure must be made for amounts not exceeding the “threshold amount”. Under Abbreviated disclosure the information contained in s307B Below) must be disclosed (rather than s308 (in a form of a letter)).

Costs Disclosure is not required for anticipated professional fees less than $750 (s307(A)) and at the minimum abbreviated disclosure is required for anticipated professional fees between $750 and $3,000 (s307(B))

307A When disclosure is not required

A law practice is not required to make a disclosure under this division for a matter if the total amount of the legal costs in the matter, excluding disbursements and exclusive of GST, is not likely to exceed the disclosure threshold amount.

307B Abbreviated disclosure of costs to clients

(1) A law practice may make a disclosure under this section for a matter if the total amount of the legal costs in the matter, excluding disbursements and exclusive of GST, is not likely to exceed the detailed disclosure threshold amount.

(2)The law practice must disclose to the client under this division—

(a)in general terms, the legal services that will be provided to the client; and

(b)the basis on which legal costs will be calculated, including whether a scale of costs applies to any of the legal costs; and

(c)an estimate of the total amount of the legal costs; and

(d)an estimate of the total amount of disbursements; and

(e)the client’s right to—

(i)negotiate a costs agreement with the law practice; and

(ii)receive a bill from the law practice; and

(iii)request an itemised bill after receipt of a lump sum bill; and

(iv)be notified under section 315 of any substantial change to the matters disclosed under this section.

309 Disclosure if another law practice is to be retained

The amendments to s309 merely apply the costs disclosure threshold to when another law practice is retained.

The Bill amends and adds wording as such:

(1)If a law practice intends to retain another law practice on behalf of a client, the first law practice must disclose to the client—

(a)if the law practice makes a disclosure to the client under section 307B—the details mentioned in section 307B(2)(b), (c) and (d) in relation to the other law practice; or

(b)if the law practice makes a disclosure to the client under section 308—the details mentioned in section 308(4)(a), (c) and (d) in relation to the other law practice.

(1A)The disclosure required under subsection (1) is in addition to the disclosure required under section 307B or 308.

(2) A law practice retained or to be retained on behalf of a client by another law practice is not required to make disclosure to the client under 307B or 308, but must disclose to the other law practice the information necessary for the other law practice to comply with subsection (1).

310 How and when must disclosure be made to a client:

Costs Disclosure must be made as soon as practicable after receiving instructions (Costs Agreement of abbreviated disclosure) (310(1)or when the estimated professional fees exceeds $750.00 (no disclosure) or $3,000 (abbreviated disclosure depending on what was applied (307(2). This section clarifies that oral statements made to the client must be made in writing (Costs Agreement or abbreviated disclosure)

The Bill amends the wording as such and adds an additional section under A:

(1)Disclosure under section 307B or 308 must be made before, or as soon as practicable after, a law practice is retained in a matter.

(2)However—

(a)if, under section 307A, no disclosure is made at the time a law practice is retained in a matter, disclosure under section 307B or 308 must be made as soon as practicable after section 307A ceases to apply; and

(b)if disclosure is made under section 307B in relation to a matter, disclosure under section 308 must be made as soon as practicable after section 308 starts to apply.

(3)Disclosure under section 309(1) must be made before, or as soon as practicable after, the other law practice is retained.

310A How disclosure must be made

(1)Disclosure under section 307B—

(a)may be made orally or in writing; but

(b)if made orally, must be confirmed in writing as soon as practicable after the time that disclosure must be made under section 310.

(2)Subsection (1)(b) does not apply if the law practice’s provision of legal services for the matter is completed before the confirmation in writing is required.

(3)Disclosure under section 308 must be made in writing.

(4)Disclosure under section 309(1) must be made—

(a)if disclosure to the client has been made under section 307B—orally or in writing; or

(b)if disclosure to the client has been made under section 308—in writing.

(5)Disclosure under section 307B, 308 or 309(1) may be made in a costs agreement or an offer to enter into a costs agreement but, in that case, the disclosure must be in a prominent position at the beginning of the agreement or offer.

S713 Destruction of Client Documents

Previously the only way to legally destroy client documents was within the Costs Agreement. This bill introduces a 7-year period after which Client Documents may be destroyed after the conclusion of the matter, when unable to contact the client about the destruction or when prudent to do so. (713(1). Any breach of 713(1) may result in a finding or professional conduct (713 (2). This section also authorities the destruction of documents by the Law Society in the prescribed circumstances. (713(2)