Justine is a legal practitioner. She acted for Richard in a personal injury claim in the District
Question:
Justine is a legal practitioner. She acted for Richard in a personal injury claim in the District Court. She agreed to act for him on a 'no win, no fee basis' with an uplift fee of 15%. She agreed to this because Richard was unable to commence litigation otherwise. She thought his case had merit and that he would receive a substantial judgment in his favour. Richard signed a written costs agreement with Justine, which clearly stated that Justine's costs would be payable should Richard receive a judgment in his favour and/or a settlement offer from the defendant which he accepted. The matter proceeded. One year later, just before the trial, the defendant made an offer to settle the matter for $100,000, with each side bearing its own costs. Richard thought he could do better and get a judgment sum of between $150,000 - $200,000. He wanted to proceed to trial, but he was strongly encouraged by Justine (who had outstanding liabilities to several barristers) to accept the offer. She told Richard that court cases were unpredictable, and the judge might award him a lower judgment sum. She also told him that trials took their toll on the parties involved - especially when they were being cross-examined and that he would find the whole process very difficult. Justine told Richard, "Accepting the settlement would be the best option by far." Still a bit unsure, Richard did as Justine advised.
A week later, Justine emailed Richard, telling him he owed her $30,000, comprising $20,000 in professional costs, a $3,000 uplift fee, and $7,000 for disbursements. Richard informed Justine that he would not pay her costs as they were "not fair or reasonable." He also added that he had never agreed to pay the disbursements - he didn't even know what they were - and queried why the defendant was not paying him any of his legal costs.
What steps must Justine take to enforce the payment of her bill? What grounds does Richard have to resist paying the full amount? You must refer to the relevant parts of the Legal Practitioners' Act.
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts