Author adminPosted on Categories Professional fees Leave a comment on Interest rates
You may have heard about the RBA earlier this year reducing its cash rate from 4.35% to 3.85%:
This decision affects the interest lawyers can charge on outstanding bills.
s 321(3) of the Legal Profession Act 2007 provides that:
“(3) A law practice may not charge interest under this section, including under a costs agreement, at a rate that is more than the rate prescribed under a regulation.”
s 308 of the Legal Profession Act 2007 relevantly provides that:
The law practice must disclose to the client under this division…
the rate of interest, if any, that the law practice charges on overdue legal costs, whether that rate is a stated rate of interest or is a benchmark rate of interest as mentioned in subsection (5);…
(5) For subsection (4) (e), a benchmark rate of interest is a rate of interest for the time being equal to or calculated by reference to a rate of interest that is stated or decided from time to time by an ADI or another body or organisation, or by or under other legislation, and that is publicly available.
s 72 of the Legal Profession Regulation 2017 provides that:
72 Rate of interest on unpaid legal costs—Act, s 321
(1) For section 321 (3) of the Act , the prescribed rate of interest is the rate that is equal to the prescribed rate as at the relevant date.
(3) In this section—
“prescribed rate” means the rate prescribed under the Civil Proceedings Act 2011 , section 59 (3) for a money order debt.
“relevant date” means the date the bill, to which the interest relates, was given by the law practice concerned.
s 59(3) of the Civil Proceedings Act 2011 provides that:
“(3) The interest is payable at the rate prescribed under a practice direction made under the Supreme Court of Queensland Act 1991.”
Rule 283(7) of the Uniform Civil Procedure Rules provides that:
“If the plaintiff elects to accept interest at a rate not higher than that specified in a practice direction for any period mentioned in the direction, the registrar may award interest under the direction, whether or not the defendant has paid the debt or liquidated demand after the proceeding is started.”
Supreme Court Practice Direction 7 of 2013 – Interest rates, which is on your computer, relevantly provides that:
The following is the rate applicable to a money order debt:
(a) in respect of the period from 1 January to 30 June in any year, a rate six percent above the cash rate last published by the Reserve Bank of Australia before that period commenced; and
(b) in respect of the period from 1 July to 31 December in any year, a rate six percent above the cash rate last published by the Reserve Bank of Australia before that period commenced.
s 321(3) of the Legal Profession Act 2007 provides that:
“(3) A law practice may not charge interest under this section, including under a costs agreement, at a rate that is more than the rate prescribed under a regulation.”
s 308 of the Legal Profession Act 2007 relevantly provides that:
The law practice must disclose to the client under this division…
the rate of interest, if any, that the law practice charges on overdue legal costs, whether that rate is a stated rate of interest or is a benchmark rate of interest as mentioned in subsection (5);…
(5) For subsection (4) (e), a benchmark rate of interest is a rate of interest for the time being equal to or calculated by reference to a rate of interest that is stated or decided from time to time by an ADI or another body or organisation, or by or under other legislation, and that is publicly available.
s 72 of the Legal Profession Regulation 2017 provides that:
72 Rate of interest on unpaid legal costs—Act, s 321
(1) For section 321 (3) of the Act , the prescribed rate of interest is the rate that is equal to the prescribed rate as at the relevant date.
(3) In this section—
“prescribed rate” means the rate prescribed under the Civil Proceedings Act 2011 , section 59 (3) for a money order debt.
“relevant date” means the date the bill, to which the interest relates, was given by the law practice concerned.
s 59(3) of the Civil Proceedings Act 2011 provides that:
“(3) The interest is payable at the rate prescribed under a practice direction made under the Supreme Court of Queensland Act 1991.”
Rule 283(7) of the Uniform Civil Procedure Rules provides that:
“If the plaintiff elects to accept interest at a rate not higher than that specified in a practice direction for any period mentioned in the direction, the registrar may award interest under the direction, whether or not the defendant has paid the debt or liquidated demand after the proceeding is started.”
Supreme Court Practice Direction 7 of 2013 – Interest rates relevantly provides that:
The following is the rate applicable to a money order debt:
(a) in respect of the period from 1 January to 30 June in any year, a rate six percent above the cash rate last published by the Reserve Bank of Australia before that period commenced; and
(b) in respect of the period from 1 July to 31 December in any year, a rate six percent above the cash rate last published by the Reserve Bank of Australia before that period commenced.
Therefore, from 1 July 2025, the maximum interest rate lawyers can charge on unpaid bills is 9.85%pa.
Author adminPosted on Categories Legal profession, Professional fees Leave a comment on How you can save on legal fees
It is well known that legal fees tend to be expensive. The good news is that as a client there are a number of ways you can reduce your legal fees, as the rest of this article will show.
Continue reading “How you can save on legal fees”
Author adminPosted on Categories Family law, litigation 3 Comments on Sterling Law gets costs order against solicitor
This week, Sterling Law obtained a costs order on the indemnity basis against a solicitor in the Federal Circuit and Family Court of Australia.
Sterling Law acted for the father in a parenting matter. The mother had prior to proceedings relocated from Katoomba NSW to Queensland without notice to our client. Our client the father sought a relocation order so that the child could have a meaningful relationship with both parents.
After the Federal Circuit Court trial, judgment was reserved. The mother then sought to re-open the evidence by filing an Application in a Case instead of complying with the Court’s Orders for the filing of written submissions. Solicitor for the mother said that the Application in a Case was filed on Senior Counsel’s advice.
The Application in a Case was dismissed at the first return date on 16 July 2021. The solicitor for the mother appeared without Counsel and sought an adjournment so that Senior Counsel could argue the Application. Sterling Law also appeared without Counsel and pointed out the ‘new’ evidence was not germane to the child’s best interests, nor was it likely to change the result. Furthermore, the mother was not a credible witness, and this had been demonstrated when she was extensively cross-examined at trial, so a hearing with further cross-examination would be required if the evidence was reopened. The ICL noted the ‘new’ evidence could have been adduced at the trial.
Judge Tonkin dismissed the Application in a Case later that day. Sterling Law then sought indemnity costs on behalf of the father against the mother, her solicitor and Counsel. We submitted that the Application in a Case was bound to fail, had caused undue delay and expense and had been filed for the ulterior purpose of delaying judgment so that the mother could remain in Queensland for longer. Furthermore, an offer of compromise was imprudently not accepted. None of those submissions were challenged on behalf of the mother or her lawyers.
Continue reading “Sterling Law gets costs order against solicitor”
Author adminPosted on Categories civil litigation, Legal profession, litigation, Professional fees 3 Comments on The law of lawyers bills in Queensland
Introduction
For a very long time in Commonwealth legal systems, the legal profession has been regulated for the benefit of clients of lawyers and the public at large. Among other things, there has been a recognised public interest in protecting those liable to pay legal fees from overcharging by lawyers. One of those protections is and has been the legal requirement for a bill to be provided so that the client can seek advice on the fees and charges.
As a result, one of the many modern obligations that lawyers in English legal systems have to comply with in the course of legal practice is to provide clients and any other persons liable for their fees with proper bills before such persons can be liable for or sued for such fees. Continue reading “The law of lawyers bills in Queensland”
Author adminPosted on Categories Family law Leave a comment on Mother ordered to pay half of father’s legal costs In a 2014 case, the Family Court of Australia awarded legal costs against a mother in a decision that sits as an exception to the usual mantra of family law court costs.
The father was awarded custody and sole parental responsibility for the children of his relationship with his former wife, Ms Alexander, who had since remarried to a registered sexual offender. The mother was ordered to spend time with the children on alternate weekends.
Continue reading “Mother ordered to pay half of father’s legal costs”
