The obligation that every legal firm should be sticking to.
A NSW Supreme Court Judge has ruled in favour of Mr Tan Than Le, a former client of Sydney law firm Brydens Lawyers, who was expected to pay a total of $304,688.72 in legal costs without being provided an itemised bill of costs.
Mr Le suffered a serious injury in 2005, after being struck by a forklift at his workplace. The complainant, who has limited English skills, retained Brydens Lawyers to commence legal proceedings in 2006. Mr Le eventually was granted a damages award in his favour in May 2013. A non-conditional cost agreement was then entered into between the two parties before Brydens issued the complainant with a hefty memorandum of costs and disbursements.
Not only did Mr Le expect a higher payout than that he received, but Brydens failed to provide an itemised bill on the grounds that the complainant did not ask for one for more than 12 months after the case was finalised. Upon being further interrogated about the absence of an itemised bill from Mr Le’s new lawyers, the firm claimed to have lost his files entirely.
The case escalated to the Supreme Court, where on 16 March 2017 Justice Schmidt ruled that Brydens was expected to provide an itemised bill to Mr Le if they wished to receive a payment for their legal fees. Under s 309 of the Legal Profession Act 2004, it is a requirement for all legal practises to inform their clients of legal costs that they are expected to pay and provide itemised bills that corroborate these fees. Accordingly, the Court found Brydens in contravention of this Act.
In the midst of proceedings, it was also discovered that Mr Le was never advised that he was expected for such a bill within 12 months of the finalisation of his case. Justice Schmidt scrutinised the professionalism and ethical conduct of the law firm, stating that “its approach was inconsistent with the obligations imposed on parties [by the law].” On these grounds, it was ordered that Brydens were to pay Mr Le’s legal costs on an indemnity basis.
Mr Le’s legal proceedings reinforce the obligations – ethical, moral and legal – that law firms have to operate on the grounds of fairness and justice, and maintain transparency with their clients.
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