Preconditions for Contingency Fee Agreements in Australia and Germany

Table of Contents

I Introduction

II Terminology

III Australia
A Forms of contigency fees in Australia
1 Conditional fee
2 Uplift fee
3 No contingency fees in the narrow sense
B Preconditions for contingency fees
1 Excluded matters relating to the conditional fee agreement
2 Written form and informing the client
3 Description of the conditions for successful outcome
4 “Cooling-off period”

IV Germany
A Historical development
B Forms of contingency fees
C Preconditions for conditional fees
1 Written form
2 Prerequisites concerning the content
3 Legal advice

V Comparison
1 Written form and information of the client
2 Excluded matters relating to the conditional fee agreement
3 “Cooling-off period”

VI Conclusion

I Introduction

This essay will show the advantages of comparative law in the development of appropriate preconditions for contingency fee agreements.

After describing the current provisions concerning contingeny fees in Australia and Germany, both the Australian and the German approaches will be critically examined concerning the preconditions of conditional cost agreements. The essay will not comprise the constitutional implications of contingency fees and will exclude the predominantly political and sociological question whether contigency fees are necessary or favourable.^[1] The peculiarities of class action will not be included.^[2]

II Terminology

Generally speaking, contingency fees are legal payments being dependent on the successful outcome of litigation or another event.^[3] The underlying principle is to shift the risk of losing a case from the client to the lawyer.^[4]

But despite that broadly accepted general idea, the terminology concerning contingency fees is not coherent in the legal discussion. Consequently the first task of this examination will be to develop a sufficiently clear and precise terminology in order to differentiate the various types of contingency fees.

Firstly, one can distinguish between a contingency fee in the wide sense (Erfolgshonorar im weiten Sinn) on the one hand and a so-called “palmarium” or additional fee (Erfolgsprämie) on the other hand.^[5] A contingency fee in the wide sense is paid only in the event of a successful outcome. If it is unsuccessful, no fee is paid at all (“no win, no fee”). In contrast, the lawyer gets the palmarium if he wins the case but still gets the ordinary or standard fee if he loses (“no win, less fee”).^[6] The palmarium will not be part of this essay.

Secondly, the contingency fee in the wide sense can be divided into two groups depending on how they are calculated.^[7]

The first group comprises the speculative fee or conditional fee (Erfolgshonorar im engen Sinn)^[8], the uplift fee^[9] and the base/multiplier (or lodestar) fee^[10]. The characteristics of these types of contingency fees in the wide sense are that although they are only paid under the condition of the successful outcome, they are calculated without dependencies to the underlying matter the cost agreement relates to.

The second group includes the contingency fee in the narrow sense (quota litis or Streitwertbeteiligung)^[11]. This group comprises the conditional costs being calculated in relation to the underlying legal matter of the cost agreement and consequently being dependent on it.

III Australia

A Forms of contigency fees in Australia

1 Conditional fee

In Australia, a lawyer and his or her client may enter into a cost agreement which may entitle the lawyer to demand a fee only in case of the succesful outcome of the matter relating to the cost agreement.^[12]

2 Uplift fee

It is also possible that a conditional cost agreement can comprise an uplift fee in addition to the standard fee.^[13] The level of an uplift fee can be influenced by other provisions.^[14]

Generally, uplift fees are prohibited in conditional fee agreements relating to litigious matters. An exception is only made where the legal practice reasonably believes in the “reasonably likely” outcome of the litigious matter.^[15] Additionally, the amount of the uplift fee has to be limited to a maximum of 25 % of the legal costs and disbursements cannot be included.^[16]

Contravention of these requirements for uplift fees is prohibited.^[17] In the event of a contravention, penalties apply to the law practice responsible.^[18]

3 No contingency fees in the narrow sense

Costs agreements including a contingency fee in the narrow sense are expressly prohibited in Australia.^[19] The Australian legislators clarified that conditional cost agreements are not prohibited as far as an “applicable scale of costs” is concerned.^[20]

The contravention of the prohibition of contingency fees in the narrow sense is penalised.^[21]

B Preconditions for contingency fees

All cost agreements in Australia whether conditional or not have to be in written form or evidenced in writing.^[22]

1 Excluded matters relating to the conditional fee agreement

Some legal matters are excluded from being part of a conditional costs or uplift fee agreement. These are, for example, matters involving criminal proceedings,^[23] criminal matters,^[24] matters concerning the Family Law Act 1975 (Cth),^[25] Migration Act 1958 (Cth),^[26] Child Support (Assessment) Act 1989 (Cth),^[27] or generally relating to “child protection, custody, guardianship or adoption”.^[28] Some states also exclude parts of their own legislation concerning family law matters^[29] or regulations.^[30]

2 Written form and informing the client

Firstly, a conditional cost agreement requires written form,^[31] the signature of the client^[32] and a statement about an indoctrination of the client concerning his right for independent legal help before he agrees to the cost agreement.^[33]

The agreement has to be written in clear language and be understood by the client.^[34] The elaboration of the additional uplift fee in the conditional fee agreement must be seperately identifiable.^[35]

3 Description of the conditions for successful outcome

The conditions for the successful outcome of the underlying matter relating to the cost agreement have to be clarified.^[36]

The conditional cost agreement may also set out disbursements which the lawyer is entitled to demand irrespectively of the outcome of the legal matter.^[37]

In case of an uplift fee either an estimation of its level or at least an estimated range of its level must be part of the fee agreement.^[38] The “major variables” affecting the sum of the uplift fee also have to be clarified.^[39]

4 “Cooling-off period”

A “cooling-off period” of at least five business days must also be included in the conditional cost agreement. Within this “cooling-off period”, the client is entitled to terminate the cost agreement by written notice.^[40] In the event of a termination by the client within the “cooling-off period”, the lawyer is only entitled to demand the costs for his legal service before the termination. The client must have instructed the lawyer and must have known that the legal service would be performed until the termination.^[41] An agreed uplift fee cannot be recovered if a termination within the “cooling-off period” occurs.^[42]

[...]

^[1] See Kay-Thomas Pohl and Herbert P. Schons, ‘Erfolgshonorar für Rechtsanwälte?: Pro und Contra’ (2006) 39 Zeitschrift für Rechtspolitik 31; Rod Smith, ‘The contingencyfee option’ (1989) 63 Law Institute Journal 959, 960; Dieter Gieseler, ‘Anwaltliches Erfolgshonorar – Berufsbild und Berufsethos’ (2005) 83 Juristische Rundschau 221, 223; Matthias Kilian, ‘Anwaltliche Erfolgshonorare und die bevorstehende Reform des Vergütungsrechts’ (2003) 36 Zeitschrift für Rechtspolitik 90, 91-93; Lutz Wilde, ‘Anwaltliches Erfolgshonorar: Werden die Anwälte nun zur Konkurrenz für Foris und Co?’ (2007) 57 Anwaltsblatt 489, 490; Bernd Bendref, ‘Erfolgshonorar und internationale Mandate’ (1998) 48 Anwaltsblatt 309, 311; Burkhard Heß, Inländische Rechtsbesorgung gegen Erfolgshonorar’ (1999) 52 Neue Juristische Wochenschrift 2485, 2486; Rolf Stürner and Jens Bormann, ‘Der Anwalt – vom freien Beruf zum dienstleistenden Gewerbe’ (2004) 57 Neue Juristische Wochenschrift 1481, 1488.

^[2] See Rachael Mulheron, The Class Action in Common Law Legal Systems: A Comparative Perspective (2004) 475, 476; Reiner Geulen and Anthony J. Sebok, ‘Deutsche Firmen vor US-Gerichten’ (2003) 56 Neue Juristische Wochenschrift 3244, 3246; Ian Dunn, ‘Ethical issues in class actions’ (2001) 48 Plaintiff 14, 18; Vince Morabito, ‘Contingencyfee agreements with represented personal in class actions: An undesirable Australian phenomenon’ (2005) 34 (3) Common Law World Review 201, 224; Vince Morabito, ‘Federal Class Actionc, Contingency Fees, and the Rules Governing Litigation Costs’ (1995) 21 Monash University Law Review 231, 245-247.

^[3] Peter E. Nygh and Peter Butt, Butterworths Australian Legal Dictionary (1997) 261.

^[4] See Mulheron, above n 2, 469; concerning the terminology see also Matthias Kilian, Der Erfolg der Vergütung des Rechtsanwalts (2003) 18, 18-20; Michael Kleine-Cosack, ‘Vom regulierten zum frei vereinbarten (Erfolgs-) Honorar’ (2007) 60 Neue Juristische Wochenschrift 1405, 1406; Hans-Jochem Mayer, ‘Das Erfolgshonorar - de lege lata und de lege ferenda’ (2007) 57 Anwaltsblatt 561, 561; Bernhard Stüer, ‘Erfolgshonorar: Fällt die letzte Bastion des anwaltlichen Standesrechts?’ (2007) 57 (6) Anwaltsblatt 431, 433; Christoph Hommerich and Matthias Kilian, ‘Brennpunkte des anwaltlichen Berufsrechts – Das Soldan Berufsrechtsbarometer 2007’ (2007) 60 Neue Juristische Wochenschrift 2308, 2313; Joachim Gruber, ‘Erfolgshonorare und die Standesregeln der Rechtsanwälte der Europäischen Gemeinschaft’ (2000) 50 Juristische Büro 228, 228; Wolf Madert, ‘Zulässiges und unzulässiges Erfoglshonorar’ (2005) 12 Zeitschrift für das gesamte Gebührenrecht und Anwaltsmanagement – Anwaltsgebühren Spezial 536, 536.

^[5] Matthias Kilian, ‘Die spekulative Vergütung des Rechtsanwalts: Eine tour d’horizon auf der Weltkarte von Erfolgshonorar und Streitanteil’ (2006) 56 Anwaltsblatt 515, 516.

^[6] Hans Helmut Bischof, ‘Erfolgshonorar – die Lockerung des Verbots der Verabredung von Erfolgshonoraren durch das Kostenrechtsmoderninsierungsgesetz – KostRMoG’, in Hans Helmut Bischof (ed) RVG – Probleme und Chancen: Festschrift für Wolfgang Madert zum 75. Geburtstag (2006) 1, 4; Volker Römermann, ‘Erfolgshonorar bei Rechtsanwälten: Praxisüberlegungen zur geplanten Neuregelung’ (2008) 3/08 Betriebs-Betrater Spezial 23, 24; Jan Schepke, Das Erfolgshonorar des Rechtsanwalts: Gegenläufige Gesetzgebung in England und Deutschland (1998) 140-142.

^[7] See also Kilian, above n 5, 516.

^[8] A speculative fee or conditional fee has only to be paid if the lawyer wins the case and is calculated by reference to the standard fee, Kilian, above n 5, 517; Mulheron, above n 2, 469.

^[9] If an uplift fee is agreed the lawyer gets an additional fee to his usual fee. The surplus can either be a fixed plus or a percentage uplift fee to the standard fee, Mulheron, above n 2, 469.

^[10] A base/multiplier (or lodestar) fee is a special form of the uplift fee, see Mulheron, above n 2, 469.

^[11] A contingency fee in the narrow sense is a fee which is normally described as “contingency fee”. It is normally either agreed in the form of a percentage recovery fee or a sliding percentage recovery fee. No fee is paid, if the legal matter gets lost, see Mulheron, above n 2, 469; Kilian, above n 5, 516.

^[12] Legal Profession Act 2006 (ACT) s 283 (1); Legal Profession Act 2007 (Tas) s 307 (1); Legal Profession Bill 2007 (SA) s 270 (1); Legal Profession Act 2004 (Vic) s 3.4.27 (1); Legal Profession Act 2007 (Qld) s 323 (1); Legal Profession Bill 2007 (WA) s 283 (1); Legal Profession Act 2004 (NSW) s 323 (1); Legal Profession Act 2008 (NT) s 318 (1). Conditional cost agreements to not include contingency fees in the narrow sense, see for an express exclusion Legal Profession Act 2006 (ACT) s 261 – definitions – pt 3.2. See also see Clyne v New South Wales Bar Assn (1960) 104 CLR 186 at 203; Halsbury’s Laws of Australia (at 9th May 2008) 250 Legal Practitioners (9) Lawyers’ remuneration (B) Regulation of Lawyers’ Costs, (I) Agreements as to Costs (250-830); Clive Bowman, ‘Litigation funding agreements by legal practitioners’ (2000) 38 Law Society Journal 68, 69.

^[13] Legal Profession Act 2006 (ACT) s 284 (1); Legal Profession Act 2007 (Tas) s 308 (1); Legal Profession Bill 2007 (SA) s 271 (1); Legal Profession Act 2004 (Vic) s 3.4.28 (1); Legal Profession Act 2007 (Qld) s 324 (1); Legal Profession Bill 2007 (WA) s 284 (1); Legal Profession Act 2004 (NSW) s 324 (2); Legal Profession Act 2008 (NT) s 319 (1).

^[14] For example claims concering damages, see Civil Law (Wrongs) Act 2002 (ACT) pt. 14.1 and pt. 14.2.

^[15] Legal Profession Act 2006 (ACT) s 284 (4) (a); Legal Profession Act 2007 (Tas) s 308 (4) (a); Legal Profession Bill 2007 (SA) s 271 (4) (a); Legal Profession Act 2004 (Vic) s 3.4.28 (4) (a); Legal Profession Bill 2007 (WA) s 283 (4) (a).

^[16] Legal Profession Act 2006 (ACT) s 284 (4) (b); Legal Profession Act 2007 (Tas) s 308 (4) (b); Legal Profession Bill 2007 (SA) s 271 (4) (b); Legal Profession Act 2004 (Vic) s 3.4.28 (4) (b); Legal Profession Act 2007 (Qld) s 324 (4); Legal Profession Bill 2007 (WA) s 284 (4) (b); Legal Profession Act 2004 (NSW) s 324 (5); Legal Profession Act 2008 (NT) s 319 (4).

^[17] Legal Profession Act 2006 (ACT) s 284 (5); Legal Profession Act 2007 (Tas) s 308 (5); Legal Profession Bill 2007 (SA) s 271 (5); Legal Profession Act 2004 (Vic) s 3.4.28 (5); Legal Profession Act 2007 (Qld) s 324 (6); Legal Profession Bill 2007 (WA) s 284 (5); Legal Profession Act 2004 (NSW) s 324 (6); Legal Profession Act 2008 (NT) s 319 (5).

^[18] Maximum penalty: 500 penalty units, Legal Profession Act 2008 (NT) s 319 (6), (7); maximum penalty: 100 penalty units, Legal Profession Act 2007 (Tas) s 308 (5), Legal Profession Act 2007 (Qld) s 324 (5), Legal Profession Act 2004 (NSW) s 324 (6); maximum penalty: 50 penalty units, Legal Profession Act 2006 (ACT) s 284 (6) and (7); maximum penalty: $50.000, Legal Profession Bill 2007 (SA) s 271 (5); penalty of 60 penalty units, Legal Profession Act 2004 (Vic) s 3.4.28 (5); penalty fine: $ 10.000, Legal Profession Bill 2007 (WA) s 284 (5).

^[19] Legal Profession Act 2006 (ACT) s 285 (1); Legal Profession Act 2007 (Tas) s 309 (1); Legal Practitioners Act 1981 (SA) s 42 (6) (c); Rules of Professional Conduct and Practice 2003 (SA) r 42.1; Legal Profession Bill 2007 (SA) s 272 (1); Legal Profession Act 2004 (Vic) s 3.4.29 (1); Legal Profession Act 2007 (Qld) s 325 (1); Legal Profession Bill 2007 (WA) s 285 (1); Legal Profession Act 2004 (NSW) s 325 (1) (b); Legal Profession Act 2008 (NT) s 320 (1).

^[20] Legal Profession Act 2006 (ACT) s 285 (2); Legal Profession Act 2007 (Tas) s 309 (2); Legal Profession Bill 2007 (SA) s 272 (2); Legal Profession Act 2004 (Vic) s 3.4.29 (2); Legal Profession Act 2007 (Qld) s 325 (2); Legal Profession Bill 2007 (WA) s 285 (2); Legal Profession Act 2004 (NSW) s 325 (2); Legal Profession Act 2008 (NT) s 320 (2).

^[21] Penalty: 100 penalty units, Legal Profession Act 2007 (Tas) s 309 (1); Penalty: 120 penalty units, Legal Profession Act 2004 (Vic) s 3.4.29 (1); Maximum penalty: 50 penalty units, Legal Profession Act 2006 (ACT) s 285 (3), (4); maximum penalty: 100 penalty units, Legal Profession Act 2007 (Qld) s 325 (1) and Legal Profession Act 2004 (NSW) s 325 (1); maximum penalty: 500 penalty units, Legal Profession Act 2008 (NT) s 320 (3), (4); maximum penalty: $ 50.000, Legal Profession Bill 2007 (SA) s 272 (1); fine: 10.000, Legal Profession Bill 2007 (WA) s 285 (1).

^[22] Legal Profession Act 2006 (ACT) s 282 (2); Legal Profession Act 2007 (Tas) s 306 (2); Legal Profession Bill 2007 (SA) s 269 (2); Legal Profession Act 2004 (Vic) s 3.4.26 (2); Legal Profession Act 2007 (Qld) s 322 (2); Legal Profession Bill 2007 (WA) s 282 (2); Legal Profession Act 2004 (NSW) s 322 (2); Legal Profession Act 2008 (NT) s 317 (2).

^[23] Legal Profession Act 2006 (ACT) s 283 (2); Legal Profession Act 2004 (Vic) s 3.4.27 (2); Legal Profession Act 2004 (NSW) s 323 (2); Legal Profession Act 2007 (Qld) s 323 (2); Legal Profession Act 2008 (NT) s 318 (2) (a); Legal Profession Act 2007 (Tas) s 307 (2); Legal Profession Bill 2007 (WA) s 283 (2) (a).

^[24] Legal Profession Bill 2007 (SA) s 270 (2) (a).

^[25] Legal Profession Act 2006 (ACT) s 283 (2); Legal Profession Act 2004 (Vic) s 3.4.27 (2); Legal Profession Act 2004 (NSW) s 323 (2); Legal Profession Act 2007 (Qld) s 323 (2); Legal Profession Act 2008 (NT) s 318 (2) (b); Legal Profession Act 2007 (Tas) s 307 (2); Legal Profession Bill 2007 (SA) s 270 (2) (c) (i); Legal Profession Bill 2007 (WA) s 283 (2) (d) (i).

^[26] Legal Profession Bill 2007 (WA) s 283 (2) (d) (ii).

^[27] Legal Profession Bill 2007 (WA) s 283 (2) (d) (iii); Legal Profession Bill 2007 (SA) s 270 (2) (c) (ii).

^[28] Legal Profession Bill 2007 (WA) s 283 (2) (b); Legal Profession Bill 2007 (SA) s 270 (2) (b); currently SA excludes criminal and matrimonial matters, Legal Practitioners Act 1981 (SA) s 42 (6) (c); Rules of Professional Conduct and Practice 2003 (SA) r 42.2 (2) (a).

^[29] See for example proceedings under Adoption Act 1988 (Tas), Children, Young Persons and Their Families Act 1997 (Tas), Youth Justice Act 1997 (Tas) or Relationships Act 2003 (Tas), Legal Profession Act 2007 (Tas) s 307 (2); and matters concerning the Family Court Act 1997 (WA) and the Children and Community Services Act 2004 (WA), Legal Profession Bill 2007 (WA) s 283 (2) (c).

^[30] Legal Profession Bill 2007 (SA) s 270 (2) (d); Legal Profession Bill 2007 (WA) s 283 (2) (e); Legal Profession Act 2008 (NT) s 318 (2) (c).

^[31] Legal Profession Act 2006 (ACT) s 283 (3) (c) (i); Legal Profession Act 2007 (Tas) s 307 (3) (c) (i); Legal Practitioners Act 1981 (SA) s 42 (6) (c); Rules of Professional Conduct and Practice 2003 (SA) r 42.2 (f) (i); Legal Profession Bill 2007 (SA) s 270 (3) (c) (i); Legal Profession Act 2004 (Vic) s 3.4.27 (3) (c) (i); Legal Profession Act 2007 (Qld) s 323 (3) (c) (i); Legal Profession Bill 2007 (WA) s 283 (3) (c) (i); Legal Profession Act 2004 (NSW) s 323 (3) (c) (i); Legal Profession Act 2008 (NT) s 318 (3) (c) (i).

^[32] Legal Profession Act 2006 (ACT) s 283 (3) (c) (iii); Legal Profession Act 2007 (Tas) s 307 (3) (c) (iii); Legal Profession Bill 2007 (SA) s 270 (3) (c) (iii); Legal Profession Act 2004 (Vic) s 3.4.27 (3) (c) (iii); Legal Profession Act 2007 (Qld) s 323 (3) (c) (iii); Legal Profession Bill 2007 (WA) s 283 (3) (c) (iii); Legal Profession Act 2004 (NSW) s 323 (3) (c) (iii); Legal Profession Act 2008 (NT) s 318 (3) (c) (iii). This does not apply to conditional cost agreements being made between law practices, Legal Profession Act 2006 (ACT) s 283 (4); Legal Profession Act 2007 (Tas) s 307 (4); Legal Profession Bill 2007 (SA) s 270 (4); Legal Profession Act 2004 (Vic) s 3.4.27 (4); Legal Profession Act 2007 (Qld) s 323 (4) (a); Legal Profession Bill 2007 (WA) s 283 (4) (a); Legal Profession Act 2004 (NSW) s 323 (4); Legal Profession Act 2008 (NT) s 318 (4) or with a client being sophisticated, Legal Profession Act 2006 (ACT) s 283 (5); Legal Profession Act 2007 (Tas) s 307 (5); Legal Profession Bill 2007 (SA) s 270 (5); Legal Profession Act 2004 (Vic) s 3.4.27 (4A); Legal Profession Act 2007 (Qld) s 323 (4) (b); Legal Profession Bill 2007 (WA) s 283 (4) (b); Legal Profession Act 2004 (NSW) s 323 (4B); Legal Profession Act 2008 (NT) s 318 (5).

^[33] Legal Profession Act 2006 (ACT) s 283 (3) (d); Legal Profession Act 2007 (Tas) s 307 (3) (d); Legal Profession Bill 2007 (SA) s 270 (3) (d); Legal Profession Act 2004 (Vic) s 3.4.27 (3) (d); Legal Profession Act 2007 (Qld) s 323 (3) (d); Legal Profession Bill 2007 (WA) s 283 (3) (d); Legal Profession Act 2004 (NSW) s 323 (3) (d); Legal Profession Act 2008 (NT) s 318 (3) (d). This does not apply to conditional cost agreements being made between law practices, Legal Profession Act 2006 (ACT) s 283 (4); Legal Profession Act 2007 (Tas) s 307 (4); Legal Profession Bill 2007 (SA) s 270 (4); Legal Profession Act 2004 (Vic) s 3.4.27 (4); Legal Profession Act 2007 (Qld) s 323 (4) (a); Legal Profession Bill 2007 (WA) s 283 (4) (a); Legal Profession Act 2004 (NSW) s 323 (4); Legal Profession Act 2008 (NT) s 318 (4), or clients being sophisticated, Legal Profession Act 2006 (ACT) s 283 (5); Legal Profession Act 2007 (Tas) s 307 (5); Legal Profession Bill 2007 (SA) s 270 (5); Legal Profession Act 2004 (Vic) s 3.4.27 (4A); Legal Profession Act 2007 (Qld) s 323 (4) (b); Legal Profession Bill 2007 (WA) s 283 (4) (b); Legal Profession Act 2004 (NSW) s 323 (4B); Legal Profession Act 2008 (NT) s 318 (5).

^[34] Legal Profession Act 2006 (ACT) s 283 (3) (c) (ii); Legal Profession Act 2007 (Tas) s 307 (3) (c) (ii); Legal Practitioners Act 1981 (SA) s 42 (6) (c); Rules of Professional Conduct and Practice 2003 (SA) r 42.2 (f) (i); Legal Profession Bill 2007 (SA) s 270 (3) (c) (ii); Legal Profession Act 2004 (Vic) s 3.4.27 (3) (c) (ii); Legal Profession Act 2007 (Qld) s 323 (3) (c) (ii); Legal Profession Bill 2007 (WA) s 283 (3) (c) (ii); Legal Profession Act 2004 (NSW) s 323 (3) (c) (ii); Legal Profession Act 2008 (NT) s 318 (3) (c) (ii).

^[35] Legal Profession Act 2006 (ACT) s 284 (2); Legal Profession Act 2007 (Tas) s 308 (2); Legal Profession Bill 2007 (SA) s 271 (2); Legal Profession Act 2004 (Vic) s 3.4.28 (2); Legal Profession Act 2007 (Qld) s 324 (2); Legal Profession Bill 2007 (WA) s 284 (2); Legal Profession Act 2004 (NSW) s 324 (3); Legal Profession Act 2008 (NT) s 319 (2).

^[36] Legal Profession Act 2006 (ACT) s 283 (3) (a); Legal Profession Act 2007 (Tas) s 307 (3) (a); Legal Profession Bill 2007 (SA) s 270 (3) (a); Legal Profession Act 2004 (Vic) s 3.4.27 (3) (a); Legal Profession Act 2007 (Qld) s 323 (3) (a); Legal Profession Bill 2007 (WA) s 283 (3) (a); Legal Profession Act 2004 (NSW) s 323 (3) (a); Legal Profession Act 2008 (NT) s 318 (3) (a).

^[37] Legal Profession Act 2006 (ACT) s 283 (3) (b); Legal Profession Act 2007 (Tas) s 307 (3) (b); Legal Profession Bill 2007 (SA) s 270 (3) (b); Legal Profession Act 2004 (Vic) s 3.4.27 (3) (b); Legal Profession Act 2007 (Qld) s 323 (b); Legal Profession Bill 2007 (WA) s 283 (3) (b); Legal Profession Act 2004 (NSW) s 323 (3) (b); Legal Profession Act 2008 (NT) s 318 (3) (b).

^[38] Legal Profession Act 2006 (ACT) s 284 (3) (a); Legal Profession Act 2007 (Tas) s 308 (3) (a); Legal Profession Bill 2007 (SA) s 271 (3) (a); Legal Profession Act 2004 (Vic) s 3.4.28 (3) (a); Legal Profession Act 2007 (Qld) s 324 (3) (a); Legal Profession Bill 2007 (WA) s 284 (3) (a); Legal Profession Act 2004 (NSW) s 324 (4) (a); Legal Profession Act 2008 (NT) s 319 (3).

^[39] Legal Profession Act 2006 (ACT) s 284 (3) (b); Legal Profession Act 2007 (Tas) s 308 (3) (b); Legal Profession Bill 2007 (SA) s 271 (3) (b); Legal Profession Act 2004 (Vic) s 3.4.28 (3) (b); Legal Profession Act 2007 (Qld) s 324 (3) (b); Legal Profession Bill 2007 (WA) s 283 (3) (b); Legal Profession Act 2004 (NSW) s 324 (4) (b); Legal Profession Act 2008 (NT) s 319 (3).

^[40] Legal Profession Act 2006 (ACT) s 283 (3) (e); Legal Profession Act 2007 (Tas) s 307 (3) (e); Legal Practitioners Act 1981 (SA) s 42 (6) (c); Rules of Professional Conduct and Practice 2003 (SA) r 42.2 (2) (f) (ii); Legal Profession Bill 2007 (SA) s 270 (3) (e); Legal Profession Act 2004 (Vic) s 3.4.27 (3) (e); Legal Profession Act 2007 (Qld) s 323 (3) (e); Legal Profession Bill 2007 (WA) s 283 (3) (e); Legal Profession Act 2004 (NSW) s 323 (3) (e); Legal Profession Act 2008 (NT) s 318 (3) (e). This does not apply to conditional cost agreements being made between law practices, Legal Profession Act 2006 (ACT) s 283 (4); Legal Profession Act 2007 (Tas) s 307 (4); Legal Profession Bill 2007 (SA) s 270 (4); Legal Profession Act 2004 (Vic) s 3.4.27 (4); Legal Profession Act 2007 (Qld) s 323 (4) (a); Legal Profession Bill 2007 (WA) s 283 (4) (a); Legal Profession Act 2004 (NSW) s 323 (4); Legal Profession Act 2008 (NT) s 318 (4), or clients being sophisticated, Legal Profession Act 2006 (ACT) s 283 (5); Legal Profession Act 2007 (Tas) s 307 (5); Legal Profession Bill 2007 (SA) s 270 (5); Legal Profession Act 2004 (Vic) s 3.4.27 (4A); Legal Profession Act 2007 (Qld) s 323 (4) (b); Legal Profession Bill 2007 (WA) s 283 (4) (b); Legal Profession Act 2004 (NSW) s 323 (4B); Legal Profession Act 2008 (NT) s 318 (5).

^[41] Legal Profession Act 2006 (ACT) s 283 (6) (a); Legal Profession Act 2007 (Tas) s 307 (6) (a); Legal Profession Bill 2007 (SA) s 270 (6) (a); Legal Profession Act 2004 (Vic) s 3.4.27 (5) (a); Legal Profession Act 2007 (Qld) s 323 (5) (a); Legal Profession Bill 2007 (WA) s 283 (5) (a); Legal Profession Act 2004 (NSW) s 323 (5) (a); Legal Profession Act 2008 (NT) s 318 (6) (a).

^[42] Legal Profession Act 2006 (ACT) s 283 (6) (b); Legal Profession Act 2007 (Tas) s 307 (6) (b); Legal Profession Bill 2007 (SA) s 270 (6) (b); Legal Profession Act 2004 (Vic) s 3.4.27 (5) (b); Legal Profession Act 2007 (Qld) s 323 (5) (b); Legal Profession Bill 2007 (WA) s 283 (5) (b); Legal Profession Act 2004 (NSW) s 323 (5) (b); Legal Profession Act 2008 (NT) s 318 (6) (b).