07 April 2017
Dear Mentor,
Is there any legislation that sets out in what circumstance a legal practice can terminate the retainer for non-payment of legal fees? Also, when does a bill for legal fees become payable?
Is there any time requirement before a legal practice can terminate the retainer for non-payment of legal fees?
Thanks for responding.
Thank you for the question.
Rule 13 of the NSW Legal Profession Uniform Law Australian Solicitors’ Conduct Rules 2015 provides for termination ‘for just cause and on reasonable notice’. Similar legislation applies in other states. This is understood to include non-payment of a complying bill. Note the exception for criminal matters. Termination should also be covered within the costs agreement.
A bill becomes payable on the expiry of the term set out in the bill. This is typically 30 days as the Uniform Law allows for interest to be charged on legal costs if unpaid for 30 days or more after the law practice has given a bill.
Regards
Mentor
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