172x Filetype DOCX File size 0.08 MB Source: probonocentre.org.au
The Australian Pro Bono Manual Appendix 1: Precedents LETTER OF ENGAGEMENT — COSTS AGREEMENT GUIDANCE NOTE This letter of engagement precedent takes the form of a costs agreement. It can be tailored for use in either non- litigated matters (Option A) or litigated matters (Option B). Key terms: ● In litigated matters, the firm can recover costs as awarded or agreed as part of a settlement, and the agreement details the process of estimating costs that would be recovered. Estimates are provided of costs likely to be awarded (if successful) or alternatively paid (if unsuccessful). ● In non-litigated matters, professional fees are not charged. ● Disbursements are charged to the client (unless approval is obtained to do otherwise). Precedents in the Australian Pro Bono Manual are provided with the generous assistance of leading Australian law firms, and have been developed to reflect best practice in pro bono. There are two or more examples of each type of precedent to accommodate the various ways in which firms coordinate their pro bono programs. Use the precedent that best reflects the firm’s size, structure, systems, organisational culture and policies. Precedents should also be adapted as necessary to comply with the firm’s house style and terminology. The Centre welcomes feedback on the usefulness and ease of use of these precedents, especially from firms in the early stages of developing a formal pro bono program. LETTER OF ENGAGEMENT — COSTS AGREEMENT Costs Agreement Note: this agreement provides for disbursements to be charged to clients in all cases. If you do not plan to charge disbursements (for example, if the client is a disadvantaged individual) please seek approval from the pro bono coordinator first. Details Name You, our client [ ] ABN [ ] Address [ ] Contact: [name and title] Name Associated Third Party [ ] Payer ABN [ ] Address [ ] Contact: [name and title] insert The work we have been [ ] asked to do Name Responsible contact at [ ] [Firm] date This agreement starts on [ ] Hourly rates These are given on page [insert] (Only for Option B — Litigated Matter) insert File name and number [ ] Costs Note: select either Option A (Non Litigated Matter) or Option B (Litigated Matter) Option A — Non Litigated Matter We have agreed to act for you in this matter on a pro bono basis. This means that we will not charge you for our professional fees. However, we will charge you for our disbursements. Disbursements are expenses we incur on your behalf for services supplied or payments charged by third parties. We will incur such disbursements as agent for you and we will only recover from you the amount paid by us to the third party (inclusive of any GST the third party has included in that amount). Set out below is a list of the likely disbursements you will incur in this matter and an estimate of your total disbursements. However, this is only an estimate and is not binding on us. We will let you know if the estimate needs revising. We will also obtain your approval and consent before we incur any disbursements which are not listed in the table below. 1 GST exclusive GST amount GST inclusive ($) ($) ($) Disbursements [amount] [amount] [amount] (GST-free) Disbursements [amount] [amount] [amount] (not GST-free) Cost [amount] [amount] [amount] For litigious matters only Option B — Litigated Matter We have agreed to act for you in this matter on a pro bono basis. This means that we will not charge you for our professional fees unless the work we perform for you results in an ‘Entitlement to Costs’ (as defined below). Regardless of whether or not the work we perform for you results in an ‘Entitlement to Costs’, we will charge you for our disbursements. Disbursements are expenses we incur on your behalf for services supplied or payments charged by third parties. We will incur such disbursements as agent for you and we will only recover from you the amount paid by us to the third party (inclusive of any GST the third party has included in that amount). The standard hourly rates that will apply in this matter are as follows: Title Estimated number Rate of hours Partner Special Counsel Senior Associate Solicitor Paralegal An estimate of the costs that may be payable, if you are successful or not, is insert given on page [ ]. As soon as practicable after there is any significant change to anything previously disclosed to you, we will provide you with information disclosing the change, including information about any significant change to legal costs that will be payable by you. Set out below is a list of the likely disbursements you will incur in this matter and an estimate of your total disbursements. However, this is only an estimate and is not binding on us. We will let you know if the estimate needs revising. We will obtain your approval and consent before we incur any disbursements which are not listed in the table below. GST exclusive GST amount GST inclusive ($) ($) ($) Disbursements [amount] [amount] [amount] (GST-free) Disbursements [amount] [amount] [amount] (not GST-free) Cost [amount] [amount] [amount] 2 An ‘Entitlement to Costs’ means any of the following during or at the end of the work performed for you: (a) either of: (i) a court or tribunal judgment, award or order for costs in your favour; or (ii) an agreement that our costs or disbursements or both be paid by another party; and (b) you are able to recover some or all of our standard hourly charges and disbursements from the other party. As soon as practicable after there is any significant change to anything previously disclosed to you, we will provide you with information disclosing the change, including information about any significant change to legal costs that will be payable by you. Important We are obliged to take all reasonable steps to satisfy ourselves that you have understood and given consent to the proposed course of action for the conduct of the matter and the proposed costs. If you have any questions in respect of any of the matters set out in this costs agreement, please contact us. We will endeavour to provide answers to you in respect of any such questions. Signing Page Signed as an agreement. Signed by on behalf of Name [ ] sign (authorised person) title (authorised person) full name (authorised person) Associated Third Signed by [ Party Payer name (or use sign sign alternative clause for individuals)] in accordance office (director or secretary) office (director or secretary) with the provisions of full name full name s 127(1) of the Corporations Act 2001 (Cth) Signed on behalf of [Firm] sign (authorised person) Partner title (authorised person) full name (authorised person) Agreement 1 Client References in this agreement to you are references to you, our client. If there is more than one of you then this binds each separately and you each need to consider obtaining independent advice. In that case, we may report to and take instructions from any one of you on behalf of all. By acting for more than one of you, we may be prevented from disclosing all relevant information which is within our knowledge or giving advice to one, which is contrary to the interests of another. We may have to cease to act for all if we would otherwise have to act in a manner contrary to the interests of one of you. Further, if we decide to cease to act for you in such circumstances, you agree that we may decide 3
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