Personal costs claims against lawyers and how best to avoid them
This article addresses measures legal practitioners can take to minimise or avoid being the subject of a claim for personal costs pursuant to either section 99 of the Civil Procedure Act 2005 (NSW) or Schedule 2 of the Legal Profession Uniform Law Application Act 2014 (NSW). These provisions enable clients and opposing litigants to seek costs against legal practitioners personally, for claims or defences which are pursued in circumstances where the claims and/or defences had no reasonable prospects of success, or in circumstances where the claims and/or defences were brought by the serious neglect, serious incompetence, or serious misconduct of a legal practitioner, or improperly or without reasonable cause.
Significant cases, legislation or articles referred to:
- Section 99 Civil Procedure Act 2005
- Schedule 2 of the Legal Profession Uniform Law Application Act 2014 (NSW)
- Legal Profession Act 2004
- Lemoto v Able Technical