NSW Debt for services - joint or not?

[Viktor]

My sister an I are joint executors of my Mothers estate. The estate lawyer issued an invoice for services (<$10,000) which remains unpaid as my sister disputes (not formally) the invoiced amount and will not agree to paying her half of the debt. The invoice was issued separately to each of us for the full amount. We have both been served a statement of claim and are both named as defendants. I would like to settle my half of the debt but would like to understand if that would clear the debt for myself or if I still have liability for the remaining debt if it goes to court.

Thanks in advance,

Viktor

 

[Rob Legat - SBPL]

It's hard to tell without a full look at all the relevant documents. However, from what you've said it appears that the account is owed jointly - the invoice was issued separately to you each, but for the full amount; you're both named as defendants in the action; and you were joint executors of the estate, and that's what the debt relates to.

I would not pay half the debt without careful negotiation of the circumstances. Your concerns will be along the lines of ensuring the lawyer accepts the payment and agrees to release you from the suit should you do so, and that you and your sister agree to forego any right of contribution against the other in respect of the amounts. You also run the risk that you pay half, using $5,000 for simplicity, and your sister settling the dispute paying a lesser sum - say $3,000.

This can get complicated, and legal advice should be sought. You should not seek it from the solicitor for the estate, as they will be conflicted.

 

[Viktor]

My sister an I are joint executors of my Mothers estate. The estate lawyer issued an invoice for services (<$10,000) which remains unpaid as my sister disputes (not formally) the invoiced amount and will not agree to paying her half of the debt. The invoice was issued separately to each of us for the full amount. We have both been served a statement of claim and are both named as defendants. I would like to settle my half of the debt but would like to understand if that would clear the debt for myself or if I still have liability for the remaining debt if it goes to court.

Thanks in advance,

Viktor

Thanks for your reply. I hope to be able to negotiate an arrangement with the lawyer bu take on board that it would be prudent to get legal advice. If we agree to forgo right of contribution, presumably this would require a deed to be executed?

 

[Rob Legat - SBPL]

Yes, something along those lines. You'll need to check the requirements for NSW, but something along the lines of a cross-indemnification.

 

[Viktor]

Yes, something along those lines. You'll need to check the requirements for NSW, but something along the lines of a cross-indemnification.

Thank you