NSW Motor Accident Claim - Successful, But Rip Off Fees?

[MasterJoe]

Hello,

Thank you in advance for any help on this matter. Recently, a claim from 2015 settled regarding a motor accident. I was not at fault, and I sustained some minor but irritating injuries.

Anyway, the settlement is for roughly 30k, and they are only intent on giving me 9k.

However, after I asked for a cost breakdown (which took a while for them to send), I received a very vague list of items which I suspect are extremely exaggerated. It is not an actual cost breakdown as I asked, but a very suspicious lists of charges as follows (I've changed things to keep me unidentified).

Under a title called "Interim Tax Invoice", the following:

To our professional costs of and incidental to acting on your behalf with respect to your personal injuries claim including all due care, skill, and consideration involved therein.

Total: 9000

• Mr X counsel fee - 3000
• Medical report fees 4000+
  
• Misc fees (disbursements, costs for calls, paper, etc) - 5000+

I only visited my solicitors medical lawyer one time for an assessment for about 1.5 hours.

Unfortunately, I do not have the costs agreement that I signed over a year ago I believe.

However, I am sure there must be a way to contest these outrageous markups on the price. I am calling up for a more detailed cost breakdown shortly, because it sounds and looks made up to suit them.

Thank you for your help.

 

[Rob Legat - SBPL]

If you gave your first instructions before 1 July, 2015, have a look at this webpage and the links: https://www.lawsociety.com.au/ForSolictors/professionalstandards/Costs/Clientfactsheets/index.htm

This appears to be a 'no win, no fee' type situation, so you do also need to be aware that the law firm is likely to charge you more than usual to offset the risk they are taking in (a) possibly not getting paid at all, (b) having to fund the outlays along the way, and (c) waiting a considerable period of time to receive any payment. You're effectively getting a loan for the legal costs, so think of it as factoring in some interest.

 

[MasterJoe]

Hi Rob,

Thank you for your reply. I was curious if you had a recommended course of action, or whether this is "set in stone" so to speak... yes, this is a no-win no-fee set up, and it begun some time in august 2015.

 

[Rob Legat - SBPL]

I don't practice in personal injuries, so I couldn't really tell you whether the fees are in the area of 'fair'. First step is to get your costs agreement, ask for an itemised bill and see what's in there.

 

[MasterJoe]

Thanks, I requested one today. They seem reluctant, but I suppose there is nothing stopping them from completely fabricating these costs to extract as much as they can. I believe there is a governing body in QLD where I should have had this done in the first place, where lawyers can't take more than 50% of the total settlement.

If you might be able to point me in the right direction from there, I would appreciate it.

Thanks for your help

 

[Rob Legat - SBPL]

There's actually plenty of things to stop them fabricating the costs, ranging from professional integrity to legislated review. Particularly for you, you can seek a 'costs assessment' (where you make application to the court for a formal costs assessment to be done) or a 'costs dispute' (where you make a complaint to the NSW Legal Services Commissioner, which may ultimately end up in a costs assessment).

You might want to have a look at the fact sheets on the NSW Legal Services Commissioner's website: Fact Sheets

Particularly, the sheet about regulated costs for personal injury claims notes that in your situation the maximum charge for legal services is $10,000 - but there are exceptions. You've stated your charge was $9,000, as you don't count disbursements and outlays in this figure.

 

[larrylarry]

If you are confident that they overcharge then go for costs assessment at the Supreme Court. Make sure you read the itemised bill first before taking action.