The Law Handbook 2024

Chapter 2.1: Legal representation 55 • tell your lawyer if any of your personal details (e.g. phone number) change; • ask your lawyer if you don’t understand what has happened or what will happen next; • have a clear agreement about how you and your lawyer will stay in contact, including how often you can expect to receive updates on your matter – it’s important to know that if your lawyer is charging you by the amount of time they’re spending on your matter, they can charge you for time spent talking to you, so it’s important to be clear about what information you need; • ask your lawyer what it means if you agree to ‘settle’ your matter outside of court (if your matter might involve going to court) and how this will affect your legal costs; • ask your lawyer if your costs are likely to increase from the original estimate or agreed fee (which can happen if circumstances change or new factors mean your matter has become more complex or will take more time to progress) – your lawyer must tell you about any significant changes to the legal costs that you will need to pay. Your lawyer’s obligations Lawyers, like any other service providers, have obligations to the people who use their services. Lawyers’ obligations are set out in legislation and in professional conduct rules. For example, lawyers must: • act in your best interests when representing you, which involves giving you honest and accurate legal advice that meets your objectives, financial situation and needs; • follow your lawful instructions – however, in acting in your best interests, your lawyer may advise that you take another course of action; • complete legal work on your behalf competently, thoroughly and as promptly as reasonably possible; • not borrow money from you; • decline to work for you where there might be a conflict of interest; • when you need it, give you clear advice to help you understand legal issues relating to your matter, and make informed choices about those issues and the costs involved; • explain to you in writing how your legal costs will be charged – which may be an agreed fee or a fee calculated on the time spent – and provide you with an estimate of your total legal costs, unless those costs are unlikely to be more than $750 (excluding GST and disbursements). Lawyers are bound by professional conduct rules. They must obey the law. When you hire a lawyer, they have a duty to you as their client, to the court and to the administration of justice. If there is an inconsistency between acting in your best interests and your lawyer’s duty to the court, your lawyer must put their duty to the court before their duty to you (e.g. a lawyer can’t mislead the court, even if their client asks them to). Lawyers also have obligations imposed on them in relation to the type of practising certificate they hold, the financial aspects of their practice, and on the handling of trust money, which is money held on behalf of their clients. There are strict requirements in relation to receiving and banking trust money, and record-keeping and auditing trust accounts. Lawyers are prohibited from receiving money on behalf of clients who use false names, and from drawing cash from clients’ trust accounts (except as allowed by the law). Changing lawyers If you’re unhappy with your lawyer, you can choose to take your business elsewhere. Your former lawyer can hold onto your file and documents (which is called ‘holding a lien’) until you pay any outstanding costs, or until your new lawyer has made an appropriate arrangement for those costs to be paid (e.g. at the end of your matter). It’s important to know that in certain circumstances, you can arrange for your file to be released. For more information, see the VLSB+C website (www. lsbc.vic.gov.au/consumers/legal-costs-and-billing/ disputing-your-bill) . Legal costs Lawyers must disclose their costs After you formally agree to hire a lawyer (ideally in writing), they must give you a written costs disclosure statement as soon as possible, unless your total estimated legal costs are likely to be less than $750 (excluding GST and disbursements).