The Law Handbook 2024

58 Section 2: Getting help Trust accounts are supervised by the VLSB+C. Money in trust accounts can only be used in a way that the client has authorised or that’s allowed under the Uniform Law. Costs in court proceedings If you are successful in a matter that involves litigation in a court or tribunal, the other party may be ordered to pay some of your lawyer’s costs. A lawyer’s costs depend on which court or tribunal makes the order. In the Supreme Court, County Court and Magistrates’ Court, costs are usually calculated on a ‘standard’ basis. That is, only costs reasonably incurred and of a reasonable amount are allowed. In the Victorian Civil and Administrative Tribunal ( VCAT ), parties are generally expected to pay their own legal costs unless VCAT orders otherwise. VCAT may award costs if a party fails to follow a direction issued by VCAT (e.g. a direction limiting the length of submissions) or acts in a way that unnecessarily disadvantages another party. Paying your lawyer’s bill The bill you receive from your lawyer may be: • a lump sum bill – this has one total amount of legal costs, which covers all the work completed for that bill; • an itemised bill – this has a detailed list of the legal costs associated with every task completed for that bill. Where the costs are based on an agreed price, an itemised bill records in more detail the tasks the lawyer carried out for your matter. The bill must include, or be accompanied by, a written statement setting out: • the options available to you to dispute the legal costs in the bill; • any time limits that apply to those options. It’s important to know that: • a lawyer who charges more than a fair and reasonable amount may be guilty of unsatisfactory professional conduct or professional misconduct; • if you are given a lump sum bill, within 30 days, you can ask your lawyer to give you an itemised bill, and your lawyer must then give you an itemised bill within 21 days of your request; • your lawyer cannot sue you to recover legal costs until at least 30 days after you have been given their bill; • in certain circumstances, a lawyer can charge interest on an unpaid bill, however, the interest rate they can charge must be no more than the Reserve Bank cash rate (4.35 per cent as at 8 November 2023) plus two per cent; • if you have asked for an itemised bill within 30 days of receiving your lump sum bill, your lawyer cannot sue you to recover legal costs until at least 30 days after you have been given the itemised bill; and • your lawyer cannot sue you to recover legal costs if you have made a complaint to the VLSB+C and your dispute hasn’t been resolved. Making a complaint about your lawyer Who can make a complaint? Anyone can complain about a lawyer’s conduct (their behaviour), and a lawyer’s client can complain about the services their lawyer provided as well as their conduct. However, only the person who is responsible for paying the lawyer’s costs (usually the client) can complain about the lawyer’s fees. Who can you complain to? If you believe your lawyer has done something wrong or has given you a poor level of service, try to speak with your lawyer. They might be able to fix the problem once they’ve been made aware of it – see the VLSB+C website for tips on handling a dispute ( www.lsbc.vic.gov.au/consumers/choosing-and- working-your-lawyer/tips-handle-dispute) . You can also complain to the VLSB+C about the conduct of a lawyer who isn’t your lawyer. Before making a formal complaint, it’s a good idea to check if the VLSB+C is the right organisation to help you with your concerns (see www.lsbc.vic.gov.au/ consumers/how-we-can-help) . VLSB+C staff can give you information about how they resolve complaints and the types of outcomes you can expect in your circumstances. In some cases, they may be able to help you resolve your concerns without you needing to make a formal complaint.