NSW Law Society announces new standards for billing and a new council

NSW Law Society president Stuart Westgarth has labelled stringent criticism aimed at legal fees based on hourly billing as “exaggerated”. Following comments at the Opening of Law Term dinner in January by former NSW Chief Justice James Spigelman that the Australian legal profession was "in danger of killing the goose” Westgarth undertook an examination of criticisms and disputes arising from legal bills.

Based on available statistics Westgarth has found that only 215 solicitor-client bills were lodged with the Supreme Court for costs assessment in 2010, in a state with more than 20,000 practitioners. “It must be the case that a huge number of bills are issued by solicitors annually,” said Westgarth. “In the absence of compelling statistics to the contrary, the strident criticisms of time billing appear to be exaggerated.”
According to Westgarth similar figures were present in previous years for challenges to legal bills. In 2009 there were 253, in 2008 there were 169 and in 2007 there were 259. Similarly, the figures for written complaints for overcharging as reported to the Legal Services Commissioner are small, added Westgarth.

However, despite the relatively low number of official complaints, the Law Society has passed the following resolutions for members:

1(a) That an optional course on sensible and realistic billing practices be offered under Rule 42 (the MCLE Rules).
1(b) That the course content be settled by the Costs Committee liaising with management.
1(c) That the Law Society plays a pivotal role in providing such courses.
2(a)That the Practice Management Course for holding an unrestricted practicing certificate as a principal should contain a segment on costs and sensible billing practices.
2(b) That the Costs Committee liaise with management in settling the content of the course.
3(a) That the Statement on sensible billing practices (annexure B to the memorandum to Council) be amended to include an additional dot point reminding practitioners that alternative practices exist and directing them to a page on the website where this information can be found.
3(b) That the Statement on sensible billing practices, amended to include a dot point on alternative practices as per resolution 3(a) are to be published.
3(c) That the document be published on the Law Society’s website and in the Law Society Journal and attention drawn to it in an appropriate edition of Monday Briefs.

The NSW Law Society has also elected new panel of councillors for the coming two to three years. Pamela Suttor (city councillor); Terence Stern (suburban councillor); Minter Ellison partner Gary Ulman (large law firm councillor); former Law Society president Mary Macken (government councillor); John Eades, Roslyn Everett, and Penelope Waters were all elected for a period of three years. New councillor Richard Harvey (suburban councillor) was elected for a term of two years while Blake Dawson lawyer Heidi Fairhall was appointed as the young lawyer councillor for a term of one year. The remaining 13 councillors were not up for election this year.

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