Question
I have failed to disclose costs to my client, what are the ramifications?

Section 174 of the Legal Profession Uniform Law (“LPUL”) outlines a practitioner’s disclosure obligations. Under section 178 of LPUL failure to disclose costs to your client will: 
a) Render your costs agreement void; 
b) Relieve your client of any obligation to pay your legal costs until they are assessed; 
c) Prevent you from commencing or maintaining debt recovery proceedings. Section 178 the practitioner is unable to sue their client to recover costs and must go to costs assessment in order to have their costs recovered. 
Steps can be taken pursuant to s72a of the Legal Profession Uniform Law General Rules 2015 to prevent the ramification of a void costs agreement. Generally, the disclosure oversight must be rectified within 14 days. Furthermore, if a legal practitioner becomes aware of a lack of disclosure the Law Society recommends rectifying the mistake as soon as practicable, even if it has occurred outside the 14 day window. 

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