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Oct 11

Third Party Payer Costs Agreement

Justice Emerton considered Mr. Hamilton`s appeal from Lansdowne AsJ`s decision and considered the argument that he was an associated third-party payer, given that Mr. Hamilton is required to pay the legal costs due to Russell Kennedy as a result of the injunctions issued in the first VCAT proceeding. Her Honour rejected this reasoning: “I considered whether a person could be included in the expanded definition of `customer` if the person was an associated third-party payer, but not the associated third-party payer that entered into the corresponding cost agreement. Section 3.4.26 (6) refers to “a” related third party with respect to the cost agreement, but concludes with the reference to the related third-party payer as a customer. I think the importance of Article 3.4.26(26) is simple. 6 in the fact that the associated third-party payer, which is the `customer`, is the associated third-party payer who participates in the cost agreement with legal practice. An associated third-party payer may request the cancellation of the cost agreement if it is a party to the cost agreement. Entering into an agreement with someone who is unable to understand the terms of the contract may have the effect of modifying and/or invalidating the agreement. Cost agreements between the lawyer and the client are no exception. Article 174(3) of the Single Law provides that a law firm must be satisfied that the client agrees and understands the proposed procedure for the case and the proposed invoiced costs. In practice, a lawyer cannot accept instructions if the client is unable to give instructions.

6. A reference to paragraph 3.4.32 and any regulatory provision of that Party to a client shall be a reference to the associated third-party payer in respect of a cost agreement between a law firm and an associated third-party payer within the meaning of paragraph 1,d, in which a client is not associated. (Highlighted only here) If you act for more than one person, for example. B for a partnership, joint venture or multiple complainants, they must be all parties to the cost agreement. (a) the cost agreement concluded in accordance with Section 5 or the corresponding provisions of a relevant law; or, under these conditions, a law firm may, in its terms and conditions of sale, have conditions according to which, if the client is a trustee of a trust, he takes the agreement both in his own and as trustee of the trust and / or guarantees that he is entitled to enter into the cost agreement on behalf of the trust. This construction is consistent with the intention to limit the authorization of application provided for in paragraph 3.4.32 to the cancellation of cost agreements to the person or person for whom the legal services were provided and/or to the person who entered into the contract for the provision of those services and who is required by the agreement to pay for those services. . . .