Cannon & Co v Shaw

MAGISTRATES COURTS OF QUEENSLAND

CITATION:

Cannon & Co v Shaw [2019] QMC 11

PARTIES:

Cannon & Co Law

(Applicant)

v

Martin Shaw

(First Respondent)

And

Shaw Commissioning Pty Ltd

(Second Respondent)

FILE NO/S:

M744/19

PROCEEDING:

Application for appointment of a costs assessor

ORIGINATING COURT:

Southport Magistrates Court

DELIVERED ON:

6 September 2019

DELIVERED AT:

Southport

HEARING DATE:

9 August 2019

MAGISTRATE:

A.H. Sinclair

ORDER:

See below

CATCHWORDS:

Costs Disclosure Agreements – Obligations of ongoing disclosure – obligations under retainer to provide invoices at certain times

Legal Profession Act 2007 ss.208, 315, 316, 341

Uniform Civil Procedure Rules 1999 r.743G

MCC Pty Ltd v TCS Solicitors Pty Ltd [2019] QDC 71.

SOLICITORS:

Ms Cannon for the Applicant

Mr Shaw on his own behalf and as Director of the Second Respondent.

1. The Applicant (law firm) sought the appointment of a costs assessor to assess bills sent to the Respondent (client). The Respondent would not consent. He maintained his objection based on the fact he was quoted $2,495 and without warning was billed $5,443.90.

1. He could have consented and had the costs assessor determine these issues. Instead he appeared not to realise that he would be paying for the work clearly done under the retainer at least at scale and that any failure of the Applicant to comply with the LPA could result in a deduction from his bill.

1. The central issue is whether there was a failure to comply with s.315 LPA and what if any outcome that should have on any order I make under r.743G.

Disclosure Made

1. The Applicant sent a costs disclosure agreement setting out 2 stages of work in February 2017. Only stage 1 was itemised. It was for $750-$950[1]. It was essentially to serve a reply and negotiate.

   [1] All figures given include GST.

1. Mr Shaw signed an acknowledgment of having read and understood the disclosure notice on his own behalf and the companies. He did not sign the Client Services Agreement. The CSA provided that the Applicant was to bill the Respondent’s monthly. This was not done.

1. On 23 November 2017 the matter looked likely to go to trial. Counsel was engaged. The letter was sent and set out 5 stages of work. Stage 1 was for $1785 to $2495.

1. The stages were:

1.          Review defence, disclosure documents and attend to amending Claim and Statement of Claim, attend to drafting an Application for Leave to Amend along with supporting Affidavit matter and attend application hearing.

2.          Review Amended Defence and draft Amended Reply (if needed) - $750 to $985 [I note that none of this work was apparently done or billed for]

3.          Attend to further disclosure and/or seek further disclosure from Defendant (if needed) - $625 to $865. [I note that none of this work was apparently done or billed for]

4.          Prepare for trial including preparation of witness list, meet with client and witnesses to prepared for trial and liaise with Counsel - $3,000 to $6,000

5.          Attend trial (based on an…