Hayes v Mylne Lawyers

The case of Hayes v Mylne Lawyers involved a dispute between a client, Hayes, and a law firm, Mylne Lawyers, over the recovery of legal costs. The matter was brought before the court after the Tribunal had ruled in favour of Mylne Lawyers. Hayes sought leave to appeal the Tribunal’s decision, arguing that the firm had not complied with the requirements of the Legal Profession Act 2007 concerning the disclosure of information to clients. Specifically, Hayes contended that Mylne Lawyers had not adequately explained the basis of the costs sought.

The legal issues before the court centred on whether Mylne Lawyers had fulfilled their duty to disclose information to Hayes in accordance with the provisions of the Legal Profession Act 2007. The court had to determine whether the failure to disclose the basis of the costs sought constituted a breach of the Act and whether this breach warranted setting aside the Tribunal’s decision.

In its reasoning, the court found that Mylne Lawyers had not complied with their disclosure obligations under the Act. The court held that the basis of the costs sought was not sufficiently disclosed to Hayes, which was a fundamental requirement under the legislation. Consequently, the court concluded that the Tribunal had erred in failing to address this issue, which directly impacted the fairness of the proceedings. The court set aside the Tribunal’s decision and dismissed the law firm’s application for costs.

The final orders of the court included granting Hayes leave to appeal, allowing the appeal, and setting aside the Tribunal's decision. Instead, the court ordered that the application by Mylne Lawyers be dismissed. This outcome emphasised the importance of strict compliance with statutory disclosure requirements in legal practice.