NETTLES & NETTLES

The parties to this proceeding were Nettles & Nettles, a firm of solicitors, and the respondent, who was a former client of the firm. The dispute concerned the firm's entitlement to charge professional fees for work undertaken on behalf of the client. The matter came before Foster J in the Supreme Court of New South Wales.

The central legal issue before the Court was whether the firm had validly entered into a costs agreement with the client, and if so, whether the terms of that agreement were enforceable. Specifically, the Court had to determine if the agreement complied with the requirements of the *Legal Profession Act 2004* (NSW) and the associated regulations, particularly concerning the provision of information to the client about the costs.

Foster J reasoned that for a costs agreement to be binding, it must be in writing and signed by the client, and it must clearly set out the terms of the agreement, including the basis on which costs are to be calculated. The Court found that the purported costs agreement in this instance failed to meet these statutory requirements. The lack of clarity regarding the fee structure and the absence of a signed agreement meant that the firm could not rely on the agreement to recover its fees. The Court applied the principles of contract law and the specific provisions of the *Legal Profession Act 2004* (NSW) governing costs agreements.

Consequently, Foster J ordered that the firm was not entitled to recover fees from the client based on the purported costs agreement. The Court determined that the firm was only entitled to recover costs on a quantum meruit basis for the reasonable value of the services rendered.