Smith v Lewis Blyth & Hooper

Case [2013] WASC 408


SMITH -v- LEWIS BLYTH & HOOPER [2013] WASC 408



SUPREME COURT OF WESTERN AUSTRALIACitation No:[2013] WASC 408
Case No:CIV:2390/201112 MARCH 2013
Coram:JENKINS J14/11/13
49Judgment Part:1 of 1
Result: Application for declaration that South Perth costs agreement is unreasonable, refused
Probate Action costs agreement cancelled
Family Trust Action costs agreement cancelled
B
PDF Version
Parties:ROBERT JOHN SMITH
LEWIS BLYTH & HOOPER

Catchwords:

Solicitors' costs agreement
Whether unreasonable
Discretionary considerations
Delay in bringing application for review
Failure of solicitor to give estimate of costs
Flat rate time unit billing

Legislation:

Legal Practice Act 2003 (WA), s 221, s 222, s 232, s 235
Legal Practitioners (Supreme Court) (Contentious Business) Determination 2006
Legal Practitioners (Supreme Court) (Contentious Business) Determination 2008
Legal Practitioners Act 1893 (WA), s 59
Legal Profession Act 2008 (WA), s 598, s 616
Limitation Act 2005 (WA)

Case References:

Alman v Macdonald Rudder (A Firm) [2001] WASCA 375
Alman v Macdonald Rudder [2001] WASC 65
Batistatos v Roads and Traffic Authority of New South Wales [2006] HCA 27; (2006) 226 CLR 256
Brown v Talbot & Olivier (1993) 9 WAR 70
Computer Accounting & Tax Pty Ltd v Bowen Buchbinder Vilensky [2009] WASC 171
Harrison v Hocking [2000] WASC 188
Jovetic v Stoddart & Co (1992) 7 WAR 208
McNamara Business & Property Law v Kasmeridis [2007] SASC 90; (2007) 97 SASR 129
New South Wales Crime Commission v Fleming (1991) 24 NSWLR 116
Singleton v Macquarie Broadcasting Holdings Ltd (1991) 24 NSWLR 103
Stoddart & Co v Jovetic (1993) 8 WAR 420
Webb v Malcolm J Bateman & Co (Unreported, WASC, Library No 6305, 27 May 1986)


JURISDICTION : SUPREME COURT OF WESTERN AUSTRALIA
    IN CHAMBERS
CITATION : SMITH -v- LEWIS BLYTH & HOOPER [2013] WASC 408 CORAM : JENKINS J HEARD : 12 MARCH 2013 DELIVERED : 14 NOVEMBER 2013 FILE NO/S : CIV 2390 of 2011
    CIV 3315 of 2011
    CIV 3316 of 2011
BETWEEN : ROBERT JOHN SMITH
    Plaintiff

    AND

    LEWIS BLYTH & HOOPER
    Defendant

Catchwords:

Solicitors' costs agreement - Whether unreasonable - Discretionary considerations - Delay in bringing application for review - Failure of solicitor to give estimate of costs - Flat rate time unit billing

Legislation:

Legal Practice Act 2003 (WA), s 221, s 222, s 232, s 235


Legal Practitioners (Supreme Court) (Contentious Business) Determination 2006
Legal Practitioners (Supreme Court) (Contentious Business) Determination 2008
Legal Practitioners Act 1893 (WA), s 59
Legal Profession Act 2008 (WA), s 598, s 616
Limitation Act 2005 (WA)

Result:

Application for declaration that South Perth costs agreement is unreasonable, refused


Probate Action costs agreement cancelled
Family Trust Action costs agreement cancelled

Category: B


Representation:

Counsel:


    Plaintiff : Mr D J Garnsworthy
    Defendant : Mr S V Forbes

    Amicus Curiae : Mr K J Mony De Kerloy & Mr B W Ashdown

Solicitors:

    Plaintiff : George Papamihail
    Defendant : Lewis Blyth & Hooper

    Amicus Curiae : The Law Society of…

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AGLC
SMITH -v- LEWIS BLYTH & HOOPER [2013] WASC 408
Case
[2013] WASC 408
Decision Date

CaseChat Overview and Summary

In Smith v Lewis Blyth & Hooper, the court was tasked with determining the reasonableness of a costs agreement between the plaintiff, Smith, and the defendant's solicitors, Lewis Blyth & Hooper. Smith sought a declaration that a South Perth costs agreement was unreasonable and cancellation of two other costs agreements related to probate and family trust actions. The court was required to consider various factors, including the delay in bringing the application for review, the failure of the solicitor to provide an estimate of costs, and the use of flat rate time unit billing.

The primary legal issues the court addressed were whether the South Perth costs agreement was unreasonable and whether the other two costs agreements should be cancelled. The court considered the discretionary considerations relevant to the assessment of the reasonableness of the costs agreement, including the delay in bringing the application and the absence of an estimate of costs from the solicitors. Additionally, the court examined the appropriateness of the flat rate time unit billing method used in the agreements.

The court found that the delay in bringing the application and the absence of an estimate of costs were significant factors. However, the court held that these factors did not, on their own, render the costs agreement unreasonable. The court also noted that the flat rate time unit billing method was not inherently unreasonable. As a result, the application for a declaration that the South Perth costs agreement was unreasonable was refused. Furthermore, the court cancelled the probate action costs agreement and the family trust action costs agreement due to the delay in bringing the application and the lack of an estimate of costs.

In summary, the court refused the application for a declaration that the South Perth costs agreement was unreasonable. However, it cancelled the probate action costs agreement and the family trust action costs agreement. The court's decision highlights the importance of timely applications for costs review and the provision of cost estimates by solicitors to clients.

Orders

Orders of the court

Application for declaration that South Perth costs agreement is unreasonable, refused

Probate Action costs agreement cancelled

Family Trust Action costs agreement cancelled

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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