Plaintiffs' lawyers have long complained of the arbitrary limitations on costs that could be charged upon the resolution of catastrophic personal injury claims.

The Supreme Court Scale of Costs capped the amount that could be charged by solicitors for general work on claim which is subject to court proceedings (called "getting up case for trial") to 120 hours work by a senior practitioner.

With the coming into operation of the legal practitioners (Supreme Court) (Contentious Business) Determination 2012 (WA) on 1 November 2012, this arbitrary limitation is lifted and the amount that may be legitimately charged will be an amount that is assessed by a taxing officer to be "reasonable in the circumstances".

The important questions that will determine the impact of these changes include:

  • What is defined to be a catastrophic claim;
  • What are the criteria by which "reasonable in the circumstances" will be determined.

The answers to these questions will lie in the response of the Supreme and District Courts to applications brought under these provisions. It does seem likely though, that there will be a need for insurers to review estimates of plaintiffs' legal costs claims that may fall into this category.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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