How we charge for our work

Pricing Legal Services

New Zealand Law Society Requirements

Since 1984, when the New Zealand Law Society scale of charges was abolished, the basis on which lawyers charge their clients has been governed by "The New Zealand Law Society's Rules of Professional Conduct for Barristers & Solicitors". In 2008 those rules were updated and the new rules are known as ≥The Lawyers and Conveyancers Act (Lawyers: Conduct and Client Care) Rules 2008≈. Those rules read in part as follows under Chapter 9:

≥The factors to be taken into account in determining the reasonableness of a fee in respect of any service provided by a lawyer to a client include the following:

• the time and labour expended:
• the skill, specialised knowledge, and responsibility required to perform the services properly:
• the importance of the matter to the client and the results achieved:
• the urgency and circumstances in which the matter is undertaken and any time limitations imposed, including those imposed by the client:
• the degree of risk assumed by the lawyer in undertaking the services, including the amount or value of any property involved:
• the complexity of the matter and the difficulty or novelty of the questions involved:
• the experience, reputation, and ability of the lawyer:
• the possibility that the acceptance of the particular retainer will preclude engagement of the lawyer by other clients:
• whether the fee is fixed or conditional (whether in litigation or otherwise):
• any quote or estimate of fees given by the lawyer:
• any fee agreement (including a conditional fee agreement) entered into between the lawyer and client:
• the reasonable costs of running a practice:
• the fee customarily charged in the market and locality for similar legal services.≈
  

A lot of legal work can be accurately and fairly charged by the amount of time spent by the lawyer or the lawyer's staff multiplied by that particular person's appropriate hourly charge out rate in much the same way people in other trades do.

Lawyers are however legally required to consider those other factors listed above. An assessment of those other factors may result in a charge greater or lesser than simply a figure achieved by multiplying the hourly rate by the amount of time spent on the matter.

Estimates

This is best achieved by good communication, both from the client in explaining what outcomes they want to achieve and from the lawyer by explaining what is likely to be involved to achieve those objectives.

Some aspects of legal work are relatively easy to gauge in terms of the likely cost. Other areas of work can be very difficult to gauge the cost of at the outset, particularly where there are lots of variables or unforeseeable potential problems.

The estimates are given:

• on the basis of the information available to us; and
• in good faith based on our previous experience of such matters.

Should we find that for one reason or another the estimate is likely to be exceeded, we will advise you of that before it occurs, explain the reasons why and obtain your further instructions at that time.

Because of the uncertain nature of a lot of legal work, the figures are given as an estimate and not a quote.

Hourly Charge Out Rates

Although time and hourly charge out rates are only one of the factors that the Rules require us to take into account when fixing a fee, it may be helpful for you to know what those charge out rates in our office are. Currently (and subject to review at any time without notice), the charge out rates (excluding GST) of our professional staff range from $100.00 to $230.00 per hour (legal executives, law clerks and any para-legal authors) up to $310.00 per hour for partners. Specialist work, or work done on an urgent basis, or out of hours, may attract higher rates.

These rates cover not only the time spent by the particular professional who is working for you, but also the support staff and the office systems and infrastructure which are not generally charged separately in the way that many other service providers do.

These hourly charge out rates reflect varying seniority, training and experience.

How to keep costs down

There are many things that a client can do to help keep their costs down. These include:

• See us before signing anything. (It will usually save you time and money in the long run).
• Make sure you give us all relevant information, papers and instructions. (Unfortunately some clients make the mistake of thinking that we can read their minds).
• Don't leave things to the last minute if you can avoid it. (Urgency will usually increase your costs).
• Respond promptly to requests for further information or to do something to help us. (If we have to chase you up, it takes extra time which you are paying for).
• Indicate a willingness to do things that we would otherwise have to undertake personally at your cost: e.g. instructing valuers, liaising with banks etc. Please check with us first though, so that we can co-ordinate our respective efforts to produce the best result.

We will also try to keep your costs down by delegating some aspects of the work on a client's file to appropriate staff with lower charge out rates, unless you particularly request that only one person attend to all matters.

Payment terms

With conveyancing, commercial or other transactions which have a fixed "settlement" date, we often require payment of our costs and disbursements on or before that settlement date. We do this because we often "carry" the cost of the work for several weeks or even months, instead of interim billing through the course of the transaction which is often not convenient for the client's cash flow. Details will be provided to you in the form of a written statement on or before the settlement date.

All other accounts, unless special arrangement has been made in writing, are payable by the 20th of the month following the date of the invoice.

We may also at the outset of a transaction ask you for a payment by way of a "float" of anywhere between $50.00 and $300.00. This is to cover amounts which we have to immediately pay out on your behalf such as title search fees, Companies Office fees (if applicable) etc.

Although we don't like to have to do so, we reserve the right to charge interest on overdue accounts at 2% per month.

Clients from time to time find themselves in a position where it will not be easy or in some cases even possible to comply with our normal payment requirements. We have always been willing to be flexible with clients and make other payment arrangements, as it is important to us that you receive quality legal representation and advice when you need it.

If you think that there may be a difficulty in paying on time, please discuss it with us at the outset, not when the account has already been rendered.

Good communication and understanding of each other's requirements is the key to a successful professional relationship, and we welcome questions and feedback at any time.