116   Disclosure requirements regarding costs agreements—section 339 of the Act

(1)  This clause has effect for the purposes of section 339 of the Act, and applies to a costs agreement proposed to be entered into between a client or prospective client of a law practice in connection with a claim for personal injury damages referred to in Division 9 of Part 3.2 of the Act by the client or prospective client.

(2)  The law practice must disclose to the client or prospective client information in relation to the effect of the costs agreement in connection with the operation of Division 9 of Part 3.2 of the Act.

(3)  The information must include:

(a)  a statement that Division 9 of Part 3.2 of the Act would (but for the costs agreement) limit the maximum costs for legal services provided to the client or prospective client in connection with the claim, and

(b)  particulars as to how those maximum costs are calculated, and

(c)  a statement that the costs agreement would have the effect of excluding the operation of that Division, and

(d)  particulars as to how the costs would be calculated under the costs agreement, and

(e)  a statement that the costs agreement relates only to the costs payable as between the law practice and the client or prospective client, so that, in the event that costs are recoverable against the other party, the maximum costs so recoverable will be as provided by Division 9 of Part 3.2 of the Act.

(4)  Disclosure under this clause must be made in writing before, or as soon as practicable after, the law practice is retained in the matter, but before the costs agreement is entered into.

(5)  This clause does not require disclosure if the costs agreement in relation to the matter was entered into before the law practice could reasonably expect that the matter would involve a claim to which this clause applies.

(6)  A failure by a law practice to comply with the requirements of this clause disentitles the law practice to the benefit of section 339 of the Act.