11   Contracting out—solicitor/client costs

(1)  This clause applies in respect of costs in a motor accidents matter if a legal practitioner:

(a)  makes a disclosure under Division 2 of Part 11 of the Legal Profession Act 1987 (sections 180 and 181 excepted) to a party to the matter with respect to the costs, and

(b)  enters into a costs agreement (other than a conditional costs agreement, within the meaning of that Part, that provides for the payment of a premium on the successful outcome of the matter concerned) with that party as to those costs in accordance with Division 3 of that Part, and

(c)  before entering into the costs agreement, advises the party (in a separate written document) that, even if costs are awarded in favour of the party, the party will be liable to pay such amount of the costs provided for in the costs agreement as exceeds the amount that would be payable under the Act in the absence of a costs agreement.

(2)  Schedule 1 does not apply to the costs concerned to the extent that they are payable on a solicitor and client basis.