Making a complaint about a lawyer
Anyone can complain about a lawyer’s conduct or behaviour (e.g. threatening, rude or unethical behaviour, bullying, sexual harassment etc.). If they are your lawyer, you can also complain about the services they provided to you (e.g. poor communication, delays, issues relating to the disclosure of fees and the amount you’ve been charged, poor advice, inadequate service etc.). If you’re responsible for paying the lawyer’s costs (usually, this is the client) you can also complain about the lawyer’s fees.
If you believe your lawyer has done something wrong or has given you a poor level of service, first try to speak with your lawyer. They might be able to fix the problem once they’ve been made aware of it. See the VLSB+C website for tips on handling a dispute (www.lsbc.vic.gov.au/consumers/choosing-and-working-your-lawyer/tips-handle-dispute).
If you can’t resolve your problem directly with your lawyer, or if you have an issue with any lawyer’s conduct, you can complain to the VLSB+C. The VLSB+C helps people to resolve issues with lawyers registered to practise in Victoria.
Before making a formal complaint, it’s a good idea to check if the VLSB+C is the right organisation to help you with your concerns (see www.lsbc.vic.gov.au/consumers/how-we-can-help).
VLSB+C staff can give you information about how they resolve complaints and the types of outcomes you can expect in your circumstances. In some cases, they may be able to help you resolve your concerns without you needing to make a formal complaint.
You can use the form on the VLSB+C website to tell them your concerns (www.lsbc.vic.gov.au/consumers/consumer-enquiry-form) or you can call the VLSB+C on 9679 8001.
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The VLSB+C can’t deal with complaints where:
you are disputing legal costs of more than $238 595 including barrister’s costs (see ‘Complaining about your lawyer’s bill’, below);
your complaint is about a licensed conveyancer – Consumer Affairs Victoria (www.consumer.vic.gov.au) deals with these complaints; or
your complaint is about a judge or magistrate (a judicial officer or VCAT member) – the Judicial Commission of Victoria (www.judicialcommission.vic.gov.au) deals with these complaints.
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If you are complaining about a legal bill more than four months after the time limits noted below, there are situations where a lawyer’s actions would warrant the VLSB+C handling your complaint, for example where the VLSB+C deems there to be serious conduct or behaviour issues, such as gross overcharging. If you are complaining about your lawyer’s conduct or behaviour that took place more than three years ago and the VLSB+C agrees that there are special circumstances to warrant the VLSB+C waiving the time limit, they may be able to handle your complaint.
For more detailed information about what the VLSB+C can and can’t help with, visit the VLSB+C website (www.lsbc.vic.gov.au/consumers/how-we-can-help/what-we-do-and-dont-do).
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If you make a complaint about your lawyer’s bill, the VLSB+C will try to resolve the dispute between you and your lawyer.
VLSB+C staff are impartial – they will not take your side or the lawyer’s side. They will try to resolve your dispute by considering the particular facts of your matter. These include whether the lawyer has appropriately disclosed their costs to you, whether the services provided by the lawyer were of an appropriate standard, whether the costs charged were fair and reasonable, and whether you and the lawyer behaved reasonably throughout the course of your matter. You and the lawyer will be expected to take part in the complaint-handling process ‘in good faith’. This involves communicating with each other honestly and fairly with the genuine aim of understanding each other’s views and reaching an agreement. It also involves behaving in an open and transparent manner, compromising where appropriate, and providing accurate information – and enough of it – within the context of negotiations.
In certain limited circumstances, the VLSB+C can determine that a bill should be reduced or that the lawyer should take other actions to resolve the issue. Where a resolution isn’t possible, the VLSB+C may give you the right to take your matter to VCAT for a decision (where the amount in dispute is under $59 650 for applications made by 30 June 2024) or to the Costs Court of the Supreme Court of Victoria for an assessment (which has no dollar limits).
The VLSB+C may close a complaint investigation without making a determination (a decision) if, for example, the bill is fair in all circumstances or the VLSB+C decides that the facts in the matter should be determined by a court or tribunal. The VLSB+C can also close the complaint if you fail to take part in the dispute resolution process in good faith.
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There are limits for disputing your legal bill – time limits within which you can dispute costs and cost limits that restrict the VLSB+C’s involvement (see below). If you want to dispute a bill outside of the time and cost limits, the VLSB+C may still be able to informally help you resolve it, but only if the lawyer agrees to take part in the process.
Alternatively, you may make a claim under the Australian Consumer Law and Fair Trading Act 2012 (Vic) to VCAT, or you can apply to the Costs Court. Taking a costs dispute to the Costs Court is the most expensive option. This expense would normally only be justified for disputes over large legal bills.
For lump-sum bills, you have 60 days from the date the bill is issued to dispute those costs. However, your lawyer can sue you for payment of the costs 30 days after the lump-sum bill was received. If your lawyer does sue you, even within the 60-day period, the VLSB+C cannot deal with your dispute. For itemised bills, you have 30 days from the date the bill is issued to dispute those costs.
The VLSB+C can accept a costs dispute up to four months outside of these time limits if you can demonstrate that there was a good reason for the delay and the lawyer hasn’t sued you for the costs.
As at 1 July 2024, the VLSB+C can deal with complaints about legal bills where the total bill is less than $238 595 (including barrister’s costs). If the total bill is more than $238 595, the amount in dispute must be under $23 865.
If the outstanding balance of the bill in dispute is greater than $23 865, the VLSB+C can help you to informally resolve your complaint if your lawyer agrees to take part in their informal resolution processes or mediation.
If your lawyer won’t agree or if an agreement can’t be reached, the VLSB+C may refer you to VCAT (if the costs are under $59 650) or the Costs Court (which has no dollar limits).
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Serious complaints may result in the VLSB+C carrying out an investigation. These investigations are often complex and can take time. After an investigation, if the VLSB+C finds it’s appropriate, they can make a legally binding order against the lawyer or law practice associate called a ‘determination’. These determinations can include requirements for what the lawyer or law practice must do in response to your complaint.
Where the VLSB+C considers the lawyer’s conduct to be very serious (e.g. matters involving dishonesty, gross overcharging, or sexual harassment), instead of making a determination, the VLSB+C may decide to bring disciplinary charges against the lawyer. In these cases, the lawyer would be required to appear before VCAT for a hearing, where VCAT would make a decision about the nature of the lawyer’s conduct. The person who has made the complaint may also be required to be a witness or give evidence at the hearing
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If you have lost money as a direct result of your lawyer’s actions (because of their services or costs), the VLSB+C may be able to order your lawyer to pay you compensation. Compensation is payable only where it’s fair and reasonable. The maximum amount the VLSB+C can award is $25 000. If your financial loss is more than that, you should seek independent legal advice about other options that may be available. Where the VLSB+C is of the opinion that the alleged conduct may amount to unsatisfactory professional conduct or professional misconduct, the VLSB+C can commence proceedings in VCAT. VCAT may order compensation to the value of $25 000 or more if the lawyer agrees.
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Law practices often hold ‘trust money’ for or in relation to clients. Trust money is money that’s entrusted to a law practice during or in connection with the practice’s provision of legal services. The money doesn’t belong to the law practice and must only be used in a way that the client has authorised or that’s allowed under the Uniform Law. Trust money is usually deposited into a special bank account called a ‘trust account’. However, money that’s given to a law practice while the practice is representing a person in a legal matter may still be ‘trust money’ even if it’s not banked into a trust account.
The Fidelity Fund is managed by the VLSB+C. The fund exists to compensate clients for the loss of trust money that was held by a lawyer where the dishonest or fraudulent behaviour of a lawyer, or an employee/agent/officer/director of a law practice, or a barrister’s clerk caused the loss. It is important to note that sometimes money provided to a lawyer is not trust money and/or cannot be claimed against the Fidelity Fund; for example, money provided after a bill is issued or for the lawyer to invest. The VLSB+C investigates and determines claims made against the Fidelity Fund.
For more information, see the VLSB+C website (www.lsbc.vic.gov.au/consumers/how-we-can-help/compensation/trust-money-compensation-fidelity-fund) or contact the VLSB+C at fidelityfund@lsbc.vic.gov.au; or on 1300 796 344 and ask to speak with a Fidelity Fund Officer.
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If you are successful in a matter that involves litigation in a court or tribunal, the other party may be ordered to pay some of your lawyer’s costs. A lawyer’s costs depend on which court or tribunal makes the order. In the Supreme Court, County Court and Magistrates’ Court, costs are usually calculated on a ‘standard’ basis. That is, only costs reasonably incurred and of a reasonable amount are allowed.
In the Victorian Civil and Administrative Tribunal (VCAT), parties are generally expected to pay their own legal costs unless VCAT orders otherwise. VCAT may award costs if a party fails to follow a direction issued by VCAT (e.g. a direction limiting the length of submissions) or acts in a way that unnecessarily disadvantages another party.
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The bill you receive from your lawyer may be:
a ‘lump-sum bill’ – this has one total amount of legal costs, which covers all the work completed for that bill; or
an ‘itemised bill’ – this has a detailed list of the legal costs associated with every task completed for that bill.
Where the costs are based on an agreed price, an itemised bill records in more detail the tasks the lawyer carried out for your matter.
The bill must include, or be accompanied by, a written statement setting out:
the options available to you to dispute the legal costs in the bill; and
any time limits that apply to those options.
It’s important to know that:
a lawyer who charges more than a fair and reasonable amount may be guilty of unsatisfactory professional conduct or professional misconduct;
if you are given a lump sum bill, within 30 days, you can ask your lawyer to give you an itemised bill, and your lawyer must then give you an itemised bill within 21 days of your request;
your lawyer cannot sue you to recover legal costs until at least 30 days after you have been given their lump sum bill;
in certain circumstances, a lawyer can charge interest on an unpaid bill; however, the interest rate they can charge must be no more than the Reserve Bank cash rate (4.35 per cent as at 26 September 2024) plus two per cent;
if you have asked for an itemised bill within 30 days of receiving your lump sum bill, your lawyer cannot sue you to recover legal costs until at least 30 days after you have been given the itemised bill; and
your lawyer cannot sue you to recover legal costs if you have made a complaint to the VLSB+C and your dispute hasn’t been resolved.
Making a complaint about a lawyer
Chapter: 2.1: Legal representation
Contributor: Fiona McLeay, CEO and Commissioner, Victorian Legal Services Board and Commissioner
Current as of: 1 September 2024
Law Handbook Page: 54
Next Section: Contacts