find the latest legal job
Corporate Counsel and Company Secretary
Category: Generalists - In House | Location: Newcastle, Maitland & Hunter NSW
· Highly-respected, innovative and entrepreneurial Not-for-Profit · Competency based Board
View details
Chief Counsel and Company Secretary
Category: Generalists - In House | Location: Newcastle, Maitland & Hunter NSW
· Dynamic, high growth organisation · ASX listed market leader
View details
In-house Projects Lawyer | Renewables / Solar | 2-5 Years PQE
Category: Generalists - In House | Location: All Australia
· Help design the future · NASDAQ Listed
View details
Insurance Lawyer (3-5 PAE)
Category: Insurance and Superannuation Law | Location: Brisbane CBD & Inner Suburbs Brisbane QLD
· Dynamic organisation ·
View details
Legal Counsel
Category: Corporate and Commercial Law | Location: North Sydney NSW 2060
· 18 month fixed term contract · 3-5 years PQE with TMT exposure
View details
Council calls for flexible capping

Council calls for flexible capping

THE NATION’S lawyers have applauded the Professional Standards Council’s decision to overhaul the system of capped liability in New South Wales, which is expected to see ‘flexible capping’…

THE NATION’S lawyers have applauded the Professional Standards Council’s decision to overhaul the system of capped liability in New South Wales, which is expected to see ‘flexible capping’ introduced across the country.

The amendments to capped liability will mean the limit on compensation payable by the professional standards scheme, previously $50 million maximum, can now be raised in certain cases. However, the amendments are still subject to disallowance by the NSW Parliament before coming into effect.

Law Council of Australia (LCA) president John North welcomed the changes, calling it a “big breakthrough”. “Certain large firms with very big clients needed to have this flexibility to remain commercial in the market place,” North told Lawyers Weekly.

But the relevance of the scheme, legal bodies agree, is that it should apply across the board to all lawyers. All lawyers across the country should have access to flexible capping, said North, “so that people can be assured of having proper cover in place”.

“The Law Council hopes that this will become standard when we finally arrive at a true national profession,” North said.

The Law Society of NSW agreed the new scheme for its solicitors would be a model for other professional standards schemes throughout Australia.

“The flexible capping scheme recognises the need to better tailor limitations of liability to the scale of projects which are undertaken by solicitors, particularly for major clients,” said Society president John McIntyre.

“Under the previous scheme the caps only went up to $50 million which had proved to be insufficient due to the varying sizes of legal firms, particularly those who have offices throughout Australia,” he said.

Under the amendments, the Law Society would have to approve the particular cases in which liability could be increased. It will exercise its discretion to determine applications by members for a higher maximum amount of liability, which it said will “cater for the needs and expectations of both solicitors and their clients”, said McIntyre.

“Comprehensive risk management regimes and professional indemnity insurance cover up to the amount of the cap will ensure that members of the public who make a claim against solicitors who join the scheme are properly covered,” he said.

Despite concerns raised initially by the four major banks, the Law Society said that in its submission to the Professional Standards Council, the Australian Bankers Association commented that flexible capping would provide a satisfactory outcome for its members.

Like this story? Read more:

QLS condemns actions of disgraced lawyer as ‘stain on the profession’

NSW proposes big justice reforms to target risk of reoffending

The legal budget breakdown 2017

Council calls for flexible capping
lawyersweekly logo
Promoted content
Recommended by Spike Native Network
more from lawyers weekly
LCA president Fiona McLeod SC
Aug 17 2017
Where social fault lines meet the justice gap in Aus
After just returning from a tour of the Northern Territory, LCA president Fiona McLeod SC speaks wit...
Marriage equality flag
Aug 17 2017
ALHR backs High Court challenge to marriage equality postal vote
Australian Lawyers for Human Rights (ALHR) has voiced its support for a constitutional challenge to ...
Give advice
Aug 17 2017
A-G issues advice on judiciary’s public presence
Commonwealth Attorney-General George Brandis QC has offered his advice on the public presence of jud...
APPOINTMENTS
Allens managing partner Richard Spurio, image courtesy Allens' website
Jun 21 2017
Promo season at Allens
A group of lawyers at Allens have received promotions across its PNG and Australian offices. ...
May 11 2017
Partner exits for in-house role
A Victorian lawyer has left the partnership of a national firm to start a new gig with state governm...
Esteban Gomez
May 11 2017
National firm recruits ‘major asset’
A national law firm has announced it has appointed a new corporate partner who brings over 15 years'...
opinion
Nicole Rich
May 16 2017
Access to justice for young transgender Australians
Reform is looming for the process that young transgender Australians and their families must current...
Geoff Roberson
May 11 2017
The lighter side of the law: when law and comedy collide
On the face of it, there doesn’t seem to be much that is amusing about the law, writes Geoff Rober...
Help
May 10 2017
Advocate’s immunity – without fear or without favour but not both
On 29 March 2017, the High Court handed down its decision in David Kendirjian v Eugene Lepore & ...