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Lawyers Updated 01 Oct 2007

Case study

When Julie and Mark Miedema (pictured) of Auckland were buying their house in 2000, they called several lawyers for estimates of the conveyancing costs. The firm they chose quoted $800, including disbursements.

Just before the sale went through, the Miedemas deposited the purchase price into the firm's trust account, along with $2000 to cover the estimated fee and their share of rates owing on the property. They'd been told it was normal practice to deposit more than the expected charges and that they would receive a cheque for the difference after settlement. The rates came to $380, so Julie and Mark were expecting to get back around $800.

About a month after moving into their new home, the Miedemas were surprised to receive a bill from the lawyers asking for a further $480. When they complained that they'd been expecting a refund, they were told the final fee had come to $2100 - even though the purchase had been straightforward.

The Miedemas wrote to the firm several times asking for their refund. Getting nowhere, they asked the Auckland District Law Society to review the fee. The society's cost revision committee arranged for the Miedemas and their lawyer to attend mediation, and eventually decided that in the interests of fairness, the fee should have been consistent with the estimate. The bill was revised down to $825. A year after they'd first complained, the Miedemas received a cheque from their lawyers - for just under the $800 they'd expected from the beginning.