Excessive costs

We spoke with several of our members who'd used a lawyer recently and found some common problems.

Responses were varied. Some said their lawyers had bent over backwards to minimise costs and had done a good job while keeping the client well informed. But other members experienced huge costs, bad communication, slow progress and a generally unhelpful demeanour.

The most common complaint was excessive fees. Many people didn't realise until too late (when they got the bill) just how much their lawyer was going to cost.

Talk about it

Discuss costs with your lawyer at the outset. Ask for an estimate of likely costs before confirming you want the lawyer to act for you. Ask for their hourly rate, and whether they charge in part hours or only whole.

Check that the estimate includes disbursements (such as photocopying and toll charges). Don't assume these won't run to much - court filing fees (charged for any litigation) are now substantial.

Estimates are pretty easy if yours is a standard job with a fixed cost, such as conveyancing or drawing up a simple will. But complex work can be harder to pin down. If you get an estimate and not a quote, tell your lawyer you want ongoing updates of cost.

GST

We've had many complaints about lawyers not specifying whether quotes and estimates include GST. Under the Fair Trading Act, if they are silent on GST, you have the right to assume it is included. Lawyers should know this, but to avoid a dispute later, we suggest you check.

DIY?

Ask whether you can do anything yourself, such as tracking down documents.

You can minimise the time you spend with your lawyer (and hence the expense) by writing down all the facts of your problem in advance, being well prepared for any meeting and giving the lawyer all relevant documents.

You can also save money in the long run by seeing a lawyer before you sign important documents.

Don't question me

Some members questioned fees and were then billed for the time the lawyer spent justifying the fee or itemising the account. One member's lawyer charged $300 for answering a letter of complaint! We think this is unfair and the NZ Law Society says billing for time spent defending a fee is "unprofessional".

Shop around

As with any other service, check out your options. Our past surveys of conveyancing costs have shown a huge price variation among firms.