Update regarding the decision of the NSW Court of Appeal
24 April 2024
Note: this information was posted prior to the NSW Court of Appeal handing down their judgment reasoning on 9 August 2024. Please click here for an update.
On Tuesday 23 April 2024, the NSW Court of Appeal reached a decision in relation to the declaratory relief sought by the Law Society of NSW. A copy of the declaratory relief sought by the Law Society is included further below.
The Court has not yet handed down reasons for its judgment. Once judgment is handed down, we will analyse the decision and consider our next steps. We remain confident of the legal advice received from, inter alia, barristers Messrs Bret Walker SC and Sean Baron Levi.
The Court’s decision has the effect of maintaining Lawcover Insurance’s monopoly in the provision of PI insurance for the majority of solicitors in NSW. Lawcover Insurance is a wholly owned subsidiary of the Law Society of NSW.
We are acutely aware of the awkward position for law practices who are seeking choice and competition, particularly in light of the rapidly closing window for renewal of PI insurance and practising certificates for the 2024-2025 financial year.
Very disappointingly, in these circumstances, at this time we are unable to provide a PI insurance policy to NSW solicitors for the Law Society of NSW to issue practising certificates effective 1 July 2024.
We are continuing to actively seek the approval of our PI insurance policy by the Attorney General of NSW. Our submission to the Attorney General was first made in October 2022.
We are committed to introducing choice and competition and to bringing downward pressure on premiums, whilst at the same time offering superior cover, in the interests of the people of NSW and the profession.
Thank you very much for the tremendous support we continue to receive from so many solicitors and law practices in NSW. This is very much appreciated and will make a real difference.
Like you we feel strongly about the need to improve the current situation and we will do our best for you.
More information
Additional background information is available here.
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Relief claimed by the Law Society of NSW
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Pursuant to s 75 of the Supreme Court Act 1970 (NSW), a declaration that the Law Society Council must not grant or renew
a practising certificate under s 44 and s 45 of the Legal Profession Uniform Law 2014 (NSW) if the applicant:
- Does not have or will not have before the grant or the renewal, professional indemnity insurance approved by the defendant [the NSW Attorney General] pursuant to s 95 of the Legal Profession Uniform Application Act 2014 (NSW); or
- Is not exempt from the requirement to hold or be covered by professional indemnity insurance pursuant to the Legal Profession Uniform Law 2014 (NSW) or the Legal Profession General Rules 2015 (NSW).