Supreme Court

Law Courts Building Queens Square Sydney NSW 2000DX 829, Sydney

Telephone: 0292308111Facsimile: 02 9230 8628

TTY Phone: (02)92308011

Email: supreme_court@agd.nsw.gov.auWebsite: www.lawlink.nsw.gov.au/sc

ABN: 77057 165500

Allan Spence24/524 New Canterbury RoadDULWICH HILL NSW 2203

Your Ref: 4 July 2012

Case Number: 2012/00207517Case Title: SHAYE CHAPMAN v Allan SpenceProceeding Type Costs Assessment Practitioner Client Retained Instructing

Application

An application for assessment of costs was filed on 3 July 2012.

Any objections to the application must be lodged in writing and in triplicate with TheManager Costs Assessment by 25 July 2012.

The Applicant will be given an opportunity to respond to any objections that maybe raised.

Manager, Costs Assessment

LT0024042006 1 of 1

\

30 June 2012

Supreme Court of NSWGPO Box 3Sydney NSW 2001Australia

FILED

- 5 JUL 201!

SICSHAYE CHAPMAN

:l V-;n! Your ref:

tt r 1 °ur ref:1&J$i Writer:X?^/ Email:^X Office:"̂ Telephone:

Facsimile:

Scl1135Shaye Chapmansc@shayechaDman.comSydney+61 (2)96159674+61 (2)9475 1403

Dear Madam

COSTS ASSESSMENTS - CHAPMAN AND SPENCE

We enclose our application for Costs Assessment along with our cheque in payment offiling fees.

Yours sincerely

_ _ v

Shaye ChapmanSenior SolicitorEmail: sc@shayechapman.comencl

SYDNEYOctagon Building, Suite FLevel 1,110 George StreetParramatta NSW 2150

T: + 61 (2) 96159674F: +61 (2) 9475 1403

BRISBANELevel 27, Santos Place32 Turbot StreetBrisbane QLD 4000

T: +61 (7)3181 5641F: +61 (7) 33196877

GOLD COASTWyndham BuildingLevel 9, 1 Corporate CourtBundall QLD 4217

T: +61 (7) 55104731F: + 61 (7) 5676 6728

Shaye Chapman Lawyers (SCL)www.shavechapman.com

ABN37227 160619

Liability is limited to a Scheme approved under the Professional Standards Legislation.

NOTICE TO FILING PARTY

PRACTITIONER / CLIENT ASSESSMENT

FILING BILLS OF COSTS

Attached is a Form 2 Application for Assessment of Costs, otherthan party/party costs, by a law practice giving bill (Practitioner/Client)or by a law practice retaining another law practice (InstructingPractitioner/Retained Practitioner or Retained Practitioner/InstructingPractitioner), pursuant to the Legal Profession Act 2004 and the LegalProfession Regulation 2005 relating to the assessment of bills for legalfees and costs, other than party/party costs.

Part 9, Division 5 (Coste Assessment - Division 11 of Part 3.2 of theLegal Profession Act 2004) of the Legal Profession Regulation 2005provides for the form of, and fee for, an application for assessment of abill of costs other than party/party costs.

Section 351 of the Legal Profession Act 2004 provides that a lawpractice that retains another law practice to act on behalf of a client mayonly make an application for costs assessment within 60 days after thebill is given/delivered or the request for payment is made.

Section 352 of the Legal Profession Act 2004 provides that a lawpractice giving bill may only make an application for costs assessment ifat least 30 days have passed since the bill was given or the request forpayment was made.

The attached Form 2 may be used for applications under either section351 or section 352 of the Legal Profession Act 2004.

All application forms, supporting documents, bills of costs, etc are to befiled in triplicate with the Court.

FILED

- J J U L 2 B C

Form 2

APPLICATION BY LEGAL PRACTICE FOR ASSESSMENT OFCOSTS

(Other than Party/Party Costs)Legal Profession Act 2004

MANAGER COSTS ASSESSMENT

Assessment Number:

Shaye ChapmanCosts Applicant

Allan SpenceCosts Respondent

1. I apply to have this matter referred to a costs assessor.

2. COSTS OF LAW PRACTICE WHERE THAT LAW PRACTICE IS THEAPPLICANT

(a) The Costs which are the subject of this application were included in mybill of costs and those costs of Counsel, copies of which is attached.The bill of costs and those costs of Counsel were given to the client bypost on 29 May 2012 and via email on the date of each Tax Invoice.With respect to Counsel briefed -Kelvin Andrews on 3 April 2012.

(b) The bill of costs was given at least 30 days prior to the making of thisapplication.

3. The Costs in respect of Tax Invoice No. 20183 have been partly paid inthe total sum of $631.44.

4. The amount of Costs in dispute is the total amount of costs for those legalservices in respect of which the costs claimed are in the sum of $19,854.24

5. The addresses for the service of notices on the applicant, respondent and anyinterested parties are the following:

Applicant:

Respondent:

Counsel:

Name: Shaye ChapmanAddress: Octagon Building,

Suite F Level 1,110 GeorgeStreet Parramatta NSW 2150

Name: Allan SpenceAddress: Unit 24/524

New Canterbury RoadDulwich Hill NSW 2203

Name: Kelvin AndrewsAddress: Sir Owen Dixon Chambers

14th Floor, 179 Elizabeth StSydney NSW 2000

6. I authorise the costs assessor to whom this matter is referred to have accessto, and to inspect all my documents that are held by me, or by any barrister orsolicitor concerned, in relation to this matter.

7. I declare that there is no reasonable prospect of settlement of the matter bymediation.

Costs Applicant

Date:••;L:'»"^<f5,,c,^C>;v}^.

•j

Law-ret

Allan SpenceUnit 24/524 New Canterbury RoadDulwich Hill NSW 2203

Sent via email

Dear Mr Spence

Cost Agreement

We take this opportunity and welcome you back to our firm and thank you for choosing us to act onagain on your behalf.

Attached is a document entitled costs agreement, which confirms your instructions to act, andprovides our costs in relation to those instructions.

If you wish to confirm your instructions to act and to enter into the costs agreement you can either:

• sign and returning a copy of this document;

• continue giving us instructions after receiving this document; or

• provide your oral acceptance.

If you have any enquiries, please feel free to contact Ms Shaye Chapman.

Yours sincerely

Shaye ChapmanSenior Solicitor

Encl

A: Level 1, 674-676 Pittwater Road P: PO Box 1078, Brookvale T: 1300 172 038 or+61 2 9938 2820

Brookvale , New South Wales New South Wales F: +61299391108

Australia 2100 Australia 2097 E: !awyerigilawjet,.corn..au.

W: www.lawjet.com,au.

Lawjet is an incorporated legal practice pursuant to the Legal Profession Act.Liability is limited to a scheme approved under the Professional Standards Legislation.

COSTS AGREEMENT

1. Thank you for the instructions. This document is an offer from Lawjet ("Lawjet or we") to enter into acosts agreement with Allan Spence ("you or your").

2. The work we have been instructed to do for you is:

(a) We will work with you and take the necessary steps to carry out your instructions to pursuethe successful completion of your claim against Alto.

("the Work").

3. Persons responsible for the work

Shaye Chapman, Senior Solicitor, will be responsible for the work described in Clause 2 of the attachedcosts agreement. You may contact Shaye Chapman regarding your matter and legal costs. ShayeChapman will be supported by other staff from time-to-time in the conduct of your matter.

4. Costs in Personal Injuries Cases

Please note that Division 9 of Part 3.2 of the Legal Profession Act 2004 would (but for this costsagreement) limit the maximum costs for legal services provided to you in connection with the claim.

The costs under Division 9 of Part 3.2 Legal Profession Act 2004 provides that if the amount recoveredon a claim for personal injury damages does not exceed $100,000, the maximum costs for legalservices provided to a party in connection with the claim are fixed as follows:

(a) in the case of legal services provided to a plaintiff-maximum costs are fixed at 20% of the amountrecovered or $10,000, whichever is greater,

(b) in the case of legal services provided to a defendant-maximum costs are fixed at 20% of theamount sought to be recovered by the plaintiff or $10,000, whichever is greater.

This costs agreement would have the effect of excluding the operation of that Division, and that thiscosts agreement relates only to the costs payable as between the law practice and the client, so that, inthe event that costs are recoverable against the other party, the maximum costs so recoverable will beas provided by Division 9 of Part 3.2 of Legal Profession Act 2004.

5. Costs Hourly Rate and Estimate

5.1 We will charge you legal costs for the Work pursuant to the Schedule attached to this document. Pleasenote this Schedule only applies if your matter is:

(a) the enforcement of a lump sum debt or liquidated sum for damages,

(b) the enforcement of a judgment by a judgment creditor,

(c) the enforcement of a judgment for the possession of land,

and does not fix the legal costs of any other legal service in respect of a matter referred to in (5.1) (a),(b) or (c) or(3) does not fix the costs payable for obtaining a judgment in contested matters and, in sucha case, only the costs payable for the enforcement of the judgment are fixed.

Importantly, the legal costs specified in the Schedule are inclusive of all attendances, copying, letters,perusals, searches and telephone calls by or on behalf of in relation to the action concerned.

The legal costs specified in Schedule (other than those referred to in item 2 of Part 1 and item 2 of Part2) are exclusive of filing costs and service costs that are otherwise recoverable. \rt

PRIVATE & CONFIDENTIAL

Monday, 24 January 2011

5.1. Where the Schedule does not apply we will charge you legal costs for Work we do for you inaccordance with table 5.3 which is the current hourly rates of the persons who will be undertakingthe Work.

5.2. Our charges for legal services are structured in 6 minutes units. For example, the time chargedfor an attendance of up to 6 minutes will be 6 minutes and the time charged for an attendancebetween 6 and 12 minutes will be 12 minutes.

5.3. Table

Senior SolicitorSpecial CounselSolicitors or Solicitor ExecutivesJunior SolicitorParalegal and Support

$295.00$250.00$250.00$200.00$150.00

per hourper hourper hour

j>er hourper hour

6. GST

All hourly rates, charges, expenses etc in this document, unless otherwise stated are GST exclusive.Where the service provided is subject to GST, GST of 10% will be added and charged to you.

7. Carry of Legal Costs

It is agreed between the client and this firm that only 60% of all legal costs (excluding disbursements)invoiced to the client will be payable at the time the invoice is issued. The balance of all outstandinglegal costs invoiced will become due and payable upon settlement of your case and/or if this agreementis terminated by you or us pursuant to clause 22 below.

8. Disbursements and method of payment

8.1. You must also pay us all necessary and proper disbursements. These disbursements will beincurred by us on your behalf, but you must repay these disbursements at the conclusion of thematter, or on demand by us. We will charge you at cost for any expense we incur on your behalf.These may include:

• government costs• courier and taxi charges• travel expenses• lodgement costs• barristers costs• stamp duty

8.2. Please note that we generally do not charge for minor photocopying, faxes, stationery and sundryexpenses. We may charge you at $0.50 per page for large volumes of photocopying, faxing andalso the cost of stationary where large amounts are required (over 20 pages). We may ask you topay such amounts as are required for expenses we expect to incur, plus any GST (goods andservices tax) that may be payable.

9. Your right to a bill of costs

You are entitled to receive a bill of legal costs from us. If we send you a lump sum invoice, you mayrequest an itemised invoice of the legal costs at any time after the receipt of the lump sum invoice. Wewill comply with your request within twenty-one (21) days of the date on which we receive your requestfor an itemised invoice.

PRIVATE & CONFIDENTIAL

Monday, 24 January 2011

10. Billing arrangements

When the Work is in progress, we will send you an invoice every (14) days containing information of ourlegal costs and charges, disbursements and expenses, including GST. Otherwise, we will send you aninvoice at the end of your matter. All of our invoices are payable on receipt by you from us.

11. Interest on unpaid costs

If our invoices are not paid within thirty (30) days of receipt by you, we will charge you interest on theunpaid amount at the rate of the Cash Rate Target specified by the Reserve Bank of Australia,increased by 2%. Interest can be charged thirty (30) days after giving a lump sum invoice even if weprovide you with an itemised invoice at your request. However, where a lump sum invoice is given toyou and an itemised invoice is requested by you, proceedings for recovery of costs cannot be instituteduntil thirty (30) days have elapsed after we have complied with your request.

12. Substantial changes to disclosure

You will be informed, as soon as is reasonably practicable, of any substantial changes to anythingcontained in this document.

13. Progress reports

You are entitled to request, at reasonable intervals, written progress reports on your matter. Our normalcharge-out rates will apply for this service. You are also entitled to request a written report on the legalcosts incurred to date since the last invoice of costs was given to you, and this report will be provided toyou free of charge.

14. Engagement of another law practice

It may be necessary for us to engage, on your behalf, the services of another law practice (such as abarrister) to provide specialist advice or services, including advocacy services, or to act as our agent.We will consult you as to the terms of that law practice's engagement before engaging that law practiceon your behalf. However, you may be asked to enter into a costs agreement directly with that lawpractice. The law practice engaged by us will disclose costs in a similar manner and we will disclosethose costs to you.

15. Applicable law

The law of NSW applies to legal costs regarding this matter. You are, however, able to enter into acosts agreement with us on the basis that the corresponding law of another State or Territory isapplicable if this matter has a substantial connection with that State or Territory. In that event, we willdisclose costs as they are applicable in that State or Territory. You have the right to contract with us thatthe costs assessment scheme in NSW is applicable, in the event of any dispute as to costs arising withus.

16. Estimate of Costs

It is not possible to accurately predict the total legal costs and expenses you will incur, however below isa range of costs that you are likely to incur which is dependent upon the size and complexity of theWork involved and whether the matter is resolved prior to court proceedings:

Value of Claim

$0-$20,000

$20,000-$50,000

Estimated Legal Costs

$5,000 -$10,000

$10,000 -$20,000

PRIVATE & CONFIDENTIAI

Monday, 24 January 2011

$50,000-$100,000

$100,000-$250,000

$250,0000-$500,000

$20,000 - $50,000

$40,000 - $80,000

$85,000 -$100,000

17. Costs in Court proceedings

If court proceedings are taken or this matter relates to court proceedings, the court typically makesorders with respect to costs when the matter is finalised. If you win, the other party may be ordered topay your costs, if you lose, you may be ordered to pay the other parties costs. In the event that you win,you are not likely to recover all of the legal costs and disbursements you have paid to us and generallyonly up to 75% of those legal costs and disbursements. The same would apply (expect as provided forin personal injury cases) if you are ordered to pay the winning parties legal costs and disbursements.

18. Disputes, complaints and compliments

18.1. If you are concerned about our legal costs or the way our services are being provided:

(a) Tell the person responsible for the matter that you feel you are not receiving theappropriate service. As part of our quality procedures, we have a formal complaintsresolution procedure which is invoked as soon as a complaint is received whether byphone, face to face, or in writing. We will look into your complaint promptly andthoroughly, and report the result of our inquiry to you.

(b) If your company is still unhappy after that (or feels that they are unable to discuss theproblem with the person looking after the matter) please contact Shaye Chapman byemail: shaye@lawiet.com.au. Shaye Chapman will investigate the complaint anddiscuss it with you at no extra cost to you or your company.

(c) Compliments or suggestions to improve the delivery of our services should bedirected to snaye@lawiet.cgm.au .

18.2. The Act gives you the right to apply to the Supreme Court to have our invoices assessed for itsfairness and reasonableness by a Costs Assessor; or to have the dispute mediated; or a costsagreement set aside by the Costs Assessor on the basis that it is not fair, just or reasonable.Applications for assessment should be made before the expiry of twelve (12) months after receiptof the invoice of legal costs, or request for payment of costs made by us, or full payment made tous, whichever is the earliest.

19. Copyright

Copyright in documents prepared by Lawjet is and remains the property of Lawjet.

20. Information and assistance from you

From time to time during the conduct of your matter, Lawjet may require information, documents andinstructions from you. Lawjet asks that information be provided as soon as possible so that Lawjet canprogress your matter efficiently.

21. Acceptance of offer21.1. If you accept this offer, you will be regarded as having entered into a costs agreement. This

means you will be bound by the terms and conditions set out in this document, including beingbilled in accordance with it. Acceptance may be by any one of the following ways:

it)signing and returning a copy of this document;

giving us instructions after receiving this document: or

PRIVATE & CONFIDENTIAL

Monday, 24 January 2011

• oral acceptance.

21.2. Failure to accept our offer within seven (7) days of dispatch of this document can result in theimmediate withdrawal of our offer to act for you.

22. Termination of Agreement

22.2. We will not continue to do the Work:

• if you fail to pay our invoices;

• if you fail to provide us with adequate instructions within a reasonable time;

• if you give instructions that are deliberately false or intentionally misleading;

• if you fail to accept an offer of settlement which we think is reasonable;

• if you fail to accept advice we (or counsel) give you;

• if you engage another law practice to advise you on this matter without our consent;

• if we, on reasonable grounds, believe that we may have a conflict of interest, or if youindicate to us that we have lost your confidence; or

• for any other just cause.

22.3. We will give you at least seven (7) days' notice of our intention to terminate the agreement and ofthe grounds on which the notice is based.

22.4. You may terminate this agreement at any time.

22.5. If the agreement is terminated either by you or us, you will be required to pay our legal costs andcharges for work done, and for expenses and disbursements incurred, up to the date oftermination. For lump sum fee matters, you must pay the part of our lump sum fee that wereasonably estimates has been incurred in respect of the legal services provided to you up to thedate of termination plus charges, expenses and disbursements, subject to your right to a costsassessment. You will be liable to pay our legal costs whether or not the other party to any courtproceedings has to pay you costs of the proceedings.

22.6. If we cease to act for you:

• we will not incur any liability as a result;

• we will remove our name from the court record (including tribunals) in any courtproceedings;

• you will receive a final account which will include all outstanding legal costs;

• you must pay our legal costs up until the date when we cease to act; and

• we are entitled to retain possession of your papers and documents while there ismoney owing to us for our charges and expenses, unless and until security isprovided for our legal costs.

23. Retention of documents

On completion of the Work, we will retain any papers to which you are entitled, but leave these papersin our possession (except documents deposited in safe custody). We will retain these papers for nomore than seven (7) years and on the understanding that we has your authority to destroy the file seven(7) years after the date of the final invoice rendered by us in this matter. If you require us to retrievethese documents for you following the completion of your matter, we will charge you $250.00 plus GSTand photocopying charges of $1.00 each page. | !

—•—PRIVATE & CONFIDENTIAL

Monday, 24 January 2011

24. Privacy Protection

24.2. The Privacy Amendment (Private Sector) Act 2000 protects personal information provided by youor other sources. In some cases, disclosure of personal information may be compelled by law.

24.3. Clause 24 of this document contains more information regarding our Privacy Policy.

25. Payment/Money on account

We may ask you to pay us, in advance, some money on account of payments which will be made toothers and our legal costs.

26. Privacy

26.2. We are committed to providing you with the highest level of professional service. This includesprotecting your privacy. In order to protect your right to privacy, we have developed a PrivacyPolicy. Our Privacy Policy explains how we collect and use your personal information, your rightof access to your personal information, your right to inspect and, where necessary, correct thepersonal information that we hold about you, your right to have privacy complaints investigatedand resolved, and your right to have your personal information protected from misuse orunauthorised access. We will take all reasonable steps to protect the privacy of the personalinformation that we collect and use. Our Privacy Policy sets out how we intend to do this. OurPrivacy Policy is available on our website at www.lawjet.com.au.

26.3. In the course of you instructing us to provide you with legal services or, as a result of theprovision of legal services to you, we may collect personal information from individuals that areclients and from individuals in your organisation that are instructing us generally. In thesecircumstances, we collect your personal information in order to be able to advise you of legaldevelopments generally and to inform you of the upcoming seminars and business developmentactivities which we consider may be of interest to you. If you consent to us using your personalinformation to advise you of legal developments and inform you of upcoming seminars andbusiness development activities which we consider may be of interest to you, please tick theprivacy opt-in box below when you sign and return this agreement to us.

n I wish to be included on the Lawjet mail/email list in order to receive updates about legaldevelopments and information about upcoming seminars and business development activities.

Signed for:

Signature of person authorising the Work

Print Name pate

Monday, 24 January 2011

On behalf of LAWJET Date

2.PRIVATE & CONFIDENTIAL