STANDARD TERMS OF ENGAGEMENT

1. Services
   1. The services which we are to provide you are outlined in our Engagement Letter.

2. Financial
   1. Trust Account
      We maintain a Trust Account for all funds which we receive from clients (except monies received for payment of our invoices). If we are holding significant funds on your behalf we would normally lodge those funds on interest bearing deposit with a Bank. This can now be achieved only after completion on your part of bank forms disclosing, generally, your tax status and identification, including identification in some cases of the ultimate recipients of funds.
   2. Fees
      We will charge a fee which is fair and reasonable for the services provided having regard to your interests and our interests. In determining the fee, the following may be taken into account:
      1. The time and labour expended (at the present time our Partners’ time is charged at $415.00 per hour plus GST and other staff have different rates but there are no additional charges for secretarial, word processing and similar services).
      2. The skill, specialized knowledge and responsibility required to perform the services properly.
      3. The importance of the matter to you and the results achieved.
      4. The urgency and circumstances in which the matter is undertaken and any time limitations imposed, including those imposed by you.
      5. The degree of risk assumed by us in undertaking the services including the amount or value of the property involved.
      6. The complexity of the matter and the difficulty or novelty of the questions involved.
      7. The experience, reputation and ability of members of our firm working on your matter.
      8. The possibility that the acceptance of the particular instructions will preclude employment of us by other clients.
      9. Whether the fee is fixed or conditional.
      10. Any quote or estimate of fees given by us.
      11. Any fee agreement entered into between you and us.
      12. The reasonable costs of running our firm.
      13. The fee customarily charged in the market and locality for work similar to yours.
   3. GST
      Unless otherwise stated all fees are plus GST.
   4. Disbursements
      We will charge you for disbursements incurred by us on your behalf. These disbursements will be charged to you at their cost to us
      Disbursements may include court fees, registration and filing fees, a fee for agents, experts and other professionals. We may ask for payment for major disbursements before those costs are incurred.
   5. Office & AML Service Fees
      We will charge you for office & AML service fees provided by us in acting for you. Office & AML service fees are charged at 6% of the legal fee charged, with a minimum fee of $40.
   6. Estimate
      We will, in most cases, be able to provide you with an estimate upon request. However, this is an estimate only, and fees will be charged on the basis of the matters set out in clause 2.2 herein.
   7. Commission
      All work done by us is charged on a fee basis apart from a commission of 7.5% which is taken on all interest accruing on funds deposited with our bank through our bulk deposit scheme.
   8. Legal Aid
      Where it is applicable you may wish to apply for legal aid. If legal aid is granted our hourly rate will be the appropriate official legal aid rate. In the event that legal aid is not granted you will be liable for our account charged at the private rates referred to above.
   9. Dormant Balances
      1. If we hold a dormant balance for you we will make reasonable efforts to locate you to arrange for the balance to be paid to you. We may deduct our reasonable costs of trying to locate you or process the payment, from the dormant balance.
      2. If the dormant balance is small and it is not economic for us to try and locate you or make payment to you, you authorise us to take that dormant balance by deduction.

3. Payment of Fees
   1. Our fees are to be paid within 14 days of our account being sent except on conveyancing matters where fees are payable immediately prior to settlement.
   2. Our final account will be sent to you shortly after we have completed your matter.
   3. We may however issue interim accounts where that is appropriate.
   4. You authorise us to deduct our fees and expenses from your available funds held in our Trust Account, upon our issuing an invoice.
   5. We may ask you to pay fees in advance, but in those instances your payment will be held in our Trust Account and only paid to us by deduction when an account has been forwarded to you.
   6. Disbursements are to be paid by you immediately upon request but substantial disbursements may be asked for in advance.
   7. Interest will accrue on unpaid accounts at the rate of 15% per annum as from the due date until payment. Other action to recover unpaid fees may also be taken and the cost of such recovery may be added to the account due by you.
   8. In return for not requiring payment of fees in advance, you authorize us to obtain a credit check from Veda Advantage or any other third party in relation to your past financial affairs.
   9. If we hold funds for you within our trust account or on interest bearing deposit we are obliged by law to report to you on an annual basis as to the funds held and/or interest earned. We may charge for the provision of such report and service.
4. Conflicts of Interest
   We have procedures in place to identify and respond to conflicts of interest. If a conflict of interest arises we will advise you of this and follow the requirements and procedures set out in the Law Society’s Rules of Conduct and Client Care for Lawyers.
5. Duty of Care
   Our duty of care is to you and not to any other person. Before any other person may rely on our advice, we must expressly agree to this.
6. Files and Documents
   You authorise us (without further reference to you) to destroy all files and documents for this matter (other than any documents that we hold in safe custody for you) 7 years after our engagement ends, or earlier if we have converted those files and documents to an electronic format.
7. The Lawyers’ Fidelity Fund (the Fund)
   The Law Society maintains the Lawyers’ Fidelity Fund for the purposes of providing clients of lawyers with protection against pecuniary loss arising from theft by lawyers. The maximum amount payable by the Fidelity Fund by way of compensation to an individual claimant is limited to $100,000.00. Except in certain circumstances specified in the Lawyers and Conveyances Act 2006 the Fidelity Fund does not cover a client for any loss relating to money that a lawyer is instructed to invest on behalf of the client.
8. Professional Indemnity Insurance
   We hold Professional Indemnity Insurance which meets the minimum standards set by the Law Society.
9. Limitation of Liability
   We do not accept liability for any loss arising from non-receipt of any communication including email communications. Any further limitations on the extent of our obligations to you or any limitation or exclusion of liability are set out in our Letter of Engagement.
10. Right to Terminate Your Retainer
    1. You are entitled to terminate your instructions to us upon giving us reasonable notice.
    2. We may terminate the Retainer if there is good cause, such as you not providing us with instructions in a sufficiently timely way or in your inability or failure to pay our fee on an agreed basis, or, except in litigation matters, your adopting against our advice a course of action which we believe is highly imprudent and may be inconsistent with our fundamental obligations as lawyers.
       If we terminate the Retainer we will give you reasonable notice so that you can arrange alternative representation and we shall give you reasonable assistance to find another lawyer.
    3. Our fees for services reasonably and properly provided to you prior to the termination of Retainer shall be paid by you prior to uplifting your records and we may retain copies of your documents and records.
11. Suspension of Service
    We will reserve the right to stop work if interim accounts are not paid on time or a request for information or action remains unsatisfied.
12. If You Have a Complaint
    If you have a complaint about the service you have received from our firm please contact our Practice Manager.
    If we have been unable to resolve a complaint or concern you may contact:
    The Lawyers Complaints Service
    Phone: 0800 261 801
    Website: www.lawsociety.org.nz/for-the-community/lawyers-complaints-service/concerns-form
    Email:
13. Privacy and Confidentiality
    We will treat all information we hold about you as private and confidential and will not disclose any information we hold on your behalf or about you unless we are required to do so by law or where it is necessary to do so to provide our services to you or when requested by you or with your consent.
14. Storage of Files
    Upon completion of our legal services, we shall scan all documents held in your file and save that record to an electronic file for future reference, if required. Then, after extracting the original copy of all deeds and other important documents from your file, the remainder of the hard copy contents will be destroyed.
15. Retention Deeds and Important Documents
    Original copies of important documents and deeds are held separately in a separate on-site storage facility.
16. Anti Money Laundering and Countering Financing of Terrorism Act (AML/CFT)
    We are deemed a reporting entity under the AML/CFT. We are required perform customer due diligence and account monitoring, keep records, and report any unusual or suspicious transactions. We will report to the NZ Police Financial Intelligence Unit (FIU) in relation to all your matters on the following:
    1. All suspicious activities or transactions – Suspicious Transaction Report (STR);
    2. All international wire transfers/electronic transfer of funds equal to or above NZ$1,000 paid into or paid out of our trust account to/from a bank or financial institution outside of NZ – Prescribed Transaction Report (PTR);

If we are required to file a PTR, you will provide us with all information requested of you and we may charge you an administration fee for each PTR we are required to file.
You hereby acknowledge our AML/CFT obligations, authorise us to collect information required in order to meet our AML/CFT obligations and waive your legal professional privilege in relation to our AML/CFT requirements