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Immunity from Lawyer Malpractice – Uniquely Australian

Immunity from Lawyer Malpractice – Uniquely Australian

The following article was contributed by Valerie Blacker, a commercial litigator focusing on funded litigation, and John Speer, a lawyer in the Dispute Resolution and Litigation Team at Piper Alderman. While large class actions receive the lion’s share of media attention, litigation financiers also regularly fund litigation involving a single plaintiff. Given that solicitors are required to maintain professional indemnity insurance, they can be, in instances of negligence, an attractive prospect for financiers: they are well-resourced and have the capacity to satisfy any judgment awarded against them. The Brisbane Litigation team at Piper Alderman have brought successful professional negligence claims against our clients’ former solicitors involving both funded and unfunded arrangements.[1] This article discusses a common defense raised in these types of proceedings – the advocates’ immunity. The immunity in brief In Australia, the advocacy function is immune from a negligence claim.  The immunity applies to a lawyer’s work in the court room. The immunity is rooted in the public policy principle that there should be finality in litigation. It prevents unsuccessful parties from seeking to re-litigate disputes by way of a collateral attack on their lawyers’ performance in court. A barrister mainly appears in court, and a solicitor mainly performs legal work outside of court.[2] But why does it matter? If a lawyer has been negligent, shouldn’t the client be able to seek relief? Apparently not – in some jurisdictions. Despite having been abolished in the United Kingdom and even in New Zealand, advocates’ immunity remains firmly in place in Australia. Indeed, there were at least eighteen court actions in 2022 that have made reference to the immunity as a defense. Avenues for redress The immunity is often called upon by solicitors performing ‘out-of-court’ work, but which (so the argument goes) is so ‘intimately connected to the conduct of the case in court’. In two recent examples, the immunity applied to shield a solicitor for failing to present evidence that should have been presented (Golden v Koffel [2022] NSWCA 8), and was extended to protect a solicitor who had given faulty advice (Jimenez v Watson [2021] NSWCA 55). If a solicitor’s negligent work was actually done in court in the course of a hearing or was done out of court but which led to a decision affecting the conduct of the case in court, the alternative options for an aggrieved client are frankly inadequate. For example, (1) an unsuccessful party may apply for an order that his or her solicitor be made personally liable for the successful party’s costs in the litigation; (2) an aggrieved client can challenge a solicitor’s bills through an application to the court for a costs assessment; and (3) disciplinary action can be taken which can result in a fine, a reprimand or in a solicitor being disqualified from practice. At best these alternative options may reduce a client’s costs but none of them will truly compensate a client for the wrongs caused by a lousy solicitor. Narrowing the scope of the immunity In a more positive move, the Courts have now made it clear that the immunity does not extend to a solicitor’s work in bringing about a settlement agreement (as an agreement between parties to settle is not an exercise of judicial power).[3] It is also now possible to be compensated for the expense of engaging new lawyers.[4] NT Pubco Pty Ltd v Strazdins is also notable. The Court there held that a failure to advise clients to seek independent legal advice was held to be likely outside the immunity.[5] The relevant wrong in that case concerned a failure by solicitors to relay to their client comments made by the court at several interlocutory hearings that the client should have been pursuing a particular kind of relief in its litigation. That would be akin to failing to commence proceedings in time. That too should fall outside of the immunity as the aggrieved client’s cause of action was complete and whole before the proceedings were started and the negligent conduct was completely separate from the litigation. The primary justification for retaining the advocates’ immunity is to ensure the finality of judicial determinations. However, if a client brings a negligence suit against a former solicitor is that not also a separate proceeding that deals with a different issue? As Kirby J warned, upholding the immunity not only reduces equality before the courts, but is capable of breeding contempt for the law. His Honour questioned ‘why an anomalous immunity is not only preserved in Australia but now actually enlarged by a binding legal rule that will include out-of-court advice and extend to protect solicitors as well as barristers’.[6] In these circumstances, can the reasons traditionally given for the immunity still persuade, particularly when the rest of common law world has abolished it? At the risk of offending the doctrine and re-litigating this issue, perhaps we should continue the debate. About the Authors: Valerie Blacker is a commercial litigator focusing on funded litigation. Valerie has been with Piper Alderman for over 12 years. With a background in class actions, Valerie also prosecutes funded commercial litigation claims. John Speer is a lawyer in the Dispute Resolution and Litigation Team located in Brisbane, Prior to joining Piper Alderman John was an associate to the Honourable Justice B J Collier in the Federal Court of Australia, as well as to Deputy President B J McCabe in the Administrative Appeals Tribunal. John has also worked as a ministerial adviser and chief of staff in the Parliament of Australia.   For queries or comments in relation to this article please contact John Speer | T: +61 7 3220 7765 | E:  jspeer@piperalderman.com.au [1] These matters resulted in a confidential settlement. [2] New South Wales and Queensland have a ‘split’ profession, meaning that the roles of barrister and solicitor are separated. [3] Attwells v Jackson Lalic Lawyers Pty Ltd (2016) 259 CLR 1,  [5], [38], [39], [45], [46], [53]. [4] Legal Services Commissioner v Rowell [2013] QCAT OCR207-12. [5] [2014] NTSC 8 at [134] and [137]. [6] D’Orta-Ekenaike v Victoria Legal Aid (2005) 223 CLR 1, 109 [346].
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Uber Told £340m Group Claim Must Follow Costs Budgeting Rules

By John Freund |

In a notable ruling, the High Court has directed that a £340 million group action against Uber London Ltd will be subject to costs budgeting, despite the claim’s substantial size. The decision was handed down in the case of White & Ors v Uber London Ltd & Ors, where the total value of the claim far exceeds the £10 million threshold above which costs budgeting is typically not required under the Civil Procedure Rules.

According to Law Gazette, Mrs Justice O’Farrell chose to exercise judicial discretion to apply the budgeting regime. Her decision marks a significant moment for large-scale group litigation in England and Wales, underscoring the court’s growing interest in ensuring proportionality and transparency of legal costs—even in high-value cases.

An article in the Law Society Gazette reports that the ruling means the parties must now submit detailed estimates of incurred and anticipated legal costs, which will be reviewed and approved by the court. This move imposes a degree of cost control typically absent from group claims of this scale and signals a potential shift in how such cases are managed procedurally.

The decision carries important implications for the litigation funding industry. Funders underwriting group claims can no longer assume exemption from cost control measures based on claim size alone. The presence of court-approved cost budgets may impact the funders’ risk analysis and return expectations, potentially reshaping deal terms in high-value group actions. This development could prompt more cautious engagement from funders and a closer examination of litigation strategy in similar collective proceedings moving forward.

Will Law Firms Become the Biggest Power Users of AI Voice Agents?

By Kris Altiere |

The following article was contributed by Kris Altiere, US Head of Marketing for Moneypenny.

A new cross-industry study from Moneypenny suggests that while some sectors are treading carefully with AI-powered voice technology, the legal industry is emerging as a surprisingly enthusiastic adopter. In fact, 74% of legal firms surveyed said they are already embracing AI Voice Agents , the highest adoption rate across all industries polled.

This may seem counterintuitive for a profession built on human judgement, nuance and discretion. But the research highlights a growing shift: law firms are leaning on AI not to replace human contact, but to protect it.


Why Legal Is Leaning In: Efficiency Without Eroding Trust

Legal respondents identified labor savings (50%) as the most compelling benefit of AI Voice Agents.  But behind that topline number sits a deeper story:

  • Firms are increasingly flooded with routine enquiries.
  • Clients still expect immediate, professional responses.
  • Staff time is too valuable to spend triaging logistics.

Kris Altiere, US Head of Marketing at Moneypenny, said:
“Some companies and callers are understandably a little nervous about how AI Voice Agents might change the call experience. That’s why it’s so important to design them carefully so interactions feel personal, relevant, and tailored to the specific industry and situation. By taking on the routine parts of a call, an AI agent frees up real people to handle the conversations that are more complex, sensitive, or high-value.”

For the legal sector, that balance is particularly valuable.

A Look At Other Industries

Hospitality stands out as the most reluctant adopter, with only 22% of companies using AI-powered virtual reception for inbound calls and 43% exploring AI Voice Agents.
By contrast, the legal sector’s 74% engagement suggests a profession increasingly comfortable pairing traditional client care with modern efficiency.

The difference stems from call types: whereas hospitality relies heavily on emotional warmth, legal calls hinge on accuracy, confidentiality, and rapid routing areas where well-calibrated AI excels.

What Legal Firms Want Most From AI Voice Agents

The research reveals where legal sees the greatest potential for AI voice technology:

  • Healthcare: faster response times (75%)
  • Hospitality: reducing service costs (67%)
  • Real estate: enhanced call quality and lead qualification (50%)
  • Finance: 24/7 availability (45%), improved caller satisfaction (44%), scalability (43%)

Legal’s top future use case is appointment management (53%).

This aligns neatly with the administrative pain points most firms face,  juggling court dates, consultations and multi-lawyer calendars.

Each industry also had high expectations for AI Voice Agent features, from natural interruption handling to configurable escalation rules.
For legal, data security and compliance topped the list at 63%.

This security-first mindset is unsurprising in a sector where reputation and confidentiality are non-negotiable.

Among legal companies, 42% said that integration with existing IT systems like CRM or helpdesk tools was critical.

This points to a broader shift: law firms increasingly want AI not just as a call handler but as part of the client-intake and workflow ecosystem.

The Bigger Trend: AI to Protect Human Time

Across every industry surveyed, one theme is emerging: companies don’t want AI to replace humans ,they want it to give humans back the time to handle what matters.

For legal teams, this means freeing lawyers and support staff from constant call-handling so they can focus on high-value, sensitive work.

Why This Matters for Law Firms in 2025

The AI adoption race in legal is no longer about novelty; it’s about staying competitive.

Clients expect real-time responses, yet firms are constrained by staffing and increasing administrative load. Well-designed AI Voice Agents offer a way to protect responsiveness without compromising on professionalism or security.

With compliance pressures rising, talent shortages ongoing, and client acquisition becoming more competitive, the research suggests law firms are turning to AI as a strategic solution and not a shortcut.

Moneypenny’s Perspective

Moneypenny, a leader in customer communication solutions, recently launched its new AI Voice Agent following the success of an extensive beta program. The next-generation virtual assistant speaks naturally with callers, giving businesses greater flexibility in how they manage customer conversations.

LSB Launches Oversight Programme Targeting Litigation Growth

By John Freund |

The Legal Services Board (LSB) has unveiled a new consumer‑protection initiative to address mounting concerns in the UK legal market linked to volume litigation, law‑firm consolidators and unregulated service providers. An article in Legal Futures reports that the regulator cited “clear evidence” of risks to consumers arising from the dramatic growth of volume litigation, pointing in particular to the collapse of firms such as SSB Law.

Legal Futures reports that under the programme, the LSB will explore whether the current regulatory framework adequately protects consumers from harm in mass‑litigation contexts. That includes examining: whether all litigation funding – especially portfolio funding models – should fall under the supervision of the Financial Conduct Authority (FCA); whether co‑regulation arrangements should be established between the FCA and the Solicitors Regulation Authority (SRA); and whether the list of reserved legal activities needs revision to account for the rise of unregulated providers and AI‑enabled legal services.

On the law‑firm side the initiative spotlights the consolidation trend — especially accumulator or “consolidator” firms backed by private equity and acquiring large numbers of clients. The LSB flagged risks around viability, quality of client care and short‑term investor‑driven growth at the expense of compliance and long‑term service stability.

For the litigation‑funding sector, the message is unmistakable: the regulator will be more active in mapping the relationships between funders, law firms and client outcomes. It intends to use its market‑intelligence function to monitor whether misaligned incentives in the funding‑chain may harm consumers, and to obtain data from frontline regulators where necessary.