Terms of Engagement
1. BACKGROUND & GENERAL TERMS
1.1. These terms, together with our engagement letter (Agreement), apply to all work we carry out for you, unless we agree otherwise in writing.
1.2. The services we have agreed to provide to you are set out in our Letter of Engagement (LOE).
1.3. These terms and conditions provide mandatory disclosures as per the New Zealand Law Society’s Rules of Conduct and Client Care for Lawyers.
1.4. These terms and conditions will apply to both ongoing and future services unless mutually amended in writing. Changes to these terms will be communicated to you and apply from the notification date.
1.5. The Agreement contains the entire understanding between you and us regarding the delivery of our services and supersedes any previous agreements, understandings, or representations (whether oral or written).
1.6. You can accept the Agreement by signing a copy of the LOE where indicated and returning it to us or, if there are delays in signing the LOE, by continuing to instruct us in relation to our services.
1.7. The Agreement does not affect any statutory right you may have irrespective of any term of your agreement with us.
1.8. If any provision of the engagement letter or these terms is void, that provision will be severed, and the remainder will continue to apply. If there is any conflict between the engagement letter and these terms, these terms will prevail.
2. ENGAGEMENT LETTER FOR EVERY NEW INSTRUCTION
2.1. For every new instruction, we will issue an ‘engagement letter’ detailing:
2.1.1. Specific tasks we will undertake.
2.1.2. The person responsible for work, selected based on their suitability and our client relationship. Other team members may assist under their supervision, ensuring efficiency and timeliness.
3. AUTHORISATION FOR INSTRUCTION
3.1. Unless specified otherwise:
3.1.1. Instructions may be accepted from authorised individuals within your organisation or group, for example if you are a:
a. couple, we can accept instructions from either of you.
b. trust, we can accept instructions from any of your trustees or officers.
c. partnership, we can accept instructions from any of your partners or officers.
d. company, we can accept instructions from any of your directors or employees or any other person you have authorised to instruct us.
e. body corporate or incorporated society, we can accept instructions from any person holding themselves out as being authorised by the officers to instruct us.
4. SCOPE OF WORK
4.1. Our expertise does not extend to:
4.1.1. Providing investment, tax, insurance, or foreign legal advice.
4.1.2. Offering ongoing reminders or updating advice post-initial consultation, unless otherwise agreed.
4.2 The services we have agreed to provide to you are set out in our LOE.
5. FEES AND BILLING
5.1. We charge fair and reasonable fees:
5.1.1. Calculated based on hourly rates, adjusted for complexity and other relevant factors permitted by the Rules of Conduct and Client Care for Lawyers (such as urgency, importance, specialised knowledge, responsibility, and risk involved, and the results achieved).
5.1.2. Estimates and special fee arrangements will be detailed in your engagement letter.
5.1.3. Unless specified otherwise, our fees, quotations, and standard rates we provide do not include Goods and Services Tax (GST) or any office-related expenses and payments, which you are responsible for paying. Typically, our services are subject to GST, and in such instances, you are obliged to pay the GST applicable to our fees and charges. An administrative fee may be charged to cover office-related expenses, including but not limited to photocopying, printing, telecommunications, and document storage. This fee is usually set at $60 and will be itemised in the initial invoice we issue to you. We retain the discretion to impose further administrative fees in future invoices. These fees, if any, will be detailed separately in the invoices we send to you. Additionally, there may be certain payments we need to make on your behalf, such as fees for court proceedings, council’s fees for various applications and agent services. By engaging our services, you authorise us to incur these expenses, which will be shown in the invoice we provide to you.
5.1.4. Our charge-out hourly rate, office expenses, and disbursements may change from time to time without notice.
5.2. Unless otherwise stated in our LOE, you agree to pay our fees and other charges within 7 days from the invoice date. All fees and charges are exclusive of GST.
5.3. If any payment you owe us is more than 10 days overdue, we may:
5.3.1. charge interest on unpaid accounts at the rate of 2% per month calculated daily and charged monthly. Any failure to impose interest on overdue accounts promptly or delay in enforcing our rights, does not mean we have waived those rights.
5.3.2. stop work we are doing for you until such time the account is paid in full.
5.4. You consent to cover all costs, including legal costs, that we may incur in the process of recovering any overdue payments as per the terms of the Agreement.
6. CLIENT CARE AND SERVICE
6.1. We are committed to act in accordance with the Law Society’s Rules of Conduct and Client Care for Lawyers. The Law Society client care and service information is set out below:
6.1.1. Whatever legal services your lawyer is providing, he or she must:
• Act competently, in a timely way, and in accordance with instructions received and arrangements made.
• Protect and promote your interests and act for you free from compromising influences or loyalties.
• Discuss with you your objectives and how they should best be achieved.
• Provide you with information about the work to be done, who will do it and the way the services will be provided.
• Charge you a fee that is fair and reasonable and let you know how and when you will be billed.
• Give you clear information and advice.
• Protect your privacy and ensure appropriate confidentiality.
• Treat you fairly, respectfully and without discrimination.
• Keep you informed about the work being done and advise you when it is completed.
• Let you know how to make a complaint and deal with any complaint promptly and fairly.
6.2. These obligations are subject to other overriding duties, including duties to the courts and to the justice system.
6.3. If you have any questions, please visit www.lawsociety.org.nz, or call (04) 472 7837.
7. OUR DUTIES TO YOU
7.1. During our engagement, we will:
7.1.1. Perform competently and promptly in line with your instructions.
7.1.2. Prioritise your interests free from conflicts of interest.
7.1.3. Collaborate on defining objectives and optimal strategies.
7.1.4. Provide transparent information on service details, personnel involved, and service delivery methods.
7.1.5. Bill you fairly and inform you about billing procedures.
7.1.6. Offer clear advice and information.
7.1.7. Safeguard your privacy and maintain confidentiality.
7.1.8. Ensure fair treatment without discrimination.
7.1.9. Keep you updated on task progress and completion.
7.1.10. Facilitate a straightforward complaint process, resolving issues promptly and equitably.
7.1.11. Adhere to legal obligations and court directives, as applicable (subject to any overriding duties we have for example to the courts and the justice system) and any legal obligations to provide information to a government agency.
7.2. These duties are exclusively for the client named in our LOE. External parties, such as family members or business associates, require our explicit consent to rely on our advice.
8. YOUR AGREEMENTS
8.1. You agree to provide us promptly with any information or assistance that we reasonably require to perform the agreed services, including access to your business information such as staff, records, policies and procedures, and other systems.
8.2. We are entitled to assume the accuracy and completeness of any information which you give us or which anyone else gives us on your behalf.
8.3. You must notify us promptly if any information you have given us becomes incorrect or misleading (or potentially so). You must take reasonable steps to correct any communication or documentation that refers to or is based upon any such information.
9. PRIVACY STATEMENT
9.1. We may collect, store, use and disclose your personal information for the purposes of providing the services described in the LOE to you and to comply with our obligations under the Law Society’s Rules of Conduct and Client Care for Lawyers or to the extent necessary or desirable to allow us to carry out your instructions.
9.2. We will comply with the Privacy Act 2020 when collecting, storing, using and sharing your personal information.
9.3. Please refer to our Privacy Policy available on website for more information.
9.4. When you visit our website, we collect some non-personal information such as the IP address from which you accessed this website, the date and time you visited, the pages you browsed, the type of browser and operating system you use to search the content on our website. This information cannot be used to personally identify you. We use it for the purposes of system administration, auditing use of the website and improving it for different client profiles and for our internal purposes:
9.4.1. Non-personal data collected (e.g., IP addresses, browsing behaviour) aids in site administration and enhancement.
9.4.2. Cookies are utilised to improve user experience, although their activation remains optional.
9.4.3. Personal data provided, such as contact details or identification, is handled in compliance with the Privacy Act 2020.
9.4.4. Information is used solely for authorised purposes and is retained as legally required, with provisions for secure disposal.
9.5. For further details, refer to the Privacy Commissioner’s guidelines or contact us directly at pervinder@pervinderdavieslaw.co.nz
10. CONFIDENTIALITY
10.1. We will hold in strict confidence and protect all confidential information that we obtain during the course of our engagement.
10.2. You agree to hold in strict confidence any confidential information or proprietary information belonging to us.
10.3. We will not disclose your confidential information to any third party unless:
10.3.1. you instruct us to do so;
10.3.2. we are required to disclose such information by law or a relevant regulatory authority; or
10.3.3. such disclosure is made for the purpose of complying with Pervinder Davies Law’s internal quality assurance procedures.
11. CONFLICT OF INTEREST MANAGEMENT
11.1. We prioritise your interests in all engagements.
11.2. We conduct pre-engagement checks to identify potential conflicts of interest.
11.3. If a conflict arises, we promptly notify affected parties and outline resolution steps, which may include we stop working for you, the other client or both.
11.4. We follow the requirements and procedures set out in the Law Society’s Conduct and Client Care for Lawyers.
12. INTELLECTUAL PROPERTY
12.1. Unless agreed otherwise:
12.1.1. We retain ownership of all created intellectual property.
12.1.2. Distribution of our advice to third parties requires our explicit consent.
12.2. The Agreement does not affect the ownership of your intellectual property rights or confidential information. Material that you provide to us remains your property and will be returned to you when the engagement is completed. Work papers that we create remain our property.
13. ELECTRONIC TRANSMITTAL AND COMMUNICATION
13.1. You must advise of any changes to your contact details. We may send communications to the last contact details you have provided. Unless you instruct us otherwise, we may, where appropriate, communicate with you and with third parties via email or by other electronic means. The recipient is responsible for virus checking emails and any attachments.
13.2. While we employ security measures, we cannot guarantee error-free, virus-free communications.
13.3. There is a risk of non-receipt, delayed receipt, inadvertent misdirection, or interception by third parties in any form of communication, whether electronic, postal or otherwise. We are nor responsible for any such matters beyond our control.
14. RECORD RETENTION
14.1. Documents and correspondence related to your instructions are retained:
14.1.1. Electronic copies may replace physical originals, with optional return of originals upon request.
14.1.2. Disposal of duplicates or non-essential documents is at our discretion.
14.2. You authorise us (without further reference to you) to destroy, or delete in the case of electronic documents, all files and documents relating to an instruction seven years after that instruction has been completed. We may retain files and documents for longer at our option.
15. IDENTITY VERIFICATION AND CREDIT CHECKS
15.1. Under legal requirements, we may need to verify your identity and source of funds.
15.2. Periodic credit checks may be conducted, with your consent.
15.3. The Anti-Money Laundering and Countering Financing of Terrorism Act 2009 applies to all New Zealand law firms including Pervinder Davies Law.
15.3.1. The purpose of the legislation is to detect and deter money-laundering and financing of terrorism pursuant to New Zealand’s international obligations.
15.3.2. The Act requires all law firms to mitigate the risk of being used to launder money or finance terrorism and to identify potentially suspicious activities.
15.3.3. Next time you engage us to work for you, we will require you to provide documents in order to verify your identity. These may include a current passport, driver’s licence or full birth certificate as well as a bank statement or utility bill to verify your residential address. This will be held electronically in our secured system and will not be released to any third parties.
15.3.4. Please do not be concerned if we ask for more information or documents. We are legally required to obtain this information from all clients, even those who have been clients for many years. If we are not able to collect and verify this information, the legislation precludes Pervinder Davies Law from being able to act for you.
15.4. By engaging with our services, you authorise us to collect information about you, which includes but is not limited to, due diligence and credit history. We will verify, store, and utilise this information, and conduct further checks to ensure its accuracy. This process is in line with the requirements of the Anti-Money Laundering and Countering Financing of Terrorism Act and helps us in enforcing financial responsibilities and adhering to legal requirements.
15.5. You consent to third parties providing us with your information upon our request. We may also employ third-party electronic customer due diligence services to authenticate your identity and perform necessary due diligence checks as required by law. These services may involve credit checks and the use of your data by these third parties for their operational purposes. Should there be a failure to meet your financial commitments to us, this information may be disclosed to credit reporting agencies and subsequently to their clientele.
16. LIMITATION OF OUR LIABILITY TO YOU
16.1. The limitation of liability in this section apply to the maximum extent allowed by law and for the benefit of Pervinder Davies Law, its directors, staff and contractors.
16.2. The maximum total compensation that we are obligated to pay you is limited to the minimum indemnity limit set by the New Zealand Law Society for our professional indemnity insurance. Our liability to you will not exceed this cap for any harm or loss resulting from our actions or inactions, or any delays, regardless of whether such conduct is considered or sanctioned by any contract with you.
16.3. This limitation, as outlined in clause 16.2, applies to the extent allowed by law to all claims, and however liability arises or might arise if not for this clause (whether in contract, tort (including negligence), equity, or otherwise).
16.4. In instances where there are multiple claimants, such as a partnership or a couple, this cap represents the total amount payable to all parties combined.
16.5. When our services are retained for business purposes, you agree that the Consumer Guarantees Act will not apply. Otherwise, nothing in clause 16 restricts any entitlements you may have under the Consumer Guarantees Act.
16.6. We are not responsible for any loss or liability that arises due to:
16.6.1. erroneous or incomplete information provided by you or third parties;
16.6.2. failure to receive or read communications from us;
16.6.3. unclear or absent instructions; or
16.6.4. our right or decision to decline or cease services, especially if there are outstanding payments due to us.
17. THIRD-PARTY PROVIDERS
17.1. We may recommend third-party services in good faith but hold no liability for their actions or omissions.
18. TERMINATION OF ENGAGEMENT
18.1. You may terminate our engagement at any time by giving us 30 calendar days’ prior written notice.
18.2. Should there be justifiable reasons, our firm reserves the right to cease representation. These reasons may include, but are not limited to:
18.2.1. failure to provide timely instructions;
18.2.2. inability or refusal to settle our invoices;
18.2.3. instructions that require us to breach professional standards or involve material deception; or
18.2.4. you act in a way that is contrary to our advice and in our view is highly imprudent and may be conflicting with our core duties as legal practitioners. This does not apply to litigation instructions.
18.3. In the event of terminating our services, we will notify you in advance and help you find another lawyer.
18.4. All outstanding balances for services rendered be settled prior to the release of your documents, although we may retain copies for our records.
19. GOVERNING LAW
19.1. New Zealand law governs our engagement, with jurisdiction exclusive to New Zealand courts.
20. PROFESSIONAL INDEMNITY INSURANCE
20.1. We hold professional indemnity insurance that meets or exceeds the minimum standards specified by the Law Society.
21. LAWYERS FIDELITY FUND
21.1. 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 & Conveyancers 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.
22. COMPLAINT HANDLING
22.1. We always welcome your feedback on our services.
22.2. We maintain a procedure for handling any complaints by clients, designed to ensure that a complaint is dealt with promptly and fairly, in accordance with Law Society guidelines.
22.3. If you have a complaint about our services or charges, you may refer your complaint to Pervinder Davies by pervinder@pervinderdavieslaw.co.nz or 021 2140191.
22.4. We are committed to investigating and resolving any concerns or complaints you may have as soon as possible. In some cases, it may be necessary for us to suspend work until the dispute is resolved.
22.5. The Law Society also maintains a complaints service and you are able to make a complaint to that service. To do so you should contact the Law Society:
New Zealand Law Society Lawyers Complaints Service
by email at: complaints@lawsociety.org.nz
by telephone; 0800 261 801
Our client relationships are of utmost importance to us. Should you need clarification on any of these terms, do not hesitate to reach out for assistance.