Australian Capital Territory
Civil Law (Wrongs) Law Institute of Victoria Limited Scheme 2013 (No 1)
Disallowable instrument DI2013–48
made under the  
Civil Law (Wrongs) Act 2002, section 4.10, schedule 4 (Schemes are subject to disallowance)

1	Name of instrument
This instrument is the Civil Law (Wrongs) Law Institute of Victoria Limited Scheme 2013 (No 1).
2	Commencement 
This instrument commences 2 months after its notification. 
3	Notice
I give notice of the Professional Standards Council of Victoria’s approval of the attached Law Institute of Victoria Limited Scheme, which has effect until 30 June 2015.

Simon Corbell
Attorney-General
22.4.13

AMENDED LIV SCHEME

LAW INSTITUTE OF VICTORIA LIMITED SCHEME

Professional Standards Act 2003 (Vic)

PREAMBLE

A.	The Law Institute of Victoria Limited (“the LIV”) is a voluntary occupational association for legal practitioners (solicitors) in Victoria.

B.	The LIV has made an application to the Professional Standards Council (“Council”), appointed under the Professional Standards Act 2003 (Vic) (“the Act”) for approval of a scheme under the Act, and this document comprises the scheme (“the Scheme”).

C.	The Scheme has been prepared by the LIV for the purposes of limiting Occupational Liability of Participating Members to the extent to which such liability may be limited under the Act.

D.	The Scheme is to apply to all Participating Members.

E.	The Scheme is intended to operate as a scheme of Victoria, New South Wales, Queensland, South Australia, Western Australia, the Northern Territory and the Australian Capital Territory.

F.	The LIV has furnished the Council with a detailed list of the risk management strategies intended to be implemented in respect of its Participating Members and the means by which those strategies are intended to be implemented.

G.	Subject to s34 of the Act, the Scheme is intended to remain in force after its commencement in all applicable jurisdictions until 30 June 2015.

H.	The Scheme commences on 1 July 2010.

LAW INSTITUTE  OF VICTORIA SCHEME

1.	Preparation of the Scheme

1.1	This Scheme is a scheme under the Act prepared by the LIV, whose business address is 470 Bourke Street, Melbourne, Victoria.

1.2	Relevant definitions for the purpose of this Scheme are as follows:

“Australian Practising Certificate” has the same meaning as it has in the Legal Profession Act 2004 (Vic);

“Corporate Legal Practitioner” has the same meaning as it has in the Legal Profession Act 2004 (Vic);

“Court” has the same meaning as it has in the Act;

“Damages” has the same meaning as it has in the Act;

“Financial Year” means a financial accounting period ending 30 June;

“Full Member” means a person within the category of full membership of the LIV as contemplated in the LIV's constitution (as amended  from time to time);

“Incorporated Legal Practice” means a corporation within the category of incorporated legal practice membership as contemplated in the LIV's constitution (as amended
from time to time);

“Law Practice” has the same meaning as it has in the Legal Profession Act 2004 (Vic);

“Occupational Liability” has the same meaning as it has in the Act;

“Participating Members” means those persons specified in clause 2.1 of the Scheme; 

“Principal” has the same meaning as it has in the Legal Profession Act 2004 (Vic);

“Relevant Time” refers to a cause of action founded on an act or omission, specifically to the time of that act or omission occurring; and

“Total Annual Fee Income” means the amount charged during a Financial Year for services provided by or on behalf of a Law Practice some of whose members are Participating Members.

2.	Persons to whom the Scheme applies

2.1	The Scheme applies to:

2.1.1	Full Members who hold a current Australian Practising Certificate who are not excluded or exempted under clauses 2.2. or 2.3. of the Scheme;

2.1.2	Incorporated Legal Practices;

2.1.3	all persons to whom, by virtue of ss20, 21 or 22 of the Act, the Scheme applies;

2.1.4	all persons to whom clause 2.1.1. applied at the Relevant Time but no longer applies;
2.1.5	all corporations to which clause·2.1.2 applied at the Relevant Time but no longer applies;

2.1.6	all persons to whom clause 2.1.3 applied at the Relevant Time but no longer applies.

2.2	A person referred to in clause 2.1 does not include a Corporate Legal Practitioner.

2.3	A person or corporation referred to in clause 2.1 may, on application, be exempted from participation in the Scheme by the LIV. This clause does not apply to persons to whom the Scheme applies by virtue of ss20 or 21 of the Act.

3.	Limitation of liability

3.1	The Scheme limits the Occupational Liability of a Participating Member for Damages:

3.1.1	arising from a single cause of action founded on the act or omission; and

3.1.2	to the extent those Damages exceed $1.5 million for Participating Members in Class 1 or Class 2 of the table in clause 3.3, or as the case may be, $10 million for Participating Members in Class 3 or Class 4 of the table in clause 3.3.

3.2	If a Participating Member against whom a proceeding relating to Occupational Liability is brought is able to satisfy the Court that-

3.2.1	the Participating Member has the benefit of an insurance policy or policies insuring him or her against the Occupational Liability to which the cause of action relates; and

3.2.2	the amount payable under the policy or policies in respect of that Occupational Liability is not less than the amount of the monetary ceiling (maximum amount of liability) specified in the third column of the table in clause 3.3 as applying to such Participating Member to which the cause of action relates – the Participating Member is not liable in Damages in relation to that cause of action above the amount of that monetary ceiling.

3.3	The monetary ceiling applicable for the purposes of limitation of liability under the Scheme at the Relevant Time is to be determined according to the table below –

Class	Description	Monetary ceiling	
1	Participating Members who were at the Relevant Time in a Law Practice consisting of up to and including 20 Principals and where the Law Practice generated Total Annual Fee Income for the Financial Year at the Relevant Time up to and including $10 million.	$1.5 million	
2	Any Participating Member which was at the Relevant Time an Incorporated Legal Practice consisting of up to and including 20 Principals and where the Law Practice generated Total Annual Fee Income for the Financial Year at the Relevant Time up to and including $10 million.	$1.5 million	
3	(a)	Participating Members who were at the Relevant Time in a Law Practice consisting of greater than 20 Principals; or

(b)	Participating Members who were at the Relevant Time in a Law Practice where the Law Practice generated Total Annual Fee Income for the Financial Year at the Relevant Time greater than $10 million.	$10 million	
4	(a)	Any Participating Member which was at the Relevant Time an Incorporated Legal Practice consisting of greater than 20 Principals; or

(b)	Any Participating Member which was at the Relevant Time a Law Practice where the Law Practice generated Total Annual Fee Income for the Financial Year at the Relevant Time greater than $10 million.	$10 million	

4.	Conferral of discretional authority

4.1	The LIV has discretionary authority, on application by a Participating Member, to specify in relation to the Participating Member, a higher maximum amount of liability (monetary ceiling) than would otherwise apply under the Scheme in relation to him, her or it either in all cases or in any specified case or class of case.

4.2	If, in the exercise of its discretion under clause 4.1, the LIV has specified a higher maximum amount of liability (monetary ceiling) than would otherwise apply under the Scheme in relation to a Participating Member, the maximum amount of liability (monetary ceiling) in relation to that Participating Member is that higher maximum amount.

5.	Duration

5.1	Subject to s34 of the Act, the Scheme will be in force after its commencement in all applicable jurisdictions until 30 June 2015.