Civil Procedure and Legal Profession Amendment Bill 2011 Introduction Print EXPLANATORY MEMORANDUM General The Civil Procedure and Legal Profession Amendment Bill 2011 amends the Civil Procedure Act 2010 to repeal the pre-litigation requirements and make related amendments, to make a minor amendment to the Legal Profession Act 2004 and for other purposes. The Bill will deliver on the Government's commitment to end mandatory pre-litigation procedures for debt recovery and other inappropriate proceedings by removing the pre-litigation requirements from the Civil Procedure Act 2010. The pre-litigation requirements, which will apply to proceedings which commence on or after 1 July 2011, would add unnecessarily to the costs of resolving a dispute and make it more difficult for disputants to access the courts. In particular, the pre-litigation requirements would provide an opportunity for disputants who were not prepared to negotiate in good faith to delay a settlement or decision and thereby prevent or delay disputants with legitimate claims from gaining access to the courts. The courts will retain their power to consider a party's use of mandatory or voluntary pre-litigation processes. Further, the Bill will allow rules of court to be made for or with respect to any mandatory or voluntary pre-litigation processes in relation to specified civil proceedings or specified classes of civil proceeding. The Bill will also make a simple technical amendment to the Legal Profession Act 2004 to reduce the administrative burden on the legal profession and the Legal Services Board by facilitating a streamlined process for the online renewal of lawyers' practising certificates. 571021 1 BILL LA INTRODUCTION 8/2/2011 Clause Notes PART 1—PRELIMINARY Clause 1 provides that the purposes of the Bill are to amend the Civil Procedure Act 2010 to repeal Chapter 3 and other provisions relating to the pre-litigation requirements, and to amend section 2.4.9(1) of the Legal Profession Act 2004 to remove the requirement for a declaration made under that section to be a statutory declaration. Clause 2 provides that the Bill commences on the day after the day on which it receives Royal Assent. PART 2—AMENDMENT OF CIVIL PROCEDURE ACT 2010 Clause 3 amends section 1(1)(a) of the Civil Procedure Act 2010 to omit the reference to the resolution of civil disputes which may lead to civil proceedings. This is no longer a purpose of the Act given the repeal of the pre-litigation requirements. The clause also repeals section 1(2)(b) of the Civil Procedure Act 2010 as the Act no longer provides for the facilitation of the resolution of disputes before civil proceedings are commenced. Clause 4 amends the definition of the term "appropriate dispute resolution" in section 3 of the Civil Procedure Act 2010 in order that it not refer to civil disputes or apply to pre-litigation appropriate dispute resolution. The clause also repeals the definitions of the terms "civil dispute", "pre-litigation requirements" and "pre-litigation requirements compliance certification" in section 3 of the Civil Procedure Act 2010. These definitions relate to the Act's pre-litigation requirements. Clause 5 amends section 4(1) of the Civil Procedure Act 2010 to correct an error to clarify that the Act applies to all civil proceedings subject to the remainder of section 4. Clause 6 amends section 9(2)(a) of the Civil Procedure Act 2010 to omit the reference to the pre-litigation requirements. The power of the courts to have regard to other mandatory or voluntary pre-litigation processes is, however, retained. 2 Clause 7 repeals Chapter 3 of the Civil Procedure Act 2010 which contains the pre-litigation requirements. Clause 8 repeals section 43 of the Civil Procedure Act 2010 which requires parties to certify compliance with the pre-litigation requirements. Clause 9 amends section 47(3)(b) of the Civil Procedure Act 2010 by omitting the reference to the pre-litigation requirements and providing the courts with power to identify issues that have not been resolved in accordance with any mandatory or voluntary pre-litigation processes. This amendment will allow the courts to consider issues that arise during pre-litigation processes in exercising active case management under the Act. Clause 10 repeals section 70(1)(b) of the Civil Procedure Act 2010 which allows rules of court to be made for or with respect to the pre-litigation requirements. The clause also amends section 70(1)(c) of the Civil Procedure Act 2010 to omit the reference to the pre-litigation requirements and allow rules of court to be made for or with respect to any mandatory or voluntary pre-litigation processes in relation to specified civil proceedings or specified classes of civil proceeding. This amendment will allow the courts to make rules with respect to pre-litigation processes for certain proceedings. PART 3—AMENDMENT OF LEGAL PROFESSION ACT 2004 Clause 11 amends section 2.4.9(1)(b)(iii) of the Legal Profession Act 2004 to omit the word "statutory" to remove the requirement for a declaration made under that section to be a statutory declaration. PART 4—REPEAL OF AMENDING ACT Clause 12 repeals the Bill on the first anniversary of its commencement. The repeal of the Bill does not affect the continuing operation of the amendments made by it (see section 15(1) of the Interpretation of Legislation Act 1984). 3