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The Bar Association’s scheme made pursuant to the Professional Standards Act 1994 commenced on Wednesday 19 January 2005.

The scheme

The scheme limits the amount of damages payable for occupational liability to $1 million.  Occupational liability is defined as ‘civil liability arising (in tort, contract or otherwise) directly or vicariously from anything done or omitted by a member of an occupational association acting in the performance of his or her occupation’.  Section 5 of the Act lists the types of occupational liability not covered under the scheme.

The scheme limits the liability of members only for those acts committed whilst they were covered by the scheme. 

The Professional Standards Council, established in 1995 under the Act, approves and monitors schemes.  Refer to the Professional Standards Council website for further information on its role in relation to the approval and monitoring of professional standards schemes.

Persons covered by the Bar Association Scheme

The association’s scheme applies only to members of the Bar Association who hold a New South Wales practising certificate and have approved professional indemnity insurance (s17).  Schemes do not apply to individuals who are not members of the relevant occupational association.

Members’ mandatory obligations under the Scheme – Disclosure statement

All members who are covered by the scheme are required to advise all clients (including briefing solicitors) of the cap in their liability by virtue of the scheme.  The Act requires that ‘if a person’s occupational liability is limited in accordance with this Part [Part 2], all documents given by the person to a client or prospective client that promote or advertise the person or person’s occupation, including official correspondence ordinarily used by the person in the performance of the person’s occupation and similar document, must carry a statement to that effect’ (s33).

The Professional Standards Council has issued a Policy Statement on Disclosure of Limited Liability which gives guidance to persons covered by a scheme about how they can meet their mandatory obligations to disclose they have limited liability.    

The disclosure statement will be sufficient if it uses the words specified in clause 9 of the regulations i.e. ‘Liability limited by a scheme approved under Professional Standards Legislation’.

Further Information

Should you require further information about the Bar Association's scheme, you should write to:

The Bar Association’s Professional Standards Scheme Administrator

New South Wales Bar Association

174 Phillip Street SYDNEY NSW 2000

Fax: (02) 9221 1149