Page 3594 - Week 12 - Thursday, 13 October 1994
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . .
An annual audit is required to be made of the solicitor's dealings with trust moneys. The amendment will mean that the moneys and valuable securities of a client of a solicitor who is given authority by the client to deal with them on the client's behalf will clearly be understood to be subject to an audit under the Act. It is intended to ensure that all of a solicitor's transactions relating to any valuable property of a client are recorded and are to be subject to an audit. An auditor must give a copy of the audit report to the Law Society, which has the power to instigate further investigation of a solicitor's dealings. Better protection of the interests of a client of a solicitor should result from this amendment.
The amendment relating to payments out of the fidelity fund should also improve protections provided by the Act to clients of a solicitor. The fidelity fund is the fund administered by the Law Society out of which payments of compensation may be made to a client of a solicitor who has lost or stolen the client's funds or valuable property. This amendment will ensure that, even where the fund cannot pay out all claims at a particular time, claims which cannot then be satisfied will be paid out in full from the future accumulations of money in the fund. The Bill will also provide that the fidelity fund is to be the only property of the Law Society available for satisfying a successful claim against the fund.
Currently, decisions made under the Act by the Law Society are reviewable by the Supreme Court. In most respects this is appropriate, given that the Supreme Court is, in effect, a regulatory authority for the legal profession. However, there are decisions made by the Law Society relating to payment out of the fidelity fund which are not related directly to the professional conduct of the lawyer and are more appropriately reviewable by the Administrative Appeals Tribunal. Accordingly, the Bill will provide that these decisions are to be subject to review by the Administrative Appeals Tribunal. This amendment to the Act will provide a less costly, more accessible avenue of appeal for those who wish to challenge a decision of the Law Society as to their entitlement to a payment from the fidelity fund.
The Act provides that, before taking legal action against the client for recovery of an amount owing for work done for a client, a solicitor must give the client an itemised statement. The Act also provides that a client may request a solicitor to provide an itemised statement. There is currently no time limit within which such a request must be made. The Bill will provide that a client of a solicitor must make a request of the solicitor for an itemised statement of account within three months of either becoming liable to pay or having paid the solicitor's costs and disbursements. This period of time may be extended by the Registrar of the Supreme Court. The Bill will also provide for a definition of the expression "itemised statement" which is intended to make it clear that what must be provided to a client is a detailed account, signed by the solicitor, of the work done and the costs and disbursements relating to that work.
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . .