Solicitors Act 1974

1974 c.47

An Act to consolidate the Solicitors Acts 1957 to 1974 and certain other enactments relating to solicitors.

[31st July 1974]I1 C1 C2 C3 C4 C5

Annotations:

Commencement Information

Act not in force at Royal Assent see s. 90(2); Act wholly in force 1.5.1975

Modifications etc. (not altering text)

Act excluded by S.I. 1978/1910, art. 18(2)

Act extended by Trustee Savings Banks Act 1985 (c. 58, SIF 110), ss. 3(9), 7(2), Sch. 1 para. 11(2)(b)

By Criminal Justice Act 1991 (c. 53, SIF 39:1), s. 101(1), Sch. 12 para. 23; S.I. 1991/2208, art. 2(1), Sch. 1 it is provided (14.10.1991) that in relation to any time before the commencement of s. 70 of that 1991 Act (which came into force on 1.10.1992 by S.I. 1992/333, art. 2(2), Sch. 2) references in any enactment amended by that 1991 Act, to youth courts shall be construed as references to juvenile courts.

Act: functions of the Lord Chancellor transferred to the Secretary of State, and all property, rights and liabilities to which the Lord Chancellor is entitled or subject in connection with any such function transferred to the Secretary of State for Constitutional Affairs (19.8.2003) by The Secretary of State for Constitutional Affairs Order 2003 (S.I. 2003/1887), arts. 4, 5 {Sch. 1} (with art. 6)

Act: for the words "Supreme Court Act 1981" wherever they occur there is substituted (prosp.) the words "Senior Courts Act 1981" by virtue of Constitutional Reform Act 2005 (c. 4), ss. 59, 148(1), Sch. 11 para. 1(2) [Editorial Note: this amendment will be carried through into the text of the Act at the same time as any other effects on the Act for the year in which the relevant commencement order (or first such order) is made]

Part I Right to Practise as Solicitor

Qualifications and training

1 Qualifications for practising as solicitor.

No person shall be qualified to act as a solicitor unless—

a

he has been admitted as a solicitor, and

b

ii

any education or training to be undergone by persons who have been admitted as solicitors;

iii

the examinations or other tests to be undergone by persons seeking admission as solicitors or who have been admitted;

iv

the qualifications and reciprocal duties and responsibilities of persons undertaking to give education or training for the purposes of the regulations or undergoing such education or training; and

c

of an order under section 47(2)(h) for the restoration of a person’s name to the roll,

and on payment to the Society of such fee F9. . . as the Council may from time to time determine, the Society shall enter the name of that person on the roll.

8 Removal or restoration of name at solicitor’s request.

1

The Society, on the application of a solicitor, may remove his name from the roll.

2

The Society, on the application of a former solicitor whose name is not on the roll because it has been removed from it, may enter his name on the roll, on payment to the Society of such fee F10. . . as the Council may from time to time determine.

F112A

Subsection (2) does not apply to a former solicitor with respect to whom a direction has been given under section 47(2)(g).

3

The power to enter a name on the roll conferred on the Society by subsection (2) includes power to enter the name of a person whose name was removed from the roll before the coming into force of section 5 of the M2Solicitors (Amendment) Act 1974.

F124

An appeal from any decision of the Society under subsection (2) shall lie to the Master of the Rolls.

5

The Master of the Rolls may make regulations about appeals to him under this section.

Practising certificates

9 Applications for practising certificates.

1

On receipt of an application for a practising certificate, the Society shall cause to be entered in a register kept for that purpose the applicant’s full name, his place or places of business and the date of his admission.

2

The register may be kept by means of a computer.

3

If the register is kept by means of a computer, the Society shall make any entry available for inspection in legible form during office hours, without payment, by any person who applies to inspect it.

4

If the register is not kept by means of a computer, any person may inspect it during office hours without payment.

5

If in, or in relation to, an application for a practising certificate or a notice under section 84(1) any person makes any false statement material to the application or notice, a complaint in respect of that statement may be made to the Tribunal by or on behalf of the Society.

10Issue of practising certificates.

1

Subject to sections 11 and 12, the Society shall issue a practising certificate to a person who applies for one, if it is satisfied, within 21 days of receipt of his application,—

a

that his name is on the roll; and

b

that he is not suspended from practice; and

c

that his application complies with any regulations under section 28; and

d

that he is complying with such training regulations (if any) as apply to him; and

e

that he is complying with any indemnity rules or is exempt from them.

2

At any time when regulations under section 28 specify a training condition or training conditions, any practising certificate issued to an applicant by the Society shall be issued subject to that condition or one of those conditions if it appears to the Society that training regulations will apply to him at the end of 21 days from the Society’s receipt of his application.

3

At any time when regulations under section 28 specify an indemnity condition or indemnity conditions, any practising certificate issued to an applicant by the Society shall be issued subject to that condition or one of those conditions if it appears to the Society that he will be exempt from indemnity rules at the end of 21 days from the Society’s receipt of his application.

C810AF19Register of holders of practising certificates

1

The Society must keep a register of all solicitors who hold practising certificates.

2

The register must contain—

a

the full name of each solicitor who holds a practising certificate,

b

in relation to each solicitor who holds a practising certificate, a statement as to whether there is in force a sole solicitor endorsement, and

c

such other information as may be specified in regulations under section 28(1)(d).

11 Fees payable on issue of practising certificates.

1

Subject to subsection (2), there shall be paid to the Society in respect of each practising certificate to be issued by it, before the certificate is issued, such fee as the Master of the Rolls, with the concurrence of the Lord Chancellor and the Lord Chief Justice, may from time to time by order determine.

F1292

An order under subsection (1) may specify reduced fees for practising certificates in such circumstances as may be so specified.

F1292A

Subsection (2B) applies where an order under subsection (1) specifies a reduced fee in the case of a solicitor whose income, from his practice as a solicitor, is, during such period as may be so specified, less than an amount so specified.

F1292B

The question whether, for the purposes of any such order, the income of a solicitor during the specified period falls below the specified amount shall be determined in accordance with regulations made by the Master of the Rolls with the concurrence of the Lord Chancellor and the Lord Chief Justice.

C1233

All fees received by the Society under subsection (1) shall be applied in such manner as the Society may think fit for the purposes of the Society, including facilitating the acquisition of legal knowledge.

4

The Society shall submit annually to the judges mentioned in subsection (1) an account of all such fees and of their application and shall cause a copy of the account to be deposited at the Society’s hall for inspection by any solicitor.

that he is applying for the first time; or

b

that he has not held a practising certificate free from conditions since the date of his admission;

and, in a case falling within paragraph (b), the certificate shall not be made subject to any conditions binding on the applicant in respect of any period more than three years after the date on which the first practising certificate issued to him had effect.

7

Where a solicitor applies for a practising certificate in a case where this section has effect by reason only of any such circumstances as are mentioned in paragraph (h), (k) or (l) of subsection (1) and an appeal has been made to the appropriate court against the order or judgment in question, the Society shall not refuse the application before the determination of that appeal, unless in the opinion of the Society the proceedings on that appeal have been unduly protracted by the appellant or are unlikely to be successful.

12AF13 Additional fee payable by certain solicitors on applying for practising certificates.

1

Where a solicitor applies for a practising certificate at a time when section 12 has effect in relation to him by reason of the circumstances mentioned in section 12(1)(ee), he shall pay an additional fee to the Society when making his application.

direct the Society to issue a certificate to the applicant free from conditions; or

c

if regulations under section 28 specify a number of training conditions or indemnity conditions, direct the Society to issue a certificate to the applicant subject to a training condition or, as the case may be, an indemnity condition, different from that subject to which it was originally issued.

affirm the decision of the Society,

b

direct the Society to grant a sole solicitor endorsement,

c

direct that the applicant's practising certificate is to have effect subject to such conditions (if any) as the High Court thinks fit, or

d

make such other order as the High Court thinks fit.

9

In relation to an appeal under this section the High Court may make such order as it thinks fit as to payment of costs.

10

The decision of the High Court on an appeal under this section shall be final.

C1013ZBFee payable on making of sole solicitor endorsement

1

Before a sole solicitor endorsement is granted under section 13ZA, there must be paid to the Society in respect of the endorsement a fee of such amount as the Society may from time to time determine.

2

Different fees may be specified for different categories of applicant and in different circumstances.

3

If a fee payable under this section would not otherwise be a practising fee for the purposes of section 51 of the Legal Services Act 2007, it is to be treated for the purposes of that section as such a fee.

4

In subsection (3) “practising fee” has the meaning given by that section.

13AF14 Imposition of conditions while practising certificates are in force.

1

Subject to the provisions of this section, the Society may in the case of any solicitor direct that his practising certificate for the time being in force (his “current certificate”) shall have effect subject to such conditions as the Society may think fit.

2

The power to give a direction under this section in the case of any solicitor shall be exercisable by the Society at any time during the period for which his current certificate is in force if—

a

in the event of an application for a practising certificate being made by him at that time, section 12 would have effect in relation to him by reason of any such circumstances as are mentioned in paragraph (d), (e), (ee), (k) or (l) of subsection (1) of that section; or

b

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F139

c

he has entered into a composition with his creditors or a deed of arrangement for the benefit of his creditors F140; or

F140d

he has been charged with, or convicted of—

i

an offence involving dishonesty or deception; or

ii

a serious arrestable offence (as defined by section 116 of the Police and Criminal Evidence Act M231984)..

3

Subject to subsection (4), the conditions specified in a direction under this section shall have effect as from the time when the solicitor concerned is notified of the Society’s decision to give the direction.

4

The Society may, if it thinks fit, provide in a direction under this section that the conditions specified in the direction shall not have effect pending the hearing and determination of any appeal under subsection (6).

5

Where there is pending against any judgment or order an appeal by a solicitor which, if successful, would result in subsection (2) no longer being applicable to him, the Society shall not give a direction under this section in his case so long as the appeal is pending, unless in the opinion of the Society the proceedings on that appeal have been unduly protracted by him or are unlikely to be successful.

F141This subsection does not apply to the exercise of the Society’s powers under this section by virtue of subsection (2)(d).

6

A solicitor in whose case a direction is given under this section may appeal to the Master of the Rolls against the decision of the Society within one month of being notified of it.

7

On an appeal under subsection (6), the Master of the Rolls may—

a

affirm the decision of the Society; or

b

direct that the appellant’s current certificate shall have effect subject to such conditions as the Master of the Rolls thinks fit; or

by order revoke the direction; or

d

make such other order as he thinks fit.

8

Subsection (4A) of section 12 shall apply for the purposes of subsection (1) of this section as it applies for the purposes of subsection (4)(b) of that section.

C1113BF15 Suspension of practising certificates where solicitors convicted of fraud or serious crime.

1

Where—

a

a solicitor has been convicted of–

i

an offence involving dishonesty or deception; or

ii

a serious arrestable offence (as defined by section 116 of the Police and Criminal Evidence Act 1984); and

b

the Society has made an application to the Tribunal under section 47 with respect to him,

the Society may direct that any practising certificate of his which is for the time being in force be suspended.

2

Any such suspension shall be for such period, not exceeding six months, as the Society shall specify in the direction.

3

If, before the specified period expires–

a

the Tribunal determines the Society’s application;

b

the conviction is quashed or set aside; or

c

the Society withdraws its application to the Tribunal,

the suspension shall cease to have effect.

4

Where the specified period comes to an end without any of the events mentioned in subsection (3) having occurred, the Society may direct that the suspension be continued for such period, not exceeding six months, as it shall specify in the direction.

5

A suspension under this section may only be extended once under subsection (4).

6

Nothing in this section is to be taken as in any way affecting the Tribunal’s power to suspend a solicitor from practice.

7

A solicitor in whose case a direction is given under subsection (1) or (4) may appeal to the Master of the Rolls against the direction within one month of being notified of it.

8

In an appeal under subsection (7), the Master of the Rolls may–

a

affirm the suspension;

b

direct that the appellant’s certificate shall not be suspended but shall have effect subject to such conditions as the Master of the Rolls thinks fit;

c

by order revoke the direction; or

d

make such other order as he thinks fit.

Where any practising certificate expires in the circumstances mentioned in subsection (6)(a), (b) or (d) the date of its expiry shall be entered in the register kept under section 9.

15 Suspension of practising certificates.

C1251

The making by the Tribunal or by the court of an order suspending a solicitor from practice shall operate, and an adjudication in bankruptcy of a solicitor shall operate immediately, to suspend any practising certificate of that solicitor for the time being in force.

F16 C1251A

Where the power conferred by paragraph 6(1) or 9(1) of Schedule 1 has been exercised in relation to a solicitor by virtue of paragraph 1(1)(a)(i), (c) (so far as it applies to rules made by virtue of section 32) or (e) of that Schedule, the exercise of that power shall operate immediately to suspend any practising certificate of that solicitor for the time being in force.

C1251B

Subsection (1A) does not apply if, at the time when the power referred to there is exercised, the Society directs that subsection (1A) is not to apply in relation to the solicitor concerned.

C1251C

If, at the time when the power referred to in subsection (1A) is exercised, the Society gives a direction to that effect, the solicitor concerned may continue to act in relation to any matter specified in the direction as if his practising certificate had not been suspended by virtue of subsection (1A), but subject to such conditions (if any) as the Society sees fit to impose.

2

For the purposes of this Act, a practising certificate shall be deemed not to be in force at any time while it is suspended.

C12616 Duration of suspension of practising certificates.

1

Subject to the provisions of this section, the suspension of a practising certificate shall continue until the certificate expires.

F171

Where, on the replacement date for a practising certificate, the certificate is suspended it shall expire on that date.

2

The suspension of a practising certificate by virtue of section 15(1) by reason of an adjudication in bankrupty shall terminate if the adjudication is annulled and an office copy of the order annulling the adjudication is served on the Society.

3

Where a solicitor’s practising certificate is suspended—

a

by an order under section 13(4); or

b

by virtue of section 15(1) by reason of his adjudication in bankruptcy; or

c

by virtue of section 15(1) by reason of his suspension from practice and the period of his suspension from practice expires before the F143replacement dateof the certificate,

F18d

by virtue of section 15(1A)

the solicitor may at any time before the certificate expires (and, in the case of adjudication in bankruptcy, while the adjudication remains unannulled) apply to the Society to terminate the suspension.

4

On an application under subsection (3), the Society may in its discretion—

a

by order terminate the suspension either unconditionally or subject to such conditions as the Society may think fit; or

b

refuse the application.

5

If on an application by a solicitor under subsection (3) the Society refuses the application or terminates the suspension subject to conditions, the solicitor may appeal against the decision of the Society to the Master of the Rolls, who may—

a

affirm the decision; or

b

terminate the suspension either unconditionally or subject to such conditions as he may think fit.

C1217 Publicity in relation to suspension of practising certificates.

3

Section 16(4) to (7) apply in relation to an application under subsection (2) as they apply in relation to an application under section 16(3).

4

Where a solicitor's sole solicitor endorsement is suspended by an order under section 13(4) or by virtue of section 17A(1), the Society shall forthwith cause notice of that suspension to be published and a note of it to be entered against the name of the solicitor on the roll.

5

Where any suspension is terminated by virtue of section 16(4) or (5), as applied by subsection (3) of this section, the Society shall forthwith cause a note of that termination to be entered against the name of the solicitor on the roll and, if so requested in writing by the solicitor, a notice of it to be published.

18 Evidence as to holding of practising certificates.

1

Any list purporting to be published by authority of the Society and to contain the names of solicitors who have obtained practising certificates for the current year before 2nd January in that year shall, until the contrary is proved, be evidence that the persons so named as solicitors holding practising certificates for the current year are solicitors holding such certificates.

2

The absence from any such list of the name of any person shall, until the contrary is proved, be evidence that that person is not qualified to practise as a solicitor under a certificate for the current year, but in the case of any such person an extract from the roll certified as correct by the Society shall be evidence of the facts appearing in the extract.

Rights and privileges of solicitors

19 Rights of practising and rights of audience.

1

Subject to subsection (2), every person qualified in accordance with section 1 may practise as a solicitor—

a

in the Supreme Court;

b

in any county court;

c

in all courts and before all persons having jurisdiction in ecclesiastical matters; and

d

in all matters relating to applications to obtain notarial faculties,

and shall be entitled to all the rights and privileges, and may exercise and perform all the powers and duties, formerly appertaining to the office or profession of a proctor in the provincial, diocesan or other jurisdictions in England and Wales.

2

Nothing in subsection (1) shall affect the provisions of section F14494 of the Supreme Court Act 1981, F145section 13 or 60 of the County Courts Act 1984or any other enactment in force at the commencement of this Act which restricts the right of any solicitor to practise as such in any court.

3

Nothing in subsection (1) or (2) shall prejudice or affect any right of practising or being heard in, before or by any court, tribunal or other body which immediately before the commencement of this Act was enjoyed by virtue of any enactment, rule, order or regulation or by custom or otherwise by persons qualified to act as solicitors.

Unqualified persons acting as solicitors

C12720 Unqualified person not to act as solicitor.

C128 C1291

No unqualified person shall—

a

act as a solicitor, or as such issue any writ or process, or commence, prosecute or defend any action, suit or other proceeding, in his own name or in the name of any other person, in any court of civil or criminal jurisdiction; or

b

act as a solicitor in any cause or matter, civil or criminal, to be heard or determined before any justice or justices or any commissioners of Her Majesty’s revenue.

2

Any person who contravenes the provisions of subsection (1)—

a

shall be guilty of an offence and liable on conviction on indictment to imprisonment for not more than two years or to a fine or to both; and

b

shall be guilty of contempt of the court in which the action, suit, cause, matter or proceeding in relation to which he so acts is brought or taken and may be punished accordingly; . . . F146

c

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F146

C1521 Unqualified person not to pretend to be a solicitor.

Any unqualified person who wilfully pretends to be, or takes or uses any name, title, addition or description implying that he is, qualified or recognised by law as qualified to act as a solicitor shall be guilty of an offence and liable on summary conviction to F22a fine not exceeding the fourth level on the standard scale

C131 C13222 Unqualified person not to prepare certain instruments. C130

C133 C1341

Subject to F147subsections (2) and (2A), any unqualified person who directly or indirectly—

a

draws or prepares any instrument of transfer or charge for the purposes of the M24Land Registration Act 1925, or makes any application or lodges any document for registration under that Act at the registry, or

b

draws or prepares any other instrument relating to real or personal estate, or any legal proceeding,

shall, unless he proves that the act was not done for or in expectation of any fee, gain or reward, be guilty of an offence and liable on summary conviction to a fine not exceeding F148level 3 on the standard scale.

2

Subsection (1) does not apply to—

a

a barrister or duly certificated notary public;

F149aa

a registered trade mark agent drawing or preparing any instrument relating to any design, F150or trade mark;

ab

a registered patent agent drawing or preparing any instrument relating to any invention, design technical information, F150or trade mark.

F151ac

any accredited person drawing or preparing any instrument—

i

which creates, or which he believes on reasonable grounds will create, a farm business tenancy (within the meaning of the Agricultural Tenancies Act 1995), or

ii

which relates to an existing tenancy which is, or which he believes on reasonable grounds to be, such a tenancy;

b

any public officer drawing or preparing instruments or applications in the course of his duty;

c

any person employed merely to engross any instrument, application or proceeding;

and paragraph (b) of that subsection does not apply to a duly certificated solicitor in Scotland.

F1522A

Subsection (1) also does not apply to any act done by a person at the direction and under the supervision of another person if—

a

that other person was at the time his employer, a partner of his employer or a fellow employee; and

b

the act could have been done by that other person for or in expectation of any fee, gain or reward without committing an offence under this section.

3

For the purposes of subsection (1)(b), “instrument”F153includes a contract for the sale or other disposition of land (except a contract to grant such a lease as is referred to in section 54(2) of the M25Law of Property Act 1925 (short leases)), butdoes not include—

a

a will or other testamentary instrument;

b

an agreement not F154intended to be executed as a deedF155other than a contract that is included by virtue of the preceding provisions of this subsection;

c

a letter or power of attorney; or

d

a transfer of stock containing no trust or limitation thereof.

F1563A

In subsection (2)—

F157“accredited person” means any person who is—
1. a
  a Full Member of the Central Association of Agricultural Valuers,
2. b
  an Associate or Fellow of the Incorporated Society of Valuers and Auctioneers, or
3. c
  an Associate or Fellow of the Royal Institution of Chartered Surveyors;
“registered trade mark agent” has the same meaning as in F158the Trade Marks Act 1994; and
“registered patent agent” has the same meaning as in section 275(1) F159of the Copyright, Designs and Patents Act 1988.

F1604

A local weights and measures authority may institute proceedings for an offence under this section.

intentionally fails to comply with any requirement properly imposed on him by an authorised officer in the exercise of any such power;

c

fails, without reasonable excuse, to give to an authorised officer any assistance or information which he may reasonably require of him for the purpose of exercising any such power; or

d

in giving to an authorised officer any information which he has been required to give to an authorised officer exercising any such power, makes any statement which he knows to be false or misleading in a material particular,

he shall be guilty of an offence.

6

A person guilty of an offence under this section shall be liable on summary conviction to a fine not exceeding level 3 on the standard scale.

7

Nothing in this section shall be taken to require any person to answer any question put to him by an authorised officer, or to give any information to an authorised officer, if to do so might incriminate him.

8

In this section—

“authorised officer” means any officer of a local weights and measures authority who is authorised by the authority to exercise the powers given by subsection (1); and
“document” includes information recorded in any form.

9

In relation to information recorded otherwise than in legible form, references in this section to its production include references to producing a copy of the information in legible form.

F162 C135 C136 C13723 Unqualified person not to prepare papers for probate etc.

Part II Professional Practice, Conduct and Discipline of Solicitors and Clerks

Practice rules

31 Rules as to professional practice, conduct and discipline. C144

1

Without prejudice to any other provision of this Part the Council may, if they think fit, make rules, with the concurrence of the Master of the Rolls, for regulating in respect of any matter the professional practice, conduct and discipline of solicitors F25and for empowering the Society to take such action as may be appropriate to enable the Society to ascertain whether or not the provisions of rules made, or of any code or guidance issued, by the Council are being complied with.

2

If any solicitor fails to comply with rules made under this section, any person may make a complaint in respect of that failure to the Tribunal.

F1673

Where, under Schedule 4 to the Courts and Legal Services Act 1990 (approval of certain rules in connection with the grant of rights of audience or rights to conduct litigation), the F168Lord Chancellor approves any rule such as is mentioned in subsection (1), the requirement of the concurrence of the Master of the Rolls imposed by that subsection shall not apply.

F1674

Subsection (3) shall have effect whether or not the rule required to be approved under Schedule 4 to the Act of 1990.

Accounts etc.

C19 C14532 Accounts rules and trust accounts rules.

1

The Council shall make rules, with the concurrence of the Master of the Rolls—

a

as to the opening and keeping by solicitors of accounts at banks F169or with building societies for clients’ money; and

b

as to the keeping by solicitors of accounts containing particulars and information as to money received or held or paid by them for or on account of their clients; and

c

empowering the Council to take such action as may be necessary to enable them to ascertain whether or not the rules are being complied with;

and the rules may specify the location of the . . . F170branches at which the accounts are to be kept.

2

The Council shall also make rules, with the concurrence of the Master of the Rolls—

a

as to the opening and keeping by solicitors of accounts at banks F169or with building societies for money comprised in controlled trusts; and

b

as to the keeping by solicitors of accounts containing particulars and information as to money received or held or paid by them for or on account of any such trust; and

c

empowering the Council to take such action as may be necessary to enable them to ascertain whether or not the rules are being complied with;

and the rules may specify the location of the F170. . . branches at which the accounts are to be kept.

3

If any solicitor fails to comply with rules made under this section, any person may make a complaint in respect of that failure to the Tribunal.

C204

The Council shall be at liberty to disclose a report on or information about a solicitor’s accounts obtained in the exercise of powers conferred by rules made under subsection (1) or (2) F26. . . for use in investigating the possible commission of an offence by the solicitor and F26. . . for use in connection with any prosecution of the solicitor consequent on the investigation.

5

Rules under this section may specify circumstances in which solicitors or any class of solicitors are exempt from the rules by virtue of their office or employment.

F1716

For the purposes of this section and section 33 references to clients’ money and money of a kind mentioned in subsection (1)(b) of this section or (1)(a) of section 33 include references to money held by a solicitor as a stakeholder (whether or not paid by a client of his).

C2133 Interest on clients’ money.

1

Rules made under section 32 shall make provision for requiring a solicitor, in such cases as may be prescribed by the rules, either—

a

to keep on deposit in a separate account at a bank F172or with a building society for the benefit of the client money received for or on account of a client; or

b

to make good to the client out of the solicitor’s own money a sum equivalent to the interest which would have accrued if the money so received had been so kept on deposit.

2

The cases in which a solicitor may be required by the rules to act as mentioned in subsection (1) may be defined, among other things, by reference to the amount of any sum received or the period for which it is or is likely to be retained or both; and the rules may include provision for enabling a client (without prejudice to any other remedy) to require that any question arising under the rules in relation to the client’s money be referred to and determined by the Society.

3

Except as provided by the rules, a solicitor shall not be liable by virtue of the relation between solicitor and client to account to any client for interest received by the solicitor on money deposited at a bank F172or with a building society being money received or held for or on account of his clients generally.

4

Nothing in this section or in the rules shall—

a

affect any arrangement in writing, whenever made, between a solicitor and his client as to the application of the client’s money or interest on it; F173. . .

F173b

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F27 C14833A Inspection of practice bank accounts etc.

1

The Council may make rules, with the concurrence of the Master of the Rolls, empowering the Council to require a solicitor to produce documents relating to any account kept by him at a bank or with a building society—

a

in connection with his practice; or

b

in connection with any trust of which he is or formerly was a trustee,

for inspection by a person appointed by the Council pursuant to the rules.

C1492

The Council shall be at liberty to disclose information obtained in exercise of the powers conferred by rules made under subsection (1) for use in investigating the possible commission of an offence by the solicitor and for use in connection with any prosecution of the solicitor consequent on the investigation.

nothing in this section shall apply to him unless he takes out a practising certificate;

b

an accountant’s report shall in no case deal with books, accounts or documents kept by him in the course of employment by virtue of which he is exempt from those rules; and

c

no examination shall be made of any such books, accounts and documents under any rules made under this section.

F75Sole solicitors

Annotations:

Amendments (Textual)

F75

Ss. 34A, 34B and cross-heading inserted (31.3.2009) by Legal Services Act 2007 (c. 29), ss. 177, 211, Sch. 16 para. 36 (with ss. 29, 192, 193); S.I. 2009/503, art. 2(b)(i)

C2234AEmployees of solicitors

1

Rules made by the Society may provide for any rules made under section 31, 32, 33A or 34 to have effect in relation to employees of solicitors with such additions, omissions or other modifications as appear to the Society to be necessary or expedient.

2

If any employee of a solicitor fails to comply with rules made under section 31 or 32, as they have effect in relation to the employee by virtue of subsection (1), any person may make a complaint in respect of that failure to the Tribunal.

3

If any employee of a solicitor fails to comply with rules made under section 34, as they have effect in relation to the employee by virtue of subsection (1), a complaint in respect of that failure may be made to the Tribunal by or on behalf of the Society.

Where rules made under section 34 have effect in relation to employees of solicitors by virtue of section 34A(1), section 34(9) and (10) apply in relation to such an employee as they apply in relation to a solicitor.

Intervention in solicitor’s practice, Compensation Fund and professional indemnity

b

that the borrower has failed to repay the whole or part of the loan in accordance with the terms and conditions of the loan.

C1526

The extent to which the Society is subrogated under subsection (4) is—

a

for a grant made by way of loan, the amount in relation to which a condition specified in subsection (5) is satisfied, and

b

for any other grant, the amount of the grant.

C1527

Where the Society refuses a grant, the Council shall state the reasons for the refusal.

8

The Council may make rules about the Compensation Fund and the procedure for making grants from it.

C2536AF28Compensation funds

1

Compensation rules may require or authorise the Society to establish or maintain a fund or funds (“compensation funds”) for the purpose of making grants in respect of compensation claims.

C262

Compensation rules may require solicitors, or solicitors of a description prescribed in the rules, to make contributions to compensation funds of such amounts, at such times and in such circumstances, as may be prescribed in or determined in accordance with the rules.

C263

Any amount payable by virtue of such a requirement may be recovered as a debt due to the Society.

4

F30

Ss. 37A and 44A: by Courts and Legal Services Act 1990 (c. 41, SIF 76:1), ss. 93(1)(2), 125(6) (with Sch. 19 para. 14); S.I. 1991/608, art. 2, Sch., it is provided (1.4.1991) that s. 44A shall cease to have effect and that in its place shall be inserted s. 37A and cross-heading

F29 C2837A Redress for inadequate professional services.

Schedule 1A shall have effect with respect to the provision by solicitors of services which are not of the quality which it is reasonable to expect of them.

who seeks or accepts employment by a solicitor in connection with that solicitor’s practice without previously informing him of the direction,

shall be guilty of an offence and liable on summary conviction to a fine not exceeding level three on the standard scale.

2

Notwithstanding anything in F37the M4Magistrates’ Courts Act 1980, proceedings under this section may be commenced at any time before the expiration of six months from the first discovery of the offence by the prosecutor, but no such proceedings shall be commenced except by, or with the consent of, the Attorney General.

C15543 Control of F38solicitors’ employees and consultants.

1

Where a person who is or was F179employed or remunerated by a solicitor in connection with his practice but is not himself a solicitor—

a

has been convicted of a criminal offence which discloses such dishonesty that in the opinion of the Society it would be undesirable for him to be employed F180or remunerated by a solicitor in connection with his practice; or

b

and where in the opinion of the Tribunal no prima facie case for quashing or varying the order is shown, the Tribunal may order its confirmation without hearing the applicant.

4

The Tribunal, on the hearing of any application under this section, may make an order as to the payment of costs by any party to the application.

5

Orders made under F40subsection (2) by the Society, or made, varied or confirmed under this section by the Tribunal and filed with the Society, may be inspected by any solicitor during office hours without payment but shall not be open to the inspection of any person other than a solicitor.

F416

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7

For the purposes of this section an order F42discharging a person absolutely or conditionally in respect of an offence shall, notwithstanding anything in section 14 of the Powers of Criminal Courts (Sentencing) Act 2000, be deemed to be a conviction of the offence for which the order was made.

C15644 Offences in connection with orders under section 43(2).

C341

Any person who, while there is in force in respect of him an order under section 43(2), seeks or accepts any employment by or remuneration from a solicitor in connection with that solicitor’s practice without previously informing him of that order shall be guilty of an offence and liable on summary conviction to a fine not exceeding F187level 3 on the standard scale.

2

Where F43an order under section 43(2) is in force in respect of a person then, if any solicitor knowingly acts in contravention of that order or of any conditions subject to which permission for the employment of that person has been granted under it, a complaint in respect of that contravention may be made to the Tribunal by or on behalf of the Society.

C353

Any document purporting to be an order under section 43(2) and to be duly signed in accordance with section 48(1) shall be received in evidence in any proceedings under this section and be deemed to be such an order without further proof unless the contrary is shown.

4

Notwithstanding anything in F44the M5Magistrates’ Courts Act 1980, proceedings under subsection (1) may be commenced at any time before the expiration of six months from the first discovery of the offence by the prosecutor, but no such proceedings shall be commenced, except with the consent of the Director of Public Prosecutions, by any person other than the Society or a person acting on behalf of the Society.

F46 Imposition by Council of disciplinary sanctions for inadequate professional services

Annotations:

Amendments (Textual)

F46

S. 44A added by Administration of Justice Act 1985 (c. 61, SIF 34), ss. 1, 69(5), Sch. 9 para. 1

F4544A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F47 Examination of files

Annotations:

Amendments (Textual)

F47

paragraph 9 of that Schedule has effect as if—

i

in sub-paragraph (3) for “having” to “sub-paragraph (1)” there were substituted “ refuses, neglects or otherwise fails to comply with a requirement under section 44BA(1) ”, and

ii

in sub-paragraph (4) for “produce” (in the first place) to the end there were substituted “ provide an explanation of any information provided or document produced pursuant to a notice under section 44B (or a representative of such a person) to attend at a time and place specified in the order to provide an explanation of any information so provided or document so produced. ”, and

b

the reference to the solicitor or his personal representative in paragraph 13 of that Schedule is to be construed as a reference to the person to whom the notice was given under this section.

the reference to the solicitor or his personal representative in paragraph 13 of that Schedule is to be construed as a reference to the person to whom the notice was given under this section.

Annotations:

Amendments (Textual)

F51

S. 44C and cross-heading inserted (27.9.1999) by 1999 c. 22, s. 48, Sch. 7 para. 13 (with Sch. 14 para. 7(2)); S.I. 1999/2657, art. 2(a)

F49 C4344C Payment of costs of investigations.

Where the Society investigates possible professional misconduct by a solicitor, or a failure or apprehended failure by a solicitor to comply with any requirement imposed by or by virtue of this Act or any rules made by the Council, the Council may direct him to pay to the Council an amount which—

a

is calculated by the Council as the cost to the Society of investigating and dealing with the matter; or

b

in the opinion of the Council represents a reasonable contribution towards that cost.

F5045. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F76Disciplinary powers of the Society

Annotations:

Amendments (Textual)

F76

Ss. 44D, 44E and cross-heading inserted (31.3.2009) by Legal Services Act 2007 (c. 29), ss. 177, 211, Sch. 16 para. 46 (with ss. 29, 192, 193); S.I. 2009/503, art. 2(b)(i) (subject to art. 4)

the decision to publish the details,

may be made under section 44E, or

b

if such an appeal has been made, until such time as it is determined or withdrawn.

7

The Society must make rules—

a

prescribing the circumstances in which the Society may decide to take action under subsection (2)(a) or (b);

b

about the practice and procedure to be followed by the Society in relation to such action;

c

governing the publication under subsection (3) of details of action taken under subsection (2)(a) or (b);

and the Society may make such other rules in connection with the exercise of its powers under this section as it considers appropriate.

8

Before making rules under subsection (7), the Society must consult the Tribunal.

9

A penalty payable under this section may be recovered as a debt due to the Society, and is to be forfeited to Her Majesty.

10

The Lord Chancellor may, by order, amend paragraph (b) of subsection (2) so as to substitute for the amount for the time being specified in that paragraph such other amount as may be specified in the order.

11

Before making an order under subsection (10), the Lord Chancellor must consult the Society.

12

An order under subsection (10) is to be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament.

13

This section is without prejudice to any power conferred on the Society or any other person to make an application or complaint to the Tribunal.

C4644EAppeals against disciplinary action under section 44D

The Tribunal must submit to the Society in respect of each year a budget for the year approved by the Legal Services Board.

2

A budget for a year is a statement of the amount of money which the Tribunal estimates is required to enable it to meet all of its expenditure in that year (having regard to any amounts received but not spent in previous years).

3

Before approving a statement for the purposes of subsection (1) the Legal Services Board must consult the Society.

4

The budget for a year must be submitted to the Society under subsection (1) no later than the date in the preceding year specified by the Society for the purposes of this subsection.

An order which has been filed shall be treated, for the purpose of enforcement, as if it had been made by the High Court.

C16449 Appeals from Tribunal.

1

An appeal from the Tribunal shall lie—

a

in the case of an order on an application under section 43(3) or F19247(1)(d), (e) or (f)or the refusal of any such application, to the Master of the Rolls;

b

in any other case, to the High Court.

2

Subject to subsection (3), an appeal shall lie at the instance of the applicant or complainant or of the person with respect to whom the application or complaint was made.

3

An appeal against an order under section F6943(3A) shall lie only at the instance of the person with respect to whom the F70order was made.

4

The High Court and the Master of the Rolls shall have power to make such order on an appeal under this section as they may think fit.

5

Subject to any rules of court, on an appeal against an order made by virtue of rules under section 46(10)(c) without hearing the applicant or complainant, the court—

a

shall not be obliged to hear the appellant, and

b

may remit the matter to the Tribunal instead of dismissing the appeal,

6

Any decision of the Master of the Rolls on an appeal under this section and any decision of the High Court on an appeal against an order under section F19343(3A) shall be final.

7

The Master of the Rolls may make regulations about appeals to him under this section.

49AF72Appeals to the Tribunal instead of the High Court

1

The Society may, with the approval of the Tribunal, make rules which provide that in such circumstances as may be prescribed by the rules an appeal under any of the provisions listed in subsection (2) lies to the Tribunal and not to the High Court.

2

Those provisions are—

a

section 8(4);

b

section 13A(6);

c

section 16(5);

d

section 28(3D);

e

section 41(3);

f

paragraph 14 of Schedule 14 to the Courts and Legal Services Act 1990 (foreign lawyers: appeals against conditions or refusals).

3

Any decision of the Tribunal on an appeal by virtue of rules made under this section shall be final.

Disciplinary proceedings before Supreme Court

50 Jurisdiction of Supreme Court over solicitors.

1

Any person duly admitted as a solicitor shall be an officer of the Supreme Court; F73. . .

C1652

Subject to the provisions of this Act, the High Court, the Crown Court and the Court of Appeal respectively, or any division or judge of those courts, may exercise the same jurisdiction in respect of solicitors as any one of the superior courts of law or equity from which the Supreme Court was constituted might have exercised immediately before the passing of the M7Supreme Court of Judicature Act 1873 in respect of any solicitor, attorney or proctor admitted to practise there.

F74 C1653

An appeal shall lie to the Court of Appeal from any order made against a solicitor by the High Court or the Crown Court in the exercise of its jurisdiction in respect of solicitors under subsection (2).

that a solicitor whom he has served for the whole or any part of the term of articled service required in his case by training regulations has neglected or omitted to take out a practising certificate; or

b

that the name of a solicitor whom he has served for any period has after the termination of that period been removed from or struck off the roll.

C5455 Applications to require solicitor to answer allegations.

For the avoidance of doubt it is hereby declared that an application by any person to require a solicitor to answer allegations contained in an affidavit, whether that application is made to the Tribunal or to the High Court, may be treated as an application to strike the name of that solicitor off the roll on the grounds of the matters alleged.

Part III Remuneration of Solicitors

C5757 Non–contentious business agreements.

1

Whether or not any order is in force under section 56, a solicitor and his client may, before or after or in the course of the transaction of any non–contentious business by the solicitor, make an agreement as to his remuneration in respect of that business.

2

The agreement may provide for the remuneration of the solicitor by a gross sum F77or by reference to an hourly rate, or by a commission or percentage, or by a salary, or otherwise, and it may be made on the terms that the amount of the remuneration stipulated for shall or shall not include all or any disbursements made by the solicitor in respect of searches, plans, travelling, stamps, fees or other matters.

3

The agreement shall be in writing and signed by the person to be bound by it or his agent in that behalf.

4

F78Subject to subsections (5) and (7), the agreement may be sued and recovered on or set aside in the like manner and on the like grounds as an agreement not relating to the remuneration of a solicitor.

5

If on any taxation of costs the agreement is relied on by the solicitor and objected to by the client as unfair or unreasonable, the taxing officer may enquire into the facts and certify them to the court, and if from that certificate it appears just to the court that the agreement should be set aside, or the amount payable under it reduced, the court may so order and may give such consequential directions as it thinks fit.

F796

Subsection (7) applies where the agreement provides for the remuneration of the solicitor to be by reference to an hourly rate.

7

If, on the taxation of any costs, the agreement is relied on by the solicitor and the client objects to the amount of the costs (but is not alleging that the agreement is unfair or unreasonable), the taxing officer may enquire into—

a

the number of hours worked by the solicitor; and

b

whether the number of hours worked by him was excessive.

C58 C5958 Remuneration of a solicitor who is a mortgagee.

1

Where a mortgage is made to a solicitor, either alone or jointly with any other person, he or the firm of which he is a member shall be entitled to recover from the mortgagor in respect of all business transacted and acts done by him or them in negotiating the loan, deducing and investigating the title to the property, and preparing and completing the mortgage, such usual costs as he or they would have been entitled to receive if the mortgage had been made to a person who was not a solicitor and that person had retained and employed him or them to transact that business and do those acts.

2

Where a mortgage has been made to, or has become vested by transfer or transmission in, a solicitor, either alone or jointly with any other person, and any business is transacted or acts are done by that solicitor or by the firm of which he is a member in relation to that mortgage or the security thereby created or the property thereby charged, he or they shall be entitled to recover from the person on whose behalf the business was transacted or the acts were done, and to charge against the security, such usual costs as he or they would have been entitled to receive if the mortgage had been made to and had remained vested in a person who was not a solicitor and that person had retained and employed him or them to transact that business and do those acts.

3

In this section “mortgage” includes any charge on any property for securing money or money’s worth.

Contentious business

C60 C6159 Contentious business agreements.

1

Subject to subsection (2), a solicitor may make an agreement in writing with his client as to his remuneration in respect of any contentious business done, or to be done, by him (in this Act referred to as a “contentious business agreement”) providing that he shall be remunerated by a gross sum F80or by reference to an hourly rate, or by a salary, or otherwise, and whether at a higher or lower rate than that at which he would otherwise have been entitled to be remunerated.

2

Nothing in this section or in sections 60 to 63 shall give validity to—

a

any purchase by a solicitor of the interest, or any part of the interest, of his client in any action, suit or other contentious proceeding; or

b

any agreement by which a solicitor retained or employed to prosecute any action, suit or other contentious proceeding, stipulates for payment only in the event of success in that action, suit or proceeding; or

c

any disposition, contract, settlement, conveyance, delivery, dealing or transfer which under the law relating to bankruptcy is invalid against a trustee or creditor in any bankruptcy or composition.

C62 C6360 Effect of contentious business agreements.

1

Subject to the provisions of this section and to sections 61 to 63, the costs of a solicitor in any case where a contentious business agreement has been made shall not be subject to taxation or F81(except in the case of an agreement which provides for the solicitor to be remunerated by reference to an hourly rate) to the provisions of section 69.

2

Subject to subsection (3), a contentious business agreement shall not affect the amount of, or any rights or remedies for the recovery of, any costs payable by the client to, or to the client by, any person other than the solicitor, and that person may, unless he has otherwise agreed, require any such costs to be taxed according to the rules for their taxation for the time being in force.

3

A client shall not be entitled to recover from any other person under an order for the payment of any costs to which a contentious business agreement relates more than the amount payable by him to his solicitor in respect of those costs under the agreement.

4

c

in any case, may make such order as to the costs of the application as it thinks fit.

3

If the business covered by a contentious business agreement (not being an agreement to which section 62 applies) is business done, or to be done, in any action, a client who is a party to the agreement may make application to a taxing officer of the court for the agreement to be examined.

4

3

If in such a case as is mentioned in subsection (1)(b) an order is made for the taxation of the amount due to the solicitor in respect of the business done under the agreement, the court shall direct the taxing officer to have regard to the circumstances under which the change of solicitor has taken place, and the taxing officer, unless he is of the opinion that there has been no default, negligence, improper delay or other conduct on the part of the solicitor affording the client reasonable ground for changing his solicitor, shall not allow to the solicitor the full amount of the remuneration agreed to be paid to him.

C6764 Form of bill of costs for contentious business.

1

Where the remuneration of a solicitor in respect of contentious business done by him is not the subject of a contentious business agreement, then, subject to subsections (2) to (4), the solicitor’s bill of costs may at the option of the solicitor be either a bill containing detailed items or a gross sum bill.

2

The party chargeable with a gross sum bill may at any time—

a

before he is served with a writ or other originating process for the recovery of costs included in the bill, and

b

before the expiration of three months from the date on which the bill was delivered to him,

require the solicitor to deliver, in lieu of that bill, a bill containing detailed items; and on such a requirement being made the gross sum bill shall be of no effect.

3

Where an action is commenced on a gross sum bill, the court shall, if so requested by the party chargeable with the bill before the expiration of one month from the service on that party of the writ or other originating process, order that the bill be taxed.

4

If a gross sum bill is taxed, whether under this section or otherwise, nothing in this section shall prejudice any rules of court with respect to taxation, and the solicitor shall furnish the taxing officer with such details of any of the costs covered by the bill as the taxing officer may require.

C6865 Security for costs and termination of retainer.

1

A solicitor may take security from his client for his costs, to be ascertained by taxation or otherwise, in respect of any contentious business to be done by him.

2

If a solicitor who has been retained by a client to conduct contentious business requests the client to make a payment of a sum of money, being a reasonable sum on account of the costs incurred or to be incurred in the conduct of that business and the client refuses or fails within a reasonable time to make that payment, the refusal or failure shall be deemed to be a good cause whereby the solicitor may, upon giving reasonable notice to the client, withdraw from the retainer.

C6966 Taxations with respect to contentious business.

Subject to the provisions of any rules of court, on every taxation of costs in respect of any contentious business, the taxing officer may—

a

allow interest at such rate and from such time as he thinks just on money disbursed by the solicitor for the client, and on money of the client in the hands of, and improperly retained by, the solicitor; and

b

in determining the remuneration of the solicitor, have regard to the skill, labour and responsibility involved in the business done by him.

Remuneration—general

C7067 Inclusion of disbursements in bill of costs.

A solicitor’s bill of costs may include costs payable in discharge of a liability properly incurred by him on behalf of the party to be charged with the bill (including counsel’s fees) notwithstanding that those costs have not been paid before the delivery of the bill to that party; but those costs—

a

shall be described in the bill as not then paid; and

b

if the bill is taxed, shall not be allowed by the taxing officer unless they are paid before the taxation is completed.

C71 C7268 Power of court to order solicitor to deliver bill, etc.

1

The jurisdiction of the High Court to make orders for the delivery by a solicitor of a bill of costs, and for the delivery up of, or otherwise in relation to, any documents in his possession, custody or power, is hereby declared to extend to cases in which no business has been done by him in the High Court.

2

A county court shall have the same jurisdiction as the High Court to make orders making such provision as is mentioned in subsection (1) in cases where the bill of costs or the documents relate wholly or partly to contentious business done by the solicitor in that county court.

3

In this section and in sections 69 to 71 “solicitor” includes the executors, administrators and assignees of a solicitor.

C7369 Action to recover solicitor’s costs.

C741

Subject to the provisions of this Act, no action shall be brought to recover any costs due to a solicitor before the expiration of one month from the date on which a bill of those costs is delivered in accordance with the requirements mentioned in subsection (2); but if there is probable cause for believing that the party chargeable with the costs—

a

is about to quit England and Wales, to become bankrupt or to compound with his creditors, or

b

is about to do any other act which would tend to prevent or delay the solicitor obtaining payment,

the High Court may, notwithstanding that one month has not expired from the delivery of the bill, order that the solicitor be at liberty to commence an action to recover his costs and may order that those costs be taxed.

C1672

The requirements referred to in subsection (1) are that the bill—

a

must be signed by the solicitor, or if the costs are due to a firm, by one of the partners of that firm, either in his own name or in the name of the firm, or be enclosed in, or accompanied by, a letter which is so signed and refers to the bill; and

b

must be delivered to the party to be charged with the bill, either personally or by being sent to him by post to, or left for him at, his place of business, dwelling–house, or last known place of abode;

and, where a bill is proved to have been delivered in compliance with those requirements, it shall not be necessary in the first instance for the solicitor to prove the contents of the bill and it shall be presumed, until the contrary is shown, to be a bill bona fide complying with this Act.

3

Where a bill of costs relates wholly or partly to contentious business done in a county court and the amount of the bill does not exceed F83£5,000, the powers and duties of the High Court under this section and sections 70 and 71 in relation to that bill may be exercised and performed by any county court in which any part of the business was done.

F844

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

C7570 Taxation on application of party chargeable or solicitor.

1

Where before the expiration of one month from the delivery of a solicitor’s bill an application is made by the party chargeable with the bill, the High Court shall, without requiring any sum to be paid into court, order that the bill be taxed and that no action be commenced on the bill until the taxation is completed.

2

Where no such application is made before the expiration of the period mentioned in subsection (1), then, on an application being made by the solicitor or, subject to subsections (3) and (4), by the party chargeable with the bill, the court may on such terms, if any, as it thinks fit (not being terms as to the costs of the taxation), order—

a

that the bill be taxed; and

b

that no action be commenced on the bill, and that any action already commenced be stayed, until the taxation is completed.

3

Where an application under subsection (2) is made by the party chargeable with the bill—

a

after the expiration of 12 months from the delivery of the bill, or

b

after a judgment has been obtained for the recovery of the costs covered by the bill, or

c

after the bill has been paid, but before the expiration of 12 months from the payment of the bill.

no order shall be made except in special circumstances and, if an order is made, it may contain such terms as regards the costs of the taxation as the court may think fit.

4

The power to order taxation conferred by subsection (2) shall not be exercisable on an application made by the party chargeable with the bill after the expiration of 12 months from the payment of the bill.

5

An order for the taxation of a bill made on an application under this section by the party chargeable with the bill shall, if he so requests, be an order for the taxation of the profit costs covered by the bill.

6

Subject to subsection (5), the court may under this section order the taxation of all the costs, or of the profit costs, or of the costs other than profit costs and, where part of the costs is not to be taxed, may allow an action to be commenced or to be continued for that part of the costs.

7

Every order for the taxation of a bill shall require the taxing officer to tax not only the bill but also the costs of the taxation and to certify what is due to or by the solicitor in respect of the bill and in respect of the costs of the taxation.

8

If after due notice of any taxation either party to it fails to attend, the officer may proceed with the taxation ex parte.

9

Unless—

a

the order for taxation was made on the application of the solicitor and the party chargeable does not attend the taxation, or

b

the order for taxation or an order under subsection (10) otherwise provides,

the costs of a taxation shall be paid according to the event of the taxation, that is to say, if one–fifth of the amount of the bill is taxed off, the solicitor shall pay the costs, but otherwise the party chargeable shall pay the costs.

10

The taxing officer may certify to the court any special circumstances relating to a bill or to the taxation of a bill, and the court may make such order as respects the costs of the taxation as it may think fit.

11

Subsection (9) shall have effect in any case where the application for an order for taxation was made before the passing of the M28Solicitors (Amendment) Act 1974 and—

a

the bill is a bill for contentious business, or

b

more than half of the amount of the bill before taxation consists of costs for which a scale charge is provided by an order for the time being in operation under section 56,

as if for the reference to one–fifth of the amount of the bill there were substituted a reference to one–sixth of that amount.

12

In this section “profit costs” means costs other than counsel’s fees or costs paid or payable in the discharge of a liability incurred by the solicitor on behalf of the party chargeable, and the reference in subsection (9) to the fraction of the amount of the bill taxed off shall be taken, where the taxation concerns only part of the costs covered by the bill, as a reference to that fraction of the amount of those costs which is being taxed.

C7671 Taxation on application of third parties.

1

Where a person other than the party chargeable with the bill for the purposes of section 70 has paid, or is or was liable to pay, a bill either to the solicitor or to the party chargeable with the bill, that person, or his executors, administrators or assignees may apply to the High Court for an order for the taxation of the bill as if he were the party chargeable with it, and the court may make the same order (if any) as it might have made if the application had been made by the party chargeable with the bill.

2

Where the court has no power to make an order by virtue of subsection (1) except in special circumstances it may, in considering whether there are special circumstances sufficient to justify the making of an order, take into account circumstances which affect the applicant but do not affect the party chargeable with the bill.

3

Where a trustee, executor or administrator has become liable to pay a bill of a solicitor, then, on the application of any person interested in any property out of which the trustee, executor or administrator has paid, or is entitled to pay, the bill, the court may order—

a

that the bill be taxed on such terms, if any, as it thinks fit; and

b

that such payments, in respect of the amount found to be due to or by the solicitor and in respect of the costs of the taxation, be made to or by the applicant, to or by the solicitor, or to or by the executor, administrator or trustee, as it thinks fit.

4

In considering any application under subsection (3) the court shall have regard—

a

to the provisions of section 70 as to applications by the party chargeable for the taxation of a solicitor’s bill so far as they are capable of being applied to an application made under that subsection;

b

to the extent and nature of the interest of the applicant.

5

If an applicant under subsection (3) pays any money to the solicitor, he shall have the same right to be paid that money by the trustee, executor or administrator chargeable with the bill as the solicitor had.

6

Except in special circumstances, no order shall be made on an application under this section for the taxation of a bill which has already been taxed.

7

If the court on an application under this section orders a bill to be taxed, it may order the solicitor to deliver to the applicant a copy of the bill on payment of the costs of that copy.

C7772 Supplementary provisions as to taxations.

1

Every application for an order for the taxation of a solicitor’s bill or for the delivery of a solicitor’s bill and for the delivery up by a solicitor of any documents in his possession, custody or power shall be made in the matter of that solicitor.

2

Where a taxing officer is in the course of taxing a bill of costs, he may request the taxing officer of any other court to assist him in taxing any part of the bill, and the taxing officer so requested shall tax that part of the bill and shall return the bill with his opinion on it to the taxing officer making the request.

3

Where a request is made as mentioned in subsection (2), the taxing officer who is requested to tax part of a bill shall have such powers, and may take such fees, in respect of that part of the bill, as he would have or be entitled to take if he were taxing that part of the bill in pursuance of an order of the court of which he is an officer; and the taxing officer who made the request shall not take any fee in respect of that part of the bill.

4

The certificate of the taxing officer by whom any bill has been taxed shall, unless it is set aside or altered by the court, be final as to the amount of the costs covered by it, and the court may make such order in relation to the certificate as it thinks fit, including, in a case where the retainer is not disputed, an order that judgment be entered for the sum certified to be due with costs.

C7873 Charging orders.

1

Subject to subsection (2), any court in which a solicitor has been employed to prosecute or defend any suit, matter or proceedings may at any time—

a

declare the solicitor entitled to a charge on any property recovered or preserved through his instrumentality for his taxed costs in relation to that suit, matter or proceeding; and

b

make such orders for the taxation of those costs and for raising money to pay or for paying them out of the property recovered or preserved as the court thinks fit;

and all conveyances and acts done to defeat, or operating to defeat, that charge shall, except in the case of a conveyance to a bona fide purchaser for value without notice, be void as against the solicitor.

2

No order shall be made under subsection (1) if the right to recover the costs is barred by any statute of limitations.

C79 C8074 Special provisions as to contentious business done in county courts.

1

The remuneration of a solicitor in respect of contentious business done by him in a county court shall be regulated in accordance with sections 59 to 73, and for that purpose those sections shall have effect subject to the following provisions of this section.

2

The registrar of a county court shall be the taxing officer of that court but any taxation of costs by him may be reviewed by a judge assigned to the county court district, or by a judge acting as a judge so assigned, on the application of any party to the taxation.

C81 C823

The amount which may be allowed on the taxation of any costs or bill of costs in respect of any item relating to proceedings in a county court shall not, except in so far as rules of court may otherwise provide, exceed the amount which could have been allowed in respect of that item as between party and party in those proceedings, having regard to the nature of the proceedings and the amount of the claim and of any counterclaim.

C8375 Saving for certain enactments.

Nothing in this Part of this Act shall affect the following enactments, that is to say—

a

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F85

Any member of the Society who has been suspended under subsection (3) may, on giving the notice required by any byelaw or regulation of the Society, appeal against the suspension to the next available general meeting of members of the Society, and that meeting may confirm, rescind or vary the period of the suspension in any manner they think fit.

Subject to any restriction or condition imposed by the Council, the number and term of office of the members of such a sub–committee and the number of those members necessary to form a quorum, shall be fixed by the committee concerned.

11

The validity of any proceedings of such a committee or sub–committee shall not be affected by any casual vacancy among its members.

12

In this section “reserved functions” means—

a

the function of making rules or regulations under section 2, 31, 32, 34, 36, or 37 or under section 9 of the M30Administration of Justice Act 1985 (incorporated practices);

b

the function of setting fees or financial contributions under paragraph 2(1) of Schedule 2 or section 8(2) or under paragraph 6 of Schedule 2 to the Administration of Justice Act 1985.

80 Powers to act on behalf of Society.

1

Anything authorised or required to be done by the Society under or in pursuance of this Act or of any instrument made under it may be done on behalf of the Society by the Council; and the power to delegate functions F87conferred by section 79 shall include power to delegate functions exercisable by the Council by virtue of this subsection.

2

Any document issued by the Society or the Council for any purpose whatsoever may be signed on behalf of the Society or the Council, as the case may be, by the Secretary of the Society or by such other officer of the Society, or by the person holding such office in the Society, as may from time to time be prescribed either generally or specially by resolution of the Council.

3

In any proceedings a document purporting to be certified by the Secretary of the Society as a copy of a resolution passed by the Council or a committee of the Council F88or sub–committee on a specified date shall be evidence that that resolution was duly passed by the Council F89, committee or sub–committee on that date.

Miscellaneous

C16981 Administration of oaths and taking of affidavits.

1

Subject to the provisions of this section, every solicitor who holds a practising certificate which is in force shall have the powers conferred on a commissioner for oaths by the M31Commissioners for Oaths Acts 1889 and M321891 and section 24 of the M33Stamp Duties Management Act 1891; and any reference to such a commissioner in an enactment or instrument (including an enactment passed or instrument made after the commencement of this Act) shall include a reference to such a solicitor unless the context otherwise requires.

2

A solicitor shall not exercise the powers conferred by this section in a proceeding in which he is solicitor to any of the parties, or in which he is interested.

3

A solicitor before whom any oath or affidavit is taken or made shall state in the jurat or attestation at which place and on what date the oath or affidavit is taken or made.

4

A document containing such a statement and purporting to be sealed or signed by a solicitor shall be admitted in evidence without proof of the seal or signature, and without proof that he is a solicitor or that he holds a practising certificate which is in force.

F1965

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

C17081AF197 Fees for administering oaths and taking affidavits.

1

The Lord Chancellor may, with the concurrence of the Lord Chief Justice and the Master of the Rolls, by order prescribe the fees to be charged by—

a

commissioners for oaths; and

b

solicitors exercising the powers of commissioners for oaths by virtue of section 81,

in respect of the administration of an oath or the taking of an affidavit.

2

Any order under this section shall be made by statutory instrument, which shall be laid before Parliament after being made.

3

In this section “affidavit” has the same meaning as in the Commissioners for Oaths Act 1889.

F9082. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

C84 C8583 Power of Society to inspect file of proceedings in bankruptcy of solicitor.

Where proceedings in bankruptcy have been taken against any solicitor, the Society shall be entitled—

a

to inspect the file of those proceedings without payment of any fee; and

b

to be supplied with office copies of those proceedings on payment of the usual charge.

C86 C8784 Service of documents at solicitor’s place of business.

1

For the purpose of facilitating the service of notices and other documents, every solicitor who has in force, or has applied for, a practising certificate shall give notice to the Society of any change in his place or places of business before the expiration of 14 days from the date on which the change takes effect.

2

Any notice or other document required or authorised by or by virtue of this Act to be served on any person may be served on him by delivering it to him, by leaving it at his proper address or by sending it by post.

3

Any such notice or document may be served on a practising solicitor, without prejudice to any other method of service, by sending it in a registered letter addressed to him at any place specified as his place of business, or one of his places of business, in his latest application for a practising certificate or in any subsequent notice under subsection (1).

C88 C89 C9085 Bank accounts.

Where a solicitor keeps an account with a bank F91or a building society in pursuance of rules under section 32—

a

the bank F92or society shall not incur any liability, or be under any obligation to make any inquiry, or be deemed to have any knowledge of any right of any person to any money paid or credited to the account, which it would not incur or be under or be deemed to have in the case of an account kept by a person entitled absolutely to all the money paid or credited to it; and

b

the bank F92or society shall not have any recourse or right against money standing to the credit of the account, in respect of any liability of the solicitor to the bank, other than a liability in connection with the account.

F9386 Bankers’ books.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Supplementary

C9186AF97Rules

1

Rules made by the Society under this Act may —

a

make provision generally or subject to exceptions or only in relation to specified cases;

b

make different provision for different cases or circumstances or for different purposes.

2

Without prejudice to the generality of subsection (1), any rules prescribing a fee may provide for that fee to be reduced or waived in such circumstances as may be specified in the rules.

87 Interpretation.

C1711

In this Act, except where the context otherwise requires,—

“articles” means written articles of clerkship binding a person to serve a solicitor as an articled clerk;
F198“authorised insurer” means a person who—
1. a
  is permitted under the Insurance Companies Act 1982 to carry on insurance business of class 13 in Schedule 2 to that Act or, being an insurance company the head office of which is in a member State, is permitted under the law of a member State other than the United Kingdom to carry on insurance business of a corresponding class; or
2. b
  is permitted under the Insurance Companies Act 1982 to carry on insurance business of classes 1, 2, 14, 15, 16 and 17 in that Schedule or, being an insurance company the head office of which is in a member State, is permitted under the law of a member State other than the United Kingdom to carry on insurance business of corresponding classes.
“bank” means—
1. a
  the Bank of England F199 F200. . . or F201an institution authorised under the Banking Act 1987; F202. . .
2. b
  F203. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3. c
  F204. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F205“building society” means a building society within the meaning of the Building Societies Act 1986 F206. . ..
“the Charter” means the Royal Charter dated 26th February 1845, whereby the Society was incorporated, together with the Royal Charters supplemental to it dated respectively 26th November 1872, 4th June 1903, 2nd June 1909 and 10th March 1954;
“client” includes—
1. a
  in relation to contentious business, any person who as a principal or on behalf of another person retains or employs, or is about to retain or employ, a solicitor, and any person who is or may be liable to pay a solicitor’s costs;
2. b
  in relation to non–contentious business, any person who, as a principal or on behalf of another, or as a trustee or executor, or in any other capacity, has power, express or implied, to retain or employ, and retains or employs or is about to retain or employ, a solicitor, and any person for the time being liable to pay to a solicitor for his services any costs;
“client account” means an account in the title of which the word “client” is required by rules under section 32;
“contentious business” means business done, whether as solicitor or advocate, in or for the purposes of proceedings begun before a court or before an arbitrator F207. . ., not being business which falls within the definition of non–contentious or common form probate business contained in F208section 128 of the M34 Supreme Court Act 1981;
“contentious business agreement” means an agreement made in pursuance of section 59;
“controlled trust”, in relation to a solicitor, means a trust of which he is a sole trustee or co–trustee only with one or more of his partners or employees;
“costs” includes fees, charges, disbursements, expenses and remuneration;
“the Council” means the Council of the Society elected in accordance with the provisions of the Charter and this Act;
“duly certificated notary public” means a notary public who either—
1. a
  has in force a practising certificate as a solicitor issued under this Act, and duly entered in the court of faculties of the Archbishop of Canterbury in accordance with rules made by the master of faculties; or
2. b
  has in force a practising certificate as a notary public issued by the s aid court of faculties in accordance with rules so made;
“employee” includes an articled clerk;
“indemnity conditions” has the meaning assigned to it by section 28(2)(b);
“indemnity rules” means rules under section 37;
F209. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
“local law society” means a society which is for the time being recognised by the Council as representative of solicitors in some particular part of England and Wales;
“non–contentious business” means any business done as a solicitor which is not contentious business as defined by this subsection;
F209. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
“practising certificate” has the meaning assigned to it by section 1;
F210 C172“replacement date”, in relation to a practising certificate, means the date prescribed under section 14(2)(a) or specified by the Society under any regulation made by virtue of section 14(4)(b);
“the roll” means the list of solicitors of the Supreme Court kept by the Society under section 6;
“Secretary” of the Society includes any deputy or person appointed temporarily to perform the duties of that office;
“the Society” means the Law Society, that is to say, the Society incorporated and regulated by the Charter;
“sole solicitor” means a solicitor who is the sole principal in a practice;
“solicitor” means solicitor of the Supreme Court;
“solicitor in Scotland” means a person enrolled or deemed to have been enrolled as a solicitor in pursuance of the M35Solicitors (Scotland) Act 1933;
F211. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
“training conditions” has the meaning assigned to it by section 28(2)(a);
“training regulations” means regulations under section 2;
“the Tribunal” means the Solicitors Disciplinary Tribunal;
“trust” includes an implied or constructive trust and a trust where the trustee has a beneficial interest in the trust property, and also includes the duties incident to the office of a personal representative, and “trustee” shall be construed accordingly;
“unqualified person” means a person who is not qualified under section 1 to act as a solicitor.

2

In this Act—

a

references to the removal of a solicitor’s name from the roll are references to its removal at his own request F212or in pursuance of regulations under section 28(3A);

b

references to striking a solicitor’s name off the roll are references to striking it off F213as a disciplinary sanction; and

c

references to removal or striking off include references to deleting an entry made by means of a computer by whatever means are appropriate.

3

In this Act, except where otherwise indicated—

a

a reference to a numbered Part, section or Schedule is a reference to the Part or section of, or the Schedule to, this Act so numbered;

b

a reference in a section to a numbered subsection is a reference to the subsection of that section so numbered;

c

a reference in a section, subsection or Schedule to a numbered paragraph is a reference to the paragraph of that section, subsection or Schedule so numbered; and

d

a reference in a paragraph to a numbered sub–paragraph is a reference to the sub–paragraph of that paragraph so numbered.

4

Except where the context otherwise requires, references in this Act to any enactment shall be construed as references to that enactment as amended or applied by or under any other enactment, including this Act.

88 Saving for solicitors to public departments and City of London.

1

Nothing in this Act shall prejudice or affect any rights or privileges of the solicitor to the Treasury, any other public department, the Church Commissioners or the Duchy of Cornwall, or require any such officer or any clerk or officer appointed to act for him to be admitted or enrolled or to hold a practising certificate in any case where it would not have been necessary for him to be admitted or enrolled or to hold such a certificate if this Act had not been passed.

F941A

The exemption from the requirement to hold a practising certificate conferred by subsection (1) above shall not apply to solicitors who are Crown Prosecutors.

2

Sections 31 and 32(1) shall not apply to, and nothing in this Act shall prejudice or affect any rights or privileges which immediately before the commencement of this Act attached to the office of, the Solicitor of the City of London.

89 Consequential amendments, repeals, savings, etc.

X11

The enactments specified in Schedule 3 shall have effect subject to the amendments there specified, being amendments consequential upon the provisions of this Act.

X12

The enactments specified in Schedule 4 are hereby repealed to the extent specified in the third column of that Schedule.

3

In so far as any instrument or other document made, issued, served or kept or treated as having been or having effect as if made, issued, served or kept, or other thing done or treated as having been or having effect as if done, under or for the purposes of any of the enactments repealed by this Act (in this section referred to as “the repealed enactments”) could have been made, issued, served, kept or done under or for the purposes of a corresponding provision of this Act, it shall not be invalidated by the repeal but shall have effect as if made, issued, served, kept or done under or for the purposes of that corresponding provision; and anything begun under any of the repealed enactments may be continued under any corresponding provision of this Act as if begun under that provision.

4

Any enactment or other document referring to any of the repealed enactments shall, so far as may be necessary for preserving its effect, be construed as referring to this Act or to the corresponding provision of this Act.

5

References in any enactment or instrument to the disciplinary committee constituted under section 46 of the M10Solicitors Act 1957 shall be construed as references to the Tribunal.

6

References in any enactment to solicitors, attorneys or proctors, or to the registrar of attorneys and solicitors or the registrar of solicitors, shall be construed as references to solicitors and to the Society respectively.

7

References in any enactment to a duly certificated notary public shall be construed as references to a duly certificated notary public within the meaning of this Act.

8

Nothing in this Act shall be taken as prejudicing the operation of F95sections 16(1) and 17(2)(a) of the M11Interpretation Act 1978 (which relates to the effect of repeals).

90 Short title, commencement and extent.

1

This Act may be cited as the Solicitors Act 1974.

C922

This Act shall come into force on such day as the Lord Chancellor may by order made by statutory instrument appoint, not being earlier than the first day on which all the provisions of the M12Solicitors (Amendment) Act 1974 are in force.

3

If any order made under section 19(7) of the M13Solicitors (Amendment) Act 1974 makes any savings from the effect of any provision of that Act which it brings into force, the order under subsection (2) may make corresponding savings from the effect of the corresponding provision of this Act.

4

The provisions of this Act extend to England and Wales only, with the exception of—

a

section 4(4) and the repeal of section 5(3) of the M14Solicitors Act 1957, which extend to Scotland;

b

section 29 and the repeal of section I of the M15Solicitors (Amendment) Act 1974, which extend to Northern Ireland;

c

sections 5(3) and 86, F96. . . and the repeals of section 5(2) of the Solicitors Act 1957 and paragraphs 1 and 5 of Schedule 2 to the M16Solicitors (Amendment) Act 1974, all of which extend both to Scotland and to Northern Ireland.

SCHEDULES

C118SCHEDULE 1 Intervention in Solicitor’s Practice

Section 35.

Annotations:

Modifications etc. (not altering text)

C118

Sch. 1 applied (with modifications) by S.I. 2000/1119, regs. 1, 37(3), Sch. 4 para. 9 (as amended (1.7.2009) by The Legal Services Act 2007 (Registered European Lawyers) Order 2009 (S.I. 2009/1587), art. 3(9))

Part I Circumstances in which Society may Intervene

1

Subject to sub–paragraph (2), the powers conferred by Part II of this Schedule shall be exercisable where—

a

the Council have reason to suspect dishonesty on the part of—

i

a solicitor, or

ii

an employee of a solicitor, or

iii

the personal representatives of a deceased solicitor,

in connection with that solicitor’s practice or in connection with any trust of which that solicitor is or formerly was a trustee;

b

the Council consider that there has been undue delay on the part of the personal representatives of a deceased solicitor who immediately before his death was practising as a sole solicitor in connection with that solicitor’s practice or in connection with any controlled trust;

c

the Council are satisfied that a solicitor has failed to comply with rules made by virtue of section F9831, 32 or 37(2)(c);

d

a solicitor has been adjudged bankrupt or has made a composition or arrangement with his creditors;

e

a solicitor has been committed to prison in any civil or criminal proceedings;

F99ee

the Council are satisfied that a sole solicitor is incapacitated by illness or accident to such an extent as to be unable to attend to his practice;

f

the powers conferred by F214section 104 of the Mental Health Act 1959 or section 98 of the Mental Health Act 1983 (emergency powers) or section 105 of the said Act of 1959 or section 99 of the said Act of 1983 (appointment of receiver) have been exercised in respect of a solicitor; or

g

the name of a solicitor has been removed from or struck off the roll or a solicitor has been suspended from practice.

F100h

the Council are satisfied that a sole solicitor has abandoned his practice;

i

the Council are satisfied that a sole solicitor is incapacitated by age to such an extent as to be unable to attend to his practice;

j

any power conferred by this Schedule has been exercised in relation to a sole solicitor by virtue of sub–paragraph (1)(a) and he has acted as a sole solicitor within the period of eighteen months beginning with the date on which it was so exercised;

k

the Council are satisfied that a person has acted as a solicitor at a time when he did not have a practising certificate which was in force;

l

the Council are satisfied that a solicitor has failed to comply with any condition, subject to which his practising certificate was granted or otherwise has effect, to the effect that he may act as a solicitor only—

i

in employment which is approved by the Society in connection with the imposition of that condition;

ii

as a member of a partnership which is so approved;

iii

as an officer of a body recognised by the Council of the Law Society under section 9 of the M17Administration of Justice Act 1985 and so approved; or

iv

in any specified combination of those ways.

2

The powers conferred by Part II of this Schedule shall only be exercisable under sub–paragraph (1)(c) if the Society has given the solicitor notice in writing that the Council are satisfied that he has failed to comply with rules specified in the notice and also (at the same or any later time) notice that the powers conferred by Part II of this Schedule are accordingly exercisable in his case.

2

On the death of a sole solicitor paragraphs 6 to 8 shall apply to the client accounts of his practice.

3

The powers conferred by Part II of this Schedule shall also be exercisable, subject to paragraphs 5(4) and 10(3), where—

a

a complaint is made to the Society that there has been undue delay on the part of a solicitor in connection with any matter in which the solicitor or his firm was instructed on behalf of a client or with any controlled trust; and

b

the Society by notice in writing invites the solicitor to give an explanation within a period of not less than 8 days specified in the notice; and

c

the solicitor fails within that period to give an explanation which the Council regard as satisfactory; and

d

the Society gives notice of the failure to the solicitor and (at the same or any later time) notice that the powers conferred by Part II of this Schedule are accordingly exercisable.

4

1

Where the powers conferred by Part II of this Schedule are exercisable in relation to a solicitor, they shall continue to be exercisable after his death or after his name has been removed from or struck off the roll.

2

The references to the solicitor or his firm in paragraphs 5(1), 6(2) and (3), 8, 9(1) and (5) and 10(1) include, in any case where the solicitor has died, references to his personal representatives.

Part II Powers Exercisable on Intervention

Money

C93 C945

1

The High Court, on the application of the Society, may order that no payment shall be made without the leave of the court by any person (whether or not named in the order) of any money held by him (in whatever manner and whether it was received before or after the making of the order) on behalf of the solicitor or his firm.

2

No order under this paragraph shall take effect in relation to any person to whom it applies unless the Society has served a copy of the order on him (whether or not he is named in it) and, in the case of a bank F101or other financial institution, has indicated at which of its branches the Society believes that the money to which the order relates is held.

3

A person shall not be treated as having disobeyed an order under this paragraph by making a payment of money if he satisfies the court that he exercised due diligence to ascertain whether it was money to which the order related but nevertheless failed to ascertain that the order related to it.

4

This paragraph does not apply where the powers conferred by this Part of this Schedule are exercisable by virtue of paragraph 3.

C173 C956

1

Without prejudice to paragraph 5, if the Council pass a resolution to the effect that any sums of money to which this paragraph applies, and the right to recover or receive them, shall vest in the Society, all such sums shall vest accordingly (whether they were received by the person holding them before or after the Council’s resolution) and shall be held by the Society on trust to exercise in relation to them the powers conferred by this Part of this Schedule and subject thereto upon trust for the persons beneficially entitled to them.

2

This paragraph applies—

a

where the powers conferred by this paragraph are exercisable by virtue of paragraph 1, to all sums of money held by or on behalf of the solicitor or his firm in connection with his practice or with any trust of which he is or formerly was a trustee;

b

where they are exercisable by virtue of paragraph 2, to all sums of money in any client account; and

c

where they are exercisable by virtue of paragraph 3, to all sums of money held by or on behalf of the solicitor or his firm in connection with the trust or other matter to which the complaint relates.

3

The Society shall serve on the solicitor or his firm and on any other person having possession of sums of money to which this paragraph applies a certified copy of the Council’s resolution and a notice prohibiting the payment out of any such sums of money.

4

Within F1028 days of the service of a notice under sub–paragraph (3), the person on whom it was served, on giving not less than 48 hours’ notice in writing to the Society and (if the notice gives the name of the solicitor instructed by the Society) to that solicitor, may apply to the High Court for an order directing the Society to withdraw the notice.

5

If the court makes such an order, it shall have power also to make such other order with respect to the matter as it may think fit.

6

If any person on whom a notice has been served under sub–paragraph (3) pays out sums of money at a time when such payment is prohibited by the notice, he shall be guilty of an offence and liable on summary conviction to a fine not exceeding F103level 3 on the standard scale.

F1066A

1

Without prejudice to paragraph 5, if the Society passes a resolution to the effect that any rights to which this paragraph applies shall vest in the Society, those rights shall vest accordingly.

2

This paragraph applies to any right to recover or receive debts due to the solicitor or his firm in connection with his practice or former practice.

3

Any sums recovered by the Society by virtue of the exercise of rights vested under sub-paragraph (1) shall vest in the Society and shall be held by it on trust to exercise in relation to them the powers conferred by this Part of this Schedule and, subject to those powers and to rules under paragraph 6B, upon trust for the persons beneficially entitled to them.

4

The Society shall serve on the solicitor or his firm, and any person who owes a debt to which the order applies, a certified copy of the Society's resolution.

6B

1

The Society may make rules governing its treatment of sums vested in it under paragraph 6 or 6A(3).

2

The rules may in particular make provision in respect of cases where the Society, having taken such steps to do so as are reasonable in all the circumstances of the case, is unable to trace the person or persons beneficially entitled to any sum vested in the Society under paragraph 6 or 6A(3) (including provision which requires amounts to be paid into or out of compensation funds (within the meaning of section 36A)).

C174 C967

1

If the Society takes possession of any sum of money to which paragraph 6 applies, the Society shall pay it into a special account in the name of the Society or of a person nominated on behalf of the Society, F104or into a client account of a solicitor nominated on behalf of the society, and any such person or solicitorshall hold that sum on trust to permit the Society to exercise in relation to it the powers conferred by this Part of this Schedule and subject thereto on trust for the persons beneficially entitled to it.

2

A bank F105or other financial institutionat which a special account is kept shall be under no obligation to ascertain whether it is being dealt with properly.

C97 C988

Without prejudice to paragraphs 5 to 7, if the High Court is satisfied, on an application by the Society, that there is reason to suspect that any person holds money on behalf of the solicitor or his firm, the court may require that person to give the Society information as to any such money and the accounts in which it is held.

Documents

C175 C999

1

The Society may give notice to the solicitor or his firm requiring the production or delivery to any person appointed by the Society at a time and place to be fixed by the Society—

a

where the powers conferred by this Part of this Schedule are exercisable by virtue of paragraph 1, of all documents in the possession of the solicitor or his firm in connection with his practice or with any controlled trust; and

b

where they are exercisable by virtue of paragraph 3, of all documents in the possession of the solicitor or his firm in connection with the trust or other matters to which the complaint relates (whether or not they relate also to other matters).

C1002

The person appointed by the Society may take possession of any such documents on behalf of the Society.

C1013

Except in a case where an application has been made to the High Court under sub–paragraph (4), if any person having possession of any such documents refuses, neglects or otherwise fails to comply with a requirement under sub–paragraph (1), he shall be guilty of an offence and liable on summary conviction to a fine not exceeding F107level 3 on the standard scale.

C1014

The High Court, on the application of the Society, may order a person required to produce or deliver documents under sub–paragraph (1) to produce or deliver them to any person appointed by the Society at such time and place as may be specified in the order, and authorise him to take possession of them on behalf of the Society.

C1015

If on an application by the Society the High Court is satisfied that there is reason to suspect that documents in relation to which the powers conferred by sub–paragraph (1) are exercisable have come into the possession of some person other than the solicitor or his firm, the court may order that person to produce or deliver the documents to any person appointed by the Society at such time and place as may be specified in the order and authorise him to take possession of them on behalf of the Society.

C1016

On making an order under this paragraph, or at any later time, the court, on the application of the Society, may authorise a person appointed by the Society to enter any premises (using such force as is reasonably necessary) to search for and take possession of any documents to which the order relates.

C1017

The Society, on taking possession of any documents under this paragraph, shall serve upon the solicitor or personal representatives and upon any other person from whom they were received on the Society’s behalf or from whose premises they were taken a notice that possession has been taken on the date specified in the notice.

C1018

Subject to sub–paragraph (9) a person upon whom a notice under sub–paragraph (7) is served, on giving not less than 48 hours’ notice to the Society and (if the notice gives the name of the solicitor instructed by the Society) to that solicitor, may apply to the High Court for an order directing the Society to deliver the documents to such person as the applicant may require.

C1019

A notice under sub–paragraph (8) shall be given within 8 days of the service of the Society’s notice under sub–paragraph (7).

C10110

Without prejudice to the foregoing provisions of this Schedule, the Society may apply to the High Court for an order as to the disposal or destruction of any documents in its possession by virtue of this paragraph or paragraph 10.

C10111

On an application under sub–paragraph (8) or (10), the Court may make such order as it thinks fit.

C10112

Except so far as its right to do so may be restricted by an order on an application under sub–paragraph (8) or (10), the Society may take copies of or extracts from any documents in its possession by virtue of this paragraph or paragraph 10 and require any person to whom it is proposed that such documents shall be delivered, as a condition precedent to delivery, to give a reasonable undertaking to supply copies or extracts to the Society.

Mail

C176 C10210

1

The High Court, on the application of the Society, may from time to time order that for such time not exceeding 18 months as the court thinks fit postal packets (as defined by F215section 125(1) of the Postal Services Act 2000) addressed to the solicitor or his firm at any place or places mentioned in the order shall be directed to the Society or any person appointed by the Society at any other address there mentioned; and the Society, or that person on its behalf, may take possession of any such packets received at that address.

2

Where such an order is made the Society shall pay to the F216postal operator (as defined by section 125(1) of the Postal Services Act 2000) concerned the like charges (if any), as would have been payable for the re–direction of the packets F217. . ., if the addressee had permanently ceased to occupy the premises to which they were addressed and had applied to the F218postal operator to redirect them to him at the address mentioned in the order.

3

This paragraph does not apply where the powers conferred by this Part of this Schedule are exercisable by virtue of paragraph 3.

Trusts

C177 C10311

1

If the solicitor or his personal representative is a trustee of a controlled trust, the Society may apply to the High Court for an order for the appointment of a new trustee in substitution for him.

2

The M18Trustee Act 1925 shall have effect in relation to an appointment of a new trustee under this paragraph as it has effect in relation to an appointment under section 41 of that Act.

General

C178 C104 C10512

The powers in relation to sums of money and documents conferred by this Part of this Schedule shall be exercisable notwithstanding any lien on them or right to their possession.

C106 C107 C10813

Subject to any order for the payment of costs that may be made on an application to the court under this Schedule, any costs incurred by the Society for the purposes of this Schedule, including, without prejudice to the generality of this paragraph, the costs of any person exercising powers under this Part of this Schedule on behalf of the Society, shall be paid by the Solicitor or his personal representatives and shall be recoverable from him or them as a debt owing to the Society.

F10813A

1

The High Court, on the application of the Society, may order a former partner of the solicitor to pay a specified proportion of the costs mentioned in paragraph 13.

2

The High Court may make an order under this paragraph only if it is satisfied that the conduct (or any part of the conduct) by reason of which the powers conferred by this Part were exercisable in relation to the solicitor was conduct carried on with the consent or connivance of, or was attributable to any neglect on the part of, the former partner.

3

In this paragraph “specified” means specified in the order made by the High Court.

C109 C110 C11114

Where an offence under this Schedule committed by a body corporate is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, any director, manager, secretary or other similar officer of the body corporate or any person who was purporting to act in any such capacity, he, as well as the body corporate, shall be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

C112 C113 C11415

Any application to the High Court under this Schedule may be disposed of in chambers.

C115 C116 C11716

The Society may do all things which are reasonably necessary for the purpose of facilitating the exercise of its powers under this Schedule.

F118 C120 F119SCHEDULE 1A INADEQUATE PROFESSIONAL SERVICES

Annotations:

Amendments (Textual)

F118

Sch. 1A inserted (1.4.1991) by Courts and Legal Services Act 1990 (c. 41, SIF 76:1), ss. 93(3), 125(6), Sch. 15 (with saving in Sch. 19 para. 14 ); S.I. 1991/608, art. 2, Sch.

F119

Sch. 1A repealed (prosp.) by Legal Services Act 2007 (c. 29), ss. 177, 210, 211, Sch. 16 para. 78, Sch. 23 (with ss. 29, 192, 193)

Modifications etc. (not altering text)

C120

Sch. 1A extended (22.5.2000) by S.I. 2000/1119, regs. 1, 37(3), Sch. 4 para. 7(2) (which amendment was omitted (6.10.2010) by virtue of The Legal Services Act 2007 (Registered European Lawyers) Order 2009 (S.I. 2009/1587), art. 3(7)(c))

F1091 Circumstances in which Council’s powers may be exercised

1

The Council may take any of the steps mentioned in paragraph 2 (“the steps”) with respect to a solicitor where it appears to them that the professional services provided by him in connection with any matter in which he or his firm have been instructed by a client have, in any respect, not been of the quality which it is reasonable to expect of him as a solicitor.

2

The Council shall not take any of the steps unless they are satisfied that in all the circumstances of the case it is appropriate to do so.

3

In determining in any case whether it is appropriate to take any of the steps, the Council may—

a

have regard to the existence of any remedy which it is reasonable to expect to be available to the client in civil proceedings; and

b

where proceedings seeking any such remedy have not been begun by him, have regard to whether it is reasonable to expect him to begin them.

F1102 Directions which may be given

1

The steps are—

C119a

determining that the costs to which the solicitor is entitled in respect of his services (“the costs”) are to be limited to such amount as may be specified in the determination and directing him to comply, or to secure compliance, with such one or more of the permitted requirements as appear to the Council to be necessary in order for effect to be given to their determination;

b

directing him to secure the rectification, at his expense or at that of his firm, of any such error, omission or other deficiency arising in connection with the matter in question as they may specify;

c

directing him to pay such compensation to the client as the Council sees fit to specify in the direction;

d

directing him to take, at his expense or at that of his firm, such other action in the interests of the client as they may specify.

2

The “permitted requirements” are—

a

that the whole or part of any amount already paid by or on behalf of the client in respect of the costs be refunded;

b

that the whole or part of the costs be remitted;

c

that the right to recover the costs be waived, whether wholly or to any specified extent.

3

The power of the Council to take any such steps is not confined to cases where the client may have a cause of action against the solicitor for negligence.

F1113 Compensation

1

The amount specified in a direction by virtue of paragraph 2(1)(c) shall not exceed F219£5000.

2

The Lord Chancellor may by order made by statutory instrument amend sub–paragraph (1) by substituting for the sum of £1,000 such other sum as he considers appropriate.

3

Before making any such order the Lord Chancellor shall consult the Law Society.

4

Any statutory instrument made under this paragraph shall be subject to annulment in pursuance of a resolution of either House of Parliament.

F1124 Taxation of costs

1

Where the Council have given a direction under paragraph 2(1)(a), then—

a

3

Where a client pays the prescribed fee it shall be repaid to him if the Council take any of the steps in the matter with respect to which the fee was paid.

4

In this paragraph “prescribed” means prescribed by the regulations.

F1157 Costs

Where the Council take any of the steps with respect to a solicitor they may also direct him to pay to the Council—

a

the amount of the fee repayable by the Council to the client under paragraph 6(3); and

b

an amount which is calculated by the Council as the cost to them of dealing with the complaint, or which in their opinion represents a reasonable contribution towards that cost.

F1168 Duty of Tribunal

Where the Tribunal—

a

is considering, or has considered, an application or complaint with respect to a solicitor; and

b

is of the opinion that the Council should consider whether to take any of the steps with respect of that solicitor,

it shall inform the Council.

F1179 Interpretation

The Council’s powers under this Schedule are exercisable in relation to a person though his name has been removed from, or struck off, the roll and references to a solicitor in this Schedule, so far as they relate to the exercise of those powers, shall be construed accordingly.

C121 C122SCHEDULE 2 The Compensation Fund

Section 36.

Annotations:

Modifications etc. (not altering text)

C121

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F1212

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F1223

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

X24

In section 20(3) of the M19 Justices of the Peace Act 1949—

a

for the words “subsection (1) of section 2 of the Solicitors (Amendment) Act 1956”, and

b

for the words “the Solicitors Acts 1932 to 1956”,

substitute, in place of the words substituted for those words by Schedule 2 to the Solicitors (Amendment) Act 1974, the words “ the Solicitors Act 1974 ”.

F1235

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

X36

In section 192(2) of the M20 County Courts Act 1959 (as substituted by section 10(2) of the M21 Administration of Justice Act 1969), for paragraph (c) substitute the following paragraph:—

c
section 69(3) of the Solicitors Act 1974

F1247

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

X48

In section 4(2) of the M22 Matrimonial Causes Act 1967, for the words “section 73(4) of the Solicitors Act 1957” substitute the words “ section 74(3) of the Solicitors Act 1974 ”.

X69

In section 223(1) of the M36 Local Government Act 1972, for the words “the Solicitors Acts 1957 to 1965” substitute the words “ the Solicitors Act 1974 ”.

F12510

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

X5Schedule 4 ENACTMENTS REPEALED

Section 89.

Annotations:

Editorial Information

The text of ss. 86, 89(1)(2), Sch. 3 paras. 4, 6, 8, and 9, and Sch. 4, is in the form in which it was originally enacted: it was not reproduced in Statutes in Force and, except as indicated, does not reflect any amendments or repeals which may have been made prior to 1.2.1991.

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