The Gazette 1972

Proceedings of the Council

THE SOCIETY

20th JULY 1972

The President in the chair, also present: Walter

Beatty, Bruce St. J. Blake, John Carrigan, Anthony E.

Collins, Laurence Cullen, Gerard M. Doyle, Christopher

Hogan, Michael P. Houlihan, Thomas Jackson Jnr.,

John B. Jermyn, Francis J. Lanigan, Eunan McCarron,

Patrick J. McEllin, Brendan A. McGrath, John Maher,

Senator John J. Nash, Patrick Noonan, T. V. O'Connor,

Patrick F. O'Donnell, William A. Osborne, Peter D. M.

Prentice, Moya Quinlan, Robert McD. Taylor and

Ralph J. Walker.

Window envelopes

In reply to an inquiry from a member the Council

stated that there was no objection to the use of window

envelopes by solicitors.

Solicitor executor

A member became a solicitor after the date of a will

appointing him as executor. As the will contains no

charging clause he sought the Council's views.

The Council on a report from a committee said that

the will speaks from death and the executor will be

precluded from charging any costs. Member could re-

nounce his rights and in these circumstances if he is

appointed to act for the personal representative he can

charge professional fees or alternatively if the residuary

legatee is competent and properly advised he may con-

sent to the member acting as executor and making the

usual professional charges.

Income tax and monies received for clients

The Council considered the liability of a solicitor to

account to the Revenue Commissioners for income tax

earned on monies received for clients and the liability

of solicitors to personal assessments. The Council has

advised members that they should not comply with

notices received under Section 176 of the Income Tax

Act, 1967, unless the client so directs and that

they should inform the client that any tax charged on

the solicitor will be deducted from the interest or income

paid to the client. The Council considered the position

of solicitor who may already have paid out substantial

sums to clients and who may now be liable to back

assessments.

In the view of the Council the following alternatives

are open to solicitors who hold clients' monies.

(1) They may obtain the clients' consent to disclose

the ownership of monies held on deposit receipt for

them.

(2) With the consent of the client they may place the

money on deposit receipt in the joint names of the client

and the solicitor.

(3) If the client wants to avoid disclosure of his iden-

tity and will not agree to indemnify the solicitor the

solicitor may refuse to place the money on deposit

receipt and keep it on current client account.

(4) If the client wants to have the money on deposit

receipt to earn interest and refuses to allow his identity

to be disclosed the solicitor may arrange by agreement

with the client that the solicitor will be indemnified by

deduction of all payments made to the client in respect

of his liability for tax (including sur tax) leaving the

client to recover such amount as he can on a certificate

in Form 18 if he is not liable to tax.

These provisions apply where client monies are kept

on separate deposit accounts for different clients, and

also where the solicitor expects to retain the money for

more than the normal period. As regards in and out

transactions in connection with sales where the money

is kept for periods of a month or six weeks the normal

practice is to keep the money in general client account.

If this money is in a general deposit account and the

solicitor gets the benefit of the interest he must pay the

tax himself. The standing rule of the Council is that

the solicitor should not retain monies improperly or

unduly for the purpose of earning interest and if this

rule is not observed the solicitor is accountable to the

client for the interest earned.

Interest on monies lodged in Courts

A member wrote to the Society and complained of

the present situation where no interest is paid on monies

lodged in Court. The Council noted that interest is

paid in England on monies lodged in Court in similar

circumstances under the provisions of the Administra-

tion of the Justice Act, 1965, Sections 6 and 7, and

decided that these provisions should be brought to the

attention of the Committee on Court Practice and

Procedure with a request that they consider the advisa-

bility of similar legislation being passed in Ireland.

Standard Conditions of Sale

A member wrote to the Society and suggested that

Clause 3 of the Society's standard conditions of sale

should be altered. Clause 3 provides as follows: "If

from any cause whatever other than the wilful default

of the vendor the purchase shall not be completed on

that day, the purchaser shall pay to the vendor interest

at the rate specified in the said memorandum on the

balance of the purchase money remaining unpaid from

the closing date up to the date of the actual comple-

tion". It was suggested that the word "wilful" should

be deleted. On a report from the committee the Coun-

cil decided that in die next edition of the Conditions of

Sale the word "wilful" should be deleted. It was also

decided that the format of the memorandum to the

Conditions of Sale should be altered to provide more

space for the names of the parties.

Michael Moran

Michael Moran, a solicitor's apprentice and son of

Michael Moran, T.D., former Minister for Justice, was

tragically killed in an accident. At a meeting of the

Council held on the 16th August 1972 the following

resolution was passed : "The President and Council of

the Society tender their deep sympathy to Michael

Moran and his family on the tragic death of his son

Michael."

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