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THE SOCIETY
Proceedings of the Council
MEETINGS OF THE COUNCIL
OCTOBER 19th
The President in the chair also present Messrs Walter
Beatty, Bruce St. J. Blake, John Carrigan, Anthony E.
Collins, Laurence Cullen, Gerard M. Doyle, James R.
C. Green, Christopher Hogan, Michael P. Houlihan,
Thomas Jackson, Jnr., Francis J. Lanigan, Eunan
McCarron, Patrick McEntee, Brendan A. McGrath,
John Maher, Patrick C. Moore, Senator J. J. Nash,
George A. Nolan, Ptter E. O'Connell, Rory O'Connor,
Thomas V. O'Connor, Patrick F. O'Donnell, William
A. Osborne, Peter D. M. Prentice, Mrs. Moya Quinlan,
Robert McD. Taylor, Ralph J. Walker.
Extraordinary members from Northern Ireland
The President on behalf of the Council welcomed
Messrs J. A. Young, President and John L. Pinkerton,
Council member of the Incorporated Law Society of
Northern Ireland who were present by invitation.
Stipulation » in agreement for leases with regard to ccsts
and outlay
It was decided to take the opinion of Counsel as to
whether the Society have power to make a Professional
Practice Regulation prohibiting stipulations in con-
tracts obliging a lessee to pay the lessor's stamp duty
and other outlay including mapping fees and having
certificates of compliance endorsed on leases and other
matters.
Private Motorists' Protection Association
The Association issued a letter to members, who carry
third party insurance only, advising them that where
they are not responsible for the accident they will be
making a claim direct on the third party involved and
should they experience any difficulty with the claim to
contact the legal department of P.M.P.A. who may be
in a position to give assistance. The Society was in
correspondence with the P.M.P.A. who wrote stating
that on receipt of a request for assistance from member
the Association would confirm to a solicitor chosen by
the member that it will pay any costs recovered as the
result of taking the case on its behalf. The Council on a
report from a committee stated that there is no objec-
tion to this procedure provided that the member of the
Association should have the right to choose his own
solicitor at the expense of P.M.P.A.
Professional undertakings
Members asked for guidance as to their obligations
on the following form of undertaking :
We hereby undertake that in the event of our
client entering into a contract for the sale of the
leasehold interest then any balance outstanding on
foot of this debt be paid out of the proceeds of
sale within three days of completion of the sale.
The negotiations for the sale broke down and no
contract was signed. The clients continued to pay the
specified instalments of the debt and eventually the
premises were again offered for sale through different
auctioneers and the contract was signed for a figure
much lower than the figure agreed at the previous
abortive sale. It then became clear that the amount of
the purchase money was insufficient to pay off the
company's creditors in full. After the contract was
signed but before completion of the sale the company
went into voluntary liquidation. The question arose as
to whether the claim of the liquidator to the proceeds of
sale took priority over member's undertaking to the
particular creditor. The Council having considered the
matter advised members to seek a direction of the Court
as to the legal position.
The committee were prima facie of the opinion that
the situation had radically changed since the date of
the undertaking although it was phrased in general
terms "entering into a contract" the contract contem-
plated at the date of the undertaking no longer exists
and in fact never came into being. The Council how-
ever refrained from expressing any opinion on the legal
or professional aspect of the matter without a direction
of the Court.
In another matter members enclosed a form of under-
taking submitted to them by the local branch manager
undertaking to hold documents on completion and
trust for the bank and to lodge them as soon as the usual
formalities in connection with stamping, registration
and legal searches have been completed and not to
allow while the documents remained in their possession
any act which would result in the property being
mortgaged or assigned without the bank's consent. They
asked for guidance as to their professional and financial
position. The Council on a report from a committee
stated that in the event of completion of the under-
taking members would be involved both in professional
and financial liability. They were further advised that in
the absence of an irrevocable authority and retainer
members might be bound to hand over the documents
and would then be caught between their obligations
under the undertaking and their instructions from the
client.
Land Registration costs
The Council were informed that rules giving an
effect to an increase of 30% in the costs of voluntary
transfers and applications under Rules 33-35 and costs
under Rules 121 (6) have been made with effect from
2nd October 1972.
District Court Costs
New District Court costs are in operation since 1st
September 1972.
Building Societies and completion of transactions
In formal discussions between lending bodies' solici-
tors and representatives of the Society it was arranged
to discuss a number of matters of interest to the
profession. It was suggested on behalf of the Society
that lending institutions should not insist that a bor-
rower be registered with absolute title in respect of
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