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GAZETTE
N E W S
JULY 1994
Counc il Establ ishes Commi t t ee on
I ndemn i ty Insurance
Indemnity insurance
At the Council meeting on 24 June the
President of the Society reported to
Council that because of the importance
of section 26 of the Solicitors
(Amendment) Bill, 1994, which
allowed for the introduction of
compulsory professional indemnity
insurance, it was proposed to establish
a special committee to deal with the
matter. The Council approved the
appointment of the committee compris-
ing
Frank Daly
(Chairman),
Anthony
Collins, Eugene O 'Sullivan, Gordon
Holmes, Noel Ryan,
Director General
of the Society and the President of the
Society,
Michael V. O'Mahony.
The President reported to the Council
that the report and final stages of the
Solicitors (Amendment) Bill would be
completed in Dáil Eireann during the
week commencing 27 June. The Bill
would then move on to the Seanad
although the indications were that all
stages in the Seanad would not be
completed before the summer recess.
The President indicated that he
thought it likely that the cap on the
Compensation Fund would be
maintained but at an increased level of
£350,000.
Council Approves
Recommendations of Compensation
Policy Review Committee
The Council adopted the
recommendations of the
Compensation Fund Policy Review
Committee which had been
established by the then President of
the Society,
Raymond Monahan,
in
December 1992 and had carried out a
wide ranging investigation of the
Fund to assess measures which might
minimise exposure and to examine
possible policy options for the future.
The Committee had met on nineteen
occasions for a total of 72 hours and
in its final report to the Council made
81 recommendations concerning the
future of the Fund, legislative
changes, practical measures to
minimise default and aid detection,
support measures, and procedural
issues.
Proposal to Cap Compensation
Awards in Personal Injury Actions
The Director General of the Society
reported to Council that he would be
having a further meeting with an
official from the Department of
Enterprise and Employment
concerning the proposal to introduce
legislation to limit the amount of
compensation that could be awarded
in personal injury actions. No Bill in
relation to the proposal had been
drafted or circulated as yet. However,
the Society was aware that the
Minister intended to bring forward a
package of measures and the
Taskforce appointed by the Council
would continue to monitor the
situation.
The Law Society is opposing a
direction from the Minister for
Finance that contracts under the
Criminal Legal Aid Scheme for legal
services of a cumulative annual value
of £5,000 or more must be subject to
tax clearance procedures. In a recent
letter to the Department of Justice the
Director General of the Society said
that the proposal was "objectionable
in principle and represented a further
unwarranted invasion by the Revenue
authorities into the freedom of
contract of members of the
profession".
The Society has asked the Department
by what means it is proposed to effect
this requirement and when it is
proposed to bring it into operation.
The letter pointed out that the Society
Presentation of Parchments to
Northern Ireland Delegates
At the meeting, the President of the
Law Society of Northern Ireland,
Andrew Carnson,
the Senior Vice-
President,
Anthony McGettigan
and
the Junior Vice President,
Aidan
Canavan,
were admitted to the Roll of
Irish Solictors by the President of the
Society,
Michael V O'Mahony.
Michael O'Mahony said the Society
had been honoured by their
application for admission to the Roll
and that he hoped in future years
officers from the Law Society of
Ireland would also be admitted to the
Roll of Northern Ireland Solicitors to
mark the close relationship between
both Societies. The President also
welcomed
Colin Haddick,
a delegate
from the Law Society of Northern
Ireland and the Secretary of the Law
Society of Northern Ireland,
Michael
Davey.
•
was not aware that the existing
Criminal Legal Aid Act, or the
regulations made under it, permitted
such a development and therefore the
question arose as to whether the
changes were to be effected by means
of an amendment to the law. In any
event, the letter stated, the Society
would regard the development as
unacceptable.
The Society requested a meeting with
officials of the Department of Justice
and the Department of Finance to
discuss the issue further before any
action is taken.
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S o c i e t y O b j e c t s t o T ax C l e a r a n ce
P r o c e d u r es
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