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sub-section is intended to be a guide as to the
books a solicitor should keep. The Society are of
the opinion
that cards and other records for
mechanised systems will satisfy the regulations
provided that the accountant approves of
the
system.
Too much stress cannot be laid upon he im
portance of having properly written-up books and
accounts, fully supported by vouchers etc., show
ing all the solicitor's dealings with and on behalf
of his clients. Otherwise, the solicitor, on the one
hand, will find it difficult to perform his duties
properly while the accountant on the other hand,
will find that the examination necessary to issue a
certificate will be difficult and expensive and may
result in a qualified certificate.
Retention of Books and Accounts for ten years :
A solicitor must, to comply with Regulation 15
(2), preserve for at least ten years from the date
of the last entry therein all books and accounts
kept by him in accordance with the regulations.
The Society accepts that the obligation to comply
with this regulation commences on the date of the
coming into operation of these regulations—9th
day of March 1967.
There is no obligation on the accountant to
examine exhaustively all the books and accounts
for the previous ten years to ascertain that they
have been kept. Test checks are sufficient for the
purpose of satisfying himself that the books and
accounts have been preserved for the statutory
period.
General—
Floating balance in a client bank account:
A solicitor is entitled to keep a floating balance
of his own money in a client bank account which
must at least equal, at any time, the total of any
debit balances on clients' accounts. It follows that
the balance to credit of a client bank account may
exceed, but may never be less
than, the total
balances standing to credit of all the Solicitor's
clients as shown by his books.
A Solicitor who keeps a floating balance of his
own money in a client bank may only withdraw
such money by cheque made payable to himself or
by transfer to another bank account in his own
name.
Interest on clients' monies :
The Society's view is that apart from cases in
which either
(1) a sum
is placed on deposit
receipt in a solicitor's name for a specified client
or (2) a client's money is improperly or unduly
retained, a solicitor is not accountable to clients
for interest earned or allowed on a floating balance
of clients' monies in his bank.
CASES OF INTEREST
Ex Parte Action for Malicious Prosecution by a
Struck off Solicitor
The applicant, a former solicitor, applied ex parte
for leave to appeal against an order of Nield, J.
striking out his action against the defendant for
malicious prosecution arising out of the defen
dant's conduct, on behalf of the Law Society of
disciplinary proceedings against him as a result of
which he was struck off the roll. The applicant con
tended that an action for malicious prosecution
would lie even though the proceedings had not
been decided in his favour if, by the very nature
of those proceedings, he could not have succeeded.
Lord Denning, M. R. said that so long as the
decision of the Disciplinary Committee of the
Law Society stood, the action would not lie. The
application was refused.
(Ex parte Glilck,
Solicitors Journal
[Vol. IIIJ
p. 982).
Liability of a Trade Union towards a Member
when Union gives Legal Aid
A Trade Union member lost the top of a finger
in an accident. In compliance with the Union
Rules relating to legal assistance, he notified the
union officials within three days. Full particulars
were taken down by the Secretary who forwarded
the information to head office who in turn for
warded it to the solicitor retained by the Union.
The solicitors advised that the plaintiff had no
cause of action as the accident appeared to be no
ones fault. The Union lost the action in the first
instance. On appeal Denning, M. R. that the judge
in first instance had erred in placing on the Union
the standard duty of a solicitor from the moment
the accident aas reported to the branch Secretars.
(Cross v. British Iron, Steel and Kindred Trade
Association—
Solicitors Journal
[Vol. Ill] p. 944).
Delay in Taxing Costs—Nominal Sum Awarded :
In March 1960 the plaintiffs issued a writ claim
ing £550 from the defendant for work done by
them during 1958 and 1959. In January 1964 after
a 4-day hearing before the official refree,
the
parties settled the action and an agreed order was
made that the defendant pay £350 to the plain
tiffs and three fifths of their costs of the action to
be taxed on the High Court scale, if not agreed,
the defendant to pay the £350 and the costs by
instalments of £100 every 6 months beginning on
1st August 1964. The defendant paid the instal
ments and in January 1966 made the last payment
and, by letter reminded the plaintiffs' solicitors of
their obligation under the order to tax or agree
with him their costs. Towards the end of 1966,
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