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receive a deputation from the Society with a view
to the introduction of a provision enabling a solicitor
to charge a negotiation fee where he does conduct
negotiations and also to deal with other matters
arising out of the draft rules. The deputation were
also given discretion to deal finally with the matter.
The deputation consists of the President,
the
Secretary and Mr. Dermot P. Shaw.
Costs of obtaining Certificate of Discharge
from Income Tax
The Council specially reconsidered on request
the existing ruling on the costs of a solicitor for the
vendor for applying for and obtaining a Section 6
Certificate. The existing ruling to the effect that
the work of obtaining a Certificate should be
included in the Commission scale fee and that no
further charge should be made against the vendor
or the purchaser (except in cases where it is necessary
to make a return) was referred to a Committee and
the Committee reported that a charge of approx
imately
£z
IDS.
(maximum) is at present being
allowed by the Taxing Masters as a charge against
the vendor for obtaining the Certificate. This is at
variance with the Society's ruling and it appeared
also that many solicitors have for many years been
charging a fee for doing this work. It appeared that
the Tax Masters allow for this work on the basis
that it could not have been in the minds of the rule
makers when fixing the scale fees under the 1884
Solicitors Remuneration Act.
The Council have accordingly decided to reverse
the existing ruling and having regard to the practice
of the Taxing Masters the Council are now of
opinion that the fee is chargeable in addition to the
commission scale fee and is payable by the vendor
to his own solicitor in all cases.
Compensation Fund Payments
On a
report from
the Compensation Fund
Committee the Council admitted for payment claims
amounting to £5,290 135. jd.
Dealings with Clients' Creditors—Solicitor's
Duty
A member acted for a garage proprietor who had
failed in business.
The garage premises were
mortgaged to a finance company for an amount
owing to them and when the client gave up business
and went abroad he let the premises for a substantial
weekly rent which member collected on his behalf
and placed to the credit of his account for distribution
among his creditors. The client's instructions to
member were that he would make substantial
regular payments himself to the finance company
and that the amount recovered in rent in respect of
the garage premises should be applied by member
in payment of the amounts due to his other (un
secured) creditors. On this basis member acted for
the client and he informed the various creditors of
the position.
In consideration of this, several of
them withheld proceedings. The finance company
were also aware of the situation and when the client
failed in his obligation towards them they obtained
from him an authority directed towards the tenant
of the premises and authorising the tenant to pay
the rent directly to them, the finance company. The
company ask member to continue to collect the rent
from the tenant on their behalf and to account to
them for it. Member enquired whether or not it
would be proper for him to do this and also as to
what course he should adopt.
The Council on a report from a committee gave
the opinion that member should
(a)
retain moneys
which he had collected, down to the termination of
his authority and deal with them in accordance with
his obligations under the representations made to
the creditors (other than the finance company) on
his client's instructions,
(b)
refuse to act for the
finance company in collecting the rent and account
directly to his client for any rent collected since
the termination of his authority and
(i)
inform the
creditors of the termination of his authority.
As regards the general practice in cases of this
kind the Council were of opinion that a solicitor
instructed by a debtor to negotiate with creditors
to obtain time on the basis that the creditors' claims
will be paid by instalments or otherwise out of
moneys coming into his hands should be careful not
to leave the creditors under the impression that their
claims are being secured if the client's instructions are
revocable. Furthermore that the creditors should be
advised immediately of any change in the position
affecting their rights.
Solicitor's duty where Grant has issued and
a subsequent Will appears
A member put the following query to a committee
of the Council. His predecessor had acted for a
client of the firm in the extraction of a grant of
probate and the Grant was issued in 1945. The Will
appointed the client executor and sole beneficiary.
A son of the client and executor called on member
and stated that he thought that the deceased had
bequeathed certain lands to him. Member relying
on the grant of probate, told him that the will
contained no such provision but some time later
the client came in again with copy of a later will to
which probate had not been issued. Member then
read through his predecessor's correspondence file
and it appeared clear from this that there was in fact
a later will and that it was in the possession of a
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