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a certified copy search with the original and that a
proper comparison would require the service of
two persons simultaneously. The Council expressed
the opinion that the Registrar of Deeds is personally
liable under Section 26 2nd and 3rd William IV
Cap. 87 for loss suffered by any person who acts
on an incorrect negative search. They were further
of opinion that solicitor for a purchaser must if
so advised compare a copy search with the original
search when closed in the Registry of Deeds.
Sale and resale of leasehold premises with
goodwill.
A and B carried on business in partnership the
assets being leasehold premises £14,000, moveable
chattels £3,000, goodwill £3,000. Total £20,000.
On dissolution A purchased B's interest for £10,000
apportioned as follows :
leasehold premises £7,000,
moveable chattels £1,500, goodwill £1,500.
A purchased as agent for a company about to be
formed and shortly afterwards assigned such interest
to the company and also sold to the company
his own interest in the partnership in consideration
of £10,000 apportioned as above. Member acted
for A on the purchase from B on which occasion
there was a full investigation of title and also acted
for both A and the Company on (i) the assignment
of the interest purchased by A as agent and (2)
the sale of A's beneficial interest. A's intervening
sole title was investigated and further searches made.
He asked for advice as to the costs which should
be charged. The Council stated that (i) the com
mission scale fee is not payable on the value of the
moveable chattels; (2) if the goodwill is adherent or
" cat " goodwill within the meaning of Whiteman
Smyth Motor Company
v.
Chaplin (1934 2. K.B.)
it should be regarded as part of the premises sold
for the purpose of costs. (3) On the assumption
that commission scale fee is chargeable on the good
will and that member substantially performs all the
work described
in schedule
to S.R.G.O.
1951,
member is entitled to charge the following com
mission scale fees,
(a)
on £8,500 payable by the
company on the purchase by A as agent for the
company;
(b)
on £8,500 payable by A on the sale
of his beneficial interest to the company, and (<r) on
£8,500 payable by the company on the purchase of
A's beneficial interest.
Taxation of Costs. Review.
MEMBERS drew the attention of the Council to the
provisions of Order 65
rule 66 (i) Rules of the
Supreme Court 1905
(1956 Calendar page 480)
which provides inter alia that " any party who may
be dissatisfied with the allowance or disallowance
by the Taxing Master of any bill of costs taxed by
him
.
.
.
may before the certificate is signed
but not
later than 10 days after such allowance or dis
allowance of any item deliver to the other party
and carry in before the Taxing Master an objection
in writing." Clause 3 of the same rule provides
that the Taxing Master shall not be at liberty after
the certificate has been signed to review the taxation
or amend the certificate. Members pointed out
that although the rule appears to allow ten days
for an application to review, the applicant's rights
may be defeated if the certificate is signed without
notice to him within this period.
The Council
decided to refer the matter to the Society's represen
tatives on the Superior Courts rules committee.
Agreement for gross sum or commission
costs.
MEMBERS acted for beneficiaries of an American
estate and propose to charge a commission fee of
5 per cent, on the amount received by each client
being the fee prescribed by the rules of the local
Bar Association.
They asked for the Council's
advice as to the legal authority for charging this
fee.
In their opinion the Council stated that the
matter depends on the construction of Section 4 of
the Attorneys'and Solicitors'Act 1870 and Section
8 of the Solicitors' Remuneration Act 1881. The
Attorneys' and Solicitors Act 1870 generally speaking
applies to work which does not fall within the
Solicitors' Remuneration Act.
If the business is transacted in any action or in
the court an agreement relating to it is regulated
by the Act of 1870.
Broadly speaking non-con
tentious
business
falls within
the
Solicitors'
Remuneration Act 1881.
Section 4 of the Act of
1870 provides that a solicitor may make an agree
ment in writing with the client respecting the
amount or manner of payment for any past or future
services either by gross sum or by commission or
percentage or salary or otherwise but the amount
payable under the agreement shall not be-received
by
the solicitor until the agreement has been
examined and allowed by a Taxing Master. Section
8 of the Solicitors' Remuneration Act 1881 enables
a solicitor to make an agreement with a client
before or after or in the course of a transaction
for payment of the solicitor either by a gross sum
or by commission or by salary or otherwise. The
agreement must be in writing signed by the person
to be bound. There is no provision similar to that
in the Attorneys' and Solicitors' Act 1870 that the
solicitor may not receive the agreed sum before
taxation but a client may have the agreement
referred to the Taxing Master. Apart from any
agreement the Solicitors' Remuneration General
Order (No. 2) 1920 enables a solicitor to charge