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(a) of
the Commissioners' costs,
(V)
of the tenants'
costs in each case,
(c)
of the combined costs if
members act for all parties to the transaction. The
Council referred to the resolution passed at the
ordinary general meeting of the Society in June,
1955, authorising a reduced scale of costs in such
cases. On a request for guidance from the members
concerned the Council stated that if the tenant-
purchaser asks the solicitor for the Commissioners
to act for him he should pay fees appropriate to
vendor and purchaser on the reduced scale provided
that all the work required is substantially performed
by the solicitor for both parties. If separate solicitors
are employed each will pay his own solicitor on
the reduced scale.
Client's privilege.
MEMBER acted for both parties on a sale of land
and prepared the contract. The vendor subsequently
sought to rescind and members received instructions
from the purchaser to institute proceedings for
specific performance.
Counsel has advised that
member's
evidence will be necessary
in
the
proceedings. Member asked the Council for guidance
as to whether
(a)
having acted jointly for the parties
on the contemplated sale of the purchase he may
now act for either of them in the circumstances
which have arisen,
(b)
on the question of privilege
as to giving evidence. On the facts stated the Council
were of the opinion that as member has acted jointly
for the parties on the contemplated sale and purchase
he should not now act for either of them in the
circumstances and that he must plead privilege if
summoned to give evidence and abide by the ruling
of the court.
Legal Appointment. Canvassing.
THE Council expressed the opinion that it would
be contrary to the Professional Practice Regulations
for a solicitor to seek votes for a taxed costs position
as solicitor to a local authority or similar body or
otherwise solicit professional business. The Council
were also of the opinion that it would be unprofes
sional to seek votes for a whole time salaried
appointment unless the terms of the competition so
permit and
the Society had approved of the
conditions of appointment.
NOVEMBER ZZND : The President in the Chair. Also
present Messrs. George A. Nolan, Derrick M.
Martin, John R. Halpin, Francis J. Lanigan, J. R.
Quirke, A. Cox, D. J. Mayne, D. J. Collins, R. F.
O'Reilly, Charles Downing, Niall Gaffney, John
Carrigan, George G. Overend, F. X. Burke, W. J.
Comerford, Cornelius J. Daly, John J. Dundon,
John J. Nash, Thomas A. O'Reilly, JohnB. Jermyn,
Joseph P. Tyrrell, Scan O'hUadhaigh, Peter E.
O'Connell, C. E. Callan, R. Mc.D. Taylor, Reginald
J. Nolan, Patrick F. O'Reilly, Terence de Vere
White, P. R. Boyd, Louis Walsh, Ralph J. Walker.
The following was among the business transacted:
Lease at a rack
rent.
A LEASE of a mill with other works and land was
granted for a term of 500 years from ist January,
1956 at the yearly rent of £3,500 per annum for
the first five years and £4,500 per annum for the
second five years and £5,600 per annum thereafter,
lessees paying rates and taxes. The area of the land
is 6 acres 39 perches and the rateable valuation:
buildings £220, lands £3 IDS. There are no unusual
covenants and conditions but the lease contains
an option to the lessees to purchase for £90,000
plus any sums expended on the property by the
lessors or mortgagees. The fee simple value was
estimated by the lessors at £90,000 to £100,000 and
by the lessees at £71,000 and the lessees' valuers
estimated the fair letting value at £5,700 per annum
tenant paying rates and executing repairs.
The
lessors submitted that if the term of the lease were
short the rent would be higher to off-set possible
losses due to vacancy. The parties asked for the
ruling of the Council as to the proper scale of the
lessors' charges. The Council decided that the rent
is a rack rent and that the costs should be charged
on the lower scale.
Negotiation fee.
IN reply to questions from members, the Council
expressed the following opinion :
(i) If a solicitor
prepares a contract for sale, the vendor and purchaser
having already agreed on the amount of the purchase
money, is the contract negotiated with the aid of
the solicitor,
(a)
the same solicitor acting for both
parties;
(&) different solicitors acting for the
parties ?
Opinion :
(i)
(a)
If the solicitor draws the contract
on behalf of the vendor the contract is negotiated
on the vendor's behalf with the aid of the solicitor
but the negotiation fee should not be charged against
the purchaser ;
(&) in this case where the parties are
separately represented each party negotiates with
the aid of a solicitor as regards the terms of the
contract even although the price has been agreed.
(2) If a solicitor acting for an intending purchaser
who has already agreed with the vendor on the
amount of the purchase money peruses and approves
of
(without making any alterations) a contract
prepared by the vendor's solicitor and gets the
contract signed by the purchaser, is that a contract
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