Enforcement of Court Orders Acts is being prepared
by a sub-committee for approval and submission
to the Law Society. The Minister for Justice has
found unacceptable proposals put forward by the
Association
for
the
reorganisation of Dublin
Metropolitan and County District Courts.
The
matter is being further studied by the relevant
sub-committee. The Minister has made arrangements
for additional sittings at Kilmainham District Court
and the Association will continue to watch develop
ments there in the hope that arrears of work will be
overtaken and current work currently disposed of.
Further suggestions were received from members
for inclusion in the Draft Letting Agreement and it
is hoped to establish a final Draft during the present
month. A Special Sub-Committee with the assis
tance of two ordinary members, Messrs. P. C.
Moore and C. J. Gore Grimes, who had appeared
before the Commission gave special consideration
to the Landlord and Tenant (Reversionary Leases)
Bill, 1956, and submitted certain suggestions for its
improvement to the Minister for Justice and the
Parliamentary Select Committee.
The method of
taking depositions in the District Court is being
considered by a Sub-Committee of experienced
practitioners with the favour of the Minister for
Justice and it is hoped to submit detailed suggestions
for improvement and modernisation..
The next meeting of the Council was fixed for
the 6th of February, 1957.
STAMP DUTY.
FINANCE ACT, 1956.
SECTION 30.
MEMBERS of the Society have reported a case of
considerable importance on the question of stamp
duty. Their client who was not an Irish citizen
bought a large farm with a substantial residence in
circumstances under which the 25 per cent, stamp
duty would be attracted.
They took two con
veyances of property, one comprising the residence
and less than five acres of land surrounding it, the
second being a transfer of the remainder of the land.
The first transfer was stamped with 3 per cent, duty
and the other at 25 per cent. The full facts were
laid before the Revenue Commissioners who agreed
to this procedure. The facts were also laid before
the Land Registry who stated they did not anticipate
any technical difficulties.
Separate auctioneer's
valuations were
lodged with
the adjudication
branch for the purpose of stamp duty.
COSTS DRAWING CHARGES.
THE Legal Costs Accountants Association, a body
recently formed in Dublin, submitted a proposed
scale of charges to the Council,
The suggested
scale provides for a commission charge running
from 6J% to y£% on the gross amount of a bill of
costs as certified or agreed, including disbursements.
The Council informed the Association that they
could not accept or discuss this or any scale of
charges which includes commission on disbursements
in a bill of costs.
A typical bill of costs in a High Court action
would contain professional charges £200 and
disbursements £200, totalling £400. The costs-
drawer's commission on the suggested scale would
amount to £25. Additional charges are made for
scrivenery and taxation.
It is well known that
a solicitor's overhead expenses (rent, rates, wages,
etc.), absorb about 50% of profit costs, so that in
this typical case the net profit to the solicitor would
be £100.
Costs drawing commission at 6J% on
the
gross
amount of the bill would therefore absorb
25% of the solicitor's net profit as assessable for
income tax.
It is or should be the normal practice to supply
the costs drawer with a list of disbursements taken
from the ledger and a list of the fees paid to or
claimed by counsel and witnesses. The fixing or
agreement of these fees is a matter for the solicitor,
but he has no pecuniary or other interest in the
amounts allowed by the taxing master. There can
be no justification for the principle now sought to
be established of charging fees to the solicitor on
other persons' remuneration.
INSTRUCTIONS FOR STATEMENT OF
CLAIM.
Fees of Experts.
IN an action which arose out of a building contract,
the plaintiff sued for damages for breach of the
contract. The plaintiff engaged the services of an
architect, a quantity surveyor, an engineer and a
valuer, the total of whose fees came to £109 95. 3d.
The architect made an inspection of and report on
the premises the subject matter of the contract prior
to the issuance of the writ and the statement of claim
was based largely upon the report of the architect
and the reports of the other experts mentioned.
The defendant lodged a sum of money with the
defence and filed a counter-claim which is not
material to the costs question ultimately involved.
The plaintiff took up the sum of money so lodged in
satisfaction of his claim and lodged for taxation in
the usual way his bill of costs against the defendant.
On the bill coming before him for taxation the
Taxing Master disallowed the experts, fees on the
grounds that these fees were special damages and
might not be recovered by the plaintiff against the
defendant as costs of the action.