The Gazette 1974

Rent Restriction Acts or otherwise: (3) he should

^certain what restrictions on alienation, if any, exist in

the leases or other roots of title; and ascertain if

the vendor purported to sell the property in breach of

trust: (4) h

must proceed with due expedition to-

deeds or transfers and the loss resulting. The solicitor

should not permit his client to enter into a second or

third contract for sale until he is satisfied that all pre-

existing contracts are terminated and no longer capable

of being the subject of an action for a specific per-

formance and damages.

LOSS OF DEEDS

A solicitor is liable in an action of detinue to his

hent if the solicitor loses or mislays the client's deeds,

0 r

fails to deliver them up in a reasonable condition

° d so arranged as to be fit for use. An action for

gligence may also lie.

SOLICITOR'S INDEMNITY INSURANCE

I he Incorporated Law Society have established a

°mbined Liabilities Insurance for members of the In-

corporated Law Society of Ireland effected through the

Hish Underwriting Agencies Ltd., 42, Dawson Street,

. The form of policy and the nature and extent of the

lri

demnity given by the underwriters is considered to be

y satisfactory having regard to the difficulties facing

his kind of risk and it is urgently suggested that every

solicitor should effect professional indemnity insurance

through this agency for the benefit of himself and all

oe members of the profession. No solicitor should open

a practice or continue in practice until such time as he

h a s

effected the necessary cover for his own peace of

JOind, for the protection of himself and his family, for

he protection of his client, and for the protection of

he good name and standing of the profession generally.

, As a matter of interest the form of policy issued by

Pe Irish Underwriters Agencies Ltd. covers in addition

professional indemnity the following additional in-

demnities :

n ^

hlic Liability; Single Accident Indemnity, limit

100,000; Family Legal Liability; Single Accident In-

demnity, limit £100,000.

It also appears that under the heading of professional

cla

y t h e i n s u r e d m u s t

a y t h e

first

£ 2 5 0 o f

e v e r y

Under the section providing for professional liability

°ver is effected during the period of insurance

gainst:

Breach of professional duty as solicitors by reason

ny neglect or omission or error whenever or where-

o c c

u r i ng or alleged to have occured on the part

?. (i) the insured or their predecessors in business or

^ v any person (including any agent) at any time

Piployed by the insured or such predecessors in the

^onduct of any business conducted by or on behalf of

® insured or the said predecessors,

f u r t h er cover js given for breach of warranty of

uthority, breach of duty as described in

Hedley Byrne

~ Co. r,.

Heller & Partners

(1963) 2 A.E.R., 594,

d for breach of an undertaking committed in good

Ph, for libel and slander by any person and also in

lcs

Pect of any documents entrusted, lodged or deposited

Ph the insured as described in the particular provision.

It is particularly pointed out that the insured should

T^d1 must give immediate notice in writing to the Irish

^nderwriting Agencies Limited of any circumstances

hich they shall become aware during the currency

of cover which is likely to give rise to a claim against

them. Suc:i notice having been given, any resultant

claim which may be made after the expiration of the

period of insurance, shall, for the purpose of the policy

be treated as a claim made during the currency thereof.

Particular attention is also drawn to the general con-

ditions which states that the insured shall not admit

liability for or settle any claim or incur any costs or

expenses in connection therewith without the written

consent of the Insurers, who shall be entitled, if they so

desire, to take over and conduct in the name of the

insured the defence or settlement of any claim, or other-

wise as therein provided.

It is a matter of vital importance for the insured to

co-operate with the Underwriters in giving notice of

any claim or possible claim which they may discover

during the currency of the policy and it is also vitally

important that no letters be written to the client ad-

mitting liability or in any way usurping the function of

the Underwriters establishing a claim against the in-

sured in respect of which indemnity will be sought

against the Underwriters.

This condition is of vital importance towards the

effective maintenance of the scheme of arrangement

with the Law Society as letters written by insured

solicitors may have the effect of acknowledgment taking

particular claims out of the Statute of Limitations and

depriving the Underwriters and the insured of a good

defence to a claim.

Suffice it to say that one of the first considerations of

a solicitor setting up practice on his own or in partner-

ship with other members of the profession is the exis-

tence of an effective professional indemnity against

negligence of a sum sufficient to cover the maximum

amount of any claim that can or may be made against

the firm.

STATUTE OF LIMITATIONS

Every solicitor must aquaint himself fully with the

provisions of the Statute of Limitations, 1957, which is

an Act to consolidate with the amendments certain

enactments relating to the limitation of actions and

arbitrations. The Act came into operation on the 1st

January 1959.

Section 11 of this Act provides that no action shall

be brought after the expiration of six years from the

date on which the cause of action accrued in respect of

(a) actions founded on simple contract, (b) actions

founded on quasi contract, (c) actions to enforce a

recognizance, (d) actions to enforce an award where the

arbitration agreement is not under seal or where the

arbitration is under an Act other than the Abitration

Act

1954.

In other words there is a six year limit within which

proceedings must be instituted and default in institut-

ing proceedings within that period will render the soli-

citor liable for damages, for breach of duty if he is

instructed by his client to institute proceedings and he

fails to do so within the prescribed time.

It is further pointed out that an action for damages

against a solicitor being founded on the contract is

statute barred under this specific provision after the

lapse of a period of six years, and it is therefore of

vital importance that no solicitor who has a pro-

fessional indemnity insurance should make any ad-

mission or give any acknowledgments which would

have the effect of taking the cause of action out of the

provisions of this section.

Claims for personal injuries.

Section II Sub-Section