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THE INCORPORATED LAW SOCIETY OF IRELAND

GAZETTl

MARCH 1977

VOL. 71 NO. 2

Solicitors' Remuneration in Ireland

Comment by The Incorporated Law Society of

Ireland on the Consultant's Report and the

Findings of the National Prices Commission

(Occasional Paper No. 22)

In June 1975 the Society indicated to the Prices

Commission that it would welcome a study of solicitors'

earnings. On the appointment of the Consultant, the

Society arranged to co-operate fully in the mammoth task

which he undertook in his terms of reference. At that time

the remuneration of solicitors was under considerable

criticism in the media, notwithstanding the Society's

comment, that remuneration was reasonable. This

criticism appeared to be based on the lack of

understanding of the function of and the services provided

by a solicitor and of the cost of providing that service,

which was understandable, in the absence of any

independent reliable source of information as to the true

position. Hence, the announcement of the intended

enquiry was welcomed by the profession.

In general, the Consultant, understandably points out

that it was not part of his purpose to reflect on general

national policy in relation to redistributing income from

professional people to other occupational groups, or

indeed to say how much a solicitor "ought" earn and that

he could not act, as he indicates in his own words "as a

one man Royal Commission on the Irish legal system".

He does however acknowledge that the enquiry, being the

first of its kind in this country, has caused many problems

to be put to him by the profession which were

unfortunately beyond his remit.

General increases of 150% in Court costs and other

controlled remuneration were sought in May 1975. Later

in its formal submission to the Consultant, the Society

sought specific increases in specific areas of remuneration.

In response to that application and after detailed

consideration of the relevant factors, the Consultant has

now recommended —

150% increase in District Court Costs

100% increase in Circuit Court costs

50% increase in High Court costs

An increase in Land Registry fees

Acceptance of an increased minimum fee in certain

Conveyancing transactions.

A right to charge a special negotiation fee of 1% for

negotiating the sale or purchase of property.

In general the report has found that the application made

by the profession for the increase in fees sought, was

justified on the following grounds —

Rapid increases in wage, salary and administration

costs (pg. 18).

Earnings in private practice had fallen somewhat

behind that of many employees in public

employment (pg. 46).

Solicitors had done relatively badly in comparison

with the community as a whole (pg. 112).

The Consultant also found that —contrary to general

belief—increases in property values through inflation did

not, by reason of the tapering scale of fees applicable,

increase solicitors' incomes from conveyancing in the

same proportion.

Scale fees were the more appropriate manner of

regulating solicitors' fees.

The Consultant has made no recommendations in

relation to fees for the free legal aid programme,

explaining that he understood that this matter was under

active and separate discussion.

In the area of fees for court work, he has found that —

Increases in the past have been infrequent.

Long delays have occurred between applications for

increases and their final determination.

Increases granted have failed to take account of

rapid inflation (pg. 130).

Hence, in putting, forward his recommendation for

increases in the scale of fees he has suggested that they

should be effected as soon as possible (pg. 135).

Reference is made to the monopoly of solicitors,

particularly in conveyancing and also to advertising and

to general procedural problems in the work of solicitors,

which cause delays.

The questions of monopoly and advertising are, in the

view of the Society, matters of public policy which have

been debated in great depth and at considerable length in