The Gazette 1949-1952

and Gerald J. O’Donnell, Vice-Presidents, William J . Norman, Derrick M. Martin, James J. O’Connor, Ralph J. Walker, John J. Sheil, Patrick R. Boyd, Francis J. Lanigan, John J. Nash, John B. McCann, John R. Halpin, James R. Quirke, Joseph P. Tyrrell, Thomas A. O’Reilly, Cuthbert J. Furlong, Maurice M. Power, John Maher, Dermot P. Shaw, Joseph Barrett, John Carrigan, Reginald J. Nolan, George G. Overend, Patrick F. O ’Reilly. New Member o f the Council T h e President welcomed Mr. John Maher w h o came on the Council in place of the late Mr. William S. Huggard. The following was among the business trans­ acted :— Solicitors’ Remuneration Land Registration Rules, 1937, as amended. On a report from a committee it was decided to apply to the Land Registration Rules Committee for the following amendments to the rules :— (a) Item charges under the old system as altered by Schedule 2 should be increased by 55 per­ cent. over the prewar scale instead o f the present increase o f 33J per cent. (, b) Rule 1 1 S.R.G.O., 1884, should be rescinded in its application to registered land. (c) Provisions similar to those o f S.R.G.O., 1951, should be made in regard to a lease o f registered land at a rack rent. (d) The scale fee on sales and purchases o f registered land where equities have not been discharged should be a flat rate o f 4 per cent, on the purchase money instead o f the present rate o f 4 per cent, on the first £1,000 descend­ ing to 15 /- per cent, on the portion o f the purchase price exceeding £10,000. The scale fee on sales and purchases of registered land, equities discharged, should be on a flat rate o f 3 per cent, on the purchase money instead o f the present sliding scale o f 2 per cent, on the first £1,000 to 7 /6d. per cent, on the portion o f the purchase price exceeding £10,000. The Secretary was directed to prepare the sub­ mission. Formation o f limited companies. Respective functions o f solicitor and accountant. T h e Council considered the following circular letter from the Institute o f Chartered Accountants proposed to be sent by the Institute to its members:— “ The Council has had under consideration the

will ” and (b) as “ dog goodwill.” In the case o f “ cat goodwill ” the practice o f the profession has been and is to charge the scale fee on the whole consideration including the value o f the goodwill. The Council was o f the opinion that this practice is in accordance with the law notwithstanding English decisions cited in costs text-books. These decisions are based on the English Solicitors’ Remuneration General Orders the terms of which are different to those o f Solicitors’ Remuneration General Order, 1884. Cost o f lease and building agreement A client took a lease of a site for a long term at a yearly rent o f £22, and entered into a contract with a builder to build a residence on the site. The Council were asked to express an opinion as to the method o f calculation o f the costs of (a) a lease and (b) the building agreement. In the opinion o f the Council ( a ) the costs o f the lease should be drawn as costs o f a long lease not at a rack rent, the fee being charged on the amount o f the rent; (b) the charges for the building contract would be taxed in accordance with the old method as altered by Schedule 2 of S.R.G.O., 1884, as amended. The scale fee applicable to a purchase could not be charged in respect o f the building price but, in the opinion o f the Council, a bulk fee by way o f instruc­ tion bearing some relation to the building price might reasonably be charged in addition to the item charges for drawing or approving of the building agreement. The measure o f the solicitor s liability for damages for negligence or mistake would be the amount expended by the client and the item charges alone would not remunerate the solicitor for this responsibility. Mortgage. Costs o f solicitor for mortgagor and purchaser. T he Council considered and adopted a report from Committee on the following question. Where a solicitor acts for a client who has to obtain a loan to enable him to complete a purchase, is the solicitor entitled to the full scale fee on the mortgage as well as the scale fee on the puchase price o f the premises ? The Committee was o f the opinion that the solicitor for the mortgagor is entitled to the scale fee on the purchase and the scale fee on the mortgage. It would not however be undercutting to make a reasonable reduction in the amount o f the mortgagor’ s solicitor’ s scale fee having regard to the fact that the purchase and mortgage are contemporaneous. 13TH M arch , 1952. T he President in the Chair. Also present: Messrs. Desmond R. Counahan,