The Gazette 1977

GAZETTE

OCTOBER- 1977

21.1 21.2

Your Committee have held eight Meetings, the first on the 28th April 1976.

UNDERTAKINGS COMMITTEE

Your Committee, at that Meeting, reviewed the operation and practice of Undertakings in non- contentious matters and agreed that a reasonable degree of standardization was necessary. Arising out of its subsequent discussions, the opinion of Senior Counsel was sought on such matters as to whether or not an Undertaking constituted a Contract, essential safeguard for the protection of Solicitors, necessity for irrevocable authority from client, obligations imposed upon Solicitor and partners, nature of Undertakings, redress of recipients and rights of Solicitors. 21.3 The following are the recommendations of the Committee: (a) That a standard form of Undertaking incorporating client's irrevocable authority and retainer be adopted and approved by the Council. (b) That there be printed on the reverse side (if feasible) of the standard form of Undertaking, the recommendations to the undertaking Solicitor as an aide memoire. (c) That Forms of Undertaking be printed in groups of four and numbered consecutively for record purposes. The top copy is for the recipient; the second copy for the file; the third copy for Central Control or Central Register, and the fourth copy is for the client. (d) That Solicitors be at liberty to adopt the Council's Form of Undertaking for printing on their own letter headings, so as to clearly identify the giver of the Undertaking, but where this is not practicable for financial or other reasons, that the Council do print and make available the standard Form of Undertaking for use by members of the profession generally, and such Undertaking should be annexed to a covering letter from the Firm. (ii) That the Council agree to sponsor the publication of a Book or small Pamphlet dealing with the historical background of Solicitors' Undertakings, the legal background and the implications generally of Solicitors' Undertakings to Financial Institutions and the operation of such Undertakings between the members of the profession. In this connection, it is only right to point out that a considerable degree of research and discussion was undertaken by the Committee and the members thereof, and many of the conclusions were analysed and fortified by Senior Counsel's opinion when required. It is therefore important that the research, investigations and conclusions arrived at be reduced to writing in the form of a Book or Pamphlet in this fundamental area of activity. 21.6 In conclusion, I would like to express my personal thanks to all the members of the Committee who rendered their willing help and co-operation, not alone by attending,the many Meetings, but by carrying out special research projects arising from our discussions from time to time. 21.7 The Committee would alto like to express appreciation of the assistance given by Mr. Fintan Burke who acted as Secretary to the Committee, and also to Miss Margaret Moran whose work behind the scenes was willingly given and undertaken, though often tedious and repetitive. 21.4 Your Committee has drafted a standard Form to include the Undertaking, the client's authority and the Society's recommendation. 21.5 Your Committee further recommends as follows: (i) That this Committee in view of its expertise and experience in the area of Undertakings, be available at all times for the advice and guidance of practitioners on problems arising from time to time in the area of Undertakings, and if necessary, a Subcommittee of the Council's Committee on privileges. 22.1 Since 1968 the Society has been endeavouring to organise an adequate Professional Indemnity Insurance cover for members on the most reasonable terms possible. An initial scheme was arranged in April, 1970. In 1974 the Council of the Society decided to review the operation of the existing scheme with Irish Underwriting Agencies Ltd. in an effort to improve its effectiveness. Subsequently, the Society decided to explore the possibility of providing an alternative scheme. 22.2 In the limited time available, prior to the general renewal of policies in 1976, this was not possible and, as a result, members were advised to make the best available arrangements as an interim measure. Subsequently the Society explored all the possibilities with a view to providing an alternative scheme. Following an extensive period of negotiations the Society was able to offer to its members a scheme organised by its nominated brokers, J. H. Minet (Ireland) Ltd. This scheme is specifically designed to cater for the profession's needs. It carries with it the advantage of continuity at existing rates — in those cases where no claims have been notified— (subject to adjustment only for inflation) for a period of three years. In devising the scheme the Society was at pains to evolve a system which would expedite the handling of claims and to that end has agreed with the broker the establishment of a panel of solicitors from whom the insured can select one to handle the case. 22.3 The Society has arranged with the broker to provide, in association with the professional indemnity insurance, a scheme of insurance to cover the other general insurance needs of a solicitor's practice. 22.4 The Society's brokers, J. H. Minet (Ireland) Ltd. is the Irish operating company of an international firm of insurance brokers which has experience in handling professional indemnity insurance for many professional societies and institutions. 22.5 The Society is aware that unfortunately many firms do not carry professional indemnity insurance. In this day of increasing client awareness of the possibilities of litigation against professional firms, the Committee emphasises that it is essential that all firms be adequately covered, and strongly advises the taking out of immediate cover, if not already covered. To date 173 firms have taken out cover under the Society's scheme. 22.6 The Society's brokers, J. H. Minet (Ireland) Ltd., or the Director General will give every assistance possible if members are in any doubt about cover under the scheme.

Patrick C. Moore

Chairman

Walter Beatty Matthew Drum John Maher Charles R. M. Meredith Gerald J. Moloney Philip O'Connor Ian Scott Thomas D. Shaw

Patrick C. Moore, Chairman

INSURANCE COMMITTEE

Michael P. Houlihan

Chairman

Walter Beatty Bruce St. John Blake John Carrigan Joseph L. Dundon John B. Jermyn William A. Osborne Thomas D. Shaw

Michael P. Houlihan, Chairman

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