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Conveyancer - negligence

A recent case involving a negligent conveyancer shows how difficult it can be to assess damages.

The case involved a licenced conveyancer whose client was buying a cottage with a view to redeveloping it, and also acquiring an option to buy adjacent land. The conveyancer was negligent and the option was ineffective. The client claimed damages on the basis that he would have gone ahead with a substantial redevelopment.

LLP – insolvency

Can an individual member of an LLP apply for the LLP to be wound up?

Applying the provisions of the corporate insolvency regime (IA 1986) to LLPs is not straightforward. It is clear that an LLP can be wound up by the LLP or its members collectively, or by any contributory, or creditor. But, it is uncertain whether it is possible for an individual member to be able to wind it up (even if that member is not a contributory or creditor).

Professional - update

Ministry of Justice proposals mean that some 75% of the 1,700 firms currently doing criminal legal aid work will be removed from the market. Needless to say, it will be a fundamental change if it goes ahead. See [2010] LSG 25 March 1.

Retainer - termination

Suppose your client tells you to put forward arguments that you fundamentally disagree with; can you terminate the retainer, or are you bound to proceed with those arguments (assuming they do not involve impropriety or misleading the court)?

Powers of Attorney - banking

The Law Society has issued a Practice Note which is a useful reminder of the basics of dealing with a bank when acting under a Power of Attorney.

As far as Enduring Powers of Attorney are concerned, is no longer possible to create a new EPA. But, EPAs executed before 1 October 2007 are valid, irrespective of whether or not they had been registered.

Partnership - sham

These days, sole practitioners are often singled-out as an insurance risk. Indeed, most lenders will require panel firms to have two or more partners, in the expectation that this will reduce the likelihood of fraud. As a result, it is tempting for sole practitioners to get together and create arrangements that may appear from the outside to be a partnership, but in reality remain separate firms.

Client - terminating retainer

Your duty to your client continues until the retainer has been properly terminated. Note that simply writing to a client saying that your firm will cease to act if invoices remain unpaid, may not be sufficient to actually terminate the retainer.

Services Regs - new obligations

The Services Regs 2009 came into force on 28 December 2009. They are the result of an EU Directive and they apply to many categories of ‘service providers’ including solicitors (although they do not apply to notaries, and financial service providers).

The aim of the Regs is to ensure that customers have the necessary information. Virtually all the information required will already be provided by solicitors’ firms. The detailed information that must be made available is:

Non-contentious - remuneration certificate

There was relatively little publicity given to the sudden abolition of remuneration certificates last August. Indeed, many firms have yet to change their standard documentation to reflect the fact the remuneration certificate procedure no longer exists.

Previously, the obligation with non-contentious costs was to inform the client of the right to a remuneration certificate; the right to have the bill assessed by the court; and the right to charge interest on the bill. Since 11 August 2009, this has been amended to remove the remuneration certificate option. Thus, you now have to inform the client in writing of:

Mistake - take advantage?

The terms for the sale of shares in a company had been agreed between the parties; heads of agreement had been drawn up, and solicitors instructed. In due course, one side’s solicitor put forward a draft that did not accord to what had previously been agreed (or was in the heads of agreement); the other side corrected that error, even though it could have been to their client’s advantage. In due course the transaction was completed, but a few years later one of the solicitors was sued for having failed to take advantage of the mistake made by the other side. As it turned out, that mistaken approach would have been significantly to the client’s advantage. The question then arose as to whether or not there had been a breach of duty of care by the solicitor.

Upper Tribunal - no judicial review

The Upper Tribunal (which hears appeals from First-tier Tribunals) is not subject to judicial review by the High Court.

Unpaid costs - interest

When can you start charging interest on unpaid costs?

Gross sum bill - detail?

If you issue a gross sum bill, can the client then request a further detailed breakdown?

Referrals - existing contract

The guidance on referrals has become increasingly messy, with the latest edict on what to do if a client has a pre-existing referral arrangement.

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