House of Commons Amendments

House of Commons

Session 2006 - 07
Internet Publications
Other Bills before Parliament

Public Bill Committee: 26th June 2007
506

Legal Services Bill [Lords], continued

This amends a prohibition on provisions in contentious agreements relieving a solicitor of

responsibility for negligence, so that it also catches such provisions about the negligence of the

solicitor’s employees.

Bridget Prentice

87

Schedule  16,  page  252,  line  27,  at end insert ‘, and

(iii)
after “solicitor” (in the third place) insert “, or any of his

employees,’.

Members’ explanatory statement

This amendment provides that an assessment by a costs officer of the remuneration due to a

solicitor in respect of previous work may take into account any default, negligence, delay or

improper conduct on the part of a solicitor’s employees.

Bridget Prentice

88

Schedule  16,  page  252,  line  39,  at end insert—

‘(d)
in paragraph (a), after “solicitor” (in the second place) insert “or an

employee of the solicitor”, and

(e)
in paragraph (b), after “him” insert “or by any employee of his who is

an authorised person (within the meaning of section 56(5A))”.’.

Members’ explanatory statement

This amendment provides that on an assessment of costs in respect of any contentious business, the

costs officer may, in determining the remuneration of the solicitor, take into account the skill,

labour and responsibility of not only the solicitor, but also employees of the solicitor who are

authorised persons.

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

320

Schedule  16,  page  252,  line  44,  leave out paragraph 59 and insert—

‘59
In section 69 (action to recover solicitor’s costs)—

(a)
in subsection (1) for “taxed” substitute “assessed”,

(b)
for subsection (2) substitute—

“(2)
The requirements referred to in subsection (1) are that the

bill—

(a)
must be signed—

(i)
by the solicitor, or on his behalf by any

employee authorised by the solicitor to do so;

(ii)
if the costs are due to a firm, by one of the

partners of that firm, either in his own name

or in the name of the firm, or on his behalf by

any employee authorised by any partner to do

so; or

(iii)
be enclosed in, or accompanied by, a letter

which is so signed and refers to the bill;

(b)
must be delivered to the party to be charged with the

bill, either—

Public Bill Committee: 26th June 2007
507

Legal Services Bill [Lords], continued

(i)
personally;

(ii)
by being sent to him by post to, or left for him

at, his place of business, dwelling-house, or

last known place of abode;

(iii)
(subject to subsection (2A)) where he has

provided an e-mail address to the solicitor for

that purpose, by being sent to him by e-mail

to that address (and, if he required that any

attachment to an e-mail be in any particular

electronic format, in accordance with that

requirement); or

(iv)
(subject to subsection (2A)) where he has

provided a fax number to the solicitor for that

purpose, by being sent to him by fax to that

number; and


where a bill is proved to have been delivered in

compliance with those requirements, it shall not be

necessary in the first instance for the solictor to prove

the contents of the bill and it shall be presumed, until

the contrary is shown, to be a bill bona fide complying

with this Act.

(2A)
Sub-paragraph (iii) or (iv) of subsection (2)(b) does not apply

if the party to be charged with the bill has indicated to the

solicitor, before the bill is sent, that he is not willing to accept

delivery of a bill sent by the method in question.

(2B)
A bill which is sent by fax or e-mail is to be treated as having

been delivered the working day after the day on which it was

sent (unless the contrary is proved) and in this subsection

“working day” means a day which is not a Saturday, Sunday,

Bank Holiday or other public holiday,” and

(c)
after subsection (3) insert—

“(3A)
In subsection (2)(a) where a signature is required, an

electronic signature incorporated into the document shall

satisfy this requirement and an electronic signature is as much

of anything in electronic form as

(a)
is incorprated into or otherwise logically associated

with any electronic communication or electronic data;

and

(b)
purports to be so incorporated or associated for the

purpose of being used in establishing the authenticity

of the communication or data, the integrity of the

communication or data, or both.”’.

Bridget Prentice

89

Schedule  16,  page  257,  line  21,  after ‘32(1)(a)”,’ insert—

‘( )
after the definition of “sole solicitor” insert—

““sole solicitor endorsement” has the same meaning as in section

1B;”’.

Members’ explanatory statement

Public Bill Committee: 26th June 2007
508

Legal Services Bill [Lords], continued

This amendment adds a definition of “sole solicitor endorsement” to the interpretation provisions.

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

310

Schedule  16,  page  257,  line  33,  leave out paragraph (a) and insert—

‘(a)
for sub-paragraph (1)(a) substitute—

“(a)
the Society has reason to suspect dishonesty on the part

of a solicitor;”.

(aa)
after that sub-paragraph insert—

“(aa)
the Society has reason to suspect dishonesty on the part

of—

(i)
an employee of a solicitor, or

(ii)
the personal representatives of a deceased

solicitor,


in connection with that solicitor’s practice or in

connection with any trust of which that solicitor is or

formerly was a trustee;”,’.

Bridget Prentice

90

Schedule  16,  page  257,  line  35,  at end insert—

‘( )
after “trustee” insert “or that employee is or was a trustee in

his capacity as such an employee”,’.

Members’ explanatory statement

This amendment extends the circumstances in which the Law Society may intervene in a solicitor’s

practice to cover suspected dishonesty in connection with any trust of which an employee of that

solicitor is or was a trustee in his capacity as an employee.

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

311

Schedule  16,  page  258,  line  8,  at end insert—

‘(iii)
after “practice” insert “or has failed or is failing properly to

attend to his practice”,’.

Bridget Prentice

91

Schedule  16,  page  258,  line  33,  leave out paragraph (b) and insert—

‘(b)
for paragraph (a) substitute—

“(a)
the Society is satisfied that there has been undue

delay—

(i)
on the part of a solicitor in connection with

any matter in which the solicitor or his

firm is or was acting on behalf of a client

or with any trust, or

(ii)
on the part of an employee of a solicitor in

connection with any trust of which the

Public Bill Committee: 26th June 2007
509

Legal Services Bill [Lords], continued

employee is or was a trustee in his capacity

as such an employee; and”,’.

Members’ explanatory statement

This amendment extends the circumstances in which the Law Society may intervene in a solicitor’s

practice to cover undue delay in connection with any trust of which an employee of that solicitor

is or was a trustee in his capacity as an employee.

Bridget Prentice

92

Schedule  16,  page  259,  line  1,  leave out paragraph (b) and insert—

‘(b)
in sub-paragraph (2)(a) for “his practice” to the end substitute—

“(i)
his practice or former practice,

(ii)
any trust of which he is or formerly was a

trustee, or

(iii)
any trust of which a person who is or was

an employee of the solicitor is or was a

trustee in the person’s capacity as such an

employee;”, and’.

Members’ explanatory statement

This amendment extends the powers of the Law Society following intervention. Under paragraph

6 of Schedule 1 to the Solicitors Act 1974, sums of money can now vest in the Law Society where

they are held by or on behalf of the solicitor in connection with the situations set out in this

amendment.

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

312

Schedule  16,  page  262,  line  18,  at end insert—

‘( )
in paragraph (d) omit “such”.’.

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

313

Schedule  16,  page  262,  line  35,  at end insert—

‘(ca)
for recognition to be made subject to such conditions as the Council at

any time sees fit to impose in such circumstances as are specified in the

rules;

(cb)
for the Society to require, in such circumstances as may be specified in

the rules, recognised bodies to satisfy the Society as to their continuing

suitability to be recognised under this section;’.

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

314

Schedule  16,  page  263,  line  20,  at end insert—

Public Bill Committee: 26th June 2007
510

Legal Services Bill [Lords], continued

‘( )
Rules made by the Council under subsection (1) and (2) may make different

provision for different categories of person or body and for different

circumstances.’.

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

315

Schedule  16,  page  264,  line  16,  at end insert ‘and, if any such person is a body

corporate, it also includes a manager of that body corporate’.

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

316

Schedule  16,  page  264,  line  21,  at end insert—

‘“solicitor business” means a business consisting of or including solicitor

services;’.

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

260

Schedule  16,  page  264,  line  35,  leave out paragraphs (a) and (b) and insert—

‘at least three-quarters of the partners are authorised persons or are registered foreign

lawyers, and any other partners do not directly provide services to clients.’.

Members’ explanatory statement

See Members’ explanatory statement for amendment 259.

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

261

Schedule  16,  page  264,  line  43,  leave out paragraphs (a) and (b) and insert—

‘at least three-quarters of the members of the body are authorised persons or are registered

foreign lawyers, and any other members do not directly provide services to clients.’.

Members’ explanatory statement

See Members’ explanatory statement for amendment 259.

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

262

Schedule  16,  page  265,  line  6,  leave out paragraphs (a) and (b) and insert—

‘at least three-quarters of the persons within subsection (5) are authorised persons or are

registered foreign lawyers, and any other members do not directly provide services to

clients.’.

Members’ explanatory statement

See Members’ explanatory statement for amendment 259.

Public Bill Committee: 26th June 2007
511

Legal Services Bill [Lords], continued

Bridget Prentice

191

Schedule  16,  page  265,  line  45,  after ‘managers’, insert ‘or employees’.

Members’ explanatory statement

This amendment alters the definition of “relevant legal services” to refer to employees who are

authorised persons, rather than just managers who are authorised persons.

Bridget Prentice

193

Schedule  16,  page  266,  line  4,  leave out ‘in shares’.

Members’ explanatory statement

This amendment is related to amendment 111. It adjusts the definition of interest in a recognised

body to refer to the definition of interest in a body in Clause 72 of the Bill, rather than the former

“interest in shares” in a body.

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

317

Schedule  16,  page  267,  line  35,  at end insert—

‘“body” includes an individual who is carrying on a business as a sole

principal;’.

Bridget Prentice

194

Schedule  16,  page  270,  line  42,  at end insert ‘, and for this purpose a person has an

interest in the body if he has an interest in the body within the meaning of Part 5 of the

Legal Services Act 2007 (see sections 72 and 109 of that Act).’.

Members’ explanatory statement

This amendment inserts a definition of “interest in the body”. The definition refers to the definition

of interest in a body in Clause 72 of the Bill.

Bridget Prentice

195

Schedule  16,  page  272,  line  10,  leave out ‘in shares’.

Members’ explanatory statement

This amendment is related to amendment 111. It adjusts the meaning of interest in a recognised

body to refer to the definition of interest in a body in Clause 72 of the Bill, rather than the former

“interest in shares” in a body.

Bridget Prentice

196

Schedule  16,  page  272,  line  35,  leave out ‘in shares’.

Members’ explanatory statement

This amendment is related to amendment 111. It replaces the concept of persons with an interest

in shares in a recognised body with persons with an interest in the body, as defined in Clause 72

of the Bill.

Public Bill Committee: 26th June 2007
512

Legal Services Bill [Lords], continued

Bridget Prentice

93

Schedule  16,  page  273,  line  3,  at end insert—

‘( )
Where powers conferred by Part 2 of Schedule 1 to the 1974 Act are exercisable

in relation to a person within paragraph (a), (b) or (c) of sub-paragraph (3), they

continue to be so exercisable after the person has ceased to be a person within the

paragraph in question.’

Members’ explanatory statement

This amendment ensures that if a person to whom a notice requiring information is given ceases

after the notice is given to be a recognised body, or an employee or manager of, or person with an

interest in, the body, the enforcement powers will nonetheless remain available.

Bridget Prentice

94

Schedule  16,  page  273,  line  38,  at end insert—


‘After that paragraph insert—

“Disciplinary powers of the Society

14B(1)
This paragraph applies where the Society is satisfied that a

recognised body, or a manager or employee of a recognised body,
5
has failed to comply with a requirement imposed by or by virtue of

this Act or any rules applicable to that person by virtue of section 9

of this Act.

      (2)
The Society may do one or both of the following—

(a)
give the person a written rebuke;
10
(b)
direct the person to pay a penalty not exceeding £2,000.

      (3)
The Society may publish details of any action it has taken under

sub-paragraph (2)(a) or (b), if it considers it to be in the public

interest to do so.

      (4)
Where the Society takes action against a person under sub-
15
paragraph (2)(b), or decides to publish under sub-paragraph (3)

details of such action under sub-paragraph (2)(a) or (b), it must

notify the person in writing that it has done so.

      (5)
A penalty imposed under sub-paragraph (2)(b) does not become

payable until—
20
(a)
the end of the period during which an appeal against the

decision to impose the penalty, or the amount of the

penalty, may be made under paragraph 14C, or

(b)
if such an appeal is made, such time as it is determined or

withdrawn.
25
      (6)
The Society may not publish under sub-paragraph (3) details of any

action under sub-paragraph (2)(a) or (b)—

(a)
during the period within which an appeal against—

(i)
the decision to take the action,

(ii)
in the case of action under sub-paragraph (2)(b),
30
the amount of the penalty, or

(iii)
the decision to publish the details,


may be made under paragraph 14C, or