House of Commons Public Bill Committee Proceedings

House of Commons

Session 2006 - 07
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Other Bills before Parliament

Public Bill Committee Proceedings: 26th June 2007
58

Legal Services Bill-[Lords], continued

Act), any body which regulates the carrying on of

such activities by the employee.”,’.

Bridget Prentice

Agreed to  81

Schedule  16,  page  249,  line  41,  after ‘Tribunal)’, insert—

‘(a)
in subsection (2)(b)—

(i)
after “(e),” insert “(ea),”, and

(ii)
omit “in the London Gazette”, and

(b)
’.

Bridget Prentice

Agreed to  82

Schedule  16,  page  249,  line  42,  at end insert ‘, and

(c)
after subsection (4) insert—

“(5)
In the case of orders of the Tribunal under section 44E, the

reference in subsection (2)(a) to the application or complaint

is to be read as a reference to the Tribunal’s order.”’.

Bridget Prentice

Agreed to  83

Schedule  16,  page  250,  line  13,  after ‘(e)’, insert ‘, (ea)’.

Bridget Prentice

Agreed to  84

Schedule  16,  page  251,  line  20,  after ‘(5)’, insert ‘—

(a)
’.

Bridget Prentice

Agreed to  85

Schedule  16,  page  251,  line  23,  at end insert ‘, and

(b)
in paragraph (d) after “solicitor” insert “, or any employee of his who

is an authorised person,”.

      ()
After that subsection insert—

“(5A)
In subsection (5) “authorised person” means a person who is an

authorised person in relation to an activity which is a reserved legal

activity, within the meaning of the Legal Services Act 2007 (see

section 18 of that Act).”’.

Bridget Prentice

Agreed to  86

Schedule  16,  page  251,  line  43,   leave out ‘negligence’ and insert ‘his negligence,

or that of any employee of his,’.

Public Bill Committee Proceedings: 26th June 2007
59

Legal Services Bill-[Lords], continued

Bridget Prentice

Agreed to  87

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

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

employees,’.

Bridget Prentice

Agreed to  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))”.’.

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

Not called  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—

(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

Public Bill Committee Proceedings: 26th June 2007
60

Legal Services Bill-[Lords], continued

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

Agreed to  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;”’.

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

Not called  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—

Public Bill Committee Proceedings: 26th June 2007
61

Legal Services Bill-[Lords], continued

“(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

Agreed to  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”,’.

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

Not called  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

Agreed to  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

employee is or was a trustee in his capacity

as such an employee; and”,’.

Bridget Prentice

Agreed to  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’.

Public Bill Committee Proceedings: 26th June 2007
62

Legal Services Bill-[Lords], continued

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

Not called  312

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

‘( )
in paragraph (d) omit “such”.’.

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

Not called  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

Not called  314

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

‘( )
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

Not called  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

Not called  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

Not called  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.’.

Public Bill Committee Proceedings: 26th June 2007
63

Legal Services Bill-[Lords], continued

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

Not called  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.’.

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

Not called  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.’.

Bridget Prentice

Agreed to  191

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

Bridget Prentice

Agreed to  193

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

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

Not called  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

Agreed to  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).’.

Bridget Prentice

Agreed to  195

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

Bridget Prentice

Agreed to  196

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

Bridget Prentice

Agreed to  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

Public Bill Committee Proceedings: 26th June 2007
64

Legal Services Bill-[Lords], continued

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

paragraph in question.’

Bridget Prentice

Agreed to  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

(b)
if such an appeal has been made, until such time as it is

determined or withdrawn.
35
      (7)
The Society must make rules—

(a)
prescribing the circumstances in which the Society may

decide to take action under sub-paragraph (2)(a) or (b);

(b)
about the practice and procedure to be followed by the

Society in relation to such action;