| Previous Section | Index | Home Page |
Mr. Kevan Jones: May I speak to amendment No. 76, which I tabled with my hon. Friend the Member for Bassetlaw (John Mann)? In Committee, we raised the need to increase the amount of compensation to a more realistic figure. I mentioned the case of Mrs. X of Stanley who could have lost £42,000 because of the negligence of Mark Gilbert Morse—a firm of solicitors in my constituency—regarding a miners’ compensation case. I accept that Government amendment No. 96 increases the amount from £20,000 to £30,000, but the purpose of my amendment is to ensure that the amount of compensation does not stick, as has been the case for many years, at a derisory level and is not out of kilter with the extent of people’s losses. Will the Minister explain what review mechanism is available to change the amount, if we accept the figure of £30,000 proposed in the Government amendment?
Bridget Prentice: First, may I reiterate that I am happy to accept amendments (a) and (b) to Government amendments No. 93, which were tabled by the hon. Member for Somerton and Frome (Mr. Heath). I recognised the force of the argument expressed both in Committee and in the other place that if someone is entirely innocent, it is quite unreasonable to expect them to pay costs. However, they must be able to show—and the office for legal complaints must be able to see—that the in-house complaints system is robust, and has been followed assiduously. On that basis, I am happy to accept the amendments.
May I tell my hon. Friend the Member for Stafford (Mr. Kidney) that Government amendment No. 97 was tabled as a result of his good work and because of his remarks in Committee? I am pleased, too, to tell the hon. Member for North-West Norfolk (Mr. Bellingham) that assistance will be available. The Bar and the Bar Standards Board put the case very strongly. While complaints handling should be seen to be independent of the legal profession, we did not want to lose the board’s expertise, and the discussions over the summer have enabled us to table an amendment that is satisfactory to all, and keeps consumers and consumer protection paramount.
My hon. Friend the Member for North Durham spoke about increasing the limit on compensation. I hope he accepts that the Government amendment that raises the limit from £20,000 to £30,000 provides for a 50 per cent. increase, excluding interest, which is a step forward. He will be aware that the board can, virtually on day one if it so chooses, consider whether the limit ought to be further increased. I have suggested that it should consider the limit annually, and that that figure should be included in its annual report to Parliament so that we know, on consumers’ behalf, whether or not it thinks the limit is adequate.
Mr. Kidney: Does my hon. Friend believe that a good regulator, in a disciplinary matter, would, as a matter of course, inform the consumer of the outcome of the investigation?
Bridget Prentice:
I agree that a good regulator would do so. I hope that when the office for legal complaints tells the consumer that it has forwarded the complaint
for disciplinary investigation it will encourage the regulator to ensure that the consumer is kept informed. I did not want to table an amendment to that effect, because it would be too cumbersome. On that basis, I urge the House to accept the amendments.
Mr. Bellingham: I am grateful to the Minister, who has made our day with this group of amendments. There are two important issues of principle at stake, and I thank her for what she said. I know that all branches of the profession will be extremely grateful as well, so with that in mind, I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Amendment proposed: No. 93, page 70, line 43, at end insert—
‘(1A) The rules must provide for charges payable in relation to a complaint to be reduced or waived (or partly or wholly refunded) where—
(a) the complaint is determined or otherwise resolved in favour of the respondent, and
(b) the ombudsman is satisfied that the respondent took all reasonable steps to try to resolve the complaint under the respondent’s complaints procedures.
(1B) The rules may make provision as to—
(a) the circumstances in which a complaint is to be treated as determined or otherwise resolved in favour of the respondent (which may include circumstances where a complaint is settled, withdrawn or abandoned (or treated as withdrawn or abandoned by virtue of scheme rules));
(b) matters to be taken into account by the ombudsman for the purposes of subsection (1A)(b).
(1C) The respondent’s complaints procedures are the procedures established by the respondent, or which the respondent participates in or is subject to, in accordance with regulatory arrangements (or licensing rules of the Board) made in accordance with section 112.’.— [Bridget Prentice.]
Amendments made to the proposed amendment:
(a), line 2, leave out ‘reduced or’.
(b), line 2, leave out ‘or partly’.— [Mr. Heath.]
Amendment, as amended, agreed to.
Amendments made: No. 94, page 71, line 2, leave out ‘a particular case’ and insert
‘such other circumstances as may be specified’.
No. 95, line 5, leave out ‘refunded in specified circumstances’ and insert
‘wholly or partly refunded in such other circumstances as may be specified’.— [Bridget Prentice.]
Amendment made: No. 96, page 72, line 15, leave out ‘£20,000’ and insert ‘£30,000’.— [Bridget Prentice.]
Amendment made: No. 97, page 75, line 21, at end insert—
‘(2A) The ombudsman must give the complainant a notice stating that a report under subsection (2) has been given to the relevant authorising body.’.— [Bridget Prentice.]
Amendment made: No. 98, page 82, line 28, after ‘provision’ insert ‘made in regulatory arrangements’.— [Bridget Prentice.]
Amendments made: No. 108, page 222, line 23, after ‘conveyancer,’ insert—
‘( ) granted a certificate issued by the Institute of Legal Executives authorising the person to practise as a legal executive,
( ) a registered patent attorney, within the meaning given by section 275(1) of the Copyright, Designs and Patents Act 1988 (c. 48),
( ) a registered trade mark attorney, within the meaning of the Trade Marks Act 1994 (c. 26),’.
No. 109, page 224, line 22, at end insert—
‘() The persons with whom the OLC may make arrangements include approved regulators; and the arrangements it may make include arrangements for assistance to be provided to an ombudsman in relation to the investigation and consideration of a complaint.’.— [Bridget Prentice.]
Amendment made: No. 99, page 93, line 38, leave out ‘(other than an individual)’.— [Bridget Prentice.]
Amendment made: No. 100, page 98, line 3, after ‘rules’ insert ‘or regulations’.— [Bridget Prentice.]
Amendment made: No. 101, page 100, line 17, after ‘rules’ insert ‘or regulations’.— [Bridget Prentice.]
Amendments made: No. 110, page 270, line 28, at end insert—
‘( ) After that subsection insert—
“(1A) Where the Society makes rules under subsection (1), it must by rules under subsection (1)(c) prescribe the requirement that (subject to any exceptions provided by the rules) recognised bodies must not provide services other than—
(b) solicitor services and other relevant legal services.
(1B) “Relevant legal services” means—
(b) where authorised persons other than solicitors or registered European lawyers are managers or employees of, or have an interest in, a recognised body, services of the kind provided by individuals practising as such authorised persons (whether or not those services involve the carrying on of reserved legal activities within the meaning of the Legal Services Act 2007).
(1C) The Society may by rules under this section provide that services specified, or of a description specified, in the rules are not to be treated as solicitor services or other relevant legal services.”.’.
No. 111, page 271, line 29, at end insert—
‘(fc) requiring recognised bodies to appoint a person or persons to monitor compliance, by the recognised body, its managers and its employees, with requirements imposed on them by or by virtue of this Act or any rules applicable to them by virtue of this section;”’.
No. 112, page 271, line 30, at end insert—
‘“(2ZA) If rules under this section provide for the recognition of legal services bodies which have one or more managers who are not legally qualified, the rules must make provision—
(a) for the recognition of such bodies to be suspended or revoked, on such grounds and in such circumstances as may be prescribed by the rules;
(b) as to the criteria and procedure for the Society’s approving, as suitable to be a manager of a recognised body, an individual who is not legally qualified (and for the Society’s withdrawing such approval).
(2ZB) Rules under this section may make provision for appeals to the High Court against decisions made by the Society under the rules—
(a) to suspend or revoke the recognition of any body;
(b) not to approve, as suitable to be the manager of a recognised body, an individual who is not legally qualified (or to withdraw such approval).
(2ZC) The rules may provide for appeals against decisions within subsection (2ZB)(b) to be brought by the individual to whom the decision relates (as well as the body).
(2ZD) In relation to an appeal under rules made by virtue of subsection (2ZB), the High Court may make such order as it thinks fit as to payment of costs.
(2ZE) The decision of the High Court on such an appeal shall be final.’.
No. 113, page 271, line 36, leave out from ‘(2B)’ to end and insert
‘While a body is recognised under this section, the Society—
(a) must direct that the body’s recognition is to have effect subject to one or more conditions if—
(i) the case is of a prescribed kind, and
(ii) the Society considers that it is in the public interest to do so;
No. 114, page 271, line 47, at end insert—
‘(c) if rules under this section provide for the recognition of legal services bodies which have one or more
managers who are not legally qualified, a condition that all the managers of the body must be legally qualified.’.
No. 115, page 272, line 17, at end insert ‘, and—
( ) for “the commencement of this section” substitute “or in the same session as the Legal Services Act 2007 was passed”.’.
No. 116, page 272, line 18, at end insert—
‘( ) after the definition of “the 1974 Act” insert—
““authorised person” means an authorised person in relation to an activity which is a reserved legal activity (within the meaning of the Legal Services Act 2007);”,’.
No. 117, page 272, line 22, leave out ‘““legal services body” has’ and insert
‘““legally qualified” and “legal services body” have’.
No. 118, page 272, line 27, leave out from ‘(e)’ to the end and insert
‘after the definition of “registered European lawyer” insert—’.
No. 119, page 272, leave out lines 28 and 29.
No. 120, page 272, line 32, after ‘jurisdictions’ insert ‘;
and a person has an interest in a body if the person 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)’.
No. 121, page 272, line 34, leave out paragraph 82 and insert—
‘82 After that section insert—(1) For the purposes of section 9, a “legal services body” means a body (corporate or unincorporate) in respect of which —
(a) the management and control condition, and
(b) the relevant lawyer condition,
(2) The management and control condition is satisfied if—
(a) at least 75% of the body’s managers are legally qualified,
(b) the proportion of shares in the body held by persons who are legally qualified is at least 75%,
(c) the proportion of voting rights in the body which persons who are legally qualified are entitled to exercise, or control the exercise of, is at least 75%,
(d) all the persons with an interest in the body who are not legally qualified are managers of the body, and
(e) all the managers of the body who are not legally qualified are individuals approved by the Society as suitable to be managers of a recognised body.
(3) The Society may by rules under section 9 provide that, in relation to specified kinds of bodies, subsection (2) applies as if the references to 75% were to such greater percentage as may be specified (and different percentages may be specified for different kinds of bodies).
(4) The relevant lawyer condition is satisfied in relation to a body if at least one manager of the body is—
(b) a registered European lawyer, or
(5) For that purpose a qualifying body is a body in respect of which—
(a) the management and control condition would be satisfied if the references in subsection (2) to persons who are legally qualified were to persons who are legally qualified by virtue of subsection (6)(a) to (c),
(b) the relevant lawyer condition is satisfied by virtue of subsection (4)(a) or (b), and
| Next Section | Index | Home Page |