Can solicitors/firms financially benefit as result of clients instructions?
Must properly account to client for financial benefit unless the client has already agreed otherwise.
What are filing requirements for solicitors and firms?
Must deliver to SRA an annual return in prescribed form
What might give rise to an own interest conflict?
Any financial interest in clients business
Solicitor is beneficiary in the clients will
- extends to solicitors family or member of firm
Personal Relationship
- client is in claim against someone solicitor has personal relationship with
Commercial Relationship
-in business adverse to clients business
Employment claims of former employees
- if prospective client was former employees of solicitors firm and is bringing action against firm
Solicitors own conduct in question
- if client asks advice for rectifying mistake made by that solicitor in matter and one of the options is bringing professional negligence claim
What should a solicitor consider to be satisfied that it is reasonable to act in a conflict of interests?
whether the clients will benefit (ie. cheaper or more convenient)
whether there will be extensive negotiations between clients
whether there is an imbalance in knowledge or bargaining power between clients
When is disclosure permitted in relation to duty of confidentiality?
- client consents
- disclosing will to an attorney appointed under lasting power of attorney (unless power forbids this)
- solicitor is being used by client to perpetrate a crime or fraud
statutory requirements (eg tax affairs) - statutory duty (money laundering)
- court order or police warrant
When might a breach of duty of confidentiality be justified?
- disclosure to prevent the commission of a crime that will result in serious bodily harm
- disclosure where the client has indicated they intend to commit suicide or serious self-harm
- to protect a child or vulnerable adult
HOWEVER
- not justified after the event
What are the consequences of breaching duty of confidentiality?
Disciplinary action by SRA or SDT
Client may sue for breach of duty
What are the exceptions to duty to disclose to client?
- client gives informed consent, in writing or evidenced in writing
- you have reason to believe the dislosure would cause serious physical or mental injury to a person
- legal restrictions imposed of national security of the prevention of a firm (AML, anti-terror)
- you only have knowledge of information because it is contained in privileged documents which have been mistakenly disclosed to you
What events must solicitors notify SRA of?
Must notify them promptly if:
- you are subject to any criminal charge, conviction or caution
- a relevant insolvency event
- you become aware of any material change to information about you or your practice that was previously provided to the SRA by you or on your behalf, and such information may be false, misleading, incomplete or inaccurate
What events must firms notify SRA of?
Must notify SRA promptly of:
- any indicators of serious financial difficulty relating to the firm;
- any insolvency event relating to the firm;
- the firm’s intention or awareness that it will cease operating as a legal business;
- any change to information recorded in the register; or
- material changes to information about its managers, owner or compliance officers that was previously provided to the SRA by firm or on its behalf
What must you do if you make a mistake that effects a clients matter?
Must be honest and open with client
If they suffer loss or harm as a result must:
- put matter right if possible; and
- explain fully and promptly what happened and the likely impact
If requested by SRA
- must investigate whether anyone may have claim against you
- provide SRA with a report of outcome of your investigation and notify relevant persons that they may have claim
What must firms/solicitors do at beginning of retainer?
- Must identify client
- Inform clients of regulation
- whether and how the services are regulated
- how this effects protection available to client
- correctly represent that business or employer is regulated by the SRA (or not) - Ongoing information on matter
- make sure they understand and are in position to make informed decision about the services they need - ongoing pricing and costs
- including likely overall cost
- likelihood of having to pay other sides legal fees - Clients right to complain
- in writing
- how and to whom to complain
When and how must you inform client of their right to complain?
At beginning of retainer
- in writing
- how and to whom to complain
8 weeks following a complaint if not resolved to clients satisfaction
- in writing
- timeframe for complaining
- full details on how to contact
(if complaint procedure has been exhausted)
- than you cannot settle complain
- name and website of ADR approved body suited to deal with it
- whether you agree to se the scheme operated by that body
When must pricing information be published on website?
For:
- residential conveyancing
- probate (uncontested)
- motoring offences (summary)
- immigration (not asylum)
- employment tribunals
- debt recovery (up to £100k)
- licensing applications
