The Gazette 1955-58

a certified copy search with the original and that a proper comparison would require the service of two persons simultaneously. The Council expressed the opinion that the Registrar of Deeds is personally liable under Section 26 2nd and 3rd William IV Cap. 87 for loss suffered by any person who acts on an incorrect negative search. They were further of opinion that solicitor for a purchaser must if so advised compare a copy search with the original search when closed in the Registry of Deeds. Sale and resale of leasehold premises with goodwill. A and B carried on business in partnership the assets being leasehold premises £14,000, moveable chattels £3,000, goodwill £3,000. Total £20,000. On dissolution A purchased B's interest for £10,000 apportioned as follows : leasehold premises £7,000, moveable chattels £1,500, goodwill £1,500. A purchased as agent for a company about to be formed and shortly afterwards assigned such interest to the company and also sold to the company his own interest in the partnership in consideration of £10,000 apportioned as above. Member acted for A on the purchase from B on which occasion there was a full investigation of title and also acted for both A and the Company on (i) the assignment of the interest purchased by A as agent and (2) the sale of A's beneficial interest. A's intervening sole title was investigated and further searches made. He asked for advice as to the costs which should be charged. The Council stated that (i) the com mission scale fee is not payable on the value of the moveable chattels; (2) if the goodwill is adherent or " cat " goodwill within the meaning of Whiteman Smyth Motor Company v. Chaplin (1934 2. K.B.) it should be regarded as part of the premises sold for the purpose of costs. (3) On the assumption that commission scale fee is chargeable on the good will and that member substantially performs all the work described in schedule to S.R.G.O. 1951, member is entitled to charge the following com mission scale fees, (a) on £8,500 payable by the company on the purchase by A as agent for the company; (b) on £8,500 payable by A on the sale of his beneficial interest to the company, and (

him . . may before the certificate is signed but not later than 10 days after such allowance or dis allowance of any item deliver to the other party and carry in before the Taxing Master an objection in writing." Clause 3 of the same rule provides that the Taxing Master shall not be at liberty after the certificate has been signed to review the taxation or amend the certificate. Members pointed out that although the rule appears to allow ten days for an application to review, the applicant's rights may be defeated if the certificate is signed without notice to him within this period. The Council decided to refer the matter to the Society's represen tatives on the Superior Courts rules committee. Agreement for gross sum or commission costs. MEMBERS acted for beneficiaries of an American estate and propose to charge a commission fee of 5 per cent, on the amount received by each client being the fee prescribed by the rules of the local Bar Association. They asked for the Council's advice as to the legal authority for charging this fee. In their opinion the Council stated that the matter depends on the construction of Section 4 of the Attorneys'and Solicitors'Act 1870 and Section 8 of the Solicitors' Remuneration Act 1881. The Attorneys' and Solicitors Act 1870 generally speaking applies to work which does not fall within the Solicitors' Remuneration Act. If the business is transacted in any action or in the court an agreement relating to it is regulated by the Act of 1870. Broadly speaking non-con tentious business falls within the Solicitors' Remuneration Act 1881. Section 4 of the Act of 1870 provides that a solicitor may make an agree ment in writing with the client respecting the amount or manner of payment for any past or future services either by gross sum or by commission or percentage or salary or otherwise but the amount payable under the agreement shall not be-received by the solicitor until the agreement has been examined and allowed by a Taxing Master. Section 8 of the Solicitors' Remuneration Act 1881 enables a solicitor to make an agreement with a client before or after or in the course of a transaction for payment of the solicitor either by a gross sum or by commission or by salary or otherwise. The agreement must be in writing signed by the person to be bound. There is no provision similar to that in the Attorneys' and Solicitors' Act 1870 that the solicitor may not receive the agreed sum before taxation but a client may have the agreement referred to the Taxing Master. Apart from any agreement the Solicitors' Remuneration General Order (No. 2) 1920 enables a solicitor to charge .