The Gazette 1961 - 64

receive a deputation from the Society with a view to the introduction of a provision enabling a solicitor to charge a negotiation fee where he does conduct negotiations and also to deal with other matters arising out of the draft rules. The deputation were also given discretion to deal finally with the matter. The deputation consists of the President, the Secretary and Mr. Dermot P. Shaw. Costs of obtaining Certificate of Discharge from Income Tax The Council specially reconsidered on request the existing ruling on the costs of a solicitor for the vendor for applying for and obtaining a Section 6 Certificate. The existing ruling to the effect that the work of obtaining a Certificate should be included in the Commission scale fee and that no further charge should be made against the vendor or the purchaser (except in cases where it is necessary to make a return) was referred to a Committee and the Committee reported that a charge of approx imately £z IDS. (maximum) is at present being allowed by the Taxing Masters as a charge against the vendor for obtaining the Certificate. This is at variance with the Society's ruling and it appeared also that many solicitors have for many years been charging a fee for doing this work. It appeared that the Tax Masters allow for this work on the basis that it could not have been in the minds of the rule makers when fixing the scale fees under the 1884 Solicitors Remuneration Act. The Council have accordingly decided to reverse the existing ruling and having regard to the practice of the Taxing Masters the Council are now of opinion that the fee is chargeable in addition to the commission scale fee and is payable by the vendor to his own solicitor in all cases. Compensation Fund Payments On a report from the Compensation Fund Committee the Council admitted for payment claims amounting to £5,290 135. jd. Dealings with Clients' Creditors—Solicitor's Duty A member acted for a garage proprietor who had failed in business. The garage premises were mortgaged to a finance company for an amount owing to them and when the client gave up business and went abroad he let the premises for a substantial weekly rent which member collected on his behalf and placed to the credit of his account for distribution among his creditors. The client's instructions to member were that he would make substantial regular payments himself to the finance company and that the amount recovered in rent in respect of

the garage premises should be applied by member in payment of the amounts due to his other (un secured) creditors. On this basis member acted for the client and he informed the various creditors of the position. In consideration of this, several of them withheld proceedings. The finance company were also aware of the situation and when the client failed in his obligation towards them they obtained from him an authority directed towards the tenant of the premises and authorising the tenant to pay the rent directly to them, the finance company. The company ask member to continue to collect the rent from the tenant on their behalf and to account to them for it. Member enquired whether or not it would be proper for him to do this and also as to what course he should adopt. The Council on a report from a committee gave the opinion that member should (a) retain moneys which he had collected, down to the termination of his authority and deal with them in accordance with his obligations under the representations made to the creditors (other than the finance company) on his client's instructions, (b) refuse to act for the finance company in collecting the rent and account directly to his client for any rent collected since the termination of his authority and (i) inform the creditors of the termination of his authority. As regards the general practice in cases of this kind the Council were of opinion that a solicitor instructed by a debtor to negotiate with creditors to obtain time on the basis that the creditors' claims will be paid by instalments or otherwise out of moneys coming into his hands should be careful not to leave the creditors under the impression that their claims are being secured if the client's instructions are revocable. Furthermore that the creditors should be advised immediately of any change in the position affecting their rights. A member put the following query to a committee of the Council. His predecessor had acted for a client of the firm in the extraction of a grant of probate and the Grant was issued in 1945. The Will appointed the client executor and sole beneficiary. A son of the client and executor called on member and stated that he thought that the deceased had bequeathed certain lands to him. Member relying on the grant of probate, told him that the will contained no such provision but some time later the client came in again with copy of a later will to which probate had not been issued. Member then read through his predecessor's correspondence file and it appeared clear from this that there was in fact a later will and that it was in the possession of a 22 Solicitor's duty where Grant has issued and a subsequent Will appears