The Gazette 1967/71

CASES OF INTEREST Ex Parte Action for Malicious Prosecution by a Struck off Solicitor The applicant, a former solicitor, applied ex parte for leave to appeal against an order of Nield, J. striking out his action against the defendant for malicious prosecution arising out of the defen dant's conduct, on behalf of the Law Society of disciplinary proceedings against him as a result of which he was struck off the roll. The applicant con tended that an action for malicious prosecution would lie even though the proceedings had not been decided in his favour if, by the very nature of those proceedings, he could not have succeeded. Lord Denning, M. R. said that so long as the decision of the Disciplinary Committee of the Law Society stood, the action would not lie. The application was refused. (Ex parte Glilck, Solicitors Journal [Vol. IIIJ p. 982). Liability of a Trade Union towards a Member when Union gives Legal Aid A Trade Union member lost the top of a finger in an accident. In compliance with the Union Rules relating to legal assistance, he notified the union officials within three days. Full particulars were taken down by the Secretary who forwarded the information to head office who in turn for warded it to the solicitor retained by the Union. The solicitors advised that the plaintiff had no cause of action as the accident appeared to be no ones fault. The Union lost the action in the first instance. On appeal Denning, M. R. that the judge in first instance had erred in placing on the Union the standard duty of a solicitor from the moment the accident aas reported to the branch Secretars. (Cross v. British Iron, Steel and Kindred Trade Association— Solicitors Journal [Vol. Ill] p. 944). Delay in Taxing Costs—Nominal Sum Awarded : In March 1960 the plaintiffs issued a writ claim ing £550 from the defendant for work done by them during 1958 and 1959. In January 1964 after a 4-day hearing before the official refree, the parties settled the action and an agreed order was made that the defendant pay £350 to the plain tiffs and three fifths of their costs of the action to be taxed on the High Court scale, if not agreed, the defendant to pay the £350 and the costs by instalments of £100 every 6 months beginning on 1st August 1964. The defendant paid the instal ments and in January 1966 made the last payment and, by letter reminded the plaintiffs' solicitors of their obligation under the order to tax or agree with him their costs. Towards the end of 1966, 76

sub-section is intended to be a guide as to the books a solicitor should keep. The Society are of the opinion that cards and other records for mechanised systems will satisfy the regulations provided that the accountant approves of the system. Too much stress cannot be laid upon he im portance of having properly written-up books and accounts, fully supported by vouchers etc., show ing all the solicitor's dealings with and on behalf of his clients. Otherwise, the solicitor, on the one hand, will find it difficult to perform his duties properly while the accountant on the other hand, will find that the examination necessary to issue a certificate will be difficult and expensive and may result in a qualified certificate. Retention of Books and Accounts for ten years : A solicitor must, to comply with Regulation 15 (2), preserve for at least ten years from the date of the last entry therein all books and accounts kept by him in accordance with the regulations. The Society accepts that the obligation to comply with this regulation commences on the date of the coming into operation of these regulations—9th day of March 1967. There is no obligation on the accountant to examine exhaustively all the books and accounts for the previous ten years to ascertain that they have been kept. Test checks are sufficient for the purpose of satisfying himself that the books and accounts have been preserved for the statutory period. General— Floating balance in a client bank account: A solicitor is entitled to keep a floating balance of his own money in a client bank account which must at least equal, at any time, the total of any debit balances on clients' accounts. It follows that the balance to credit of a client bank account may exceed, but may never be less than, the total balances standing to credit of all the Solicitor's clients as shown by his books. A Solicitor who keeps a floating balance of his own money in a client bank may only withdraw such money by cheque made payable to himself or by transfer to another bank account in his own name. Interest on clients' monies : The Society's view is that apart from cases in which either (1) a sum is placed on deposit receipt in a solicitor's name for a specified client or (2) a client's money is improperly or unduly retained, a solicitor is not accountable to clients for interest earned or allowed on a floating balance of clients' monies in his bank.