The Gazette 1971

paid by them. The usual extensions are available upon payment of additional premium. There are no unusual conditions or exclusions attach- ing to the group scheme policy. The Law Society believes that placing the responsibility for minor claims of under $A2,000 on members will assist to stabilise premiums at rates well below those available on the world market. T o date this has proved to be the case, and each year there has been an increasing number of N.S.W. solicitors joining the group scheme. Over 25 per cent of the profession of solicitors in the state are now members of the scheme. The present annual premium income is well in excess of $A100,000. Although the scheme is not compulsory it is strongly recommended by the Law Society to its members, in the belief that it works for the general good of the profession and will benefit increasingly all participating members. ACKNOWL EDGMENTS Replies received too late for inclusion in the report were sent by the following national correspondents : Ireland : The Incorporated Law Society of Ireland— E. A. Plunkett. Peru : Colegio de Abogados—Javier Vargas. Vice-Chairman Y. Fraenkel, Esq. (Israel) The session was very well attended and twenty-four speakers commented on the report from the floor, repre- senting twelve countries—namely, Australia, England, France, Germany, Hong Kong, India, Denmark, Jamaica, Malta, Sweden, Switzerland and the United States of America. The Chairman introduced the Rapporteur and invited him to present his report. Introducing the paper, the Rapporteur emphasised that professional negligence was a matter of concern not merely for individual lawyers but also for the pro- fession as a whole and for the professional bodies. He drew attention to the inadequacies of existing insur- ance provisions and advocated the introduction of com- pulsory professional indemnity insurance as a condition S UMMA RY OF DISCUSSION Chairman Rapporteur P. Connolly, Esq. (Australia) C. Dunlop, Esq. (Australia)

of practice. He also forecast that law societies would have to consider the ethical aspect of gross or habitual negligence of their members and whether those faults should be the subject of disciplinary action. He raised the question of the barrister's liability for professional negligence in countries where lawyers practised only as barristers. The issues raised by the speakers fell into four main categories : (1) Was it considered proper that lawyers should remain liable for their negligence without any form of alleviation? (2) The nature of the barrister's liability where he practised only as a barrister. (3) The desirability of allowing practice by lawyers as limited liability corporations. (4) What might be done to improve the professional indemnity insurance available to lawyers? As to the first question some divergence of opinion was shown, but it was generally agreed that any limi- tation of the lawyer's liability for his negligence was undesirable. Speaking first on this subject, Mr. P. J. Griffiths, of Hong Kong, referred to the very considerable sums involved in some commercial transactions and said it would be impossible to obtain an adequate insurance cover against the contingency of some negligence occur- ring in such cases except perhaps at a prohibitive premium. He thought it reasonable to have some limit to the liability of the lawyer in such cases. Mr. D. G. Frank, Q.C., of the English Bar, in expressing a similar view, referred to the large amounts involved in some tax matters on which barristers were called to advise in England. Mr. K. Burke, of Jamaica, expressed dissatis- faction with the standard applied to the lawyers' profession in comparison with other professions. He considered that a lawyer was likely to be held liable for the slightest mistake which might fall short of negli- gence by the standards applied in other professions. Referring to this comment, Mr. Justice Hardy, of Australia, said he considered that the law relating to negligence of lawyers cried out for codification and suggested that law societies should press for a more definite statement. REFERENCE (19) Halsbury's Laws of England, third edition, vol. 22, p. 184.

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