The Gazette 1972

THE SOCIETY Proceedings of the Council MEETINGS OF THE COUNCIL OCTOBER 19th

premises were again offered for sale through different auctioneers and the contract was signed for a figure much lower than the figure agreed at the previous abortive sale. It then became clear that the amount of the purchase money was insufficient to pay off the company's creditors in full. After the contract was signed but before completion of the sale the company went into voluntary liquidation. The question arose as to whether the claim of the liquidator to the proceeds of sale took priority over member's undertaking to the particular creditor. The Council having considered the matter advised members to seek a direction of the Court as to the legal position. The committee were prima facie of the opinion that the situation had radically changed since the date of the undertaking although it was phrased in general terms "entering into a contract" the contract contem- plated at the date of the undertaking no longer exists and in fact never came into being. The Council how- ever refrained from expressing any opinion on the legal or professional aspect of the matter without a direction of the Court. In another matter members enclosed a form of under- taking submitted to them by the local branch manager undertaking to hold documents on completion and trust for the bank and to lodge them as soon as the usual formalities in connection with stamping, registration and legal searches have been completed and not to allow while the documents remained in their possession any act which would result in the property being mortgaged or assigned without the bank's consent. They asked for guidance as to their professional and financial position. The Council on a report from a committee stated that in the event of completion of the under- taking members would be involved both in professional and financial liability. They were further advised that in the absence of an irrevocable authority and retainer members might be bound to hand over the documents and would then be caught between their obligations under the undertaking and their instructions from the client. Land Registration costs The Council were informed that rules giving an effect to an increase of 30% in the costs of voluntary transfers and applications under Rules 33-35 and costs under Rules 121 (6) have been made with effect from 2nd October 1972. District Court Costs New District Court costs are in operation since 1st September 1972. Building Societies and completion of transactions In formal discussions between lending bodies' solici- tors and representatives of the Society it was arranged to discuss a number of matters of interest to the profession. It was suggested on behalf of the Society that lending institutions should not insist that a bor- rower be registered with absolute title in respect of - 2 6 9

The President in the chair also present Messrs Walter Beatty, Bruce St. J. Blake, John Carrigan, Anthony E. Collins, Laurence Cullen, Gerard M. Doyle, James R. C. Green, Christopher Hogan, Michael P. Houlihan, Thomas Jackson, Jnr., Francis J. Lanigan, Eunan McCarron, Patrick McEntee, Brendan A. McGrath, John Maher, Patrick C. Moore, Senator J. J. Nash, George A. Nolan, Ptter E. O'Connell, Rory O'Connor, Thomas V. O'Connor, Patrick F. O'Donnell, William A. Osborne, Peter D. M. Prentice, Mrs. Moya Quinlan, Robert McD. Taylor, Ralph J. Walker. Extraordinary members from Northern Ireland The President on behalf of the Council welcomed Messrs J. A. Young, President and John L. Pinkerton, Council member of the Incorporated Law Society of Northern Ireland who were present by invitation. Stipulation » in agreement for leases with regard to ccsts and outlay It was decided to take the opinion of Counsel as to whether the Society have power to make a Professional Practice Regulation prohibiting stipulations in con- tracts obliging a lessee to pay the lessor's stamp duty and other outlay including mapping fees and having certificates of compliance endorsed on leases and other matters. Private Motorists' Protection Association The Association issued a letter to members, who carry third party insurance only, advising them that where they are not responsible for the accident they will be making a claim direct on the third party involved and should they experience any difficulty with the claim to contact the legal department of P.M.P.A. who may be in a position to give assistance. The Society was in correspondence with the P.M.P.A. who wrote stating that on receipt of a request for assistance from member the Association would confirm to a solicitor chosen by the member that it will pay any costs recovered as the result of taking the case on its behalf. The Council on a report from a committee stated that there is no objec- tion to this procedure provided that the member of the Association should have the right to choose his own solicitor at the expense of P.M.P.A. Professional undertakings Members asked for guidance as to their obligations on the following form of undertaking : We hereby undertake that in the event of our client entering into a contract for the sale of the leasehold interest then any balance outstanding on foot of this debt be paid out of the proceeds of sale within three days of completion of the sale. The negotiations for the sale broke down and no contract was signed. The clients continued to pay the specified instalments of the debt and eventually the