Office of Public Sector Information
SCHEDULE 16 continued PART 1 continued
58 In section 62 (contentious business agreements by certain representatives)—
(a) in subsection (1) for “taxing officer” substitute “costs officer”, and
(b) in subsection (2)—
(i) for “taxing officer” substitute “costs officer”, and
(ii) for “taxed” substitute “assessed”.
59 In section 63 (effect on contentious business agreement of death etc)—
(a) in subsection (2)—
(i) for “taxation” substitute “assessment”, and
(ii) for “taxing officer” substitute “costs officer”, and
(b) in subsection (3)—
(i) for “taxation” substitute “assessment”,
(ii) for “taxing officer” (in both places) substitute “costs officer”, and
(iii) after “solicitor” (in the third place) insert “, or any of his employees,”.
60 In section 64 (form of bill of costs for contentious business)—
(a) in subsection (3) for “taxed” substitute “assessed”, and
(b) in subsection (4)—
(i) for “taxed” substitute “assessed”,
(ii) for “taxation” substitute “assessment”, and
(iii) for “taxing officer” (in both places) substitute “costs officer”.
61 In section 65 (security for costs and termination of retainer), in subsection (1) for “taxation” substitute “assessment”.
62 In section 66 (taxations with respect to contentious business)—
(a) in the section heading for “Taxations” substitute “Assessments”,
(b) for “taxation” substitute “assessment”,
(c) for “taxing officer” substitute “costs officer”,
(d) in paragraph (a), after “solicitor” (in the second place) insert “or an employee of the solicitor”, and
(e) in paragraph (b), after “him” insert “or by any employee of his who is an authorised person (within the meaning of section 56(5A))”.
63 In section 67 (inclusion of disbursements in bill of costs), in paragraph (b)—
(a) for “taxed” substitute “assessed”,
(b) for “taxing officer” substitute “costs officer”, and
(c) for “taxation” substitute “assessment”.
64 (1) Section 69 (action to recover solicitor’s costs) is amended as follows.
(2) In subsection (1) for “taxed” substitute “assessed”.
(3) For subsection (2) substitute—
“(2) The requirements referred to in subsection (1) are that the bill must be—
(a) signed in accordance with subsection (2A), and
(b) delivered in accordance with subsection (2C).
(2A) A bill is signed in accordance with this subsection if it is—
(a) signed by the solicitor or on his behalf by an employee of the solicitor authorised by him to sign, or
(b) enclosed in, or accompanied by, a letter which is signed as mentioned in paragraph (a) and refers to the bill.
(2B) For the purposes of subsection (2A) the signature may be an electronic signature.
(2C) A bill is delivered in accordance with this subsection if—
(a) it is delivered to the party to be charged with the bill personally,
(b) it is delivered to that party by being sent to him by post to, or left for him at, his place of business, dwelling-house or last known place of abode, or
(c) it is delivered to that party—
(i) by means of an electronic communications network, or
(ii) by other means but in a form that nevertheless requires the use of apparatus by the recipient to render it intelligible,
and that party has indicated to the person making the delivery his willingness to accept delivery of a bill sent in the form and manner used.
(2D) An indication to any person for the purposes of subsection (2C)(c)—
(a) must state the address to be used and must be accompanied by such other information as that person requires for the making of the delivery;
(b) may be modified or withdrawn at any time by a notice given to that person.
(2E) Where a bill is proved to have been delivered in compliance with the requirements of subsections (2A) and (2C), it is not necessary in the first instance for the solicitor to prove the contents of the bill and it is to be presumed, until the contrary is shown, to be a bill bona fide complying with this Act.
(2F) A bill which is delivered as mentioned in subsection (2C)(c) is to be treated as having been delivered on the first working day after the day on which it was sent (unless the contrary is proved).”
(4) At the end insert—
“(5) In this section references to an electronic signature are to be read in accordance with section 7(2) of the Electronic Communications Act 2000 (c. 7).
(6) In this section—
“electronic communications network” has the same meaning as in the Communications Act 2003 (c. 21);
“working day” means a day other than a Saturday, a Sunday, Christmas Day, Good Friday or a bank holiday in England and Wales under the Banking and Financial Dealings Act 1971 (c. 80).”
65 In section 70 (taxation on application of party chargeable or solicitor)—
(a) in the section heading for “Taxation” substitute “Assessment”,
(b) in subsection (1)—
(i) for “taxed” substitute “assessed”, and
(ii) for “taxation” substitute “assessment”,
(c) in subsection (2)—
(i) for “taxation” (in both places) substitute “assessment”, and
(ii) for “taxed” substitute “assessed”,
(d) in subsections (3) to (5) for “taxation” (in each place) substitute “assessment”,
(e) in subsection (6)—
(i) for “taxation” substitute “assessment”, and
(ii) for “taxed” substitute “assessed”,
(f) in subsection (7)—
(i) for “taxation” (in each place) substitute “assessment”,
(ii) for “taxing officer” substitute “costs officer”, and
(iii) for “tax” substitute “assess”,
(g) in subsection (8) for “taxation” (in each place) substitute “assessment”,
(h) in subsection (9)—
(i) for “for taxation” (in both places) substitute “for assessment”,
(ii) for “the taxation” (in both places) substitute “the assessment”,
(iii) for “a taxation” substitute “an assessment”, and
(iv) for “one fifth of the amount of the bill is taxed off” substitute “the amount of the bill is reduced by one fifth”,
(i) in subsection (10)—
(i) for “taxing officer” substitute “costs officer”, and
(ii) for “taxation” (in both places) substitute “assessment”,
(j) omit subsection (11), and
(k) in subsection (12)—
(i) for “of the bill taxed off” substitute “of the reduction in the bill”,
(ii) for “taxation” substitute “assessment”, and
(iii) for “taxed” (in the second place) substitute “assessed”.
66 In section 71 (taxation on application of third parties)—
(a) in the section heading for “Taxation” substitute “Assessment”,
(b) in subsection (1) for “taxation” substitute “assessment”,
(c) in subsection (3) —
(i) for “taxed” substitute “assessed”, and
(ii) for “taxation” substitute “assessment”,
(d) in subsection (4) for “taxation” substitute “assessment”,
(e) in subsection (6)—
(i) for “taxation” substitute “assessment”, and
(ii) for “taxed” substitute “assessed”, and
(f) in subsection (7) for “taxed” substitute “assessed”.
67 In section 72 (supplementary provisions as to taxations)—
(a) in the section heading for “taxations” substitute “assessments”,
(b) in subsection (1) for “taxation” substitute “assessment”,
(c) in subsection (2)—
(i) for “taxing officer” (in each place) substitute “costs officer”,
(ii) for second and fourth “taxing” substitute “assessing”, and
(iii) for “tax” substitute “assess”,
(d) in subsection (3)—
(i) for “taxing officer” (in both places) substitute “costs officer”,
(ii) for “tax” substitute “assess”, and
(iii) for “taxing” (in second place) substitute “assessing”, and
(e) in subsection (4)—
(i) for “taxing officer” substitute “costs officer”, and
(ii) for “taxed” substitute “assessed”.
68 In section 73 (charging orders), in subsection (1)—
(a) for “taxed” substitute “assessed”, and
(b) for “taxation” substitute “assessment”.
69 In section 74 (special provisions as to contentious business done in county courts)—
(a) in subsection (2)—
(i) for “registrar” substitute “district judge”,
(ii) for “taxing officer” substitute “costs officer”, and
(iii) for “taxation” (in both places) substitute “assessment”, and
(b) in subsection (3) for “taxation” substitute “assessment”.
70 Omit the following provisions—
section 76 (non-practising solicitors eligible for membership of Society),
section 77 (annual subscription to Society), and
section 78 (cessation and suspension of membership of Society).
71 For section 79 (committees and sub-committees of the Council) substitute—
(1) The Council may arrange for any function of the Council (including any function exercisable by the Council by virtue of section 80) to be exercised by—
(a) a committee of the Council,
(b) a sub-committee of such a committee,
(c) a body corporate which is established for the purpose of providing services to the Council (or any committee of the Council) and is a wholly-owned subsidiary of the Society, or
(d) an individual (whether or not a member of the Society’s staff).
(2) Where by virtue of subsection (1) any function may be discharged by a committee, the committee may arrange for the discharge of the function by—
(a) a sub-committee of that committee,
(b) a body corporate which is established for the purpose of providing services to the Council (or any committee of the Council) and is a wholly-owned subsidiary of the Society, or
(c) an individual (whether or not a member of the Society’s staff).
(3) Where, by virtue of subsection (1) or (2), any function may be discharged by a sub-committee, that sub-committee may arrange for the discharge of the function by an individual (whether or not a member of the Society’s staff).
(4) Arrangements made under this section in respect of a function may provide that the function is to be exercised in accordance with the arrangements only (and not by the delegating body).
(5) In subsection (4) “the delegating body” means—
(a) in the case of arrangements under subsection (1), the Council;
(b) in the case of arrangements under subsection (2), the committee;
(c) in the case of arrangements under subsection (3), the sub-committee.
(6) Subsections (2) and (3) have effect subject to any contrary direction given by the Council.
(7) Where arrangements under subsection (3) relate to a function delegated by a committee under subsection (2), subsection (3) also has effect subject to any contrary direction given by that committee.
(8) Any power given by subsection (1), (2) or (3) may be exercised so as to impose restrictions or conditions on the body or individual by whom the function is to be discharged.
(9) A committee or sub-committee may include or consist of individuals other than—
(a) members of the Council;
(b) members of the Society;
(c) solicitors.
(10) A sub-committee of a committee may also include or consist of individuals other than members of the committee.
(11) The Council may make arrangements for the appointment and removal of members of any committee to be made other than by the Council.
(12) A committee or sub-committee may regulate its own procedure, including quorum.
(13) The validity of any proceedings of a committee or sub-committee is not affected by any vacancy among its members.
(14) In this section “wholly-owned subsidiary” has the meaning given by section 1159 of the Companies Act 2006.
(15) This section is subject to any provision to the contrary made by or under any enactment.”
72 In section 80 (powers to act on behalf of Society)—
(a) in subsection (1) for “of any instrument made under it” substitute “any other enactment (or of any instrument made under this Act or any other enactment)”, and
(b) omit subsection (2).
73 Omit sections 81 and 81A (administration of oaths and taking of affidavits).
74 Before section 87 (interpretation) insert—
(1) Rules made by the Society under this Act may —
(a) make provision generally or subject to exceptions or only in relation to specified cases;
(b) make different provision for different cases or circumstances or for different purposes.
(2) Without prejudice to the generality of subsection (1), any rules prescribing a fee may provide for that fee to be reduced or waived in such circumstances as may be specified in the rules.”
75 In section 87(1) (interpretation)—
(a) in the definition of “client account”, for “in” to the end substitute “subject to rules under section 32(1)(a)”,
(b) after the definition of “sole solicitor” insert—
““sole solicitor endorsement” has the same meaning as in section 1B;”, and
(c) omit the following definitions—
“articles”
“controlled trust”
“duly certificated notary public”
“employee”
“indemnity conditions”
“replacement date”
“training conditions”.
76 In section 89 (consequential amendments etc.), omit subsection (7).
77 (1) Schedule 1 (intervention in solicitor’s practice) is amended as follows.
(2) In paragraph 1 (grounds for intervention)—
(a) in sub-paragraph (1)(a)—
(i) for “Council have” substitute “Society has”,
(ii) after “solicitor’s practice” insert “or former practice”, and
(iii) after “trustee” insert “or that employee is or was a trustee in his capacity as such an employee”,
(b) after that sub-paragraph insert—
“(aa) the Society has reason to suspect dishonesty on the part of a solicitor (“S”) in connection with—
(i) the business of any person of whom S is or was an employee, or of any body of which S is or was a manager, or
(ii) any business which is or was carried on by S as a sole trader;”,
(c) in sub-paragraph (1)(b)—
(i) for “Council consider” substitute “Society considers”, and
(ii) for “controlled trust” substitute “trust”,
(d) in sub-paragraph (1)(c) for “Council are” substitute “Society is”,
(e) in sub-paragraph (1)(ee)—
(i) for “Council are” substitute “Society is”, and
(ii) after “illness” insert “, injury”,
(f) in sub-paragraph (1)(h)—
(i) for “Council are” substitute “Society is”, and
(ii) omit “sole”,
(g) in sub-paragraph (1)(i) and (k) for “Council are” substitute “Society is”,
(h) in sub-paragraph (1)(l)—
(i) for “Council are” substitute “Society is”,
(ii) in sub-paragraph (iii) for “an officer” substitute “a manager”, and
(iii) in that sub-paragraph for “Council of the Law Society” substitute “Society”,
(i) after sub-paragraph (1)(l) insert—
“(m) the Society is satisfied that it is necessary to exercise the powers conferred by Part 2 of this Schedule (or any of them) in relation to a solicitor to protect—
(i) the interests of clients (or former or potential clients) of the solicitor or his firm, or
(ii) the interests of the beneficiaries of any trust of which the solicitor is or was a trustee.”,
(j) after sub-paragraph (1) insert—
“(1A) In sub-paragraph (1) “manager” has the same meaning as in the Legal Services Act 2007 (see section 207 of that Act).”, and
(k) omit sub-paragraph (2).
(3) In paragraph 3 (intervention following an undue delay)—
(a) for “10(3)” substitute “10(9)”,
(b) for paragraph (a) substitute—
“(a) the Society is satisfied that there has been undue delay—
(i) on the part of a solicitor in connection with any matter in which the solicitor or his firm is or was acting on behalf of a client or with any trust, or
(ii) on the part of an employee of a solicitor in connection with any trust of which the employee is or was a trustee in his capacity as such an employee; and”,
(c) in paragraph (c) for “Council regard” substitute “Society regards”.
(4) In paragraph 4(2) (continuation of powers after death etc of solicitor)—
(a) after “6(2) and (3)” insert “, 6A”,
(b) for “and (5)” substitute “, (5) and (6)”, and
(c) for “10(1)” substitute “10(2) and (7)”.
(5) In paragraph 6 (vesting of sums in Society)—
(a) in sub-paragraph (1)—
(i) for “Council pass” substitute “Society passes”,
(ii) for “Council's” substitute “Society's”, and
(iii) after “thereto” insert “and to rules under paragraph 6B”,
(b) in sub-paragraph (2)(a) for “his practice” to the end substitute—
“(i) his practice or former practice,
(ii) any trust of which he is or formerly was a trustee, or
(iii) any trust of which a person who is or was an employee of the solicitor is or was a trustee in the person’s capacity as such an employee;”, and
(c) in sub-paragraph (2)(c) for “to which the complaint relates” substitute “in connection with which the Society is satisfied there has been undue delay as mentioned in sub-paragraph (a) of that paragraph”.
(6) After paragraph 6 insert—
“6A (1) Without prejudice to paragraph 5, if the Society passes a resolution to the effect that any rights to which this paragraph applies shall vest in the Society, those rights shall vest accordingly.
(2) This paragraph applies to any right to recover or receive debts due to the solicitor or his firm in connection with his practice or former practice.
(3) Any sums recovered by the Society by virtue of the exercise of rights vested under sub-paragraph (1) shall vest in the Society and shall be held by it on trust to exercise in relation to them the powers conferred by this Part of this Schedule and, subject to those powers and to rules under paragraph 6B, upon trust for the persons beneficially entitled to them.
(4) The Society shall serve on the solicitor or his firm, and any person who owes a debt to which the order applies, a certified copy of the Society’s resolution.
6B (1) The Society may make rules governing its treatment of sums vested in it under paragraph 6 or 6A(3).
(2) The rules may in particular make provision in respect of cases where the Society, having taken such steps to do so as are reasonable in all the circumstances of the case, is unable to trace the person or persons beneficially entitled to any sum vested in the Society under paragraph 6 or 6A(3) (including provision which requires amounts to be paid into or out of compensation funds (within the meaning of section 36A)).”
(7) In paragraph 7(1) (holding of sums vested in Society)—
(a) after “paragraph 6” insert “or 6A(3)”, and
(b) after “thereto” insert “and to rules under paragraph 6B”.
(8) In paragraph 8 (information as to money held) for “holds money” to the end substitute—
“(a) holds money on behalf of the solicitor or his firm, or
(b) has information which is relevant to identifying any money held by or on behalf of the solicitor or his firm,
the court may require that person to give the Society information as to any such money and the accounts in which it is held.”
(9) In paragraph 9 (documents)—
(a) in sub-paragraph (1)(a)—
(i) after “possession” insert “or under the control”, and
(ii) for “or with any controlled trust” substitute “or former practice or with any trust of which the solicitor is or was a trustee”,
(b) in sub-paragraph (1)(b)—
(i) after “possession” insert “or under the control”, and
(ii) for “to which the complaint relates” substitute “of which the Society is satisfied”,
(c) in sub-paragraph (3) after “possession” insert “or control”,
(d) in sub-paragraph (5) after “the possession” insert “or under the control”,
(e) after sub-paragraph (5) insert—
“(5A) In the case of a document which consists of information which is stored in electronic form, a requirement imposed by a notice under sub-paragraph (1) or an order under sub-paragraph (4) or (5), is a requirement to produce or deliver the information in a form in which it is legible or from which it can readily be produced in a legible form.”,
(f) in sub-paragraph (6) after “possession of” insert “(a)”,
(g) at the end of that sub-paragraph insert—
“(b) any property—
(i) in the possession of or under the control of the solicitor or his firm, or
(ii) in the case of an order under sub-paragraph (5), which was in the possession or under the control of such a person and has come into the possession or under the control of the person in respect of whom the order is made,
which the Society reasonably requires for the purpose of accessing information contained in such documents,
and to use property obtained under paragraph (b) for that purpose.”,
(h) in sub-paragraph (7) after “documents” insert “or other property”,
(i) in sub-paragraph (8) after “documents” insert “or other property”, and
(j) in sub-paragraph (10) after “documents” insert “or other property”.
(10) For paragraph 10 (mail) substitute—
10 (1) The High Court, on the application of the Society, may from time to time make a communications redirection order.
(2) A communications redirection order is an order that specified communications to the solicitor or his firm are to be directed, in accordance with the order, to the Society or any person appointed by the Society.
(3) For the purposes of this paragraph—
(a) “specified communications” means communications of such description as are specified in the order;
(b) the descriptions of communications which may be so specified include—
(i) communications in the form of a postal packet;
(ii) electronic communications;
(iii) communications by telephone.
(4) A communications redirection order has effect for such time not exceeding 18 months as is specified in the order.
(5) Where a communications redirection order has effect, the Society or the person appointed by the Society may take possession or receipt of the communications redirected in accordance with the order.
Legal Services Act 2007