PART IV

Protection of Clients

26. —(1) The Society may make regulations (in this section referred to as “indemnity regulations”) making provision for indemnity against losses arising from claims in respect of any description of civil liability incurred—

(a) by a solicitor arising from his practice as a solicitor, or

(b) by a partner, clerk or servant or former partner, clerk or servant of a solicitor arising from that solicitor's practice as a solicitor.

(2) For the purposes of providing such indemnity, indemnity regulations may do any one or more of the following, namely—

(a) authorise the Society to establish and maintain any indemnity fund or funds, including a mutual fund;

(b) authorise the Society to effect and maintain a general policy of indemnity insurance making provision for indemnity against losses arising from claims in respect of any description of civil liability, in which solicitors would be required to participate;

(c) require solicitors or any specified category of solicitors to effect and maintain a policy of indemnity insurance with insurers approved of by the Society or to participate or to continue to participate in a fund or funds established or maintained pursuant to paragraph (a) of this subsection or in any other fund approved of by the Society, including the mutual fund known as the “Solicitors Mutual Defence Fund Limited”.

(3) The Society may, without prejudice to any of their other powers, carry into effect any arrangements which they consider necessary or expedient for the purpose of ensuring that there is indemnity against losses pursuant to this section.

(4) Without prejudice to the generality of subsections (1), (2) or (3) of this section, indemnity regulations may—

(a) specify terms and conditions on which indemnity against losses is to be available to solicitors from any indemnity fund or funds or under any general policy of indemnity insurance or under any policy of indemnity insurance with insurers approved of by the Society and any circumstances in which the right to such indemnity is to be excluded or modified;

(b) specify minimum levels of cover for indemnity against losses arising from claims or different classes of claims;

(c) provide for the management, administration and protection of any fund maintained under subsection (2) of this section and require solicitors or any specified category of solicitors to make payments to any such fund;

(d) require that solicitors or any specified category of solicitors make payments by way of premium in respect of any general policy of indemnity insurance maintained by the Society by virtue of subsection (2) of this section;

(e) specify conditions which indemnity cover shall satisfy for the purposes of subsection (2) of this section;

(f) provide for the determination by the management of any fund maintained by the Society under subsection (2) of this section of the contribution payable by solicitors or any specified category of solicitors in respect of each description of civil liability for which cover is provided by such fund;

(g) specify the circumstances in which, where a solicitor for whom indemnity cover is provided has failed to comply with the indemnity regulations or with the terms and conditions of such indemnity cover, proceedings for the recovery of sums paid by way of indemnity against losses in respect of that solicitor may be taken against him by the providers of such indemnity cover or by the Society, as may be appropriate;

(h) specify circumstances in which any solicitor or specified category of solicitor may be exempted from the indemnity regulations;

(i) enable the Society to take such steps as they think necessary or expedient to ascertain whether or not the indemnity regulations are being complied with;

(j) include arrangements for the submission to arbitration of any dispute arising between a solicitor and his client in relation to any claim or claims by the client against the solicitor in respect of civil liability to which the indemnity regulations apply by reason of the provisions of this section, where both the solicitor and the client have agreed in writing to submit the dispute to arbitration;

(k) specify the manner in which solicitors or any specified category of solicitors shall bring their compliance with, or exemption from, the indemnity regulations to the notice of their clients or the Society; and

(l) include incidental, procedural or supplementary provisions in relation to any of the matters set out in paragraphs (a) to (k) of this subsection.

(5) Notwithstanding the foregoing provisions of this section, the Minister may direct the Society to make or amend indemnity regulations.

(6) It shall be misconduct for a solicitor to whom indemnity regulations apply knowingly to make a false or misleading declaration of a material nature for the purpose of obtaining indemnity against losses arising from claims in respect of any description of civil liability incurred by him.

27. —The Act of 1960 is hereby amended by the substitution of the following section for section 19:

“Power of Society to deal with documents of certain solicitors.

19.—(1) Where the Society are of the opinion that—

(a) a solicitor or a clerk or servant of a solicitor has been guilty of dishonesty arising from that solicitor's practice as a solicitor, or

(b) a solicitor who is a sole practitioner has abandoned his practice or has ceased to carry on his practice other than for one or more of the reasons set forth in section 60 (1) (as substituted by the Solicitors (Amendment) Act, 1994) of the Principal Act,

and that adequate arrangements have not been made for the making available to the clients of such solicitor of all or any documents held in the possession or in the control or within the procurement of that solicitor on behalf of those clients, the Society may give notice in writing to that solicitor or to any other person or persons in possession or control of such documents, or any of them, requiring the production and delivery to any person appointed by the Society, at a time and place to be fixed by the Society, of such documents or any of them.

(2) Where a solicitor or other person to whom subsection (1) of this section applies refuses, neglects or otherwise fails without reasonable excuse to produce or deliver documents in his possession or control or within his procurement within 14 days after receipt by him of a notice under subsection (1) of this section from the Society—

(a) he shall be guilty of an offence under this section and shall be liable on summary conviction thereof to a fine not exceeding £1,500, and

(b) the Society may apply to the High Court and the Court may by order require such solicitor or other person to produce or deliver such documents or any of them within such time as the Court thinks fit.

(3) Where the Society take possession of documents produced or delivered under a requirement under this section—

(a) they shall serve on the solicitor and on every other person from whom the documents were received a notice giving particulars of the documents and the date of taking possession thereof, and

(b) if any of the documents are grouped together as relating to a particular matter, the notice may give particulars of those documents by referring to the group and the matter to which it relates.

(4) Within 14 days after service of a notice under subsection (3) of this section on a solicitor or other person, the solicitor or other person may apply to the High Court for an order directing the Society to return the documents received by the Society to him or to such other person or persons as the applicant may require and the Court may make the order applied for or such other order as the Court thinks fit.

(5) (a) Where an application is not made in accordance with subsection (4) of this section or the High Court on such application directs that the documents shall remain in the possession of the Society, the Society may make such enquiries as may be reasonably necessary to ascertain the person or persons entitled to the possession or custody of such documents, or any of them, and may thereafter deal with such documents, or any of them, in accordance with the directions of such person or persons so entitled.

(b) For the purposes of paragraph (a) of this subsection, the provisions set out in the Second Schedule (as amended by the Solicitors (Amendment) Act, 1994) to this Act shall have effect.

(6) Where it appears to the Society, in relation to a solicitor who is a sole practitioner who has, to the knowledge of or in the opinion of the Society, abandoned his practice or has otherwise ceased to carry on his practice, that any premises occupied or formerly occupied by that solicitor which contain or might contain documents relating to that solicitor's practice are not sufficiently secured, a person authorised in writing by the Society shall have power to enter upon such premises for the purpose of securing such documents either there or elsewhere in the interests of clients of that solicitor.”.

28. —The Act of 1960 is hereby amended by the substitution of the following section for section 20:

“Control of banking accounts or assets of solicitors.

20.—(1) Where the Society are of opinion that a solicitor or a clerk or servant of a solicitor has been guilty of dishonesty arising from that solicitor's practice as a solicitor, or where any of the circumstances of paragraph (b) of section 19 (1) (as substituted by the Solicitors (Amendment) Act, 1994) of this Act apply, the Society may apply to the High Court and the Court may make an order directing one or more of the following things, namely—

(a) that no bank shall, without leave of the Court, make any payment out of an account in the name of the solicitor or his firm;

(b) that a specified bank shall not, without leave of the Court, make any payment out of an account kept at such bank in the name of the solicitor or his firm;

(c) that the solicitor shall not, without leave of the Court, dispose of or direct or facilitate the disposal of any assets in his possession or control or within his procurement;

(d) that the solicitor shall not, without leave of the Court, reduce his assets below a certain specified amount or value.

(2) The High Court shall have power to hear in camera an application for an order under subsection (1) of this section.

(3) Where the High Court makes in relation to a solicitor an order under subsection (1) of this section, the Court may at the same time order that any practising certificate issued to him be suspended.

(4) Where any person acts as agent or nominee of a solicitor or his firm so as to render nugatory an order made by the High Court under subsection (1) of this section, such person shall be guilty of an offence under this section and shall be liable on summary conviction thereof to a fine not exceeding £1,500.

(5) Where the High Court makes in relation to a solicitor an order under subsection (1) of this section, the Court may make one or more of the following further orders, namely, an order or orders—

(i) directing a specified bank to furnish any information in its possession that the Society require relating to any aspect of the financial affairs of the practice of the solicitor;

(ii) directing the solicitor to swear an affidavit disclosing all information relating to or contained in any account with any bank held in his own name, or in the name of his firm, or jointly with third parties, within a specified duration of time to be fixed by the Court;

(iii) directing the solicitor to swear an affidavit disclosing all information as to his assets, either then in his possession or control or within his procurement or which had been but are no longer in his possession or control or within his procurement, within a specified duration of time to be fixed by the Court, and, if no longer in his possession or control or within his procurement, his belief as to the present whereabouts of those assets;

(iv) directing the solicitor to make himself available before the Court on a specified date and at a specified time for oral examination under oath in relation to the contents of any affidavit of assets sworn by him pursuant to paragraph (iii) of this subsection.

(6) Where the High Court makes in relation to a solicitor an order under subsection (1) of this section, the solicitor shall forthwith lodge (or cause to be lodged) in the manner prescribed under section 66 (1) (as substituted by the Solicitors (Amendment) Act, 1994) of the Principal Act any clients' moneys subsequently received by him to the appropriate client account or client accounts, unless otherwise ordered by the Court.

(7) A solicitor who refuses, neglects or otherwise fails without reasonable excuse to comply with subsection (6) of this section shall be guilty of an offence and shall be liable on summary conviction thereof to a fine not exceeding £1,500.

(8) Where the High Court is satisfied, on an application being made to it by the Society, that there is reason to believe that any person holds or has held moneys or assets on behalf of a solicitor or his firm to whom subsection (1) of this section applies, the Court may order that person to disclose to the Society all information as to such moneys or assets, either then in his possession or control or within his procurement or which had been but are no longer in his possession or control or within his procurement, and, if no longer within his possession or control or within his procurement, his belief as to the present whereabouts of those moneys or assets.”.

29. —The Act of 1960 is hereby amended by the substitution of the following section for section 21:

“Compensation for loss due to dishonesty of solicitor or clerk or servant of solicitor.

21.—(1) In this section and in section 22 of this Act—

‘the Fund’ means the Compensation Fund;

‘grant’ means a grant under subsection (4) of this section.

(2) The Society shall continue to maintain the Fund.

(3) The Fund shall be maintained and administered in accordance with the provisions of the Third Schedule to this Act.

(4) (a) Where it is proved to the satisfaction of the Society that any client of a solicitor has sustained loss in consequence of dishonesty on the part of that solicitor or any clerk or servant of that solicitor arising from that solicitor's practice as a solicitor within the jurisdiction of the State, then, subject to the provisions of this section, the Society shall make a grant to that client out of the Fund.

(b) Subject to the provisions of this section, the amount of the grant referred to in paragraph (a) of this subsection shall be such as represents in the opinion of the Society reimbursement of the amount or value of the loss sustained with, where appropriate in the opinion of the Society, interest (at the rate per annum standing specified for the time being in section 26 of the Debtors (Ireland) Act, 1840, as varied from time to time pursuant to section 20 of the Courts Act, 1981 ) on the whole or any part of the amount or value of such loss in respect of the whole or any part of the period between the date when such loss was sustained and the date of the making of a grant, but excluding damages or any other form of loss consequent on the client of a solicitor being deprived of the amount or value of the loss sustained.

(5) Notwithstanding the foregoing provisions of this section, if it is shown to the satisfaction of the Society that a client of a solicitor has entrusted moneys to that solicitor, with express instructions to apply or to invest those moneys in a specified manner which would (if so applied or invested) have yielded a return higher than that which would have accrued had the moneys been applied or invested at the rate of interest standing specified for the time being in section 26 of the Debtors (Ireland) Act, 1840, as varied from time to time pursuant to section 20 of the Courts Act, 1981 , and the solicitor has dishonestly misappropriated such moneys, the amount granted under subsection (4) of this section shall, in lieu of interest at the rate mentioned in that subsection, include an amount representing such higher return in respect of the whole or any part of the period, as appropriate, between the date when such moneys were so entrusted to that solicitor and the date of the making of a grant.

(6) The amount of a grant made to any client of a solicitor (including any body or bodies corporate beneficially owned or controlled by that client) under subsection (4) of this section shall not exceed £350,000 in respect of matters arising from the relationship between such client and that solicitor.

(7) The Minister may, from time to time, vary by regulations the amount specified in subsection (6) of this section having regard to changes in the value of money generally in the State since the said amount was first specified.

(8) Notwithstanding the amount specified in subsection (6) of this section (as may from time to time be varied pursuant to subsection (7) of this section), a grant of a larger amount may, at the discretion of the Society, be made to a client of a solicitor, where the Society are of opinion that the particular circumstances giving rise to the making of a grant under subsection (4) of this section are such that none of the provisions of subsection (9) of this section apply and that grave hardship would be caused if such grant of a larger amount was not made (whether in one sum or in such instalments as the Society, in their discretion, determine).

(9) Notwithstanding the provisions of subsection (4) of this section, the Society shall have a discretion to make or refuse to make a grant—

(a) in a case in which the solicitor did not have a practising certificate in force at the time when, in the opinion of the Society, the loss was sustained,

(b) in a case in which the Society are of opinion that there has been dishonesty or negligence on the part of the client of the solicitor or of any person for whom that client is responsible which has contributed to the loss in question,

(c) in a case in which the Society are of opinion that the client of the solicitor has assisted (whether by act or omission) in the commission of misconduct by the solicitor,

(d) in a case in which the Society are of opinion that the loss sustained has arisen otherwise than as a result of the dishonest misappropriation or dishonest conversion of moneys, securities or other property of a client of a solicitor entrusted by the client, or by any other person for or on behalf of the client, to that solicitor or to any clerk or servant of that solicitor,

(e) in a case in which the Society are of opinion that, having regard to all the circumstances, the loss sustained by the client of the solicitor did not arise from, or was not directly related to, the provision of services of a legal nature to the client by the solicitor,

and, where the Society decide to make a grant in any such case, they shall have a discretion to make it only to a limited extent.

(10) A grant may be made notwithstanding that the solicitor has, after the act of dishonesty, died, had his name removed from or struck off the roll, ceased to practice, been suspended from practice, or had his practising certificate suspended.

(11) No grant may be made in respect of a loss made good otherwise.

(12) (a) On the making of any grant to any client of a solicitor in respect of any loss—

(i) the Society shall, to the amount of the grant, be subrogated—

(I) to any rights or remedies to which that client was entitled on account of the loss against the solicitor or any other person or against the estate of such solicitor or other person,

(II) to any rights or remedies to which the solicitor or his clerk or servant was entitled on account of the loss against any other person or against the estate of such other person, and

(III) to all other rights and remedies (if any) of that client or such solicitor, clerk or servant in respect of the loss; and

(ii) the client of the solicitor shall have no right under bankruptcy or other legal proceedings or otherwise to receive any sum out of the assets of the solicitor, clerk or servant in respect of the loss until the Society has been reimbursed the full amount of the grant.

(b) In paragraph (a) of this subsection, references to the client of a solicitor or to the solicitor, clerk or servant include, in the event of his or their death, insolvency or other disability, references to his or their personal representative or any other person having authority to administer his or their estate or estates.

(13) No grant shall be made unless notice of the loss is received by the Society—

(a) in the prescribed manner, and

(b) within the prescribed period after the loss comes to the knowledge of the client of the solicitor concerned.

(14) The Society, for the purposes of inquiry into any matters which may affect the making or refusal of a grant, may take evidence on oath, and the administration of such oath is hereby authorised.

(15) (a) A grant may, at the discretion of the Society, be paid either in one sum or in such instalments as the Society may determine.

(b) The Society, if they are of opinion that the financial stability of the Fund so requires, may postpone payment of any grant or any instalment of any grant.

(16) Where the Society are of opinion that—

(i) there has been no dishonesty or negligence on the part of a solicitor, and

(ii) that solicitor is vicariously liable to any one or more of his or his firm's clients who has or have sustained loss in consequence of dishonesty on the part of any partner of that solicitor in circumstances where, but for such vicarious liability of that solicitor, a grant would have been made under subsection (4) of this section to such client or clients,

a grant may, nonetheless, at the discretion of the Society, be made under subsection (4) of this section to any such client or clients of an amount determined by the Society, subject to the provisions of this section.

(17) For the purposes of this section, a solicitor or a body corporate beneficially owned or controlled by that solicitor shall not be a client of a solicitor's practice in which he is the sole practitioner or in which he is a partner.

(18) The Society may apply, by regulations, to the extent provided in such regulations, the provisions of this section to a solicitor's practice outside the jurisdiction of the State.”.

30. —The Act of 1960 is hereby amended by the substitution of the following section for section 22:

“Contributions to the Compensation Fund by solicitors.

22.—(1) Before a practising certificate is issued to a solicitor in respect of the practice year following the coming into operation of this section or any subsequent practice year, he shall pay to the Society an annual contribution to the Fund of such amount as may be prescribed from time to time, and the registrar may withhold the issue of such practising certificate to that solicitor until the payment is made.

(2) In exercising the powers conferred on them under this section, the Society shall have regard to the principle that the total amount standing to the credit of the Fund (including the value of all investments forming part of the Fund) should be not less than £1,000,000, or such greater sum as may be prescribed from time to time, on the date that is three months after the commencement date of each practice year.

(3) No annual contribution to the Fund shall be payable by a solicitor in the full-time service of the State within the meaning of section 54(3) (as substituted by the Solicitors (Amendment) Act, 1994) of the Principal Act.

(4) The Society may, by regulations, provide that no contribution to the Fund shall be payable by a solicitor who resides outside the State and is engaged in the provision of legal services outside the State.

(5) Notwithstanding the provisions of section 21 of this Act (as substituted by the Solicitors (Amendment) Act, 1994), no grant shall be made out of the Fund in consequence of dishonesty on the part of a solicitor in the full-time service of the State or any clerk or servant of that solicitor.”.

31. —The Principal Act is hereby amended by the substitution of the following section for section 61:

“Intervention in practice of sole practitioner in cases of death, incapacity, bankruptcy, or abandonment.

61.—(1) Where a solicitor who was a sole practitioner has died, his personal representative may appoint another solicitor to carry on his practice for such period and on such terms as the Society may think fit.

(2) Where a solicitor who is a sole practitioner becomes of unsound mind or becomes otherwise incapacitated by illness or accident to such an extent that he is, in the opinion of the Society, incapable (whether permanently or temporarily) of managing his own affairs or the affairs of his practice, the High Court may, on the application of the Society (or, if applicable, on the application of the committee of his estate on notice to the Society), appoint another solicitor to carry on the practice (including the operation by that appointed solicitor, either solely or jointly with another person nominated by the Society and approved of by the Court, of any client account) of that incapacitated solicitor for such period and on such terms as the Court thinks fit, and may require the production and delivery to the appointed solicitor of all documents of such practice in the possession or control or within the procurement of that incapacitated solicitor or any clerk or servant or former clerk or servant of that incapacitated solicitor.

(3) Where a solicitor who is a sole practitioner is adjudicated a bankrupt, then, as the case may be—

(a) the court by whom he is adjudicated a bankrupt, after due notice to the Society, or

(b) the High Court, on the application of the Society or of the Official Assignee,

may appoint another solicitor to carry on the practice of that solicitor for such period and on such terms as that court or the High Court thinks fit.

(4) Where, in relation to a solicitor who is a sole practitioner, any of the circumstances of paragraph (b) of section 19(1) (as substituted by the Solicitors (Amendment) Act, 1994) of the Act of 1960 apply, the High Court may, on the application of the Society, appoint another solicitor to carry on the practice (including the operation by that appointed solicitor, either solely or jointly with another person nominated by the Society and approved of by the Court, of any client account) of the solicitor for such period and on such terms as the Court thinks fit, and may require the production and delivery to the appointed solicitor of all documents of such practice in the possession or control or within the procurement of that solicitor or any clerk or servant or former clerk or servant of that solicitor.

(5) Any reference to a ‘personal representative’ in this section or in section 32 or 34 of the Solicitors (Amendment) Act, 1994, shall be construed as a reference to any person or persons entitled to apply for a grant of probate or for letters of administration in relation to the estate of a deceased solicitor.”.

32. —(1) Where a solicitor who was a sole practitioner has died, and another solicitor has not been appointed within four weeks of his death to carry on his practice under section 61(1) (as substituted by this Act) of the Principal Act, then, without prejudice to the rights of any personal representative under that section, the right to operate or otherwise deal with any client account in the name of the deceased solicitor or his firm shall vest in the Society and shall be exercisable as and from the death of that solicitor by a solicitor appointed in writing by the Society in that behalf for such period and on such terms as the Society may determine and the Society shall be empowered to take any further measures in relation to the practice as they deem necessary in the interests of the clients of the deceased solicitor.

(2) Where the Society have operated or otherwise dealt with a client account under subsection (1) of this section, the Society shall be entitled to recover from the estate of the deceased solicitor such reasonable expenses as the Society have thereby incurred.

(3) The Society may apply to the High Court for an order in relation to the disposal of any moneys that are in any client account of any sole practitioner who died before or after the provisions of this section come into effect, or in relation to the disposal of any documents in his practice and the Court may make such order as it thinks fit.

(4) Where a solicitor who was a sole practitioner has died and where the Society are of opinion that that solicitor or any clerk or servant of that solicitor has been guilty of dishonesty arising from that solicitor's practice as a solicitor and that, notwithstanding his death, it is appropriate for the Society to issue proceedings with a view to applying to the High Court for an order or orders under section 20 (as substituted by this Act) of the Act of 1960 in relation to that deceased solicitor, the Society may issue proceedings naming as defendant or defendants a clerk or servant or other person closely connected with the practice of, or spouse or relative of, or personal representative of, that deceased solicitor, and may apply to the Court, with or without prior notice to such defendant or defendants, for such orders as the Society deem appropriate.

(5) The High Court, on the hearing of any application under subsection (4) of this section, may make such order or orders under section 20 (as substituted by this Act) of the Act of 1960 on such terms and conditions (if any) as the Court thinks fit, including an order joining any other person or persons as defendant or defendants or an order requiring that notice be given to any person or persons of such application.

(6) Where an order is made by the High Court under subsection (5) of this section, the Court, with or without prior notice to any person or persons, may make such further order or orders on such terms and conditions (if any) as the Court thinks fit to enable the Society to have access to the former place or places of business of the deceased solicitor concerned and to examine and take into their possession all documents found there to be retained by the Society in their possession until such time as their investigations in relation to the practice of that deceased solicitor are completed, whereupon the Society shall deliver such documents or any part of them to such person or persons whom the Society deem entitled to receive them or as may be directed by the Court.

(7) (a) Where an order in respect of documents is made by the High Court under subsection (6) of this section, the Society may make such enquiries as may be reasonably necessary to ascertain the person or persons entitled to the possession or custody of such documents, or any of them, and may thereafter deal with such documents, or any of them, in accordance with the directions of such person or persons so entitled.

(b) For the purposes of paragraph (a) of this subsection, the provisions set out in the Second Schedule (as amended by this Act) to the Act of 1960 shall have effect.

(8) Notwithstanding the making of an order by the High Court under subsection (6) of this section, any person or persons may apply to the Court for an order directing the Society to deliver to such person or persons the documents, or any of them, so taken by the Society into their possession and the Court may make such order on such terms and conditions (if any) as the Court thinks fit.

33. —(1) Where, in relation to any solicitor or deceased solicitor to whom section 61 (as substituted by this Act) of the Principal Act or section 32 of this Act applies, the Society are of the opinion that the conduct of such solicitor or deceased solicitor, arising from his practice as a solicitor, has given, or is likely to give, rise to the Society making a grant or grants out of the Compensation Fund, the High Court may, on the application of the Society and after due notice to and after hearing such person or persons as the Court may think fit, authorise the Society to sell the practice of that solicitor (including, where appropriate, premises, furniture, fittings and equipment and goodwill of such practice), upon such terms, including such terms as to the temporary investment of the proceeds of sale of the practice pending the hearing of an application under subsection (3) of this section as the Court thinks fit.

(2) (a) Where the Society have sold the practice of a solicitor or deceased solicitor pursuant to subsection (1) of this section, the Society shall, within a period of four weeks following the date of completion of the sale, make application to the High Court for directions as to the manner in which the proceeds of such sale are to be applied.

(b) Notice of such application shall be given by the Society in at least one daily newspaper circulating in the area in which the solicitor or deceased solicitor carried on practice not less than 10 days prior to the hearing of the application, and the notice shall state that persons having claims against the solicitor or deceased solicitor may attend the hearing.

(3) On an application made to the High Court pursuant to subsection (2) (a) of this section, the Court may, after hearing such person or persons as the Court may think fit, by order direct that the proceeds of sale, or such part thereof as the Court thinks fit, of the practice of the solicitor—

(a) be paid to the Compensation Fund, or

(b) be held in trust by the Society for such period and on such terms as to the investment of such proceeds as the Court may specify, and the Court may make one or more orders in exercising its powers under this subsection.

(4) (a) Where the High Court orders that any proceeds of the sale of a practice be kept in trust for a specified period under subsection (3) (b) of this section, the Society shall cause notice of the making of that order to be given in at least one daily newspaper circulating in the area in which the solicitor or deceased solicitor carried on practice.

(b) Notice of the making of an order under subsection (3) (b) of this section shall, in addition, indicate that persons having claims against the solicitor or deceased solicitor should furnish details of their claims to the Society within 21 days of the date of publication of such notice or such longer period as the High Court may order, and the Society shall keep a record of all such claims received.

(5) (a) The Society shall, prior to the expiry of the period specified by the High Court pursuant to subsection (3) (b) of this section and after the expiry of the time limit for the furnishing of claims pursuant to subsection (4) (b) of this section, apply to the Court for directions as to the disposal of any proceeds of sale of a practice held in trust by the Society pursuant to subsection (3) (b) of this section.

(b) On an application under this subsection, the Society shall furnish to the High Court a list of all claims against the solicitor or deceased solicitor received by the Society, and the Court may direct that notice of the application for directions be given to such person or persons as the Court thinks fit.

(6) The High Court may, on the application of the Society and after due notice to and after hearing such person or persons as the Court thinks fit, make such order or orders as the Court thinks fit to facilitate the completion of the sale of the practice of a solicitor or deceased solicitor sold or to be sold pursuant to subsection (1) of this section, including orders as to the transfer of property, the discharge of encumbrances and the indemnifying by the Society of any purchaser of such practice.

34. —(1) The Second Schedule to the Act of 1960 shall have effect in relation to all or any documents taken into the possession of the Society under any provision of the Solicitors Acts, 1954 to 1994.

(2) The Second Schedule to the Act of 1960 is hereby amended by—

(a) the substitution for the heading thereof and the introductory four line paragraph of the following:

“Provisions Having Effect in Relation to any Documents of a Solicitor's Practice taken into the Possession of the Society

The following provisions shall have effect in relation to any documents of a solicitor's practice taken into the possession of the Society:”,

(b) the insertion of the following paragraph:

“(h) The foregoing provisions of this Schedule shall have effect in relation to documents notwithstanding the existence or alleged existence of any right to possession or retention of such documents or any of them vested in any solicitor or in any other person.”.

(3) The High Court, on the application of the Society and after due notice to and after hearing such person or persons as the Court thinks fit, may order that vouched expenditure incurred by the Society under section 19 (as substituted by this Act) of the Act of 1960 or section 61 (as substituted by this Act) of the Principal Act or section 32 of this Act, including the costs of any person exercising powers and functions under those provisions on behalf of the Society, shall be recouped to the Society by the solicitor concerned or his personal representative and shall be recoverable as a debt owing to the Society.

35. —Without prejudice to any specific provision as to notice contained in any section of the Principal Act or the Act of 1960 or this Act, notice of any application brought by any person to any court pursuant to or in connection with the Solicitors Acts, 1954 to 1994, shall be given to the Society, unless a court otherwise orders.

36. —(1) Without prejudice to any other defence, it shall be a defence to an action for damages against the Society in relation to exercising or in relation to not exercising any power conferred on the Society by the Solicitors Acts, 1954 to 1994, for the Society to prove that—

(a) the Society, in relation to exercising or not exercising their powers, have acted in good faith, and

(b) the Society, in relation to exercising their powers, have acted reasonably having regard to all the circumstances.

(2) In this section “the Society” includes any person acting for or appointed by the Society.

37. —(1) A solicitor shall not, without the written consent of the Society, commence to carry on practice—

(a) as a sole practitioner, or

(b) as a partner with another solicitor or other solicitors, except where such other solicitor or one of them has been continuously engaged full-time in the provision of legal services for a period of not less than three years at the time of such commencement,

unless, following the date of his admission as a solicitor, he has been employed full-time as a solicitor in the provision of legal services for such period not exceeding three years as may be prescribed, and lesser periods of such employment may be aggregated in reckoning the period so prescribed.

(2) A solicitor who may not practise as a sole practitioner, or as a partner with another solicitor or other solicitors, by virtue of the provisions of subsection (1) of this section, shall attend such course or courses of further education or training (or both) as may be prescribed.

(3) In considering an application for their consent under subsection (1) of this section, the Society may have regard to any professional experience gained by a solicitor in another jurisdiction.

(4) Where the Society refuse to grant their consent to a solicitor under subsection (1) of this section, that solicitor may appeal against their refusal to the President of the High Court who may make such order as he thinks fit.

(5) The Society shall be entitled to be heard in connection with the hearing of an appeal under subsection (4) of this section.

38. —(1) On any application coming before it under the Solicitors Acts, 1954 to 1994, the High Court may make such order as it thinks fit in relation to a solicitor, including any order in relation to the production, delivery, inspection, disposal or destruction of any document or documents in the possession or control or within the procurement of that solicitor or any clerk or servant or any former clerk or servant of that solicitor or his firm, to protect or secure the rights of a client or clients of that solicitor or the public interest or the interests of the solicitors' profession as a whole, or to enable the Society to discharge their functions under those Acts, without prejudice to the determination of any issue that may be, or may later come, before the Court as to the conduct of the solicitor named in such order.

(2) The High Court, on the hearing of any application or appeal coming before it under the Solicitors Acts, 1954 to 1994, may make such order as to costs as the Court thinks fit.

39. —The Act of 1960 is hereby amended by the substitution of the following section for section 12:

“Appeals to Supreme Court.

12.—The Society or the solicitor concerned may appeal to the Supreme Court against an order of the High Court made under section 8 (1) (as substituted by the Solicitors (Amendment) Act, 1994) or section 9 or 10 (as amended by the Solicitors (Amendment) Act, 1994) of this Act within a period of 21 days beginning on the date of the order, and unless the High Court or the Supreme Court otherwise orders, the order of the High Court shall have effect pending the determination of such appeal.”.