Skip to main content
Loading…
Chamber and committees

Justice 1 Committee, 19 Jun 2001

Meeting date: Tuesday, June 19, 2001


Contents


Regulation of the Legal Profession Inquiry

Item 3 on the agenda is the inquiry into regulation of the legal profession. Does any member have an interest to declare for the Official Report?

My husband is a solicitor and is a former member of the council of the Law Society of Scotland.

I am a lawyer and a member of the Faculty of Advocates. Recently, I have conducted at least one case before the Scottish solicitors discipline tribunal.

The Convener:

The inquiry seems to have attracted a fair deal of interest, but this is simply a briefing in advance of the inquiry. The purpose of the briefing is to assist us in refining our terms of reference—a subsequent item on today's agenda—and is not formally part of our inquiry.

We have with us from the Law Society of Scotland Michael Clancy, Martin McAllister, David Preston and Anne Keenan. The society has submitted a paper, but I believe that Martin McAllister would like to make a few introductory remarks.

Martin McAllister (Law Society of Scotland):

I will begin by introducing my colleagues and myself. Michael Clancy is our director of law reform; Anne Keenan is from the law reform department; David Preston is the vice president of the Law Society; and I am the current president of the society.

We welcome this opportunity to appear before the committee. I am grateful to the convener for underlining the fact that this is a briefing. We hope that, once the committee has established the remit of its inquiry, we will be invited back to give evidence.

I want briefly to speak to the paper that we have submitted. Too often when one considers the question of regulation of the legal profession one is tempted to think only of matters arising from issues that are raised by dissatisfied clients or by consumers who consider that they have a grievance. In our paper we have sought to put the question in context and to underline the fact that the legal profession is not regulated solely by solicitors, but that external agencies are also involved. That is why we refer to co-regulation and external regulation.

We also stress that regulation relates not only to issues that arise from client relations, but to admission to the profession, to education of members of the profession—continuing education is very important—and to professional practice matters. We must ensure that solicitors conduct their practices against the background of ethical rules. We have a code of conduct and we issue guidelines to the profession. Another important issue is the guarantee fund, which acts as a unique protection for the consumer of legal services in Scotland. The paper tries to broaden out the issue of regulation because, when the committee considers that, it must address all the matters that I have mentioned.

The Convener:

The Solicitors (Scotland) Act 1980 sets two objectives: the promotion of the interests of the solicitor's profession in Scotland and the promotion of the interests of the public in relation to that profession. Can there be a conflict between those two objectives?

Martin McAllister:

The Royal Commission on Legal Services that reported before the Solicitors (Scotland) Act 1980 was passed summed up the position. The committee will no doubt refer to the commission's report during its inquiry. That report stated:

"While therefore we are in no doubt that the interests of solicitors and of the public can from time to time be in conflict we consider that there is undoubted benefit to the public in having the solicitor's professional body under a wider obligation than simply to look after their own membership. Much of value would be lost if the Law Society were to become simply the professional association or trade union of solicitors."

I trust that when we give evidence to the committee we will be able to address that issue. This is a difficult matter for the Law Society to deal with, but it is a privilege, and one that must not be abused.

You mentioned that other bodies are involved in the regulation of solicitors. What are those bodies and how do they tie in with the Law Society in the overall regulation of the profession?

Martin McAllister:

There is a statutory framework to the whole system. The 1980 act is the basis of what we do and lays out the structure for how we conduct ourselves and regulate the profession. Below the statute, there is what we would call our subordinate legislation—practice rules, codes of conduct and practice guidelines. They come from the Law Society, but because we operate in a statutory framework, we are ultimately answerable to the Parliament, which is why we are here.

Examples of co-regulation that we have identified are in areas such as financial services, consumer credit, insolvency and immigration and asylum services. Regulation of financial services is a good example. Our members who provide financial services are regulated by the Law Society, but the Financial Services Authority ensures that we regulate properly. When the Law Society goes into solicitors' offices to ensure that financial services matters are being conducted properly, it is ultimately answerable to the body that Parliament has laid down as being responsible for such matters with every supplier of those services. That is an example of regulation from outside.

The situation is the same with insolvency, although members will see from our paper that only 19 solicitors are insolvency licence holders. We regulate those solicitors, but the way in which we do so is governed by the Department of Trade and Industry.

On consumer credit matters, we are subject to the Consumer Credit Act 1974. That is perhaps the best example of co-regulation involving legal aid.

For the provision of criminal legal aid, the Scottish Legal Aid Board admits solicitors to the register and monitors the behaviour of solicitors who are on that register, to the extent of having the power to enter solicitors' offices to ensure that matters are being dealt with properly.

The regulation of immigration and asylum services involves a new concept. We are a designated professional body under the Immigration and Asylum Act 1999. The immigration services commissioner has the power to receive complaints against Scottish solicitors who give immigration advice and is required to monitor how any complaints that are passed to the Law Society are handled. We have a close relationship with the commissioner to ensure that that is done properly. The regime is new, so we are learning as we go along.

Regulation also comes from external bodies. Parliament, which gave us that privilege in 1980, is the ultimate regulator of the profession. Solicitors appear in court and are officers of the court, so in conducting their business they are regulated.

The Court of Session has some powers in relation to solicitors. It can cause the name of a solicitor to be struck off the roll or suspend a solicitor from practice. It can fine or censure a solicitor and can deal with expenses.

I said that Parliament is the ultimate regulator. In professional practice and for the ability of solicitors to continue in practice, the Scottish solicitors discipline tribunal is important. It is independent of the society. The Lord President appoints its members, who include lay representatives. The tribunal has the power to suspend a solicitor, to strike a solicitor from the roll and to fine a solicitor—the fines are forfeit to the Crown. It can also make findings of inadequate professional service. There are layers of regulation.

When we handle the concerns that clients raise, the Scottish legal services ombudsman is involved. If consumers approach her, she can monitor the way in which we deal with those matters. In addition, like everyone in this room, solicitors are subject to civil and criminal law. It would be useful for the inquiry to examine those areas of law.

Who sets the criteria for admission to the profession? Who is involved or consulted when determining the regulations for the education and training of solicitors? Could you cover continuing professional development in your response?

Martin McAllister:

That is a big question, but I will do my best. It is a particularly big question for us at the moment, because the solicitor training regime is changing. I will start with the basics. The profession is open to all who have the necessary academic qualification and are aged 21 or over. There are caveats. Because of convictions, certain individuals may have difficulty entering the profession, but if we leave that to one side, the principle is that the profession is open to all.

It is more sensible to talk about the new regime, as that is what will be in place this year. Someone entering the profession typically will have a university law degree and a diploma in legal practice. The degree takes three or four years and the diploma takes one year. That person will enter on a training contract for two years. Training will either be with a firm, the Government—the Crown Office and Procurator Fiscal Service or the Executive—a local authority or in-house lawyers. During those two years, they are supervised and monitored. The new part of the regime is that during that period, the trainees will be required to undertake a three-week professional competence course. At the end of the two years, they will be required to sit and pass a test of professional competence. That is the structure that is in place.

Those are your regulations and you decide what subjects entrants must have.

Martin McAllister:

Some of that is determined by the 1980 act, which lays down the rules for admission to the profession. The new part of the training regime that we have installed has been worked on over the past seven or eight years, with the aim of providing the best-qualified solicitors for the public.

Every solicitor has to undertake a set number of hours of continuing education every year, which is monitored. There is a committee in the Law Society to ensure that people comply. I have to complete and submit a record card to the Law Society. Cards are sampled at random and if there is something wrong with a card, the Law Society investigates and can start disciplinary action against any solicitor who has not complied with the continuing professional development rules.

In addition, we are aware that solicitors in private practice who are embarking upon practice as a principal or sole practitioner or who are joining a firm require special training. For some years, we have had a two-day practice management course. Everyone who joins a firm as a partner or sets up in business on their own account is required to attend that course. The course covers areas such as ethics, accounts rules, guarantee fund matters and client relations. It is compulsory and we think that it is useful.

Presumably you monitor the quality of the training that is on offer. Are you concerned that you need to have more or better training? If so, do you have any plans to develop the training?

Martin McAllister:

One reason for embarking on the new regime is the realisation that every system has to be assessed constantly. If improvement is needed, steps have to be taken. Because of the course, the training of individuals will be monitored more now than in the past. Individuals have to sit a test at the end of their two years' training; it would be difficult for people to pass that examination if they had not been properly trained in the two years. We have addressed training and are considering it constantly. If any changes are needed in future we will put them in place.

Are you happy with the quality of training for continuing professional development?

Martin McAllister:

The quality of all training varies. There are a number of training providers. The universities are involved, as is the Law Society, whose update department has a number of successful training courses. Local faculties of solicitors are arranging their own training, because it is not especially easy for people who practise in rural areas to travel—for example, from Kirkwall or Skye—to do training. Videoconferencing is used for training, for example by the Law Society update courses.

It is not difficult for me and most of the people to whom I speak to meet the CPD requirements. Solicitors have always been engaged in some kind of training, as there are always new things to think about. Given what the Parliament has done in the past two years, there are many innovations and new laws on which solicitors have to be up to speed.

Michael Matheson:

You mentioned that the monitoring process for newly qualified solicitors who have to go through a two-year traineeship has been improved. Who monitors those trainees in the first place? What training do people receive to meet the standards that are appropriate to undertake the monitoring?

Martin McAllister:

The profession must be open to all. We must not put barriers in the way of anyone; everyone, regardless of background or income, must be able to train to become a solicitor. We must start from that viewpoint.

If my firm takes someone on as a trainee, it is my responsibility to ensure that he or she is properly trained. Members should bear in mind that that person has studied for a university degree for three or four years and has then studied for a diploma. As an aside, I should point out that the diploma has changed. It is more focused now and better than it was some years ago and it dovetails with the new training regime. I ensure that that person is properly trained. Under the regime that we are starting, there is a logbook that the trainees and I have to complete. There is also a monitoring system. That has not started yet, because the new trainees are not in position. Someone will monitor the monitoring of the trainees. What is being done is very innovative. It is more hands-on than it has been—we acknowledge that it should be.

Michael Matheson:

I know that there is a new system of monitoring the monitoring, but I am concerned about the monitoring of the trainer. I will give an example from my previous profession. When I finished my degree and wanted to become a clinical teacher, I had to qualify as one. I then had to renew that qualification continually to allow me to train other students who were coming through—because, although I might have been well qualified in the profession, I might not necessarily have been good at teaching it and providing another person with the skills that they needed.

My concern in this case is that there appears to be a missing link—the training of the person who is responsible for the monitoring in the first place. Monitoring the monitoring is fine, but the weakness may be right back at the start with the person who is providing the training.

Martin McAllister:

That is an interesting and valid point. We constantly review things and that is an aspect that we will address.

Those of you who know of family members, friends, or friends' daughters and sons who have looked for a training place will realise that finding one was not easy in the past. Things are better now. I take all that Mr Matheson said into account, but the last thing that we want to do is put an obstacle in the way of people taking on trainees, because that might mean that people are unable to enter the profession.

I want to move on to questions about discipline and the investigation of complaints. How many complaints about solicitors does the Law Society receive in an average year?

Martin McAllister:

First, I will put the question in context by talking about the way that solicitors work and what they do. My local newspaper describes what I do as "soliciting".

There are more than 8,500 solicitors in Scotland. Some of those are not engaged in private practice, but I think that Nora's Radcliffe's attention is more on those in private practice. It is difficult to know—

Sorry, can I stop you there? My next question was going to be on how many solicitors are in private practice and how many are in the public sector or in business and commerce.

Martin McAllister:

It would probably be best to deal with that question now, because it puts things in context. On 31 October 2000, there were 8,609 solicitors. In private practice as principals—that is, partners in firms or sole practitioners—there were 3,552. There were 266 consultants, who tend to be solicitors who are perhaps semi-retired but who have been partners in firms. There were 802 associates, who are solicitors who are not partners but who, in some firms, are perhaps on the step between partners and assistant solicitors. There were 1,793 assistants.

In local authorities, there were 611 solicitors. In central Government, including the Procurator Fiscal Service as well as the Executive, there were 548. There were 119 in public bodies and 303 in commerce and industry. There were nine retired solicitors. It may seem sad that not more than nine solicitors get to see their retirement, but what the statistics show is that there were only nine solicitors who retained practising certificates although they were retired. There will be many more retired solicitors who no longer have a practising certificate. There were 124 people who had a practising certificate but were not employed as solicitors, and there were 482 people classified as miscellaneous—please do not ask me what they are.

Members will note that a large number of solicitors—about 6,000—are involved in private practice. It is difficult to establish what they do and the number of pieces of work that they do. Classically, they give advice and negotiate business on behalf of clients. They draft documents, deal with conveyancing and wind up estates. They litigate in the civil courts and defend or prosecute in the criminal courts. They also provide a whole range of financial and consultative services for clients. It is difficult for us to establish how many pieces of work are done by a solicitor. It would be difficult even for a practice to establish that. However, it is important to investigate the matter a little further.

I mentioned conveyancing. In 1999, there were around 170,000 bits of Land Register business, and about 204,000 bits of business connected with the Register of Sasines. There were between 44,000 and 45,000 bits of business in the Books of Council and Session, and 14,000 in the Register of Inhibitions and Adjudications. About 99.9 per cent of those pieces of business will have been conducted by solicitors.

The Scottish Legal Aid Board's statistics and report give us some idea of the number of pieces of legal aid work that have been done. In 1999, there were 316,822 items of advice and assistance, 14,500 items of civil legal aid, and almost 70,000 items of criminal legal aid. The Court of Session handled 4,500 actions, and sheriff courts handled between 135,000 and 136,000 actions. That gives you some idea of the number of pieces of work that solicitors will be doing for their clients.

In 1999, 1,338 matters were referred to the society by clients. I am using the 1999 figures because they suit the comparison with the court figures, but the 2000 figures show that in that year 1,094 matters were referred to the society, so that figure is going down. Members had a briefing last week or the week before from Mrs Costelloe Baker. In 1999, 95 opinions were issued by the Scottish legal services ombudsman. Of those, 43 were satisfactory and 52 were critical. Of the 52 that were critical, the criticism ranged from mildly critical to fairly seriously critical. That is the kind of range and context of the matters that you referred to.

How is that split between public and private work?

Martin McAllister:

There may be conduct matters relating to public legal work, but for the purposes of these statistics we are considering only solicitors in private practice. They are the ones who are providing the direct advice and work for clients. Solicitors who are not in private practice are employed, whether by the Scottish Executive, by the fiscal service or by companies such as Shell.

Does the Law Society have special rules or procedures relating to discipline of solicitor advocates?

Martin McAllister:

There is a special code of procedures for admission. Solicitor advocates are solicitors who have extended rights of audience.

So they would be disciplined in the same way as solicitors who do not have that extra string to their bow.

Martin McAllister:

That is right.

I would like to ask about your procedure for dealing with complaints that you receive against a solicitor. How do you go about categorising complaints that relate to negligence, professional misconduct and so on?

Martin McAllister:

Negligence is not a matter for complaint. It involves a breakdown in the contract between the client and his or her solicitor, and the outcome of such cases is determined ultimately in the courts. It is important that we make that distinction. The society has laid down rules about professional indemnity insurance, to ensure that solicitors have the proper cover and that clients can be compensated properly when solicitors are negligent. If someone contacted the Law Society to complain about a matter that clearly involved negligence, we would not deal with that.

Would the client be advised of that?

Martin McAllister:

Yes. In 2000, 17 people were so advised.

The categorisation of complaints is contained in our annual report, copies of which we will leave with the committee. In 2000, 218 complaints were categorised as relating to misconduct; 318 were categorised as relating to inadequate professional service; 96 related to a combination of inadequate professional service—IPS for short—and misconduct; and 443 were categorised as conciliation, by which I do not mean complaints about solicitors who have failed to conciliate.

Of 1094 cases that were referred to the Law Society in 2000, 443 were dealt with through conciliation. We have a two-tier system for dealing with such complaints. First, the case managers in the Law Society attempt to get the solicitor and the client concerned to sort out the problem. If the problem is resolved to the client's satisfaction, we do not become involved. If not, the complaint is referred to the second tier of conciliation, in which a member of the Law Society's staff attempts to resolve the matter through conciliation. As well as the drop in the number of complaints year on year, one of the most encouraging developments is the rise in the number of cases that we are able to resolve through conciliation. Both the client and the solicitor are then satisfied, and the problem is sorted.

The balance of cases is dealt with through our complaints system and it may be useful for me to say something about what that involves. Six solicitors are employed exclusively to deal with client-relations matters; they are assisted by 20 administrative staff. We have never shirked from giving that system the resources that were needed. Some years ago, we had some administrative problems because of back-ups and so on, but as we strive to bring down turnaround times, so we give more resources to achieving that. If there were an issue that could be sorted by resources, we would certainly provide those resources.

Phil Gallie (South of Scotland) (Con):

I believe that negligence is the factor that creates the most problems for you. One problem that seems to arise is that when someone has made a negligence claim against a solicitor, it is extremely difficult to find other solicitors to pick up the case and assist the individual in the courts. What role does the Law Society play in such cases? What do you do when you cannot find solicitors to take on such cases?

Martin McAllister:

That is a difficult problem, which is double-edged. If I said that the Law Society should have a panel of people who would deal with such cases on behalf of consumers, some would accuse us of bringing that into our club and controlling it, so we cannot have such a panel. Instead, we have a troubleshooter scheme. If someone is toiling to find a solicitor to assist them, the Law Society—at arm's length—will pay for two interviews, the preparation and preparatory work for that person, to see whether they can take the matter further.

The difficulty with which we constantly toil—members will know this from constituents who approach them in relation to negligence matters—is that the fact that something is wrong is not necessarily a result of negligence by a solicitor. Furthermore, if it is established that something is wrong, the value that is put on that by the person who feels aggrieved is not necessarily the same as the value that would be put on it by a court.

Let me make an analogy. If I had a car accident, the first thing to establish would be who was at fault. Although I have a big bump on the front of my car, it might not have been the other driver who was at fault. Even if the other driver was at fault, if I think that my car is worth £5,000, but an insurance company determines that it is worth £2,000—

Phil Gallie:

I think that we have drifted off the point. I recognise that no court case will be 100 per cent satisfactory—whoever wins will feel good, but whoever loses will feel bad. However, I come back to the point on negligence and how the Law Society addresses the fact that, on occasion, individuals find it difficult to find a solicitor to oppose another solicitor.

Martin McAllister:

To be frank, I do not consider that the difficulty would be in finding a solicitor to oppose another solicitor. The difficulty may be in finding a solicitor who would be prepared to take on a case if there was no merit in the case. That is difficult, because, again, it could be said that that is an example of the profession looking after its own.

The fact is that the professional indemnity insurance statistics show that, on average, about 600 claims are notified each year. Those claims are notified and dealt with, and solicitors pay premiums to cover that. The typical premium per partner in a firm is £2,500 to £3,000 per annum. If we multiply that by the number of solicitors, the amount of money that is involved becomes clear.

Occasionally, people may feel aggrieved that their case is not being taken forward, but in the majority of cases in which there is a valid claim, the case is being dealt with properly. However, Mr Gallie makes an interesting point about an issue that we have talked about over the years. We have pulled back from the idea of having a panel of solicitors to deal with such matters for the reason that I mentioned earlier. I suspect that it would not be long before the panel was devalued as a result of people saying that it did not work because the Law Society was looking after its own.

Michael Matheson:

You said that, when a client comes to you with a case that clearly involves a matter of negligence, you advise them that remedy must be sought in a court of law as opposed to through the Law Society. Phil Gallie pointed out that people find it hard to secure the services of a solicitor who is willing to take up such a case. You also mentioned that you operate a troubleshooting scheme that could help with such situations. Would you tell someone who was having difficulty in finding a solicitor about that scheme?

Martin McAllister:

Yes. We have no statistics on that matter, as it is difficult to link together all the incidents, but we know that the majority of cases are dealt with when people go to a solicitor. Solicitors are in business to make money and, if they can take on a case and fulfil a professional duty for a client, they will do that, regardless of whether the case concerns another solicitor. A solicitor may not want to raise an action against a local solicitor because, apart from anything else, the perception of the client would be affected if he or she saw the two solicitors in the bowling club. In such a situation, a solicitor might refer the case to a solicitor outside the area.

Michael Matheson:

I wanted to establish whether clients are made aware of all the procedures at the time as, often, clients can be unsure about where they stand.

You talked about the categories of complaints that you can consider. Would the caseworker make a decision about when the case would be referred to a tribunal?

Martin McAllister:

If the matter cannot be conciliated away, the case manager, the client and the solicitor correspond to try to establish the circumstances of the case. After that, there might still be a possibility of conciliation. If we accept that there is no prospect of that happening, the matter will be referred to a client relations committee, of which there are four that deal with general business and one that deals specifically with legal aid matters. That committee was set up to deal with complaints that were referred by the Scottish Legal Aid Board, although there have not been many such complaints. The four mainstream committees are made up of 10 individuals, four of whom are lay members and the others of whom are council members and solicitors. We have had lay involvement in our committees for many years and, over the years, that involvement has become more refined. The lay members are not paid, and are chosen by an interview panel after they answer newspaper advertisements. We try to ensure that the interview panel has a degree of independence, and I think that the last round of interviews involved Sheriff Principal Nicolson.

When the committee deals with the matter, it has before it the relevant papers on the complaint and a report that has been prepared by a member of the committee who is either a solicitor or a lay member. The committee deals with the matter and makes a recommendation to the council of the Law Society, which decides what is to be done with the case. If the matter is to be prosecuted before the discipline tribunal, we not only refer it but prosecute it.

It is important to consider our turnaround times, which we are always striving to improve. We must take into account the European convention on human rights and ensure that the case is properly brought to and dealt with by the committee. We must also ensure that the client and the solicitor have had a proper opportunity to make representations in writing. However, as far as turnaround times are concerned, some cases take longer than others take. I noticed that Mrs Costelloe Baker referred to "suitcases" and thick files in her evidence. She may have to deal with such files in some of her cases, but so do we—some cases are unusually lengthy or complicated. However, the figures for 1998 showed that 76 per cent of all cases were disposed of within 201 days, and that figure rose to 81.8 per cent in 1999.

We had an indication that the witnesses had to leave by a specific time. Is that still the case?

Martin McAllister:

We have five or 10 minutes.

Michael Clancy (Law Society of Scotland):

We should leave by half-past 4, if that suits the committee.

We should try to make quick progress, on both questions and answers.

I am trying to follow the paper trail. Once the case manager has referred a case to the committee, do they make a recommendation to the committee, which the committee considers in the light of the report?

Martin McAllister:

No. The reporter would make a recommendation to the committee.

Would the committee consider the report against that recommendation?

Martin McAllister:

Yes.

Michael Matheson:

Then the case is referred to the council. What standards does the council work to in deciding the action to be taken? Does it have a benchmark? For example, if the solicitor had done X, would the council be expected to apply the sanction of Y?

Martin McAllister:

Are you asking if we operate a tariff?

Yes. What criteria does the council work to? I know that criteria can be difficult to work to in such circumstances, but—

Martin McAllister:

Criteria can be very difficult to work to. The basic criteria are the Solicitors (Scotland) Act 1980—the statutory framework—and case law. The question of misconduct was determined in the court: professional misconduct was determined to be conduct that was serious and reprehensible. That is the Law Society's standard.

The inadequate service provisions in the 1980 act allow the Law Society to order a solicitor to pay compensation of up to £1,000 for the provision of inadequate professional service.

It would be difficult to lay down a tariff. For example, one might have to specify the amount of compensation to be paid if one or two telephone calls were returned but five were not. Cases must be considered on the basis of the experience that the council has built up.

On turnaround times, we are concerned about the fact that legal opinion has determined that the Law Society does not have delegated powers to deal with certain matters. Previously, the committee dealt with matters of inadequate professional service. We could improve turnaround times if the Law Society had those delegated powers. I know that we are short of time and that members may wish to raise other matters. When we present our written evidence, we will highlight this area.

Paul Martin:

Could you clarify how long it takes to deal with a case? I am reminded of a double-glazing salesman who came to see me once. He took two hours to tell me how great his windows were, but he did not tell me the price. The ombudsman said that it could take 121 weeks to deal with a case.

Martin McAllister:

Sorry?

The ombudsman said that two cases took 121 or 122 weeks to deal with. Are you satisfied with that? Is that length of time typical?

Martin McAllister:

I think that the ombudsman said that that was not typical. She also referred to a turnaround time of a year, and said that she would be surprised if the turnaround time was less than a year. However, she was speaking about the cases that go before her. The ombudsman considers only the cases of dissatisfied clients who have been through the Law Society's complaints system and who remain dissatisfied with the way in which their complaint has been handled. That is all that she considers. She does not consider the way in which we handle complaints within the society. In 1999, 95 cases were considered by the ombudsman, compared to 1,300 that were considered by the society.

Your first question concerned the turnaround times for dealing with complaints. I have picked on two statistics and compared years. I appreciate that we are short of time, but I am happy to go through those statistics, or we could provide them for you. They are contained in our annual report.

Michael Clancy:

In answer to Mr Martin's question, unlike his double-glazing salesman, we intend to be transparent. We will make those figures available. However, it might be appropriate to do so in the context of further written evidence, which we know that you will want soon.

Martin McAllister:

I picked the figure of 201 days because it was close to the period of six months to which the ombudsman has reduced her turnaround time through valiant efforts. She referred to the care that must be taken over each case. The ombudsman produces an opinion on the basis of the file that has been compiled, whereas we deal with the solicitor and the client, going backwards and forwards in trying to clarify issues. In 1999, we achieved 81.8 per cent of turnaround targets. We can provide the figures for you.

Gordon Jackson:

The ombudsman said that the Law Society would not investigate cases in which

"someone complains about the advice or professional judgment of their solicitor"—[Official Report, Justice 1 Committee, 5 June 2001; c 2533.]

on the basis that that is not something that the Law Society can second guess. Such cases concern something like negligence. Is that an accurate summary of the practice? What type of complaint would you refuse to touch?

Martin McAllister:

Solicitors have contracts with their clients. In an adversarial situation—for example, in a court action—that solicitor has no contract with the client opposing his or her client. Therefore, we do not consider it appropriate for that solicitor to raise any question regarding the conduct of the solicitor of the opponent.

Nevertheless, there are certain exceptional circumstances in which we would consider such complaints. We would consider the matter if the solicitor breached any code of conduct, against a background of that solicitor's being an officer of court. However, you can imagine the difficulties that could be caused if, in a wholesale way, we admitted matters being raised by the client of the other solicitor who is involved in a case. It would be yet another grievance to list on the claim against the other person. In a matrimonial action, for example, it would be yet another string to pluck.

Gordon Jackson:

I understand that. However, I am talking about the relationship between the solicitor and his own client. The ombudsman is saying that you will not consider a complaint from someone about the quality of the advice or the professional judgment of their own solicitor. That is a bit like saying that you will not consider matters of negligence.

Martin McAllister:

If someone was engaged in a court case and their solicitor did not call a witness that the client thought should be called, at one level that could be regarded as negligence. At another level, it could be regarded as the provision of inadequate service. However, the fact that the solicitor did not call that witness does not in itself mean that either of those perceptions is accurate.

I want to pursue that. In general terms, you will not consider somebody's complaint about the professional judgment or the professional quality of the advice that they receive.

Martin McAllister:

That is right.

Gordon Jackson:

I appreciate that such a complaint would often be resolved in a court case, but there might not be any value in holding such a case. Why would you not look into such a complaint? What is wrong with the Law Society forming a view as to whether advice that has been given falls below the standard that would be expected of a good competent solicitor? If the solicitor does not like the ruling, he can appeal against it.

Martin McAllister:

I think that we do that. For example, if a solicitor fails to record a deed for someone's house and says that it is a matter of his judgment whether he should—

But that could not be a matter of judgment.

Martin McAllister:

We could say that it is not a matter of judgment. If it was a matter of cross-examination during a court action, and of whether a particular question was asked or not, we would say that that was a matter of professional judgment. The other example was, on one level, one of negligence; if there was negligence, it is possible that there was either misconduct or the provision of inadequate professional service. We would look into that.

Gordon Jackson:

I do not want to go round in circles—that is perhaps my fault—but, in general terms, how would you summarise the circumstances under which you would say to somebody that you would not investigate a complaint? I suspect that the public feel aggrieved when they are unable to get matters dealt with.

Michael Clancy:

In answer to that, one might say that we work within a framework of law, and that we have obligations to investigate complaints of professional misconduct. If, on first flush, the complaint does not relate to an issue of professional misconduct, we would have no locus and no power to investigate it—

Would the giving of advice that you—as a group—believe falls below the standard that is expected from a solicitor come under professional misconduct?

Michael Clancy:

It might under certain circumstances, but, as I was about to say, we also have an obligation to investigate complaints of inadequate professional services. If, when a dissatisfied client writes in, one can identify that a complaint comes under the category of inadequate professional service, we would have a locus and the power to investigate the complaint. We must remember that we work within a framework of law; if we transgress the framework of law, we are acting outwith our powers. We would then reap the consequences of that through a judicial review or whatever other remedies were available.

Gordon Jackson:

I have, for the record, a final question. I appreciate that this is a grey area, and that it is difficult to determine where the line is drawn. There might be a suspicion that the Law Society is more than keen to draw the line in a certain place and not to investigate matters. In your own mind, do you feel quite satisfied that you are drawing the line in the appropriate place?

Michael Clancy:

Again in the spirit of transparency, when we submit written evidence we will address that question and we will identify where the line is drawn and how we quantify the question of whether that line is sufficient.

And the question whether the line should be drawn somewhere else?

Michael Clancy:

Yes—we would question whether the line should be drawn somewhere else.

Clearly, Parliament could address that.

Michael Clancy:

Indeed.

The Convener:

When explaining what goes on and the rationale behind your procedures, you have referred to the fact that there is a contract between the solicitor and the client. Is the contract any different between a client and anybody else who provides another kind of professional service?

Martin McAllister:

I cannot speak about other professions, but the difference with the contract that a client has with a solicitor is that the solicitor must not only take account of the contract with his or her client, but must do so against the background of the obligations in the framework in which the solicitor works, and in accordance with and with regard to professional rules and the code of conduct.

Is the contract implicit? When I go to see a solicitor, I do not sign a contract when I go through the door.

Michael Clancy:

It is a consensual contract, which does not have to be written down. You could make a contract with me for me to act as your solicitor.

When I go to a dentist, a French-polisher or a hairdresser there is, in the same way, a contract involved. What is the difference?

Martin McAllister:

The difference is that, if you get a bad haircut, there is probably—

There is not much left to cut.

Martin McAllister:

I was certainly not making a comment about your hair, convener.

If someone gets a bad haircut, there will be no one there to put things right for them.

You are probably maligning the hairdressing profession. Come on, now.

Martin McAllister:

I do not intend to do that.

If someone gets bad or inadequate service from a solicitor, they can raise the matter with the Law Society. In addition, if their contract—consensual or otherwise—involves them giving money to that solicitor, they have a unique guarantee because of the guarantee fund that we have.

Michael Clancy:

Furthermore, although many people do not enter into written contracts with their solicitors, details of the service that the client will receive, such as how much will be charged and at what rate the charge will be made, will be set out in a letter of engagement. We encourage the use of letters of engagement between solicitors and their clients.

You mentioned the guarantee fund. How often are payments made from that fund? What is the level of those payments?

Martin McAllister:

The structure of the guarantee fund is based on statute. That means that every solicitor in private practice in Scotland pays a sum each year as a guarantee fund contribution. That sum is used to compensate clients who suffer as a result of solicitors' dishonesty. In the past few years, the average has been about £100,000.

Is that per payment or per year?

Martin McAllister:

Per year.

The sum that every partner in private practice pays per annum is £195. Most of that money is used to monitor the system. That is hands-on regulation. Inspectors from the guarantee fund visit every firm on a two-year cycle. Those inspectors are accountants who go into firms, check the records and make sure that they are in order.

There is also a self-certification system in which every solicitor must certify on a six-month cycle that they comply with the rules and must highlight any defects in the rules. If a solicitor certifies that things in are in order and an inspection discovers that they are not, that might lead the solicitor into disciplinary difficulties.

Most of the money is paid to police the system. However, if major loss were incurred, every solicitor would put their hands in their pockets to pay for it. That is the unique guarantee. To support that, the Law Society has paid for insurance, which means that £25 million in any year is guaranteed and will be paid out. Solicitors would contribute to anything more than that.

There is no cap, which is why the system is unique. Many other countries are examining the Scottish system to learn how it works.

I have a quick question. Is it a basic remit of the Law Society to uphold a positive image of the profession and to uphold public confidence in solicitors? I think that we have missed that point. How important do you consider that to be?

Martin McAllister:

That is how we opened proceedings. That is in section 1 of the Solicitors (Scotland) Act 1980. That is what we have to do.

Michael Clancy:

We have to strike a balance between promoting the interests of the profession and the interests of the public in relation to the profession. You might think that that is a fine balance to strike. However, since the Royal Commission on Legal Services in Scotland reported in 1980, that balance has been examined and re-examined by the council of the Law Society on a number of occasions. It has been part of the legislation going back to 1949.

Phil Gallie:

Every month, we are besieged at the Parliament by a group—I will not name it—that has a considerable number of complaints about solicitors and which, in my view, makes a number of slanderous statements against them. Given the requirement to uphold the image of the profession, have you had any contact with such groups?

The Convener:

You missed the early part of the meeting. We are merely having a briefing to help us determine the remit of our inquiry. That question is properly a matter for the inquiry, when the Law Society will undoubtedly come back to give further evidence.

Michael Clancy:

I have a couple of points on the draft remit. On the time scale, eight weeks is too short. We put in a bid for 12 weeks. On the list of witnesses, I see that the Lord President is not among them and that the committee intends to consult the Westminster Parliament, the National Assembly for Wales, the Dáil Éirann and the Northern Ireland Assembly. I wondered whether the committee intends to achieve that within the period that has been set for the inquiry. I do not see any Whitehall ministries mentioned. That is a run down of what we suggest.

Martin McAllister:

I also thank members for the opportunity to appear before the committee. Regulation of the legal profession is such a big topic that, if it would be of assistance to the committee during its inquiry to come to the Law Society and see what is done in various regulatory parts of the offices, we would be delighted to have you.

I thank you for your attendance and for that offer. We will be back in touch.