MUST BE KEPT SEPARATE

Stratford Evening Post, Volume I, Issue 258, 9 October 1931, Page 3

MUST BE KEPT SEPARATE

SOLICITOR’S ACCOUNTS “It cannot be doubted tiiat the keeping of but one bank account, even though it may be designated ‘Trust account/ into which a practitioner’s own moneys are paid as well as his trust moneys, and upon which he draws for his own working and other expenses, is bad in practice. Not only that, but wb are clearly of opinion that it is also a breach Of section 47 of the 'Law Practitioners Act, 1908,” said the Chief Justice (Mr. Justice Myers), when presenting the views of the Court of Appeal oii what wad stated to be a practice among some solicitors of keeping a combined trust and working account. “In our opinion ‘trust account’ means an account into which only trust moneys are paid, a ‘general trust account’ being an account into which are paid a practitioner’s trust moneys generally, and a separate trust account being an account into which are paid (he moneys belonging to a special client or money held on some particular trust,” His Honour proceeded. “An account which mixes a practitioner’s own moneys with trust funds and upon which the practitioner operates on his own account is not in our opinion a ‘trust account’ as contemplated by section 47 of the Act. Of course, this does not mean that the moneys paid into the trust account may not include sums to which the practitioner is entitled for costs owing to him by the client and disbursements pdid by him oiit of his general account on behalf of the client. Indeed) i!i‘ practice that is customary and necessary and the solicitor, is, of course, entitled from time to time to draw cheques upon his trust account for moneys that are properly payable to him in this way, but, subject thereto,! all moneys in the trust account must be held exclusively for the respective persons on whose behalf they have been received and paid out only to such persons' or as they direct.”