LEGAL CIRCLES ELATED

Sun (Auckland), Volume IV, Issue 1060, 26 August 1930, Page 7

LEGAL CIRCLES ELATED

BRITISH BAR MAY FOLLOW EXAMPLE INDEMNITY FUND SCHEME Special to THE SUN WELLINGTON, Today. Legal circles are elated at the fact that the British Bar is considering following New Zealand’s example and establishing an indemnity fund for the purpose of protecting the general public against fraud by any dishonest members of the profession. Once again, it is pointed out, the Dominion has led the way. The Law Practitioners* Guarantee Fund, all contributions for which have now been received by the New Zealand Law Society, is only 12 months old and is admitted, as yet, not to have established itself. However, if the next year passes without a case of bad default there will be a substantial fund for future insurance of the public at large. The New Zealand Law Society made a previous effort to get the necessary Bill through the House of Representatives, but members were somewhat suspicious, and the matter was shelved. Last year, however, Sir Thomas Sidey took up the Bill, and it passed into law. Under its provisions every member is liable for a contribution to the guarantee fund each year, this contribution having been fixed at £5 ss. and collection of it is insured by provision that it shall be paid at the same time as the solicitor takes out his annual licenses certificate. It is operated upon by the committee of the Council of the New Zealand Law Society, appointed for the purpose. Much interest was aroused in the legislation and the New Zealand Law Society had inquiries from all over the world. Australia and Britain were particularly interested. Now, word has been received that a special meeting of the English Law Society has authorised its council to obtain the introduction of a Bill on the lines of the New Zealand principle. The council asked the country members to agree to a special tax, on the Dominion model, but to this they would not agree. However, they agreed to compulsory membership of the society and the Bill will provide for this. The provincial societies are not anxious for the Bill, but they acknowledge that the situation is one which needs attention. The increased subscriptions gained from compulsory membership will be applied in the same way as the special levy in New Zealand, and from this fund the council may, at its discretion, relieve some of the harder case sdue to misappropriation of funds by solicitors. There is no legal right to a grant. The position appears to have been brought about by the fact that unless action was taken by the profession, Parliament itself would have dealt with the matter.