LEGISLATION PROBABLE

Taranaki Daily News, 11 September 1934, Page 3

LEGISLATION PROBABLE

WEEDING OUT BLACK SHEEP LEGAL PRACTITIONERS’ CONTROL \ DOMINION LEADS THE WORLD. New Zealand leads the world in legislation for the control of law practitioners, and the law practitioners have themselves led New Zealand in the matter of establishing laws which will guarantee that the high ideals of the profession will be preserved in spite of the occasional “black sheep” who are found in every walk of life. Now, at a time when other countries are following along the lines laid down when the Dominion brought into operation the Law Practitioners Act of 1931, it is possible that NewZealand will give a further lead by introducing further legislation for disciplinary control of lawyers and an added safeguard to the public. The honour of their profession is guarded most jealously by legal men, and it is the lawyers themselves who are the greatest enemies 'of those members of the profession whose actions are likely to besmirch that honour. It is the Law Society which brings to reckoning lawyers whose conduct has been'unprofessional or criminal. Even before the passing of the Law Practitioners Act, which came into operation on January 1, 1930, and established a fidelity guarantee fund, New Zealand led the world in the matter of control of law practitioners. The next steps have made the control more effective than ever. Shady practices on the part of any of the 1700 practising lawyers in New Zealand have been rendered so difficult that detection is more "likely than anywhere else in the world. 1 INTEREST THROUGHOUT WORLD. Interest was created throughout the world by the provisions of the Law Practitioners Act of 1931 and of the procedure of the Law Society. News has just come to hand that England has followed up the Solicitors Act passed recently by insisting that solicitors keep separate clients’ accounts. It has been compulsory ■ in New Zealand for many years for solicitors to keep two banking accounts and two sets of books —one for trust money and ’another for private money. Queensland was the first State to follow New Zealand’s example, and California , is considering the matter, as also are South Africa and Australian States.. An example of how law societies in other countries are lagging behind the times Sind the needs is furnished by the annual report of a South African law society, stating: “The council again wishes to remind members of the remarks made by Judges of the Supreme Court from time to time impressing upon attorneys that they should keep separate banking accounts for their trust moneys. The council feels members should exercise the greatest care in keeping moneys of their, clients separate and distinct from their own, and that the only effective way‘of doing this is to run a separate banking account for the purpose.” SYSTEM OF CONTROL. That has (been compulsory in New Zealand for many years, but the. latest system of control and tagging of moneys is unique, stringent and based upon sound accountancy practice. Compulsory auditing three times ’ a year and the compulsory furnishing by solicitors on the 14th of every month of the amounts held on behalf of clients make dishonesty on the part of lawyers in dealing with clients’ trust money as near impossible as can be. In cases of professional misconduct, action is taken by the society, and the offending solicitors are removed from the rolls. Such misconduct need not be as grave as theft; mere neglects of work or breach of audit regulations might suffice. Scrupulous honesty is insisted on and one known transgression is not forgiven. The initiative is taken by the Law Society, and proves a costly matter in some cases. “What we are out to do is to put the profession on the highest possible standard, and to ensure that no clients lose a penny through the dishonesty of practitioners,” said Mr. H. J. Thompson, secretary of the New Zealand Law Society, to a reporter of a Wellington paper. “We are hopeful that, owing to the stringency of the regulations now in force, and the action taken to purge the roll, the chapces of further claims on the indemnity fund will be smaller and smaller and reach vanishing point. “The Act provides for a levy each, year to be charged against every prac- ’ titioner, and there is a right to make a further levy in any year, besides the annual contribution. That has not been necessaf-y yet. Many people have had the benefit of the indemnity fund.” Mr. C. S. Thomas, president of the Canterbury District Law Society, said that he entirely agreed with the views expressed. “Unfortunately, dishonest lawyers have existed in the past,” he said, “and no doubt they will exist in ; the future, but it has always been the earnest endeavour of the profession as a whole to uphold its high traditions. This was shown by the voluntaryaction of the New Zealand Law Society in promoting the Fidelity Guarantee Fund, as a result of which no client nan be a loser through the theft of a member of the profession. . “For some time past the various district law societies and the New Zealand. Law Society have been exercising a very stringent supervision over the affairs of its members, and the result has been that the profession is on a sounder footing to-day than it has ever been. “Although wide powers are given under the regulations for the control of the profession by the Law Society it has been felt for some time past that further disciplinary powers should be given. At the present time legislation is contemplated which, if it becomes law, will not only bring about much closer supervision and control, but wil also act as a 1 further safeguard to z the public. “Any movement to safeguard the traditions of the profession has the fullest support of the profession as a whole.”