LAWYERS AND CLIENTS

Wanganui Chronicle, Volume 79, Issue 31, 6 February 1935, Page 10

LAWYERS AND CLIENTS

GUARANTEE FUND. NLW SOUTH WALES BILL. A bill to prov ide .fur compulsory fidelity guarantee fund to protect clients against misappropriation by solicitors uf trust funds, 'was introduced in the New South Wales Legislative Assembly recently. The Minister of Justice, Mr. Martin, said there was 1647 solicitors in New South Wales. The bill would give them an internal discipline unknown before. Jt would give them a strengthened public confidence. The measure would provide for every solicitor to contribute not less than £3, nor more than £lO, a year to the guarantee fund. When the fund reached £lOO,OOO, and while it remained at not less than that amount, contributions would cease. Air. Martin said that no one conversant with the many tragic cases which had taken place owing to the embezzlement of trust funds by solicitors, could fail to realise the importance of protecting the public from a serious form of embezzlement, which was difficult tu counteract. The legal profession had always enjoyed, and deserved, a great measure of trust and conlidence from the public. No section of the public was more anxious than the profession itself to preserve and safeguard the confidence that was the life blood of the profession. For 10 years —until a reasonable amount of money could be accumulated—the aggregate sum claimable from any one solicitor would be £5OOO, and thereafter £lO,OOO. The maximum individual amount claimable by one client was £2OOO. A person making a claim would first have to prosecute the solicitor to conviction unless the Court should excuse compliance with that pro-

I The Minister explained that, to safe- : guard the fund, the council of the Law ; I Institute would be empowered to con--1 I duct a surprise audit of any solicitor’s i ! trust accounts. In addition to contributions, the council could make a levy 1 in any year not exceeding £lO a head. '. No solicitor in his whole period of ’ practi.-e would be asked to contribute I| mote than £5O in levies apart from anil mud contributions. Every solicitor, I ! when he ceased practice, or his estate i when he died, would be entitled to reH ceive back, without interest, all money I he contributed to the fund, provided li ' that no misconduct had been proved i I against him. ,