Dalton reopens SIF legal claim

The claim that the solicitors Indemnity Rules are contrary to European law looks set to be revived after three sole practitioners announced their intention to launch legal action against the Law Society this week.

Wendy Gray, Jocelyn Taylor and Lesley Green are seeking a declaration that they are entitled to practising certificates even though they have refused to pay their indemnity contributions in the last three years.

They are also claiming damages.

They are represented by Hampshire solicitor Michael Dalton, whose judicial review against the Society and Solicitors Indemnity Fund (SIF) monopoly ended last October before the issue was decided, when he was granted a waiver of most of his indemnity contribution.Russell Wallman, the Society's director of policy, said 'there is no doubt at all about the lawfulness of the current indemnity scheme'.

The Society had taken legal advice that it had no choice but to withhold practising certificates from those who breached the indemnity rules.Ms Gray chaired the Millennium Law Group, a coalition of small law firms against the SiF and in favour of the open market option.

It disbanded in October in the light of the Society's decision to give solicitors the option of the open market from September 2000.She said she was bringing the action because the Society refused to discuss her continuing objections against the SIF.

Instead, Ms Gray contended, she had been referred to the Office for the Supervision of Solicitors.

Others who have not paid their contributions, however, including Ms Green, have been sued.Ms Gray said she would welcome a claim as it would allow her to argue her case in court.

The lack of a practising certificate had driven her out of business, she added.Putting the case in court last summer, Mr Dalton's counsel, Cherie Booth QC, argued that the SIF monopoly was in breach of Art 85 of the Treaty of Rome, which bans anti-competitive behaviour by trade associations.Ms Booth's argument was backed up by an opinion from Michael Beloff QC, commissioned by the November Group of City law firms opposed to the SIF and given to Mr Dalton to help him with his case.

Mr Dalton was also backed by the Millennium Group.

Neil Rose