C&I Group: review of services for employed lawyers

In-house lawyers should be allowed to opt out of the Solicitors Compensation Fund, the chairwoman of the Law Society's Commerce & Industry Group said last week.

Meeting Law Society President Peter Williamson, Carol Williams argued that in-house lawyers' clients do not receive any benefit from the compensation fund.

Speaking later to the Gazette, she said: 'If an in-house lawyer behaved fraudulently, it would be hard for a company to make a claim from the compensation fund.

'It would be difficult for a company to prove that they could not have taken out insurance, or that the claim was equitable.

But as far as I am aware, no company has ever actually made a claim on the fund.

So why should in-house lawyers continue to pay in to it?'

In-house lawyers in Scotland are able to opt out of the compensation scheme.

Ms Williams also said the sharp rises in the practising certificate fee presented difficulties for in-house lawyers - as for the rest of the profession.

She said: '[They] are very hard for in-house lawyers to justify to their finance directors, and they are impossible to budget for.

Our members have become very heated about this.'

Ms Williams also said that in-house lawyers who do not hold a practising certificate need guidance on their correct job title; they may not refer to themselves as 'lawyers' or 'solicitors'.

Ms Williams said the meeting had led to a 'very constructive discussion, with the Law Society demonstrating a clear understanding of the issues'.

She said the Society has agreed to review the ways it can serve the in-house community.

A Law Society spokesman said: 'The Society recognises the importance of the employed sector, including those employed in commerce and industry, and we welcomed the opportunity to meet with the Commerce & Industry Group.

'We are pleased the group acknowledges it was a constructive discussion.

There are positive issues which came out of the meeting, but equally we acknowledge the concerns expressed by members of the group and look forward to working with them to see how services to this sector might be improved.'

Rachel Rothwell