CONSULTATION: unfair terms could prompt court challenges

The Law Society has launched a stinging attack on the Legal Services Commission (LSC) over its plans for new legal aid contracts, accusing it of abusing its powers and calling on the government to intervene.

The Society's response to consultation on the standard terms for the contracts - currently intended to run from April 2004 - also warned that the LSC could face challenges in the courts under unfair contract term provisions if it forges ahead.

Chancery Lane said the administrative court ruling last year that legal aid contracts are private contracts meant solicitors could qualify for common law and statutory protection as there was an inequality of bargaining power.

It warned, for example, that additional sanctions on the late submission of claims could be 'an abuse of the LSC's monopolistic position'.

Calling for a three-month delay to any new contracts to thrash out the problems, it expressed confidence that solicitors could successfully challenge the contract in its current form.

The Society said the government would intervene if a private body acted in this way.

An LSC spokesman said it was considering all responses, adding that it would meet the Law Society and Legal Aid Practitioners Group, which last week issued its own warning that some of the terms could be unlawful.

But he said most of the changes are just technical issues, which will not affect the day-to-day provision of legal services.

A Department for Constitutional Affairs spokeswoman said it was unlikely to step into the fray: 'At present this is a matter for the LSC and not us.'

Paula Rohan