QUESTION OF ETHICS

Q. I have been acting for a client in a personal injury matter.

It now appears that the client can rely on a legal expenses insurance policy, but the insurers are claiming that this policy gives them the right to appoint a solicitor of their choice.

Surely this can't be right? A. Generally solicitors must not enter into any arrangement in which the insurer insists that a particular solicitor must act.

By virtue of Rule 1 of the Solicitors' Practice Rules 1990 and the Solicitors' Introduction and Referral Code 1990, the client has the right to instruct a solicitor of his choice.

However, the client's right to instruct a solicitor of his choice may have been modified by the terms of the insurance policy, which the client may wish to check.

Under the Insurance Companies (Legal Expenses Insurance) Regulations 1990 the client's freedom of choice may not be restricted 'where, under legal expenses insurance, the insured has recourse to a lawyer to defend, represent or serve his or her interest in any enquiry or proceedings'.

Additional guidance may be found in chapter 6 of The Guide to the Professional Conduct of Solicitors (1999).Aide memoirel The new Indemnity Insurance Rules will be effective from 1 September 2000.

Solicitors must have their new indemnity insurance in place by that date.

l The Establishment of Lawyers Directive 98/5/EC was implemented in England and Wales on 22 May 2000.

Lawyers from other EU states who are EU nationals and established in the UK have to register with one of the UK Law Societies or Bars.

Lawyers already practising in the UK have until 21 November 2000 to make their applications, unless they wish to take advantage of their new rights under the Directive at an earlier date.

l Question of ethics is compiled by the Law Society's professional ethics guidance team.

Send questions for publication to Austin O'Malley, the Law Society, Ipsley Court, Berrington Close, Redditch B98 0TD; DX 19114 Redditch; tel: 020 7242 1222.