QUESTION OF ETHICSQ I have just retired as a partner of a firm and am no longer working as a solicitor.
It has been suggested that I be paid a fee for any work I refer to my old firm.
This will be a percentage of the fees generated from the referral.
Is this ok?A As a retired partner your former partners can share fees with you without contravening r.7 of the Solicitors Practice Rules 1990.
However, the payment suggested would be in breach of s.2(3) of the Introduction and Referral Code 1990.
This is because they would be paying a referral fee to someone who is not a lawyer for the purposes of the code.
Q I can find nothing in the accounts rules about whether client account cheques should be signed in the individual's name or in the firm's name.
Which is correct, please?A A personal signature should always be used rather than a firm's signature, as the former is a much stronger protection against forgery.
We are a bit surprised that your bank is even prepared to entertain the idea of signing in the firm's name.
Q I am acting in a conveyancing transaction.
We are set to complete soon and although I have sent a bill to my clients they have not put me in funds to settle costs.
Can I refuse to complete until I get paid?A You can only refuse to complete if you made it a requirement at the outset of the retainer that the client make a payment on account of costs before completion.
See principle 25.17 in the Guide to the Professional Conduct of Solicitors, 1999, eighth edition.
However, a solicitor may refuse to complete where disbursements which are necessary to enable completion remain outstanding.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.
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