The Law Society is to press for solicitors to have the right to limit their liability in litigation, President Peter Williamson said last week.

Speaking at a meeting hosted by City firm Barlow Lyde & Gilbert, Mr Williamson said he was not convinced that the restriction in the Solicitors Act 1974 that prevents solicitors from negotiating limited liability in contentious matters was necessary.


He said: 'We will... examine the statutory restriction in respect of litigation. It is not obvious to me that there is any continuing justification for that provision - I can see no reason why we should not press for that to be repealed.'


He added that despite calls for the Law Society to set out model clauses for liability capping in non-contentious work, the Society preferred to leave the negotiation of liability limitation clauses to individual firms and clients. He said it should not be difficult for firms to show that tailor-made limitation clauses for particular commercial transactions satisfied the test of reasonableness, but it would be harder to show that standard clauses - or limitation clauses in contracts with private clients - were reasonable.


Sarah Clover, head of the solicitors' liability group at Barlow Lyde & Gilbert, said: 'This is a very positive step - I have never understood the principle behind the restriction on capping liability in litigation. Clients will not be any more exposed than they would be in commercial contracts, where it has been possible to limit liability for some time. There is a great deal of interest now among London firms in limiting liability in transactions.'