Solicitors sue Law Society over indemnity rules

The Law Society is being sued for damages by three solicitors who allege they have been 'bullied' out of business by anti-competitive and discriminatory rules governing the Solicitors Indemnity Fund (SIF), it emerged this week.Sole practitioners Wendy Gray, Jocelyn Taylor and Lesley Green have now made good on their threat to issue proceedings (see [2000] Gazette, 31 May, 3).

They are all seeking declarations that they are entitled to practising certificates despite having refused to pay SIF contributions in the past.They are also seeking damages and injunctions to stop the Law Society pursing disciplinary actions terminating their practising certificates until the outcome of the court actions are known.

All three solicitors claim that the Law Society's indemnity rules are anti-competitive and breach European law.

Hampshire solicitor Michael Dalton - who sued the Law Society last year on the same grounds after refusing to pay SIF contributions because he wished to obtain insurance on the open market, and settled his case - is representing the three solicitors.He called the Law Society's actions 'outrageous' and added: 'It has no justification for threatening the livelihoods of solicitors who have done no wrong.'Law Society director of policy Russell Wallman said the proceedings were 'doomed to failure'.

He added: 'The Solicitors Indemnity Fund rules were made under the authority of statute which explicitly contemplated this statutory mutual method of providing cover.

Statute requires the Law Society not to issue practising certificates to solicitors who are in breach of the indemnity rules.'

Sue Allen