Seminar 22 PDF

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Seminar 22...

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Seminar 22 – Practice for Part C Assessed Coursework on Professional Ethics Skeleton Requirements  The facts you consider to be relevant;  The professional/ethical issues you believe the scenario raises and the order in which you would deal with the issues;  The specific legal authorities such as from the relevant code of practice which would support your answer;  At least two sentences written in full, with appropriate use of OSCOLA referencing Scenario You are a solicitor at a law firm in Derby city centre and you are an expert in conveyancing (i.e. buying and selling land/buildings on behalf of clients). One of your firm’s clients is Mr Wealthy. Mr Wealthy called you today, as he wants your firm to act for him on the sale of one of his properties, “High Towers”. Mr Wealthy has agreed in principle to sell High Towers to Mrs Moneybags, although they have not yet agreed on the price. Mrs Moneybags does not have a solicitor, so Mr Wealthy has suggested she instructs your firm to act for her, as well as acting for him, as Mr Wealthy thinks your firm provides a great service and will ensure the transaction is finished quickly. You are tempted to agree to this, but are not sure, so you talk with your boss, who says: “Great! It’s no problem for our law firm; we can definitely act for both the seller and the buyer in relation to the sale and purchase of High Towers” Questions 1. Explain the potential benefits for the clients if one solicitor acted for both the seller and the buyer in this type of situation. [30%] 2. If you proceed to act for both the seller and the buyer in relation to the sale and purchase of High Towers: a. Which professional and/or ethical issues and obligations could arise; and b. Would you be complying with the Solicitors Regulation Authority Code of Conduct? Ensure you support your answer to question 2 with specific reference to the Solicitors Regulation Authority Code of Conduct. [70%] Relevant Facts  Mr Wealthy has agreed in principle to sell High Towers to Mrs Moneybags, although they have not yet agreed on the price  Mr Wealthy has suggested she instructs your firm to act for her, as well as acting for him  Boss - “Great! It’s no problem for our law firm; we can definitely act for both the seller and the buyer in relation to the sale and purchase of High Towers” Professional/Ethical Issues  Conflict of interest  Confidentiality

Specific Legal Authorities  SRA Code Principles: o Number 2 – Act with integrity o Number 4 – Act in the best interests of each client o Number 5 – Provide a proper standard of service to your clients o Number 8 – Run your business or carry out your role in the business effectively and in accordance with proper governance and sound financial and risk management principles o Number 10 – Protect client money and assets  SRA Outcomes o O(1.1) – You treat your clients fairly o O(1.2) – You provide services to your clients in a manner which protects their interests in their matter, subject to the proper administration of justice o O(1.3) – When deciding whether to act, or terminate your instructions, you comply with the law and the Code o O(1.6) – You only enter into fee agreements with your clients that are legal, and which you consider are suitable for the client's needs and take account of the client's best interests  SRA Indicative Behaviours o IB(1.10) – If you have to cease acting for a client, explaining to the client their possible options for pursuing their matter o IB(1.12) - Considering whether a conflict of interests has arisen or whether the client should be advised to obtain independent advice where the client notifies you of their intention to make a claim or if you discover an act or omission which might give rise to a claim 2 Sentences with OSCOLA Referencing A conflict of interest is any situation where ‘you owe separate duties to act in the best interest of two of more clients in relation to the same or related matters, and those duties conflict, or there is significant risk that those duties may conflict’.1 A conflict of interest was also described by Justice PD Cummins as ‘What bedevils the prohibition of a conflict of interest is a confusion of purpose. The purpose of prohibition of conflict of interest is not to remedy and offence or a failure.’2

1SRA Handbook, 'SRA Code of Conduct 2011' (Solicitors Regulation Authority, 6 December 2018) https://www.sra.org.uk/solicitors/handbook/code/content.page accessed 31 March 2019 2 Justice PD Cummins quoted in Christine Parker and Adrian Evans, Inside Lawyers’ Ethics (Cambridge University Press 2007), 160...