SRA Handbook

Conditions

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Version 13 of the Handbook was published on 01/04/2015. For more information, please click 'History' Above

Rule 14: Conditions

14.1

The previous practice and each member thereof shall procure that notice to Solicitors Indemnity Fund Limited shall be given in writing as soon as practicable of:

(a)

any claim(s) the subject of Rule 8 made or intimated during the relevant indemnity period against it, him or her of any claim for or likely to be for more than £500; or

(b)

the receipt by it, him or her of notice of any intention to make any such claim(s).

14.2

The previous practice and any member thereof may also give notice in writing to Solicitors Indemnity Fund Limited of any circumstances of which it, he or she shall become aware which may (whether during or after the relevant indemnity period) give rise to any such claim(s).

14.3

Any notice given under Rule 14.2, will be effective only if, at the date when such notice was given, the circumstances known to and notified by the previous practice and/or member thereof, represent sufficient ground for a genuine and reasonable supposition on the part of the previous practice or member that those circumstances may give rise to a claim the subject of indemnity under Rule 8.

14.4

If notice is given to Solicitors Indemnity Fund Limited under Rule 14.1(b) or 14.2, any claim subsequently made (whether during or after the relevant indemnity period) pursuant to such an intention to claim or arising from circumstances so notified shall be deemed to have been made at the date when such notice was given.

14.5

The previous practice and each member thereof shall not admit liability for, or settle, any claim falling within Rule 8 or incur any costs or expenses in connection therewith without the prior consent of Solicitors Indemnity Fund Limited (such consent not to be unreasonably withheld).

14.6

Subject to Rule 14.7:

(a)

the previous practice and each member thereof shall procure that Solicitors Indemnity Fund Limited shall be entitled at the fund's own expense at any time to take over the conduct in the name of the previous practice or member of the defence or settlement of any such claim, including any claim in respect of which the previous practice or member may become entitled to partial indemnity under any insurance with any insurers; and

(b)

Solicitors Indemnity Fund Limited may after taking over the defence or settlement of any such claim conduct the same as it may in its absolute discretion think fit notwithstanding any dispute or difference, whether or not referred to arbitration under Rule 15, which may exist or arise between it and the previous practice or member.

14.7

No previous practice or member thereof shall be required to contest any legal proceedings unless a Queen's Counsel (to be mutually agreed upon or failing agreement to be appointed by the President of the Society for the time being) shall advise that such proceedings should be contested.

14.8

Without prejudice to Rules 14.5, 14.6 and 14.7, the previous practice and each member thereof shall keep Solicitors Indemnity Fund Limited informed in writing at all times, whether or not Solicitors Indemnity Fund Limited shall specifically so request, as to the development and handling of any claim, intimated claim, notice or circumstances the subject of or arising subsequent to any notice given to Solicitors Indemnity Fund Limited under Rule 14.1 or 14.2; and shall consult and co-operate with Solicitors Indemnity Fund Limited in relation thereto as Solicitors Indemnity Fund Limited may request, whether or not Solicitors Indemnity Fund Limited shall take over the conduct thereof.

14.9

The fund waives any rights of subrogation against any member of the previous practice save where those rights arise in connection with

(a)

a dishonest or criminal act by that member; or

(b)

the provision of indemnity under the exception to Rule 9.1(e); or

(c)

a claim to indemnity in circumstances where that member has received a net benefit to which he or she was not entitled as a consequence of another member being provided with indemnity out of the fund;

and save as otherwise expressly provided in these Rules.

14.10

If the previous practice or any member thereof shall prefer any claim to indemnity out of the fund knowing the same to be false or fraudulent as regards amount or otherwise, it, he or she shall forfeit any claim to any such indemnity in respect of any claim or future claim against the previous practice or member to which the false or fraudulent claim to indemnity out of the fund may have related or relate.

14.11

Where there has been a failure to pay any instalment of any contribution due or any Value Added Tax payable in accordance with the Solicitors' Indemnity Rules 1987 to 2007 or the SRA Indemnity Rules 2011or 2012 and a claim has been made or intimated against the previous practice or any member thereof in respect of which such previous practice or member would otherwise have been entitled to be provided with indemnity, Solicitors Indemnity Fund Limited shall provide such indemnity by payment (up to the indemnity limit) in or towards satisfying, or enabling the previous practice or member concerned to satisfy, the claim and claimants' costs and such previous practice shall thereafter upon request reimburse to Solicitors Indemnity Fund Limited on behalf of the fund the whole or such part as Solicitors Indemnity Fund Limited may request of any payment so made and of any costs and expenses incurred in its defence, settlement or compromise, and each principal therein shall be jointly and severally responsible to Solicitors Indemnity Fund Limited for such reimbursement accordingly. Provided always that Solicitors Indemnity Fund Limited shall require such reimbursement only to the extent of (a) any increase which in its opinion may have occurred in the total payable out of the fund (including costs and expenses) as a result of such failure, together with (b) such amount as may be necessary to satisfy any unpaid contribution and Value Added Tax and interest thereon at the rate of 4% above Barclays Bank base rate with quarterly rests or at such other rate as the Society may from time to time publish in the Law Society's Gazette.

14.12

Where non-compliance with any provision of these Rules by any previous practice or any member thereof claiming to be entitled to indemnity out of the fund has resulted in prejudice to the handling or settlement of any claim in respect of which such previous practice or member is entitled to indemnity hereunder, such previous practice or member shall reimburse to Solicitors Indemnity Fund Limited on behalf of the fund the difference between the sum payable out of the fund in respect of that claim and the sum which would have been payable in the absence of such prejudice. Provided always that it shall be a condition precedent of the right of the fund to such reimbursement that it shall first have provided full indemnity for such previous practice or member by payment (up to the indemnity limit) in or towards satisfying, or enabling such previous practice or member to satisfy, the claim and claimants' costs in accordance with the terms hereof.

14.13

In respect of any loss arising from any claim or claims as described by Rule 8.1(c) arising out of any dishonest or fraudulent act or omission of any member of the previous practice, the fund shall nonetheless be available to afford indemnity in accordance with these Rules to the previous practice and any member thereof, other than and excluding in each case the particular member concerned in such dishonesty or fraud. Provided always that at the request of Solicitors Indemnity Fund Limited, the previous practice or member being indemnified shall:

(a)

take or procure to be taken at the fund's expense all reasonable steps to obtain reimbursement for the benefit of the fund from or from the personal representatives of any such member concerned in such dishonesty or fraud, and

(b)

procure that any reimbursement so obtained together with any monies which but for such fraud or dishonesty would be due to such member concerned in such dishonesty or fraud shall be paid to the fund up to but not exceeding the amounts paid by the fund in respect of such claim together with any expenditure reasonably incurred by the fund in obtaining such reimbursement.

14.14

In the event of indemnity being afforded under the exception to Rule 9.1(e), the previous practice or member being indemnified shall take or procure to be taken at the fund's expense all reasonable steps to obtain reimbursement for the benefit of the fund from any person to whom any benefit arising from the giving of any undertaking accrues in the circumstances set out in Rule 9.1(e). Provided always that such reimbursement shall not exceed:

(a)

the amount paid by the fund by way of indemnity together with any expenditure reasonably incurred by the fund in obtaining such reimbursement, or

(b)

the amount of any benefit accruing to such person,

whichever is the lesser.

14.15

In respect of any claim to indemnity, Solicitors Indemnity Fund Limited may appoint panel solicitors to act on its behalf and on behalf of the previous practice or any member thereof, and panel solicitors shall:

(a)

act at the sole direction of the fund for any purpose falling within the scope of these Rules, including acting on the Court record for the previous practice or any member thereof, and

(b)

disclose to Solicitors Indemnity Fund Limited as required any statement or information given to or which becomes known to panel solicitors in the course of so acting, and such disclosure shall be treated as having been made directly to Solicitors Indemnity Fund Limited by the previous practice or member.

14.16

The provisions of this Rule 14 shall not apply in relation to an expired run-off claim, in respect of which the provisions of Rule 8.5 shall apply.