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Q&As
For the purposes of this Q&A it is assumed that the contract is being cancelled at the option of the consumer as their preference and not as a result of faulty goods or other default by the car dealership business. Distance selling Distance contracts have certain cancellation rights which are not available to consumers who conclude their agreement face-to-face. The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013, SI 2013/3134 (CCR 2013) allow a consumer to cancel a distance contract at any time within the cancellation period without giving a reason (CCR 2013, SI 2013/3134, reg 29). For contracts for the sale or supply goods the cancellation period ends 14 days after the day on which the goods came into the physical possession of the consumer (CCR 2013, SI 2013/3134, reg 30). Regulation 5 of the CCR 2013 defines ‘distance contract’ as a contract concluded between a trader and a consumer under an organised distance sales or service-provision scheme without the simultaneous
Q&As
The general position is that CFAs entered into prior to 1 April 2013 are covered by transitional arrangements, as set out in CPR 48.1. These provide that although the CPR provisions, which dealt with success fees prior to 1 April 2013, have been revoked, they will continue to be relevant for pre-commencement funding arrangements. Pre-commencement funding arrangements are defined in CPR 48.2. The key issue for practitioners is that while the old provisions apply, they can be subject to modifications
Q&As
This Q&A deals with the common question: can I charge a client for retrieving and/or returning their file? The answer may well depend on why the client is making the request. There do not appear to be any SRA requirements, but the Law Society recommends you should advise the client of costs related to: • storage • retrieval • additional copies Why does the client want the file? The Law Society has produced sample client care letter wording: If we take papers or documents out of storage in relation to continuing or new instructions to act for you, we will not normally charge for such retrieval. However we may charge you both for: • time spent producing stored papers that are requested • reading, correspondence or other work necessary to comply with your instructions in relation to the retrieved papers This wording does not appear to
Q&As
Section 56(4) of the Solicitors Act 1974 (SA 1974) stipulates that in respect of non-contentious business, solicitors should be remunerated: • by a gross sum • by a fixed sum for each document prepared or perused, without regard to length • in any other mode, or • partly in one mode and partly in another The Solicitors’ (Non-Contentious Business) Remuneration Order 2009, SI 2009/1931, provides that a solicitor’s costs must be fair and reasonable, having regard to all the circumstances of the case. Regulation 3 specifically refers to: • the complexity of the matter or the difficulty or novelty of the questions raised • the
Q&As
Conduct issues Practice Note: explains that there is very little information that the Solicitors Regulation Authority (SRA) specifically requires you to provide to the client in writing at the outset of their matter, ie in your client care letter or terms of business (TOB). In fact, there is no regulatory requirement to have either a client care letter or a terms of business document. Despite this, having both a client care letter and terms of business document will help ensure that you achieve relevant SRA requirements, comply with other regulatory requirements and follow the Law Society's guidance. Failure to provide adequate costs information is one of the most common causes of complaint to the SRA and Legal Ombudsman. In dealing with such a complaint, the SRA can impose disciplinary sanctions on the firm and the Legal Ombudsman
Q&As
The basic rule is that a successful party is entitled to their costs on the standard basis. This means that any doubt as to whether the costs claimed are recoverable is resolved in favour of the paying party. However, when costs are assessed on an indemnity basis, any doubt as to whether the costs have been reasonably incurred or were reasonable in amount being resolved in favour of the receiving party (CPR 44.3(3)), see Practice Note: Indemnity costs orders—principles. The court also has the power to award interest on costs and there are two different rates of interest, the post-judgment rate and the pre-judgment rate. The post-judgment rate is set by the government
Q&As
The inheritance tax normal expenditure out of income exemption can apply where the donor lacks mental capacity provided the gifts are authorised by the Court of Protection (Re GM and section 23(4) of the Mental Capacity Act 2005). The deputyship order
Q&As
This Q&A considers whether you can terminate your retainer with an existing client, on the basis that they are Russian. It takes account of general common law, professional obligations under the SRA Standards and Regulations and relevant crime prevention regulatory regimes. However, it is not intended to provide comprehensive analysis of case law in relation to termination of contracts more generally—see Q&A: What are the legal issues for contracts impacted by war and sanctions following the Russian invasion of Ukraine?, which considers issues such as force majeure, frustration and illegality. For guidance on entering into a new retainer with a Russian client, see Q&A: Can I take on a non-sanctioned client from a country subject to financial sanctions, eg Russia—law firms? As a matter of common law, a solicitor-client retainer is an entire contract and, in the absence of agreement to the contrary, you cannot terminate the retainer unless you have reasonable ground for refusing to act further for the client. You will therefore need to consider: • whether
Q&As
An English court only has jurisdiction over someone that has consented to the jurisdiction of the court. Where a person who is overseas is not a party to the proceedings, the English court will not compel the witness to attend a hearing using a witness summons as this would be an infringement of the sovereignty of the country in which the overseas witness is domiciled—see, for example VTB Capital plc v Nutritek International Corp. It is a general principle of the common law that, absent specific provision (as in the rules for service out of the jurisdiction),
Q&As
How voting rights attach In general terms there are two ways that voting rights attach to shares, either: • by virtue of a provision in a shareholders’ agreement, or • most likely, through a company’s articles of association Amending voting rights If the current voting rights are attached to the shares by virtue of a provision in a shareholders’ agreement, it would be possible to amend the shareholders’ agreement and change the voting rights. The amendment would have to be conducted in the manner specified for variation in a shareholders’ agreement to be valid. There are no general restrictions on shareholders amending the shareholders’ agreement as the freedom of contract principle will apply, subject to the usual caveats. However, unanimous consent will be needed to alter a shareholders’ agreement. The
Q&As
This Q&A considers if and when you can disclose a copy of a client’s will (contrary to your duty to keep your client's affairs confidential) to a property and financial affairs attorney or deputy appointed by the Court of Protection in circumstances where the client has lost mental capacity. It is based on Law Society guidance on access and disclosure of an incapacitated person’s will. For more information, see Practice Notes: Vulnerable clients—regulatory requirements and Duties of confidentiality and disclosure. Who is my client? Your client remains your client even if they have an attorney/deputy acting on their behalf. You can accept instructions given by someone other than the client if that person has proper authority to give those instructions. In this context, this is likely to arise in one of two ways: • if your client has made a power of attorney, they remain the client acting through their agent, the attorney • a deputy appointed for your client by the Court of Protection will be acting on their behalf
Q&As
Can I enforce a decision of the LVT at court? The Leasehold Valuation Tribunal (LVT) has jurisdiction to hear certain disputes as between leaseholders and their landlord. For example, there are certain specific rules in the residential leasehold environment about what service charge a leaseholder is liable to pay to their landlord, depending on the landlord's compliance with the prescribed statutory consultation process (see,Residential—statutory limitations on recovery of service charges and administration charges and Consultation for residential service charges). If a dispute results as to the level of service charge recoverable the matter can be referred to the LVT who will determine the amount that can