Compensation level for poor legal service raised
22 Dec 04
Maximum compensation for inadequate professional service by solicitors to rise from £1,000 to £5,000
The maximum level of compensation to be paid to clients by their solicitors for inadequate professional service is to be increased from April next year.
Deputy Justice Minister Hugh Henry announced today that the Law Society of Scotland and the Scottish Solicitors’ Discipline Tribunal will have new powers to order a solicitor to pay a client compensation of up to £5,000.
This is a big increase on the £1,000 limit at present and was hailed by the Scottish Executive as a "step forward in promoting consumer interests in the legal services market."
The award of compensation was one of the key issues considered by the former Justice 1 Committee in the report of its inquiry into the regulation of the legal profession.
Deputy Minister for Justice Hugh Henry said: “The increased level of compensation demonstrates our commitment to improving redress for those clients who have been let down by their solicitor. This change is only one of a number of proposals we are pursuing.
“We wish to place the interests of users of legal services at the heart of regulatory arrangements and will be consulting soon on a wider agenda of reform to the system for handling such complaints in Scotland.”
The Law Society of Scotland emphasised that the maximum limit would only apply in exceptional cases of inadequate professional service.
A spokeswoman said that average compensation levels for last year were £447, significantly lower than the £1,000 maximum.
The Society said it plans to bring forward guidelines on how it will use the new powers before they come into force in April.
The Faculty of Advocates has decided to make available financial redress of up to £5,000 to complainants in respect of justified complaints with effect from 1 January 2005.
The Scottish Executive will hold a public consultation in the New Year on firm proposals to improve the complaints handling system and to enhance the powers of the Ombudsman.