Ombudsman commends better complaints record

Annual report records increased satisfaction levels and better case handling by Society

News, 16 May 2006

The Law Society of Scotland has had "a good year" in its handling of client complaints against solicitors, according to the Scottish Legal Services Ombudsman's annual report for 2004-05, published today.

Mrs Linda Costelloe Baker, in her report for the final period before she left office as Ombudsman, says that the Society's new complaints handling system, introduced in September 2003, has made a real difference to the Society's ability to handle cases fairly, thoroughly and efficiently.

The proportion of cases where the Ombudsman was satisfied with the Society's treatment of a complaint rose from 47% to 60%, its best ever year. The proportion of complainers referring their case to her office has halved in two years to 14%. For the second year in a row she has made no recommendations to the Society.

Increased scrutiny

The Ombudsman, whose role is to investigate the way the Law Society and the Faculty of Advocates handle complaints about practitioners, says she believes the improvement is due to increased parliamentary scrutiny coupled with the prospect of complaint handling being removed from the Society. She welcomes the bill currently before the parliament which would introduce an independent complaints commission, and believes the commission should also be able to investigate allegations that fees are excessive.

While acknowledging that the Society has "almost kept up" with a 30% increase in complaints, Mrs Costelloe Baker cautions that having completed fewer cases than were received by it, the Society should "keep a careful eye" on numbers in hand. She believes the practice rule requiring letters of engagement, which her office has wanted for 12 years, should both reduce the number of complaints made and protect the solicitor.

She approves of the Society's "very welcome major revamp" of its website, but remains concerned that of the complaints where the Society refused to investigate, she found legitimate grounds in 17%. She also calls for more efficient processes to ensure that promised action is actually taken.

Endowment issues

On endowment mis-selling, the report states: "Endowment complaints continue to rise and have been 27% of all incoming complaints. The statutory and policy frameworks for the legal services handling of these complaints do not look good compared with the financial services industry.

"Many of the policy holders facing a shortfall in a policy sold through a firm of Scottish solicitors have no alternative to the risky, potentially expensive and daunting prospect of a claim for professional negligence. Those that try the complaint route invariably end up disappointed and all the more so with the SLSO's lack of useful powers."

The Faculty of Advocates also receives good marks: the ombudsman's office investigated 17 out of 49 complaints about advocates, and in 60% the Ombudsman was satisfied that the investigation had been fair and thorough - up from only 25% the year before.

There are recommendations for the Scottish Executive - to carry out research into the availability of access to independent legal advice and representation "without further delay, to find out the true scale of an undoubted problem"; and to increase the Ombudsman's power to recommend a compensation payment by the Society where an investigation has been badly handled, from the current maximum of £1,200, in line with inflation since 2002.

Challenge over the bill

Caroline Flanagan, President of the Law Society of Scotland, said: “Praise from the Ombudsman, who sees the most difficult complaints, is hard won especially as the Ombudsman sees only a small proportion of the complaints handled by the Society each year.

"This year she has recognised the tremendous achievements of the Society in improving complaints handling."

Mrs Flanagan said the Society had embraced the need for reform to enhance confidence in the system, but had also insisted that change must bring about real improvement. "This report presents a challenge to the Scottish Executive and Scottish Parliament to ensure that the [Legal Profession] Bill does just that."

Mrs Flanagan added: “That over the last year we have consistently met our targets is a tribute to the hard work and dedication of the client relations team, as well as the reporters and solicitor and non-solicitor committee members."