No complaintsfrom the best firms as price of SLCC falls

Published on Sunday 18 January 2009 20:35

SCOTTISH solicitors will pay less up-front to maintain the new Scottish Legal Complaints Commission (SLCC) under budget proposals published by the organisation today.

And the overall operating budget of the commission, currently more than 3.4 million per year, will be reduced by almost 15 per cent to 2.98 million, if the proposals put forward by the SLCC are adopted.

In a move the commission says will benefit the legal profession, as well as clients, the compulsory annual levy charged to every legal practitioner to pay for its work will be reduced.

This reduction will be offset by doubling the administrative charge to solicitors or advocates that have a complaint against them upheld.

At present, the commission, which began its work as an independent gateway for legal complaints in October, charges every Scottish solicitor with three or more years' experience 409 per year. Under the new proposals, this figure would drop to 275.

The plans would see a similar reduction in the levy on less experienced solicitors, with a fall in the fees from those with less than three years' experience from 205 to 138.

Advocates would benefit from a drop in their charge from 330 to 223, and solicitors working in-house would be expected to pay 91, a 45 reduction.

Commenting on the proposals, SLCC chairwoman Jane Irvine said: "The budget has been developed after listening to the views of both consumer organisations and legal practitioners. The economic downturn has impacted on the legal profession and a recent survey of 196 firms indicated that 304 people, mostly support staff, had already been made redundant. Legal practitioners already working to high standards will benefit from the levy being reduced from 409 to 275 and the 200 charge for mediation will be removed."

According to the SLCC, this reduction has been suggested in an attempt to resolve disputes faster by encouraging parties into the mediation process earlier.

Under the new structure, should a complaint proceed to formal adjudication and be upheld, practitioners will pay twice as much in administrative levies. This could see solicitors or advocates charged 2,000 if they are the subject of a third successful complaint.

Ms Irvine added: "Consumer organisations want to see higher standards of service and early resolution of complaints. With this in mind, the SLCC will double charges where a complaint is upheld.

The minimum charge will rise from 250 to 500. The financial implications of an increased complaints levy should encourage practitioners to resolve complaints at an early stage."

Richard Keen, Dean of the Faculty of Advocates, who last month questioned the amount of cash allocated to the SLCC, said: "The budget still seems high, but I welcome a move in the right direction."

He added: "I note the SLCC's overwhelming desire to have complaints dealt with early, as prompted by the consumer lobby. It is important that complaints should be resolved fairly as well as early."

This concern was later addressed by Jane Irvine, who explained that practitioners were under no obligation to move to mediation. She hoped many of the current complaints, based on problems of communication, could be resolved at this early stage.

Sarah O'Neill, principal policy advocate and solicitor with the watchdog Consumer Focus Scotland, said she was pleased with the changes.

"It has always been unfair that the lawyers who have provided the best service to their clients have effectively had to underwrite those who aren't up to the job or who have failed to resolve complaints early on," Ms O'Neill said.

"We welcome the clear relationship between the proposed fees and the standard of work, and hope it will give that extra incentive for those who have allowed their standards to slip to catch up with their peers."

Philip Yelland, director of standards at the Law Society of Scotland, said: "The levy figures proposed are part of its annual consultation which the commission is obliged to carry out with the professional bodies.

"The society will look at the proposals carefully. We will continue to represent the profession's views to the commission.

"Consumers have in the past experienced difficulties with the slowness, complexity and adversarial nature of the complaints process. The commission's underlying commitment to encouraging solicitors to deal with complaints at an early stage and to resolving them through mediation is key to improving the system."

The society is encouraging its members to get in touch by emailing [e-mail].

A Scottish Government spokesperson said: "The budget is a matter for the SLCC in consultation with the professional organisations. However, we support these proposals which will encourage use of mediation and early dispute resolution. The reduction in the levy will be welcome news to the profession in the current economic climate."

Although the commission is obliged to submit its finalised budget before 30 April, it said it hoped the proposals would be laid before parliament before the end of March.

THE PROPOSED LEVIES

&#149 Solicitors with three-plus years' experience: 275 (down from 409)

&#149 Solicitors within first three years of practice: 138 (down from 205)

&#149 Advocates: 223 (down from 330)

&#149 In-house solicitors: 91 (down from 136)

COMPLAINTS CHARGES

&#149 First complaint accepted: 500

&#149 Further complaint accepted: 700

&#149 First formal determination: 800

&#149 Second formal determination: 1,200

&#149 Further formal determinations: 2,000