Clients of solicitors Michael Lynn and Thomas Byrne are undoubtedly drawing some comfort from the fact that those who suffer a financial loss, and where dishonesty on the part of a solicitor can be proved, can seek assistance from the Law Society's Compensation Fund.
There is more than €33 million in this fund, which was established on a statutory basis in 1994, along with €30 million insurance on the fund. Each practising solicitor must pay into it, and the sum they pay at the moment is €400 a year.
This may have to increase if there are a large number of claims on it. However, the maximum any one client can claim is €700,000, so the existence of this fund will not be of much comfort to the banks. Furthermore, the fund is for clients, not for those who have business dealings with the solicitors, so banks are unlikely to qualify for compensation from it.
In addition, the Law Society requires all its members, as a condition for obtaining their annual practising certificate, to also hold professional indemnity insurance. Both Mr Lynn and Mr Byrne would have had to have this to be registered as solicitors.
Those who have suffered loss can apply directly to the Law Society for compensation, and last week the society's president, James MacGuill, said such applications would be dealt with quickly, especially in cases of hardship.
Carol Coulter,
Legal Affairs Editor
