Cover photograph: Mottisfont House
HAMPSHIRE LEGAL AUTUMN 2014
JOURNAL OF THE HAMPSHIRE LAW SOCIETY www.hampshirelawsociety.co.uk
› The Conveyancing Process › Expert Witness Focus › Leaving a Legacy
Inside this issue:
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PUBLISHER Ian Fletcher Benham Publishing 3tc House, 16 Crosby Road North, Crosby, Liverpool L22 0NY Tel: 0151 236 4141 Fax: 0151 236 0440 email: admin@benhampublishing.com web: www.benhampublishing.com
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ADVERTISING AND FEATURES EDITOR Anna Woodhams GRAPHIC DESIGNER Neil Lloyd ACCOUNTS Joanne Casey MEDIA NO. 1330
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PUBLISHED October 2014 © The Hampshire Incorporated Law Society Benham Publishing
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LEGAL NOTICE © Benham Publishing. None of the editorial or photographs may be reproduced without prior written permission from the publishers. Benham Publishing would like to point out that all editorial comment and articles are the responsibility of the originators and may or may not reflect the opinions of Benham Publishing. No responsibility can be accepted for any inaccuracies that may occur, correct at time of going to press. Benham Publishing cannot be held responsible for any inaccuracies in web or email links supplied to us.
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DISCLAIMER The Hampshire Incorporated Law Society welcomes all persons eligible for membership regardless of Sex, Race, Religion, Age or Sexual Orientation. All views expressed in this publication are the views of the individual writers and not the society unless specifically stated to be otherwise. All statements as to the law are for discussion between member and should not be relied upon as an accurate statement of the law, are of a general nature and do not constitute advice in any particular case or circumstance. Members of the public should not seek to rely on anything published in this magazine in court but seek qualified Legal Advice.
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COVER IMAGE Mottisfont House ©National Trust Images/Arnhel de Serra
COPY DEADLINES Winter Spring Summer Autumn
13th January 2015 3rd April 2015 3rd July 2015 30th September 2015
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Members wishing to submit material please contact the Editor, Alison Plenderleith, before copy deadline. Email: bdo@hampshirelawsociety.co.uk Anyone else wishing to advertise or submit editorial for publication in Hampshire Legal please contact Anna Woodhams before copy deadline. Email: anna@benhampublishing.com Tel: 0151 236 4141
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INTRODUCTION CONTACTS HAPPENINGS IN HAMPSHIRE PROPERTY EDUCATION & TRAINING PROFESSIONAL PRACTICE
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EXPERT WITNESS WILLS AND INHERITANCE LEGACIES MANAGEMENT NEWS NOTICES
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Introduction
PRESIDENT’S REPORT AUTUMN 2014 When I purchased my first house in 1982 before I started my legal training the world of high street solicitors was very different from how it is now. Solicitors had only just been permitted to advertise, and so moving to a new part of the country meant it was hard to find a solicitor to act for me. When I met him he was a man of some gravitas and I automatically respected him. His conveyancing fee was on a set scale and at 2% of the value of the house it was exactly the same as the estate agent’s fee for the same transaction. Unbeknown to me the leg-work involved in my house purchase would have been done by a solicitor’s clerk. If I had a more complex legal problem then without question I would have approached a solicitor for legal advice. If I had been poor then the Green form for Legal Aid would have paid for this legal advice In short in 1982 high street solicitors were a respected profession with a secure income, who were the automatic choice to provide legal services. Many people had a family solicitor similar to that with a GP. The family solicitor was a trusted advisor who knew all the family affairs As with so much change it all began with Margaret Thatcher. Solicitors started advertising. Scale fees for conveyancing were abolished. Licenced conveyancers were allowed to practice on their own. Solicitor’s clerks became ILEX and a legal profession in their own right. If you sought legal advice for a difficult problem you were more likely to visit the CAB, who did not charge and were perhaps more approachable. As we moved into the 21st century conveyancing became cheaper and the legal work was often done by a faceless individual in a trading estate. Ambulance chasers found their clients by advertising
in the Sunday papers, on daytime television or in shopping centres. The Probate Registry demystify probate so that executors can do all the work themselves without engaging solicitors. Anyone with access to the internet will try to find the answer to his legal queries online rather than approaching a solicitor or an advice agency. As a profession who are finding life harder than before, rather than stick together we compete among ourselves. We are less likely to meet and socialise and discuss matters of mutual interest. Our profit margins are so tight that our hourly charges are so high that only the very wealthy continued to see us as trusted advisors. Curiously the very poor also see us as trusted advisors where they still have access to Legal Aid. Hampshire Law Society cannot turn the clock back but we can help to ease the transition. Hampshire Law Society organises a range of social events to give solicitors a chance to enjoy each other’s company. We provide a forum for exchange of professional information. We want to continue to help our members pass their views up to Chancery Lane where they can be acted upon. We would like to explore new ways
of funding legal services such as working with charities to provide funds for legal advice. We wish to give our members the chance to engage in dialogue about the future of our profession and of how best to change our practices to continue to thrive. We want to give our members the chance to understand the brave new world of the law. Despite the removal of compulsory continuing professional development, we will continue to offer a training program because we believe that most solicitors still want to keep their legal knowledge up to date. Hampshire Law Society always need keen lawyers who are willing to join our committee. Like any not-for-profit organisation the work is thankless and frustrating. But ultimately extremely rewarding. We very much hope that you will attend our AGM on the 2nd December and put yourself or your friends forward to become directors of Hampshire Law Society. Simon Whipple President
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Introduction
HAMPSHIRE LAW SOCIETY CONTACTS The following is an up-to date list of committee members’ names and addresses and the sub committees to which they belong:
COMMITTEE MEMBERS AND SUB COMMITTEES
PRESIDENT
LAW SOCIETY COUNCIL MEMBERS
EDUCATION & TRAINING
Simon Whipple
Mr Andrew Caplen (President)
The Carers Legal Centre 109 Burley Rd Bransgore Christchurch BH23 8AY Tel 01425 674844 Mob 07740 432159 Email carerslegalcentre@googlemail.com
Heppenstalls 75 High Street Lymington SO41 9YY DX 34053 Lymington Tel 01590 689500 Email andrew.caplen@yahoo.co.uk
Anthony Harris (Chair) ajharris@clara.co.uk Kristina Colmer Katharine West Alison Plenderleith
VICE PRESIDENT
LITIGATION & DISPUTES RESOLUTION Russell Evans (Chair) russell.david@yahoo.co.uk Rebecca Foley Katharine West
Ian Robinson
Mr Razi Shah (North Hampshire)
MEMBERSHIP
Churchers Bolitho Way 13-18 Kings Terrace Portsmouth PO5 3AL Tel 023 9288 2001 Fax 023 9286 2831 Email IRobinson@cbwsolicitors.co.uk
Appleby Shaw Trinity House 15a Trinity Place Windsor SL4 3AS DX 3830 Windsor Tel 01753 860606 Fax 01753 860620 Email rshah@applebyshaw.com
Ian Robinson (Chair) IRobinson@cbwsolicitors.co.uk Charlotte Bromley Roderick Hursthouse Alison Plenderleith James Meeke Deglan Rowe
DEPUTY VICE PRESIDENT Matthew Robbins Jasper Vincent 44 Queensway Southampton SO14 3GT Tel 023 8063 3225 Fax 023 8022 7817 Email mrobbins@jaspervincent.com
HONORARY SECRETARY Ms Katharine West West Solicitors Ltd PO Box 421 Southampton SO32 2YH Tel 07780 880779 Email kw@kwestltd.co.uk
Mr Nick Gurney-Champion (Residential conveyancing) Gurney-Champion & Co Champion House 104 Victoria Rd North Southsea PO5 1QE DX 117953 Portsmouth Central Tel 023 9282 1100 Fax 023 9282 0447 Email ngc@championlawyers.co.uk
ADMINISTRATOR
HONORARY TREASURER
Miss Nicola Jennings
Mr Tony Bussy
92 Chessel Crescent Bitterne Southampton SO19 4BS DX 52766 Bitterne Tel 023 8044 7022 Fax 023 8044 7022 Email administration@hampshirelawsociety.co.uk
Tylers School Lane Bishops Sutton Alresford SO24 0AG Tel 01962 733528 Fax 01962 733528 Email anthony@bussy.plus.com
IMMEDIATE PAST PRESIDENT Roderick Hursthouse 10 Hudson Close Liphook GU30 7UW Tel 01252 622122 Fax 01252 774409 Email rodhursthouse@btinternet.com
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BUSINESS DEVELOPMENT OFFICER Mrs Alison Plenderleith 47 Salisbury Rd Fordingbridge SP6 1EH Tel 07429 523183 Email bdo@hampshirelawsociety.co.uk
MAGAZINE Katharine West (Chair) kw@kwestltd.co.uk Matthew Robbins Alison Plenderleith
REGULATORY Adrienne Edgerley Harris (Chair) Adrienneedgerleyharris@gmail.com Roderick Hursthouse Nick Eve
PROPERTY Nick Gurney Champion (Chair) ngc@championlawyers.co.uk Matthew Robbins
SOCIAL Matthew Robbins (Chair) mrobbins@jaspervincent.com
COMPLAINTS Ian Robinson (Chair) IRobinson@cbwsolicitors.co.uk
WEBSITE Mo Aldridge (Chair) maldridge@jaspervincent.com Alison Plenderleith Nicola Jennings
WILLS & PROBATE Robert Sawers (Chair) robertsawers@macdonaldoates.co.uk Simon Whipple Mike Russell-Smith
OTHER COMMITTEE MEMBERS David Ankcorn Sue Carter Ginnie Lambert Derek Parsons
News
WINE OF THE SEASON with Conal Gregory, Master of Wine
Without doubt Rioja is Spain’s best known wine region. Protected from the Atlantic by the Ebro mountains, the three red grapes of Tempranillo together with a little Garnacha and Graciano yield rich wines with structure. One of the stars is Marques de Caceres, founded in 1970, whose Reserva 2009 is aged 20-22 months in French oak barrels. It shows supple elegance. Enjoy particularly with lamb. £16.49 or £14.01 when two bottles bought (Majestic Wine).
Across from the northern Rhone town of Tournon lies the hill of Hermitage. Imagine a delicious dry white with aromas of acacia flowers, honeysuckle and apricot with a taste of white stone fruit and figs. The Marsanne and Roussanne grapes yield wines of length that will keep for a decade, if you can resist that long! A tip is to opt for the less expensive Crozes-Hermitage. A cracking example is Les Marelles from Gilles Robin. £19.75 (Lea & Sandeman). Sponsored by NFU Mutual Bespoke, high-value home insurance tailored to protect everything you value, including art, antiques, fine wine and more. Visit www.nfumutual.co.uk/bespoke for further information.
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Happenings in Hampshire
SCOTT BAILEY ADD TO THEIR COLLABORATIVE FAMILY LAW TEAM Ann Herd, an experienced family lawyer who has been practising in Lymington for 17 years has joined the family law team at Scott Bailey. All four members of the department are collaboratively trained lawyers, committed to helping couples resolve their differences in a constructive and non-confrontational way.
ADVERT FOR ISABEL BROWN IN HAMPSHIRE LAW SOCIETY JOURNAL The well established Lymington firm Scott Bailey LLP has recently welcomed Isabel Brown to join their expanding private client team. Isabel has 16 years' experience dealing with pensions and investments, having previously worked for Aviva, Aon and the international consultants, Mercers, before qualifying as a Solicitor in 2003. Having specialised in wills, probate, trusts and tax planning since then, her combined 27 years' experience in corporate and private client work provides a unique perspective and skill set. In her spare time, Isabel enjoys walking, particularly on the Isle of Wight where she has roots and, indeed, she is looking forward to expanding Scott Bailey's presence on the Island. Sue Sutherland, Senior Partner, says "Isabel's past involvement in the corporate pensions and investments sphere gives her an invaluable insight into these complex areas. Our already strong private client team are delighted to be able to offer clients this additional area of expertise".
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Ann is currently training to trek the Great Wall of China in October. The trek is in aid of Parkinson’s UK. For more than 40 years the charity has been working to find a cure and improve life for everyone affected by Parkinson’s. Ann has already done an 18 hour 17 minute sponsored spin event that was supported by local businesses in Lymington 1817 being the year James Parkinson first identified the Parkinson’s tremor. Ann will walk for approximately 7 days over various parts of this historic wall. Please visit her giving page at www.virginmoneygiving.com/annherd and donate generously for this very worthwhile charity.
HAMPSHIRE SOLICITORS URGED TO JOIN WILL AID’S WINNING TEAM Will Aid is the UK’s biggest and most successful charity Will scheme thanks to its on-going partnership with solicitors. For this November’s campaign, Will Aid needs more Hampshire solicitors to meet anticipated demand from the county’s residents. Over the past 25 years, Will Aid solicitors and their clients have contributed around £15 million in donations to charities. The money donated is shared between the nine participating charities, including ActionAid, Age UK, British Red Cross and Christian Aid and provides vital funds to help people to build their communities and improve their future in the UK and around the world. During the same period £103 million has been promised as gifts in Wills or legacies to the participating charities. This is money that really transforms lives. For example, ActionAid has recently supplied vital water to Concille Niyongabire’s village in Burundi. Concille, 11, explained what this change means to her village: “Before we got clean water, we used to get all kinds of diseases. We would obtain water from down in the valley. The water would have animals in it - black mud, earthworms and frogs. We would use the water for cooking, drinking and for washing ourselves. We did not have a choice. Now, thanks to ActionAid, we have tap water. Now we can drink water or use it for cooking and not get sick.”
Photo credit: ActionAid Concille Niyongabire from Burundi
Last autumn, Will Aid received around 5,000 enquiries from people in Hampshire, but only about 2,000 of them were able to make an appointment with a Will Aid solicitor. Of course, there are a myriad a reasons why this might be the case but certainly one contributing factor was a shortage of participating solicitors and available appointments. That’s around 3,000 potential new clients, lost to legal firms up and down the county. As our participating solicitors testify, Will Aid is great for charity but it also presents the legal profession in the best possible light and attracts new clients who are likely to return for their future legal requirements. Please take this opportunity to join us and register today at: www.willaid.org.uk or call: 01460 271178 or email: enquiries@willaid.org.uk
Happenings in Hampshire
LAW FIRM IS EXPANDING WITH THE LAUNCH OF A NEW DIVISION A HAMPSHIRE law firm has launched a new division that is solely focussing on issues surrounding wills, probate and powers of attorney. The division, Hampshire Probate Services, is part of Graeme Quar & Co solicitors, based in Fare-ham. It is being headed up by Michelle JenkinsPowell, who was invited to join the firm last year specifi-cally to expand its services by developing and launching the new division. Michelle has now officially launched the service with a new website: hampshireprobate-services.co.uk. She said: ‘If you’re dealing with someone’s assets after they die you have quite a significant re-sponsibility, and in order to protect yourself and all the assets it’s often best to use a professional to assist you.’ Michelle, 39, who has specialised in
probate, wills and powers of attorney throughout her career as a solicitor, says administering a person’s estate after their death can often be a complicated process which, if performed incorrectly, can leave executors exposed to legal challenges. Graeme Quar, managing director of Graeme Quar & Co, said expanding the firm was an important step in its continuing success. He said: ‘This is an area we have been looking to move into for some time, not least because our existing business clients often require this service. ‘Michelle has already proved herself to be an asset to Graeme Quar & Co, and we are delighted to have been able to launch our new division to the public.’
PHILLIPS SPONSOR BASINGSTOKE HALF MARATHON Phillips Solicitors were delighted to be the headline sponsor of this year’s Basingstoke Half Marathon. Having supported the event since its creation in 2011 and as previous holders of the Female, Male and Mixed Team prizes Phillips were delighted to step up their support for this Runners World Top 10 event.
The event is organised each year by Destination Basingstoke, a not-for-profit organisation formed to promote the town and surrounding area for people and businesses, of which Phillips Solicitors are a core sponsor and major player. Jonathan Pender, Director and Head of Commercial at Phillips, as well as Team Phillips Captain says “This is a really special event to be involved with. For us it’s about raising money for charities and being involved in our community. It brings together families, businesses and ordinary people to run and cheer at a wonderful event. It is in its fourth year now and it just keeps getting better.”
PENNINGTONS MANCHES NAMED IN THE LAWYER MANAGEMENT AWARDS’ SHORTLIST Penningtons Manches has been recognised by The Lawyer magazine in its shortlist for this year’s Management Awards which acknowledge excellence in operational and strategic management across the UK legal sector. The 2014 awards focus on a range of support disciplines, including business development, HR, knowledge management, finance, IT, risk and compliance and facilities. Penningtons Manches has been shortlisted for ‘excellence and/or innovation in law firm financial management’. This category celebrates firms which have either implemented a consistently strong financial management strategy throughout the past year or have undertaken individual stand-out finance projects. Teams must demonstrate that they have had a significant impact on the business as a whole. The swift action taken by Penningtons’ finance team and management board in the weeks leading up to the completion of the transaction which saw Manches join forces with Penningtons in October 2013 is highlighted in Penningtons Manches’ nomination for the awards. Their agility allowed them to work closely with a number of stakeholders involved in a deal which was driven by the strong synergy between the two parties and resulted in the completion of a thorough due diligence process and detailed financial model within a shorter than customary timeframe. Speaking following the publication of the shortlist, Penningtons Manches chief executive, David Raine, said: “We are delighted to have received this accolade. It highlights the contribution not only of the finance and management board teams but also those across both firms who were committed to steering the deal to a successful conclusion last Autumn. Their activity provided a clear endorsement of the long term strategic thinking which shaped the transaction.”
VERISONA LAW LAUNCHES ‘USEFUL’ WEBSITE South Coast commercial and personal law firm, Verisona Law, has unveiled its new, ‘content-rich’ website at www.verisonalaw.com Visitors will discover a vast range of articles, guides and commentaries written (in Plain English) by the firm’s lawyers and organised by legal area. Chief Executive Vincent Denham said: “We wanted to create a site that was readable, interesting and above all useful to people who need an overview of business or personal legal issues. “The site highlights ways in which you can avoid costly problems later on, for example by creating
proper safeguards for your family or business. As a firm, this is the kind of work we really enjoy.” The website is already live and covers most aspects of commercial and personal law. Add it to your bookmark folder as the content will be constantly updated. Verisona Law is one of the most exciting, innovative and progressive law firms on the South Coast, providing a broad spectrum of legal services to businesses and individual clients. It is especially well-known for its ground-breaking work For more information, visit www.verisonalaw.com or contact Laura Martin on 023 9244 6915 or in the fields of Football Insolvency & Fan Ownership; lnm@verisonalaw.com Music, Media & Entertainment; and Marine.
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Happenings in Hampshire
RESOLVE UK APPOINTS NEW LEADING COMMERCIAL MEDIATOR Former IBM counsel Robert Marcus has joined the leading Ministry of Justice approved civil and commercial mediation panel Resolve UK. Robert who graduated from Oxford University has worked at Clyde & Co, Macfarlanes and IBM where he was IBM Europe and IBM Global Services Counsel for more than 20 years. Robert has specialist expertise in IT contracts, software compliance, data protection, security, regulation, cloud computing, outsourcing, intellectual property and commercial contracts. He has worked with Multinationals, FTSE 100 Companies and businesses around the world. Robert who is based in London and the South has extensive experience of complex litigation including contentious commercial, maritime, insurance and technology disputes involving claims for delay, overrun, misrepresentation and non performance. Russell Evans, Resolve UK national manager, who has judged the national final of the UK Mediation Competition said: ‘We are highly delighted to welcome Robert to our mediation panel. Robert has specialist commercial dispute resolution expertise and adds strength to our national and international capability.’ Russell Evans, who also Chairs the Litigation and Dispute Resolution Committee of the Hampshire Law Society added: ‘We are seeing a significant increase in mediation enquiries in the wake of the judicial dispute resolution commitment and PGF II. We remain committed to helping solicitors and their clients resolve conflict in a cost effective way.’
MOUNTAIN CLIMB WAS SOLICITOR’S Pictured: Graeme Quar, at the summit of Margarita Peak, the highest of Mount Stanley’s three peaks.
At times it was a supreme effort to walk 20 paces without giving up, but Fareham solicitor Graeme Quar has proven he is up to any challenge. He has recently returned from a nine day trek through the Rwenzori Mountains - known as the Mountains of the Moon as part of his ongoing commitment to raise money for the Send A Cow charity. He began his adventure at the Uganda/Congo border in tropical rainforest, wading through mud and trekking though bogs as he and his two fellow hikers, plus a 10-strong support team, made their way to the foot of Mount Stanley. The team had to wear crampons and be roped together to cross two glaciers to reach Margarita Peak which at 17,763 ft above sea level is the mountain’s highest peak - at times only managing to walk 20 paces before being forced to stop due to the altitude. Graeme, who founded Graeme Quar & Co solicitors in Fareham 20 year ago, said it
was the hardest thing he has ever done. He added: ‘Next time I ever have something that’s hard to do I’ll remember that second glacier, the Margarita Glacier, and just do it. ‘We had to cope with extreme conditions at a height that most people won’t ever experience, which makes it doubly difficult.’ The team experienced its fair share of drama while on the glacier, though everyone made it to the summit and back down in one piece. Graeme said: ‘At one point there were five of us roped together, and we needed to be because one of us slipped and fell. We all just dropped to the ground, got our ice picks and crampons into the glacier, and managed to recover. ‘We were with two very experienced Ugandan mountain guides and one of them had been a marine. He was the one who really kept us going, counting out 20 paces a time that we could walk, before resting. Just walking those 20 paces was a huge challenge.’ In total, the team took six days to scale the mountain, and
Glanvilles LLP congratulates Jennifer Pollitt on successfully completing her training and qualifying as a solicitor.
GLANVILLES LLP CONGRATULATES TRAINEE SOLICITOR 10
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Jennifer completed her Law degree (LLB) and Postgraduate Diploma in Legal Practice (LPC) before joining Glanvilles two years ago to complete her training. Having completed seats in Residential Conveyancing, Commercial Property and Family law before joining the Private Client department, she decided Private Client work was the area of law for her. Jennifer has experience in matters such as Declarations of Trust, Will writing and Lasting Powers of Attorney. With a keen interest in trust work, Jennifer is already studying for a further professional qualification with the Society of Trust and Estate Practitioners.
three days to come back down. Not only did they see chameleons on their trek, but they also cut across the trail of a mountain leopard, spotting recent spore but not the animal itself. Graeme has supported the Send A Cow charity for the past decade, and pays for the travel for each of his treks out of his own pocket. He continues to be impressed by the work the British-based charity does in Africa, saying: ‘Send a Cow has helped over one million impoverished families in eight countries to date. ‘Lives have been turned around because the charity shows local farmers how to improve farming techniques in order to become self sufficient, with surplus food sold to generate income. ‘Send a Cow first began its work 25 years ago in Uganda and I was proud to be in the country where it all began.’ To donate to Graeme’s trip, see https://www.justgiving.com/ stanleytrek
She says: "I'm delighted to be staying with Glanvilles as a qualified solicitor and even more so to be staying with such a strong Private Client team. I’m very lucky to work within a team of individuals with strong expertise in various areas of Private Client matters." Claudia Roberts, a Partner and Chartered Tax Advisor in the Private Client Department, works closely with Jennifer and says: "I am really pleased and excited that Jennifer has chosen to stay with us - she is a fantastic addition to the team. Jennifer has all the qualities required to be a great Private Client Lawyer – she is technically very strong but more importantly she is caring and approachable and has a lot of common sense which is essential to find practical and workable solutions for her/our clients".
Happenings in Hampshire
PROMOTION MARKS A NEW CHAPTER FOR LAW FIRM Hampshire based law firm, Warner Goodman LLP, are delighted to announce that Navdeep Dulai has been promoted to Partnership Status from 1st August 2014. While becoming a Partner may be a natural progression for a lawyer, Navdeep is in fact a Chartered Accountant and Head of the Accounts Department within Warner Goodman LLP, and so the first non-solicitor to become a Partner in the firms history. Navdeep joined Warner Goodman LLP in 2006 after qualifying as a Chartered Accountant the previous year. During her training to become an accountant, Navdeep was a member of the Accounts and Audit team and carried out a number of Solicitors Audits in the Hampshire and Isle of Wight area. “It was during my time carrying out the Solicitors Audits that I gained invaluable knowledge of the legal profession, and was extremely interested in applying what I had learnt,” commented Navdeep. “I was delighted when I had the opportunity to work for Warner Goodman LLP so I could focus all of my attention in this specialist area. I have had many proud moments in my 8 ½ years at Warner Goodman LLP, but to be the first non-solicitor to reach Partner level is by far my greatest achievement.”
PENNINGTONS MANCHES PARTNER APPOINTED TO ITECHLAW DATA PROTECTION COMMITTEE Penningtons Manches commercial partner, Joanne Vengadesan, who specialises in intellectual property, technology and privacy and is based in the firm’s Hampshire office, has been appointed as the Vice-Chair of the Substantive Law Data Protection Committee for the ITechLaw Association. Joanne already serves as the co-chair of the Multilaw Privacy & Information Security group, a global network of privacy practitioners.
Ian Curtis, Managing Partner, said of the promotion, “Navdeep had a quick progression within the accounts team. It only took 6 months for her to be promoted to Team Leader, and another 18 months to be promoted to Head of Finance. To be able to reward her success within the firm with Partnership status is an excellent turning point for us, and we envisage that she won’t be the last non-solicitor to reach Partner level.”
PORTSMOUTH LAUNCHES HAMPSHIRE FESTIVAL OF THE MIND To coincide with World Mental Health Day, a team from Churchers Bolitho Way attended the launch event of Hampshire Festival of the Mind on 3 October 2014 at Portsmouth Anglican Cathedral. The aim of the event was to promote good mental health, recovery and well being. Local charities and support services were in attendance, including the Good Mental Health Cooperative and Human Library project. Churchers Bolitho Way has a longstanding reputation for delivering specialist mental health advice throughout Hampshire. Solicitors from their Mental Health and Private Client departments were on hand to provide assistance to members of the public. Rebecca Foley, Charlotte Bromley and Lauren McIntosh, all found the day to be inspirational and hope that the festival will become an annual event.
program of events that will run across Hampshire. These include workshops, talks and even a music concert. Many attendees at the event were surprised to discover that legal aid is still available for a range of mental health matters. Having recently been awarded a new legal aid contract, the firm is pleased to be able to continue providing specialist mental health services to vulnerable members of the public.
The occasion launched a month long
ITechLaw is a global network of technology lawyers, and provides a forum for discussion of the unique legal issues rising from the evolution, production, marketing, acquisition and use of information and communications technology. The Data Protection Committee focuses on global technology law issues surrounding data protection and privacy, and monitors international legal developments and legislation.
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Happenings in Hampshire
RIDE LONDON AND LONDON SURREY 100 Saturday 2 August 06.00 It was a bright sunny morning as my wife, Sally, and I set out from Brixton to join thousands of other cyclists who were taking part in the Ride London event. We rode to Guildhall Square, arriving at 07.45. The square was already full of over 600 other cyclists who were taking part in a World Record attempt for the largest Bike Bell Ringing Ensemble. After a couple of hesitant practises, on the chime of 09.00 from Big Ben, 650 bike bells joined in the chorus – a World Record was broken! The remainder of the day was spent cycling around a traffic free London visiting various tourist attractions from Buckingham Palace and Green Park, to St Pauls’ Cathedral and down to the Tower of London with the ‘River of Poppies’ forming in the moat. Sunday 3 August 05.00 It was a very different start to the day. It was damp and overcast as my wife drove me towards the Queen Elizabeth Olympic Park for the start of the London Surrey 100. Even though it was early, the roads were congested with over 20,000 cyclists making their way to Stratford in East London. The weather forecast was that the tail end of hurricane Bertha would hit Southern England – and it did! The wind picked up and the rain started at 07.30 causing severe
flooding. During the early hours of the morning the organisers had considered calling off the event but had decided to let it continue with a shortened route by omitting Leith Hill and Box Hill, as it was considered that the steep descents would be too dangerous in the conditions. The route took us out of London along the Embankment passing the Ritz Hotel and through Richmond Park, then Kingston and the Surrey Hills, before turning back towards London via Dorking, Epson and Wimbledon. The roads were very wet and slippery. Numerous cyclists had fallen or had punctures. At one point I was cycling through water a foot deep. However the conditions didn’t dampen the enthusiastic supporters who lined the route. They must have got as wet and as cold as the participants. I recall a particular group of cheer leaders in Kingston, standing in the middle of the road shouting support as I left London, who were still there encouraging the cyclists on my return to London some three hours later. It was that type of commitment that encouraged me to complete the ride. The rain eventually stopped when I reached Putney Bridge, with the sun shining as I passed under the finishing gantry in The Mall. I had completed the ride in 5 ½ hours, cycling in the worst conditions I have ever experienced.
A big thank you to those who sponsored me and for raising funds for the charity Vitalise. I have visited the facilities in Netley and know that the monies raised will make a difference. Donations can still be made using my Virginmoneygiving page – just follow the link! www.virginmoneygiving.com/IanRobinso nmadness
Chances are that you know somebody who’s caring for someone who needs their 24/7 support every day; they may be your sister or brother, your neighbour, your friend, your partner, yourself? With 1 in 8 of us providing unpaid care right now, that person - and the person they care for - are never far away. Being an unpaid carer means so much more than just looking after physical health; it means giving time, love and companionship to ensure that the one they love is happy and really cared for. Sadly, the pressures of this role can take its toll, with 3 in 4 carers admitting that they’re reaching breaking point due to the pressures of caring.* The need for these selfless people to take a break has never been so clear and yet 1 in 4 carers haven’t had a break since they started caring.* Vitalise’s Netley Waterside House has been a local hidden treasure for 25 years, providing essential breaks for people with severe physical disabilities and carers in a beautiful and fully accessible setting, amidst landscaped gardens and close to historic Netley Abbey. Netley Waterside House – one of three centres managed by national charity, Vitalise - offers carers the chance to take a well deserved break, safe in the knowledge that their loved one is truly being cared for the way they would provide care themselves. Allowing them short but essential time free from their caring responsibilities, Vitalise enables carers to re-connect with the one they love, or to simply take valuable time out for themselves.
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To the guests that come through the Vitalise doors, it is a safe haven and a lifeline, but there are thousands more people across Hampshire who are in desperate need of a break. The support from people across Hampshire such as Ian Robinson - Partner at Churchers Bolitho Way who joined Team Vitalise for RideLondon 2014 – is essential to the future of the charity. Without funds raised by our supporters, it would be impossible to run these breaks that mean so much to so many. One third of Vitalise’s donated funds come from the generosity of people who hold Vitalise dear by leaving a gift in their Will. Even just one additional gift could make all the difference to hundreds of people who need a helping hand. A quarter of a century after opening its doors, Netley Waterside House is still known by very few in the community. Thankfully by simply spreading the word in Hampshire and helping to promote the many ways people can get involved – including through leaving a legacy gift in their Will - you can help us to give people with disabilities and their carers a true respite holiday, supporting the charity’s commitment to one immutable belief: everybody needs a break. To be included as a side bar if possible! PIC June Burden and Sally-Ann Burden, Vitalise Netley Waterside House guest
‘As Sally-Ann has said to me so many times: ‘Mum, you’re my district nurse, my physio, my carer, you do so many jobs, if I can go somewhere where I’m looked after you can just be my Mum.’ Being SallyAnn’s carer has taught me so much about tolerance, patience and empathy. So many people would view Vitalise as just going on a break but it’s so much more than that.’ W: www.vitalise.org.uk/fundraise T: 0303 303 0145 E: info@vitalise.org.uk *Carers UK, 2013
Happenings in Hampshire
TRETHOWANS STRENGTHENS RESIDENTIAL PROPERTY TEAM WITH NEW APPOINTMENT Regional law firm Trethowans has boosted its residential property team with the arrival of lawyer Jon Laidler. This key appointment comes at a time of continued growth for the award-winning property department. Based at Trethowans’ dynamic Salisbury office, Jon, a highly experienced residential conveyancing specialist will be working closely with referrers and playing a pivotal role in growing the residential property offering. “I am delighted to be joining such a well respected firm as Trethowans. I am really looking forward to helping the Residential Property Team continue its impressive growth,” said Jon who joins from Hampshire firm Coffin Mew. Increased client demand has resulted in wide recognition for the Trethowans conveyancing team and subsequent growth has
resulted in a number of new appointments over the past year. First, Halina Tomlinson joined to head up the residential property presence in Trethowans’ Southampton office and earlier this year she was joined by Catherine Duthie. In Salisbury, Samantha Tapper has also recently joined as a conveyancing executive. Jon Laidlaw takes the recent recruits up to four. Tim Higham, head of Trethowans’ residential property said the firm’s 13 strong property team is fast becoming the conveyancer of choice in the region. “At Trethowans we pride ourselves on going the extra mile and our expert team provides a personal service for each of their clients. This genuinely differentiates us from many other law firms in the region.”
DISCOUNT RATE REVIEW – PANEL TO BE CONVENED The Discount Rate directly impacts on damages that are paid as a lump sum in personal injury and clinical negligence claims, as it is used to determine the multiplier applied to future loss claims and is supposed to factor in the return on investment that a claimant might achieve if his or her damages were invested in low risk investments. It is felt by many that the rate has been out of kilter, for some time, with what might actually be achieved and hence there is a risk that claimants will be out of pocket. If the discount rate goes down, damages for future loss will rise and, if it goes up, such damages will decrease.
The Discount Rate was last set by the Lord Chancellor in 2001, when the current rate of 2.5% was applied, and has not been altered since, despite much lobbying by interested parties. A consultation was begun by the Ministry of Justice (MoJ) back in 2012 and it was hoped that a change in the rate would follow. However, it is now clear that there will be a further delay in the long awaited review of this rate as the Lord Chancellor has decided that, given the complexity of the issues involved, a panel of three experts should be convened to provide advice and assist with the review. The Lord Chancellor has indicated to the Association of Personal Injury Lawyers (APIL) that he anticipates that the panel of experts will report in Spring 2015.
John Spencer, president of APIL, has stated in a recent press release that 'people with lifechanging injuries continue to miss out on the right level of compensation to cover their needs while the Government drags its heels on rectifying the problem'. Alison Appelboam-Meadows, partner in Penningtons Manches' clinical negligence and personal injury team, who is based in the firm’s Hampshire office, commented: "We sincerely hope that a decision will be made on this issue soon to remove uncertainty for all concerned."
MOORE BLATCH ADVISES ON £500k INVESTMENT FOR LONDON’S THAI CAFÉ EXPANSION Moore Blatch, one of the largest law firms in the South of England, has advised the board of London’s Thai Restaurant chain, Rosa’s Thai Café, on its £500,000 investment plans to expand. Corporate lawyers from Moore Blatch have been involved in advising on the half a million pound investment from three private parties, which was provided to help the restaurants’ expansion plans in return for 10% of the company, valuing the Group at £5 million.
The investment will allow the brand to grow from four to ten London restaurants by the end of 2017. Rosa’s Thai Café’s four current outlets are based in some of London’s most fashionable areas, including Soho, Spitalfields and Westfield Stratford. The most recent Café opened in Ganton Street, next to Carnaby Street, last year. This investment comes on the back of Rosa’s being just one of 30 companies out of 15,000 selected by GrowthAccelerator, the UK based government-backed partnership between
leading private sector growth experts, as a HyperGrowth business. Alex Moore, managing director at Rosa’s Thai Cafe said: “The team at Moore Blatch remained focussed on the project from start to finish. They easily identified and understood our objectives and worked closely with us to ensure we met these objectives in the timescale required.” Moore Blatch corporate partner Jeremy Over said: “It was a delight to work with such an exciting and innovative company; we look forward to seeing the expansion take place.”
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Property
STAGES OF THE COMMERCIAL CONVEYANCING PROCESS
by Sarah Potter Pitmans Solicitors
The commercial conveyancing process will come as second nature to many readers. This article is designed to serve as a reminder to those already working in commercial conveyancing and a brief overview to practitioners in other areas of law. Who is the client? It should be ascertained at the outset who the client is, bearing in mind that the ultimate beneficial owner may not be the contracting entity. The parties may change during the course of the transaction (for example a new company may be set up for the purpose of acquiring the property) and due diligence needs to be updated as necessary. Review heads of terms Heads of terms should be carefully reviewed and instructions must be obtained when there is any ambiguity. Deduction and investigation of title It is usual for the seller’s solicitor to deduce title to the buyer’s solicitor, who must build a picture of the property, including its physical nature and any adverse matters affecting it. This will typically involve the buyer’s solicitor doing the following: • Reviewing all title documents; • Conducting searches: standard searches include searches of Land Registry, the local authority, water and drainage providers, highways and environmental authorities. Other searches may be required depending on the location of the property, such as HS2, London Underground or Flood; • Requesting replies to Commercial Property Standard Enquiries – there are several different sets of enquiries depending on the nature of the property. Additional enquiries should be raised as appropriate; • Reviewing the buyer’s survey and valuations; and • In some cases a site visit will be appropriate. In larger transactions the seller’s solicitor may produce a certificate of title for the buyer and their lender. This is a set of factual statements
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about the property upon which the buyer relies and which is backed up by a series of representations and warranties. Finance Where the buyer is obtaining finance for the acquisition, the bank also needs to satisfy itself as to title to ensure that it will obtain adequate security over the property. Lender’s will often have their own solicitor to investigate title who will either review and negotiate a certificate of title prepared by the seller’s solicitors or who will prepare its own report on title. Both processes inevitably have an impact on timing so it should be ascertained at the outset of the transaction whether funding is required. Transactional Documents The seller’s solicitor prepares the contract. This may be conditional on matters such as: • obtaining planning for the buyer’s proposed use of or works to the property; • the seller obtaining vacant possession of the property; or • (in the case of a leasehold property) obtaining landlord’s consent to the transfer. A transfer deed will also be required. If the seller is retaining some of the land there will usually be covenants in the deed to protect the seller’s use and enjoyment of the retained land. Care should be taken when drafting the transfer and specific instructions received from the client. Depending on the nature of the property, other documents may also be required such as: • warranties – in the case of new build properties, warranties should be granted directly to the buyer by all contractors. Any existing warranties should be assigned to the buyer (and lender); • deed of assignment of rent deposits/arrears (in the case of multi-let properties); • rent authority letters to tenants informing them of the change of landlord; and • letters of reliance addressed to the buyer in respect of reports which the seller has the benefit of. These form of these documents should be agreed and attached to the sale contract prior to exchange. Exchange and completion At exchange the transaction becomes legally binding. A deposit is paid by the buyer (typically 10%). Prior to exchange the buyer’s solicitor should conduct a bankruptcy/company search of
the seller to ensure that it has legal capacity to enter into the contract. Prior to completion, the buyer’s solicitor should do the following: • raise pre-completion requisitions with the seller’s solicitor; • carry out a priority search at the Land Registry to ensure that the title to the property has not changed during the course of the transaction. The search result effectively “freezes” the title for 6 weeks in favour of the buyer (“the priority period”); • agree a completion statement with the seller’s solicitor – any income from tenants will need to be apportioned between the buyer and seller; • liaise with any lender to ensure that funds will be available at completion; and • agree undertakings with the seller’s solicitor to deal with completion matters such as obtaining appropriate discharge documents from any existing lender. The seller’s solicitor should liaise with any existing lender to obtain a redemption figure. The timing of completion is often critical, especially if the property is subject to an existing charge. The seller will need to ensure that funds are received from the buyer in time to transfer them to the lender in order to discharge the charge on the completion date. The completion time is stated in the contract (typically between 1-2pm). If funds are received by the seller after this time but still during banking hours, completion is deemed to take place on the next working day. The buyer will be liable to pay interest on the purchase price (less any deposit paid) at the rate specified in the contract. Post completion The buyer’s solicitor must do the following: • pay any Stamp Duty Land Tax (SDLT) due and submit the SDLT return within 30 days of completion. There are penalties for late filing/payment; • submit the necessary Land Registry application with the relevant priority period; • if the property is leasehold, comply with registration requirements in the lease There may be additional post completion/notification requirements depending on the nature of the property.
Property
Is your clients Entrepreneurs’ Relief at Risk A successful business is one that grows. While there may be periods when all of a business’s assets are required for trading activities, there may be times, often later in the life cycle of a business, when a business holds surplus cash. As well as being unattractive for businesses due to low interest rates, holding surplus cash and non-trading assets may also present problems around taxation. Where a company is sitting on a high level of cash HMRC could restrict the amount of assets on which BPR is available to a shareholder upon their death, meaning that there could be a significant inheritance tax charge for the estate or beneficiaries to meet. HMRC may also deny a shareholder Entrepreneurs’ Relief when they come to sell their shares. This means that capital gains tax could be payable at the full rate (currently 28%).
The problem Alice, 56, owns her successful chain of florists in the South-West worth around £2 million. Some years ago she took her business online allowing her to expand significantly and since then she has built up considerable cash, of around £700,000, within the business. Following approaches from two national firms, she is planning to sell her company. Her accountant has informed her that she will be liable to pay CGT on the proceeds and that, as she holds more than 20% cash in the business, this is likely to be at the 28% rate rather than the 10% rate, which would be available through Entrepreneurs’ Relief. Since 6th April 2011 the maximum lifetime limits on Entrepreneurs Relief is at a tax rate of 10% on the first £10 million.
Potential solution
HMRC should accept that full Entrepreneurs’ Relief is available, so that Alice’s CGT rate is reduced to only 10%.
Summary When clients are thinking of selling their business it is essential for them to plan ahead and ensure they do not fall foul of something as simple as holding too much cash and jeopardising the availability of Entrepreneurs Relief and BPR. Forward planning offers time to make simple changes that can help ensure the most financially beneficial outcome. This case study is provided for illustration purposes only and based on our understanding of current legislation. The value of investments can fall as well as rise. BPR Solutions can be high risk and you can lose some or all of your money.
Following advice, her business decides to commit £400,000 to a BPR solution which is specifically designed for business owners. This is deployed in qualifying trading activities.
This article is intended for qualified lawyers and solicitors and is not to be distributed to retail clients.
When Alice eventually decides to sell her business at least one year later, it has over 80% of the trading value of Fantastic Flowers in qualifying business assets.
by STEVEN VALLERY, Business Development Director S4 Financial Ltd. Contact: 0127634932
Hampshire Legal
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Professional Practice
DENTON: THE ONLY POST-MITCHELL AUTHORITY YOU NEED Denton & ors v TH White Ltd & ors [2014] EWCA Civ 906 is the most important decision since Mitchell v News Group Newspapers, The Court of Appeal has delivered an amended test for relief from sanction applications which will remove the requirement to trawl through the [49] previous post-Mitchell decisions; becoming the only post-Mitchell authority you will need. The New Test The court stated that the guidance in Mitchell “remains substantially sound” but it has given a new 3-stage approach for relief from sanction applications: (paragraph 24) 1. How serious and significant is the failure to comply? (replacing the “trivial” test) 2. Why did the default occur? (is it a “good” or “bad” reason?) 3. Evaluate all the circumstances of the case, including the factors listed in r.3.9 1. Serious or significant breach? (paragraphs 25-28) The previous Mitchell test of whether a breach is “trivial” has been replaced with the question of whether the breach is “serious or significant”, as judges failed to cope with the “trivial” concept. If the breach is not serious or significant then relief will usually be granted and it will not usually be necessary to spend long on stages 2 and 3, although they must still be undertaken. (para 28) How is this to be judged? A clue is in paragraph 26: the question of whether the breach is “material” will often have the same result as the question of whether it is serious or significant, an immaterial breach being one which “neither imperils future hearing dates nor otherwise disrupts the conduct of the litigation” (being litigation generally rather than the individual case) (para 26) This stage of the test should not include consideration of whether there have been other breaches of court orders. (para 27) 2. Why did the default occur? The examples of “good” and “bad” reasons given in Mitchell at paragraph 41 were endorsed without further explanation or elaboration (para 30). The test remains that if there is a good reason then relief is likely to be granted, even if the breach is serious or significant. 3. All the circumstances of the case Contrary to some previous interpretations of Mitchell the third stage of considering “all the circumstances” must be undertaken in every case, even if there is a serious breach with no good reason (para 31) The Court of Appeal have made a couple of key changes from the guidance in Mitchell: a. The factors specifically listed in r3.9 are downgraded from their “paramount” status in Mitchell and instead have “particular importance”, to be “given particular weight at the
third stage”. It is not entirely clear how much difference this semantic distinction makes, nor to what extent the specific factors can now “trump” the other considerations. b. When considering r3.9(1)(a) (the need for litigation to be conducted efficiently and at proportionate cost), the court will consider any other cases being dealt with by the party (para 34). As such, if witnesses have other court commitments that may be affected by relief being granted this could be a factor weighing against relief. c. Many interpreted paragraph 40 of Mitchell as requiring a prompt application for relief, otherwise the application would be doomed to failure. In Denton the Court of Appeal made it clear that promptness is only one of the factors to be considered, so a tardy application may still succeed: “The promptness of the application will be a relevant circumstance to be weighed in the balance along with all the circumstances. Likewise, other past or current breaches of the rules, practice directions and court orders by the parties may also be taken into account as a relevant circumstance” (para 36)
Agreement/Avoiding contested applications A very important shot across the bows from the Court of Appeal: contested relief applications should be a thing of the past and unreasonably contesting an application may result in a severe costs sanction. The court expressed frustration with parties looking to capitalise on opponent’s mistakes, stating: “The court will be more ready in the future to penalise opportunism... It is as unacceptable for a party to try to take advantage of a minor inadvertent error, as it is for rules, orders and practice directions to be breached in the first place. Heavy costs sanctions should, therefore, be imposed on parties who behave unreasonably in refusing to agree extensions of time or unreasonably oppose applications for relief from sanctions. An order to pay the costs of the application under rule 3.9 may not always be sufficient” (para 43) The judgment indicated that the court will consider recording in the order that the conduct should be taken into account under CPR r.44.11 when costs are dealt with at the end of the case, which could result in: • Depriving a winning party of its full costs • Changing the assessment to the indemnity • basis • Freeing a party from its costs budget • • (if there is one)
Conclusion Given the comments of the Court of Appeal, it will be important in future to attempt to agree relief from sanction applications where possible. Equally, requests to extend time under the recently amended r3.8 should not be unreasonably refused. There may be difficulty in assessing whether the relief application is likely to succeed. In Mitchell the Court of Appeal were aware that the question of whether a breach was “insignificant” could itself lead to dispute and contested applications (para 40. The “serious or significant” test provided in Denton may have the same problems, but it is clear is that an adjournment of a trial date, a failure to pay court fees or the party in breach gaining a litigation advantage are likely to be considered significant or serious: On a practical point, it will be interesting to see whether the additional consideration under r3.9(1)(a) to include the parties’ “other litigation” extends to the parties’ legal representatives and their ability to conduct other litigation efficiently and at proportionate cost. The general rules in relief from sanction cases are now considered to be: • If the breach is not serious or significant then it is likely that relief will be granted and the court is unlikely to need to spend much time on the second and third stages (paras 24, 28 and 35) • If there is a good reason for the breach then it is likely that relief will be granted. (para 35) • The more serious or significant the breach the less likely it is that relief will be granted unless there is a good reason for it. (para 35) • If the breach is serious/significant and there is no good reason for it then the application for relief will not automatically fail; it may still succeed at stage 3 (“all the circumstances”) (para 31) • All the circumstances includes the promptness of the application and any current or past breaches of rules, practice directions or court orders (para 36) • The factors listed in 3.9 are of “particular importance” but not “paramount importance” (para 32) The Court of Appeal has said that it hopes the Denton decision will “avoid the need in future to resort to the earlier [post-Mitchell] authorities.” Given the importance of this decision, if there is one case that litigators read this year it should be this one.
SUCCESSION: HAVE YOU THOUGHT IT THROUGH? By Joel Harding, Associate, JLT Specialty Limited The annual PII renewal season has come to an end for another year. We have seen the usual habits from law firms, some renewing early, others leaving it late, in some cases with just hours to spare. We advised firms who were closing, taking over new firms, making changes to partner numbers and even new start ups. Now the renewal season has passed we have received an influx of enquiries from firms with questions on potential mergers, or succession options. In the current climate smaller law firms cannot afford to stand still, and company structure and future succession planning has become far more important. Especially for sole practitioners who are coming towards the end of their careers and are looking for a way out. In the majority of cases it tends to be a large firm that takes over a smaller firm, therefore becoming the successor practice. But this option has its risks.
Although this is usually a fairly straightforward process, especially if the two firms are insured by the same insurer, the successor practice needs to ensure that specific due diligence is conducted prior to any decision being made. This isn't just about checking the last five years claims history, it should include file reviews covering all areas of work. Time should also be taken to carry out checks on the financial stability of the firm. We also recommend that you review the firm’s most recent PII application for potential issues. Remember once you have become the successor practice, you bear the past liability of the firm that you have taken over. Where possible it is usually the safest option to request that the firm you are taking over elects run off cover, this prevents errors and omissions that occurred on previous work that was not under your control from being claimed against you and potentially impacting on your own PI programme.
If electing run off cover is not economical then the larger successor practice can expect an additional premium to add the risk of the smaller firm to their policy. The smaller firm's policy will then be cancelled, with a refund highly unlikely, unless the same insurer holds both policies. I have seen many potential takeovers and mergers fall through because the fit wasn't right, or the financials did not stack up. I have even seen discussions fall through when firms could not agree on the re-branding of the company name following hours of due diligence, negotiations and cost. One thing we can be sure of is that changes of this nature are never straight forward, and often firms do not realise the options they have when looking to close, succeed or merge. When considering the firms future speaking to your PI broker can help you consider all the angles. As one of the leading brokers in the Solicitors PII market, we have built a team of industry experts with many years of insurance experience to advise on your every move.
JLT Specialty's representatives for firms in London and throughout the South-East are Joel Harding (joel_harding@jltgroup.com) and Toby King (toby_king@jltgroup.com)
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Education and Training
CAFÉ JURIST School of Law, University of Portsmouth
COMPANY LAW OVERVIEW: INCLUDING SOME REFERENCE TO COMPANIES IN FINANCIAL TROUBLE Accredited for 3 hours CPD
Dates: 26 November 2014 and 28 January, 25 February, 25 March and 29 April 2015
Date:
Tuesday 20 January 2015
Time:
13:45 - 16:45
The School of Law at the University of Portsmouth is pleased to announce the launch of Café Jurist, a series of six free café-style evening presentations and follow-up discussions hosted at Le Café Parisien in Portsmouth involving at each event an invited speaker presenting on a topic of broad legal importance aimed at students, academics, legal professionals, and members of the public. Its café-style format aims to take important legal and political discussion into a community-friendly and egalitarian environment.
Venue:
Holiday Inn, Cartwright Drive, Titchfield, Fareham PO15 5RJ
Speakers include: Professor Dave Cowan, Professor Conor Gearty, Professor Jonathan Wolff, and Professor Susan Vinnicombe CBE. Website, including link to FREE registration: http://www.port.ac.uk/school-of-law/school-events/cafe-jurist.html
HAMPSHIRE INCORPORATED LAW SOCIETY 2015 LECTURES Lectures are held at The Holiday Inn, Eastleigh and Fareham. Refreshments will be available 15 minutes prior to the start of each lecture. 2015 20 Jan
13:45 – 16:45
Mr Ray Snow
Company Law Family Law Financial
27 Jan
13:45 – 16:45
Mr Derek Marshall
3 Feb
13:45 – 16:45
Professor Lesley King Wills and Trusts
10 Feb
13:45 – 16:45
Mr Peter Reekie
Key Issues in Property Transactions
Speaker: Ray Snow Ray Snow formerly a Reader in law at the College of Law has lectured extensively on company, commercial, tax and employment law matters and is a past contributor to Butterworths.
FAMILY LAW FINANCIAL Accredited for 3 hours CPD Date: Time:
Tuesday 27 January 2015 13:45 - 16:45
Venue:
Holiday Inn, Cartwright Drive, Titchfield, Fareham PO15 5RJ
Speaker: Derek Marshall & Carol Davies Derek Marshall A large amount of work concerns family financial matters including the division of assets on divorce, the separation of cohabitees and in Inheritance Act claims. His experience in business law gives him particular expertise in those cases which have complicated issues arising out of the involvement of companies and business partnerships. Carol Davies concentrates on matrimonial financial provision cases with particular ability in dealing with cases involving trusts, companies and business interests and intervenors.
Court of Protection
CURRENT ISSUES IN WILLS AND TRUSTS
Mr Paul Clark
SDLT, Case Update and Boilerplate
Accredited for 3 hours CPD
Mr Anthony Edwards
Criminal Law Update
Date:
Tuesday 3 February 2015
13:45 – 16:45
Mr Gary Self
Employment Law Update
19 May
13:45 – 16:45
Mr Andrew McLoughlin Civil Litigation Update
Time: Venue:
9 June
13:45 – 16:45
DJ Stephen Gerlis
Family Law Update
13:45 - 16:45 Holiday Inn, Leigh Rd, Eastleigh SO50 9PG
30 June
13:45 – 16:45
Mr Richard Snape
Conveyancing Update
Speaker: Professor Lesley King
7 July
13:45 – 16:45
Mr Edward Denehan
Property Lecture
Professor Lesley King is Private Client Practice Head at the College of Law, Bloomsbury. She is co-author of Wills, Taxation and Administration: A Practical Guide and editor of the Probate Practitioners Handbook. She is the wills and probate columnist for the Law Society Gazette and writes and lectures extensively.
in 2014 3 March 13:45 – 16:45
Mr Denzil Lush
17 March 13:45 – 16:45 31 March 17:30 – 19:00 5 May
For further details and booking form please see Hampshire Law Society Website www.hampshirelawsociety.co.uk Alternatively please contact the Administrator Nicola Jennings at administration@hampshirelawsociety.co.uk or 023 8044 7022 HILS is a registered External CPD Provider with The Solicitors Regulation Authority reference: FQ/HILS
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Education and Training
KEY ISSUES IN PROPERTY TRANSACTIONS IN 2014 Accredited for 3 hours CPD Date:
Tuesday 10 February 2015
Time:
13:45 - 16:45
Venue: Holiday Inn, Cartwright Drive, Titchfield, Fareham PO15 5RJ Speaker: Peter Reekie
WHAT USE IS THE RULE OF LAW IF THERE IS NO ACCESS TO JUSTICE? A PUBLIC LECTURE BY ANDREW CAPLEN, PRESIDENT OF THE LAW SOCIETY
Peter Reekie is a Property Training Consultant with Penningtons and a Visiting Professor at the College of Law. He spent his time in private practice dealing with residential and commercial property work. He writes for publications and lectures extensively at property law conferences.
The year 2015 will be the 800th anniversary of the signing of the Magna Carta. This is regarded as being the foundation of the Rule of Law – but what use is the Rule of Law if there is no Access to Justice.
KEY POINTS
Date:
Wednesday 3 December 2014
This course is designed to address practical issues faced by both commercial and residential property lawyers in a refreshingly accessible way. A question is posed and the answer given in a structured manner which considers the underlying law before presenting a solution. Topics are selected both from perennial issues and those that have arisen recently. This course is updated regularly and completely rewritten each year.
Time:
6-7pm, followed by drinks
Venue:
Richmond Building, Portland Street, Portsmouth PO1 3DE
Admission is free, but please reserve your place on Eventbrite https://andrewcaplen.eventbrite.co.uk
LAW SUNDAY Winchester Cathedral on Sunday the 12th October, 2014 was once again the venue for what is known as Law Sunday or more formally, Choral Mattins attended by Her Majesty's Judges, Magistrates and Representatives of Civic and Legal Bodies in Hampshire and the Chanel Islands. The occasion takes place annually under the patronage of the High Sherriff of Hampshire for all who serve within Her Majesty's judicial system. The High Sherriff for 2014-2015 is Major General Jamie Balfour CBE DL, who during the coming year will be visiting courts in Hampshire, supporting judges, and meeting as many support staff as possible. The High Sherriff will also work with Hampshire's PCC and Chief Constable to support the work of the Police and in supporting measures to reduce re-offending rates. With the emphasis on those serving the law there is a formal processional entry into the Cathedral consisting of The Senior Civic Procession comprising civic leaders in Hampshire and their senior legal officers. A second procession comprising the High Sheriffs of Hampshire and the Isle of Wight, their chaplains, the Judges' Clerk and on this occasion, the Honourable Mr Justice Teare. The Deputy Head Virger and Cathedral dignitaries, followed by the Custos Procession including the Lord Lieutenant and Baroness Butler-Sloss. Although the list is necessarily selective, included in the first Legal Procession was Nick Gurney Champion the President of Southern Area Association of Law Societies, and Simon Whipple, President of the Hampshire Law Society, together with Ian Robinson, the Vice President.
During the Service the first Lesson was read by the Hon. Mr Justice Teare (Presiding Judge of the Western Circuit),and the Second Lesson was read by HH Judge Cutler (Hon. Recorder for Winchester). The High Sherriff gave a reading based on Winston Churchill's Address as Home Secretary to the House of Commons on the 20 July 1910 concerning the treatment of prisoners in the Prison system and touching on various aspects of the approach to rehabilitation as "symbols which mark and measure the stored-up strength of a nation, and are the sign and proof of the living virtue in it. A short Sermon was given by Baroness Butler and after the conclusion of the Service, and when the National Anthem had been sung, there were formal processions as the legal participants retired from the Cathedral. Immediately
after the Service there was a Reception in the Cathedral hosted by the High Sherriff for those attending the Service. If you have never attended Law Sunday before, it is a delightful opportunity to see Dignitaries, Judges, Barristers, Solicitors and others dressed in their official robes and processing into the Cathedral on what instinctively feels an historic and special occasion. A reminder of those who in so many ways serve their communities through their legal work. A chance not to be missed ! The Society had very kindly been given additional tickets giving an opportunity for interested members of the Society to attend the event.
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Professional Practice
EMBR ACE CHANGE FO Top tips for professional practices Many law firms need to future-proof their practice as the economic recovery gathers pace. Richard Green, managing partner and head of professional practices at Smith & Williamson’s Southampton office, and Greg Palfrey, who heads up restructuring and recovery services for the firm’s regional offices, explain why change should be embraced. 1. Traditions are being challenged – ‘more for less’ As a partner in a law firm, you’re probably used to charging fees on an hourly basis, predicated on the fact that you are a professional delivering a bespoke solution. However, clients’ perceptions and expectations are evolving, so professionals need to keep pace. Your clients want more for less, so price can now be just as crucial as quality of service, timeliness and the advice itself. Courtesy of the internet, buyers have more information than ever before as well as many new competitors. The online marketplace allows prospects to easily compare, so if your fees are considered too high or your service response too slow, clients can look elsewhere. Alternatively, you could end up working more hours for less money. In the legal profession there’s been a fundamental change with the introduction of ‘alternative business structures’, which allow non-lawyers to own and manage law firms. Legal executives and barristers can now set up client-facing businesses without the solicitor acting as intermediary or overseer. Tip: Lead and embrace change, although not for the sake of it. 2. Time-recording in jeopardy Clients increasingly want the certainty of fixed fees and are turning their backs on the long-established approach of billable hours. So, should you reduce quality, timeliness or professionalism? Or do you tell the client to look elsewhere as you are not prepared to drop your standards? As the business model changes does your firm’s integrity and professionalism have to change too? If you turn a client away and there is no work to replace it, you lose the income. Although it may be better to have something rather than nothing, this cannot continue without
When most professional firms are “assumed to be offering a similar
reducing costs. Alternative pricing models, lower profit expectations or high-volume standardised work may be the future. Legislators are currently looking at whether the insolvency profession should be paid a fixed fee based on assets recovered. This could, of course, work both ways. A large, straightforward property sale may attract a high fee for little work, but it may mean that firms give up on cases which do not provide a good return. Tip: Be realistic – work out your approach and make it a success for you. Don’t let the market dictate to you. Be proactive and don’t lose the initiative.
service, you need to articulate what makes your firm different …
3. Ignore the age profile of partners at your peril If you’re a senior partner have you given serious consideration to succession planning? When moving towards retirement, many partners hold on to their top clients even though a managed handover to a younger partner would mean a smoother transition for the business. It would also give confidence to the newer partners and allow them to see the value in the business after the transition. There is no point arguing that
overheads need “Totocompete, be kept down without compromising quality. ”
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the business has a high value due to your customer base – the new partners will be thinking that this will go when you do! Depending on how your practice is set up, you may need to find ways to support your new/existing partner group to raise funds to
”
assist you at retirement through equity release. Let the new partners impress clients so they – not you – are seen as the future of the business. Having created a valuable asset, keep it that way so that it’s available as a realisable asset when you retire. Tip: Start the planning process early and allow yourself time to get it right. 4. Information technology – the gamechanger The internet has transformed the way clients buy services, so it’s important to adapt online. Type in 'legal advice divorce' and you'll get nearly 51 million results. Type in the same words, adding 'fixed fees', and there will be some 18 million results. Your competitors are probably already there, working to reap a virtual harvest. They may also be adept at using social media, besides online tools which capture rich data for customer relationship management (CRM) purposes. Buyers will look on the web for recommendations, so make sure your firm is there. Simply being an eyes-down fee-earner won't be enough in the future. Take an innovative approach to marketing, to include generating informative content. When most professional firms are assumed to be offering a similar service, you need to articulate what makes your firm different and how this benefits clients. Many firms sell themselves as a client’s trusted adviser, so why should you be more trusted than anyone else? Tip: You may spend more time working offline than online, but your next potential client may not! Engage online to engender trust.
Professional Practice
R FUTURE SUCCESS Richard Green
Greg Palfrey
Managing Partner, Southampton office
Head of Restructuring and Recovery (Regions)
T: 023 8082 7600
T: 023 8082 7600
richard.green@smith.williamson.co.uk
greg.palfrey@smith.williamson.co.uk
5. Sourcing efficiencies Law firms must look for efficiencies even if this challenges the accepted, but traditional, norm. Is it more cost-effective and productive to outsource aspects such as HR, marketing, public relations, computeraided design, accounting and IT? To compete, overheads need to be kept down without compromising quality. Some work previously done by trained lawyers is outsourced to teams in low wage countries. For example, in litigation cases, boxes of evidence could be catalogued by nonqualified staff. Other trends include home-sourcing, where professionals work from home; or crowdsourcing, where contributions are solicited from a group of relevant experts. The downside to outsourcing is the risk of supply chain disruption. For example, the tsunami which hit Japan in March 2011 led to delays in several parts of the world, developing production, etc. There has since been a return to ‘on-shoring’ of some production. In industries such as garment manufacturing, home-turf suppliers can respond quickly to market demands. Tip: Consider the cost benefit of outsourcing support services and/or legal processes. 6. Knowledge capital (KC) – a wasted resource Look around you – there is a huge amount of KC in your firm, but it may be untapped. Perhaps one of your employees is fluent in a foreign language or has another particular skill. This knowledge can be crucial in winning work. Those who recognise their firm’s KC are ahead of the game. They should have an accessible staff directory setting out specialisms within the firm, which they can cross-sell or upsell. Think laterally – potential new services for existing or new clients based on the skills of existing staff can mean easy wins. Tip: Blinkers are for skittish racehorses, not professional business people. Unlock your staff's KC and get to know your people.
7. Corporate remoteness can cost A tick-box culture has damaged the personal touch. With all the rules, regulations, regulators, bureaucracy and online working, your client may feel removed from you. Empathise with your clients, their businesses and how you can help them. They may not be aware of your qualities, experience and knowledge. The importance of sharing knowledge, 'war' stories and insight cannot be underestimated. Verbal interactions engender trust and respect and often lead to mutually profitable reciprocity. Tip: Client empathy is powerful – easy to overlook and difficult to always get right but worth the investment.
with your clients, “theirEmpathise businesses and how you can help them … ”
8. Pay-by-results (PBR) To many law firms, PBR is anathema. However, the commercial reality is that you may have to consider it. Agree key performance indicators on which to base fees and when they are met or surpassed, your client will be happy to pay extra. To encourage results, you could incentivise staff with a percentage of gains made. Tip: Your staff are more likely to achieve results if incentivised financially. 9. Cash is king Are you doing well as the economy bounces back after six years of recession? Is the cash rolling in? If so, happy days. But perhaps the accounts which appear to show you have good profits don’t actually mean you have distributable funds. Profits are only distributable when the money is in the bank and it stays there. Work in progress yet to be billed, invoices raised but not paid, and many other contributors to book-keeping profit do not necessarily mean money is in the account to pay out as a bonus or dividend. Similarly, the unavoidable costs of professional
indemnity, VAT and tax bills may be further compounded by a seasonal reduction in trading! Additionally, as your firm expands you will probably need to make some cash-hungry investments. However the anticipated additional cash flow may not arrive for months or even years. A new partner or team, for example, will require additional working capital. With bank funding difficult to get and usually expensive when it is obtained, tight monetary control and a complete understanding of cashflow is essential. Tip: Understanding cashflow forecasting can be crucial in maintaining a stable business and allowing you to sleep at night!
Smith & Williamson’s South Coast team advises law firms and a wide range of professional practices based in the area. Our expertise includes advising on mergers, incorporation to LLP, succession planning and remuneration policies. www.smith.williamson.co.uk
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Expert Witness
WHAT MAKES A GOOD EXPERT WITNESS? A good expert witness will add value to a case and assist the court, through their specialist knowledge. They will use their considerable experience to explain, clarify and enrich the body of evidence and opinion, to the benefit of all parties. It’s all very well using an expert witness you know personally and can rely on, but what if they can’t complete their work to your deadline, or they don’t have the right specialism? Then you may have to instruct someone based on their reputation alone. So how do you make sure your own reputation is not damaged by a poor expert witness?
Make sure they’re a genuine expert Anyone can call themselves an expert. So check their ID, check their qualifications, and check to see if they’re registered with an independent regulatory body. It can help that some professional titles - for example “clinical psychologist” – are protected titles, whilst others – such as “consultant psychologist” – are not protected, so anyone can use them. If applicable, also ask to see a recent DBS (criminal record) check and professional indemnity insurance.
Make sure they have the right experience Is the expert right for your case? Would a different expert be more qualified to answer the court’s questions? A good way of checking is to follow the MoJ’s expected standards for expert witnesses in family law cases - upon which we were consulted -
that were introduced in October. As well as covering the above points, it adds that the expert must: • have recent, relevant, and documented experience of the issues of the case • keep up with recent developments in their field • know about relevant data protection and safeguarding concerns • actively seek feedback on their court work • be familiar with practice directions and regulations • clearly show where their opinion lies on the spectrum of mainstream opinion
Demand quality Will their report be concise, measured and evidence-based? Being accomplished within their discipline isn’t a guarantee that they’ll be able to write an expert witness report. Ask what checks for quality, accuracy and consistency they might carry out. Supplied by Carter Brown
Expert Witness Profiles - 10 of the best! Professor Patrick A Nee
Dr Sumeet Vohra GP
FRCS FRCP FCEM FFICM
Consultant in Accident & Emergency Medicine
Consultant in Occupational Health
Professor Nee has considerable experience in emergency and critical care medicine. He receives instructions in matters of personal injury and clinical negligence from claimant and defendant organisations. He has assisted the Court as an expert witness on numerous occasions and supports other expert witnesses in the production of reports.
Trained and qualified in London at Charing Cross and Westminster Medical School. GP in Sheffield and also Occupational Health Advisor to a number of Companies. Consulting Rooms in Birmingham, Chesterfield, Derby, London, Manchester, Sheffield and Warrington. Medico Legal reporting on Road Traffic Accidents, trips/slips and employers liability.
Contact: susan.broadley@prestigemedicallegal.co.uk or Telephone: 0161 833 1030
Mr Philip Emm
Contact: susan.broadley@prestigemedicallegal.co.uk or Telephone: 0161 833 1030
Mr Saeed H Zaki FRCS ( Edinburgh) FRCS (Tr & Orth)
Consultant in Physiotherapist A Chartered Physiotherapist with 40 years experience working in London, Scotland and the last 25 years in private practice in Manchester. In that time has treated many 1000's of RTA and industrial injuries. Our goals are to relieve pain and normalise range of movements and function. Contact: susan.broadley@prestigemedicallegal.co.uk or Telephone: 0161 833 1030
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Consultant Trauma & Orthopaedic Surgeon I have extensive Medico-legal experience covering a wide range of scenarios and injuries. In Whiplash injuries my ratio of claimant to defence is about 80:20. My special area of interest is fractures and soft tissue injuries involving both the axial and peripheral skeleton. I also deal with paediatric orthopaedic injuries and have experience as an expert witness for the courts. Contact: susan.broadley@prestigemedicallegal.co.uk or Telephone: 0161 833 1030
Expert Witness
Doug Hall
Robert Pendleton FRICS CEnv, RICS
Quantum Expert, Forensic Accountant
Consultant in Property
Doug has specialised in forensic accounting for over 25 years, acting as quantum expert for Claimants and Defendants/Respondents in both UK and cross-border commercial disputes. He has given evidence in the High Court, arbitrations and other tribunals and contributed to the successful resolution of disputes by negotiation and formal mediation.
Registered Valuer, has acted as an expert witness on a variety of property matters in Courts and Tribunals since the 1980’s. He specialises in providing property valuation reports including those suitable for use by the Courts and can give expert evidence related to market rents for rent review and new leases, market valuations for a wide variety of purposes and lease extension premia.
Contact: doug.hall@smith.williamson.co.uk or Telephone: +44 (0)20 7131 4048
Contact: rob@levene-surveyors.com or hkvaluations12@live.com or mobile 07722 485663
Richard Bellamy
Mathew Halton
MBIAC
A.M.I.M.I
Consultant in Woodland
Forensic Engineering Manager at Laird Assessors
Independent adviser specialising in woodland management and amenity landscapes, including support for proposed planning applications, tree hazard assessments, rights of way and boundary disputes and preparing reports for all aspects of management.
I have vast experience in a wide variety of accident related subjects where an independent professional opinion is required. I assist The Court as a single /joint expert witness on subjects ranging from Vehicle damage assessments to consistency, Low velocity impacts, version of events and exaggerated claims.
Contact: enquiries@bellamyrural.co.uk or mobile 07880 558832
Contact: matthew.halton@laird-assessors.com or Telephone: 0151 342 9961
Nik Ellis
Andrew Ryan
FIMI Eng Tech CAE AIAEA
C.A.E I.M.I A.M.I.M.I
MD & Consultant Engineer at Laird Assessors
Senior Forensics Engineer at Laird Assessors
I have submitted many forensic motor reports over the years for use in litigation purposes, provide both questions and answers for part 35 questions, produce joint reports and give oral evidence in County, Crown and Magistrates Courts. I am regularly instructed as a Single Joint Expert. I can provide references from Legal 500 listed solicitors from both Claimant & Defendant sides.
I have submitted many forensic motor reports over the years for use in litigation purposes, provide both questions and answers for part 35 questions, produce joint reports and give oral evidence in County, Crown and Magistrates Courts. I am regularly instructed as a Single Joint Expert. I can provide references from Legal 500 listed solicitors from both Claimant & Defendant sides.
Contact: nik.ellis@laird-assessors.com or Telephone: 0151 342 9961
Contact: Andrew.ryan@laird-assessors.com or Telephone: 0151 342 9961
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Expert Witness
THE COST OF REFORM 2013 saw the implementation of major changes to the way personal injury claims are funded and sourced. It is still too early to realise the full impact of these reforms upon injured claimants, their lawyers and access to justice but the early signs show genuine cause for concern. The full scope of the reform is too wide to rehearse here but in a wide variety of cases we have moved away from a system based upon the general proposition that successful claimants should keep all their damages and, in all but the most modest of cases, have reasonable fees and disbursements paid by the losing defendant, in favour of a one-size-fits-all fixed cost regime for road traffic, employers’ and public liability claims worth up to £25k (albeit with some exceptions) whether those cases are compromised in the newly expanded Portal system or go on to be litigated in the traditional way. The concern is that claimants with complex or riskier cases, whose claims now fall to be dealt with under the new fixed costs regimes, are getting turned
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away by solicitors because their cases are not financially viable to run. For those that are taken on, increased pressure upon firms to reduce costs in order to stay financially viable means that work tends to be pushed down to smaller teams of the most junior fee earners thereby reducing the quality of advice, case preparation and service. This is compounded by pressure upon firms to keep work inhouse rather than incur the cost of instructing counsel which, except in limited circumstances, is not recoverable from the defendant. A false economy. Further, claimants entering “no win no fee” agreements from 1st April 2013 find that they, and not the blameworthy Defendant, must now meet success fees out of their damages. Claimants are hit and so are firms as such fees are capped at a
maximum of 25% of general damages and past loss. The success fee cap affects the financial viability of the higher value cases involving complex arguments. Such cases are often hard fought by defendants as a result of their potential value and can mean that the risk of taking on and running such a case, funding disbursements along the way, outweighs the potential financial reward if there is a successful conclusion two or three years later. Children with complex cases, particularly those consisting predominantly of large future losses, are also affected because the litigation risks weigh heavily for firms against the prospect of diminished or no return. Access to justice for some, but not all. by Jamie Marriott
AGM
CHRISTMAS SUPPER AND AGM 2014 Hampshire Law Society Annual General Meeting will take place on Tuesday 2 December 2014 at St Marys, the home of Southampton Football Club. The AGM will commence at 5:00pm and refreshments will be served from 4.30pm. Please kindly confirm if you will be attending so we can order refreshments. Guests will then have the opportunity for a tour of the stadium to take in the players' dressing rooms, warm-up room, the baths and the tactics board that the players gather round for the last-minute pep talk. Stand at the tunnel entrance and imagine the deafening roar of the crowd as the teams enter the stadium. Those not taking part in the tour can get a drink at the bar. Following this at 7:00pm there will be a 3 course seasonal dinner at the same venue and we would be delighted if you can join us. After the dinner as usual there will be an address by an entertaining and engaging speaker. Full details can be obtained by contacted Nicola on administration@hampshirelawsociety.co.uk All members will receive their invitation and full AGM documentation in due course.
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Wills and Inheritance
WILLS AND INHERITANCE QUALITY SCHEME As most of our members are aware, the Law Society launched its first recognised quality standard for wills and estate administration approximately one year ago. The Wills and Inheritance Quality Scheme (WIQS) is aimed at practices that offer will drafting, probate and administration services. By way of a reminder, I thought it would be a good idea to let our members know how and why WIQS came about and briefly what is entailed. As our current President, Andrew Caplen, has mentioned, 'Why is being a solicitor simply not enough?' we all received training and the majority of us who undertake this work are already highly experienced, as well as being regulated and insured unlike many other will writers. Clients who wish matters to be handled by knowledgeable professionals with guarantees and a duty to put their clients' interests first, should surely seek the advice of a solicitor. Although it seems obvious to us, it is not always obvious to the client. The Law Society has, in the past, mounted a campaign against unregulated and unqualified persons and sought to persuade the Legal Services Board that will writing should be a reserved activity. The Law Society's campaign was backed by the Legal Services Consumer Panel and involved a period of intense lobbying for regulation. Unfortunately in the spring last year the lord chancellor announced that the government would not change the law. The trouble is, whilst we know the value of our services, clients are in a crowded marketplace and it is important that they are able to distinguish between our members' services and those that are unregulated, uninsured and untrained. Accreditation will provide firms with the opportunity to stand out. The client is also tending to look for checks and verification of personal or professional recommendations and WIQS membership should provide greater visibility to potential clients. The aim of the scheme is to reinforce set standards of practice and client care when providing will drafting, probate and estate administration services. Accreditation to WIQS is voluntary and involves the submission of an application form and subsequent assessment. Completion of mandatory training is also required. The WIQS accreditation is awarded for twelve months, with annual re-accreditation to ensure compliance. WIQS should hopefully demonstrate conformity to a best practice quality mark that prospective clients can trust and:1. Prove that you have the necessary expertise to deliver wills and inheritance advice. 2. Reassure clients that you will give them the information they need to understand the process, options, costs and timescales from the outset. 3. Hopefully win more business and increase client satisfaction. 4. Provide a clear point of differentiation compared to other providers.
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5. Benefit from the Law Society's marketing campaigns. 6. Minimise the risk of claims by using set processes. 7. Hopefully reduce complaints by educating clients as to what to expect throughout the process. 8. Benefit from the training programs to implement and maintain WIQS. All the information to apply for WIQS and for further details are available on the Law Society's website under the accreditation section.
Legacies
LEAVING A LEGACY TO CHARITY Including a gift to charity in a will is a great way to make a difference and there are also tax benefits. Legacies are an important source of income for many charities and the voluntary sector received around £2billion in legacy income in 2011/121. However, this is only 5% of total income and the number of people who leave legacies to charity may be only 7%2. Solicitors and other will writers can play a role in changing this. A study carried out by the Cabinet Office Behavioural Insights Team, published in 2013, found that when will writers mentioned the possibility of a leaving a legacy to charity, the percentage who did this rose from 4.9% to 10.8%, and that this increased to 15.4% when people were asked if there are any causes they are passionate about3. This suggests that asking people at the right moment whether they want to leave a legacy is important and so is the way in which the question is asked.
Types of gift A cash gift, or pecuniary legacy, is a straightforward option. But the effects of inflation could mean the ultimate value becomes less than intended. This problem can be dealt with by updating a will regularly, or linking the cash legacy with inflation. Another possibility is a gift of individual possessions, known as a specific legacy. This might be property, shares or land or other things. It’s worth providing for what happens if the possession is sold during the client’s lifetime. If a client would like a charity to benefit more significantly, an alternative option might be a residuary legacy. This involves giving a proportion of an estate to charity after expenses and any pecuniary and specific legacies have been paid.
Drafting the will It’s important that a charity is properly identified in the drafting of the legacy and its full name, address and registration number should be included. This information is available from the Charity Commission for charities in England and Wales, the Office of the Scottish Charity Regulator for Scottish charities and the Charity Commission for Northern Ireland for Northern Irish charities. Many charities have a section on their website with template wording for legacies. A legacy can be given for specific activities of the charity, subject to an expression of wishes or binding obligations. The risk of including a binding obligation is that the legacy could fail if the charity isn’t able to use the legacy for the purpose. A letter setting out the client’s wishes provides more flexibility and is often a better
option. The trustees of the charity should take the wishes into account, but are not bound legally to follow them. You should also consider what happens if the charity beneficiary ceases to exist. If this is the result of a ‘relevant charity merger’ under the Charities Act 2011, and the merger is entered in the Charity Commission’s register of charity mergers, the legacy will usually take effect as a gift to the successor charity. However, a legacy may fail if the wording provides that the charity must be in existence at the date of the testator’s death. If a legacy intended for a charity fails, the property will become part of the deceased’s residuary estate.
Tax benefits There is no Inheritance Tax (IHT) on gifts under a will to charities or community amateur sports clubs (CASCs). Legacies to overseas charities are not exempt from IHT. But gifts to an organisation within the EU do now qualify, if the organisation would qualify for charitable status if it was based in the UK. Rebecca Fisher and Chris Rowse are both at Russell-Cooke solicitors. Rebecca is a Partner in the Private Client Team and Chris is a Senior Associate in the Charities and Social Business Team.
The value of a gift to a charity or CASC will be deducted from the estate before IHT is calculated. In some cases this may bring the total estate value below the taxable threshold, which is £325,000 for 2014/15. Where an individual leaves more than 10% of his or her net taxable estate to charity, the estate will benefit from a 36% rate of IHT, which is a 10% reduction from the usual rate of 40%. Charities are not liable to capital gains tax (CGT). If the executors sell assets a CGT liability may arise against the executors. This can be avoided by appropriating the assets to a beneficiary charity as the executors will then sell as bare trustees. If the asset is land it will be necessary to comply with provisions in the Charities Act 2011 concerning the disposal of charity land.
Footnotes
Final tip
1
It’s a good idea to encourage clients to let a charity know that they should benefit from a legacy under a will, as this helps charities to plan ahead. Rebecca Fisher and Chris Rowse are both at Russell-Cooke solicitors. Rebecca is a Partner in the Private Client Team and Chris is a Senior Associate in the Charities and Social Business Team. August 2014
The UK Civil Society Almanac 2014, NCVO (http://data.ncvo.org.uk/a/almanac14/howmuch-does-the-voluntary-sector-receive-inlegacy-income-2)
2
Remember a Charity ‘Why Leave a Gift in Your Will’ (http://www.rememberacharity.org.uk/whyleave-a-gift)
3
‘Applying behavioural insights to charitable giving’ (28 May 2013), Cabinet Office
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Legacies
NOTCHED UP AND HOMEMADE – DIY COULD ENDANGER A LEGACY There’s around 15.5 million invalid or poor quality Wills in the UK. That racks up to an astonishing 70% of all Wills written, which could mean hundreds of thousands of intestacy cases where beneficiaries are missing, or estates thought to be destined to a friend find their way to distant family. These statistics revealed by the 2013 Will Aid survey highlight the growing danger of homemade Wills, often resulting in invalidity due to inadequate witnesses. The research discovered around three million have a Will that’s either homemade or assembled from a DIY kit, and a further 12.5 million whose say in the future of their estate may be out of date. In fact, there’s almost 28 million adults – that’s over half of the population – who have yet to even write one.
– who was also appointed the sole executor of her estate and ultimately one of two heirs. Not only did this invalidate the Will, but the family’s barrister told the court that Helena had gone into a “catastrophic mental decline” after losing her husband and brother within a year, and so was also invalid as it was ruled she could not have known or approved it. Her legacy was therefore treated with the rules of intestacy, and passed across to her next-of-kin. Shelley and Steven Kimms did not see a penny.
With so many knowing in their minds where they would like their estate to travel after they pass on, but without having committed that destination to paper, loved ones can lose out.
Locating missing beneficiaries is at the heart of our business, but alongside this we can conduct Asset and Will searches, as well as provide Missing Will and Missing Beneficiary Insurance to cover all eventualities. With over 90 years of experience, our expertise and access to information means there is nobody better placed to undertake your research in such a timely and cost-effective manner. When it comes to administering an estate and taking care of your client’s legacy, we understand that each case is unique and can provide a bespoke service to suit your needs.
That happened in the case of 81-year-old Helena McKae*, who left her £300,000 legacy to next-door-neighbours, Shelley Kimms* and her husband. According to Shelley, Helena felt as though her family did not “pay her enough attention” and so severed all ties to her next-of-kin. However, after she passed away in 2010, Helena’s niece contended that her aunt lacked legal capacity to execute a Will. It was discovered there was just one witness to the Will – Steven Kimms*
* Names changed for confidentiality purposes.
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Legacies
A LEGACY THAT LASTS FOREVER You know better than most that clients have all kinds of reasons for remembering a charity in their will. One of the most important is the desire to pass on the things they care about to the next generation – their children and grandchildren. They want to know their gift will last and still mean something years from now. Houses like Knole in Sevenoaks, vast areas of the Lake District, even the White Cliffs of Dover – have all been supported by gifts left in wills. Every time someone leaves a gift to the National Trust in their will, they’re playing a direct part in helping to look after special places for future generations to enjoy. We’re a charity, not funded by the government, so we depend on memberships and donations, especially gifts in wills, to keep 350 historic houses and gardens, and miles and miles of glorious countryside and coastline in England, Wales and Northern Ireland open for everyone to enjoy. Protecting the places they love. Your client may have a favourite National Trust place they want to protect, such as a stretch of coastline, a woodland, garden or historic home that is close to their hearts. They can specifically request that their
legacy goes towards looking after their special place. Or, they can decide to give their legacy to the National Trust to spend wherever the need is greatest.
they wish. And by leaving a gift to the National Trust, they’ll be playing a vital part in making sure the places they’ve loved and enjoyed live on for ever, for everyone.
You can trust us to honour your client’s wishes. We only ever spend legacy income directly on projects or conservation work, which means that every penny of your client’s legacy will be spent exactly where and as
There are also other ways of supporting our work, such as tax effective charitable trusts and foundations – please get in touch if you would like to find out more.
Solicitors like you have helped clients remember the National Trust in their wills and secured the future for places like the White Cliffs of Dover.
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Legacies
THE ROYAL SURREY COUNTY HOSPITAL’S CHARITABLE FUND The Vision
How will this be achieved?
•
Our long term vision at the Royal Surrey County Hospital is to transform the health services in Surrey with the aim of creating a nationally and internationally recognised centre of clinical and academic excellence.
This can only be achieved by working closely with other healthcare providers in the region and will help us to achieve the following:
•
• • •
Specialist care closer to home Integration of care, teaching and research Becoming one of the top cancer centres in the UK. We wish to make certain that our services and care are enhanced in ways that are impossible to realise through traditional NHS funding alone and that is why we cannot do this without your help.
One of the best decisions you could make Once you have provided for your family and friends please consider remembering the Royal Surrey County Hospital in your will. This will help us to ensure we are able to offer the best possible patient care and medical treatment for generations to come. Some great reasons to make a will • •
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Family, friends and the cause you believe in will all benefit. It will ensure your wishes are known and your intentions are carried out after death.
Being clear and precise, it will save your loved ones from unnecessary anxiety. It could reduce inheritance tax – your solicitor can advise on current tax legislation.
The next step Writing a will is relatively straight forward. However, it is always advisable to seek professional advice which can take you through the process and make sure everything is in order. If you decide to leave a legacy to the hospital please show your will writing professional our preferred wording.
Two ways to give 1 2
Pecuniary gift – you can choose to give a gift of a fixed amount of money Residuary gift – you can choose to leave a share, or the whole, of what is left in your estate once you have provided for your loved ones.
If you would like to speak to someone in confidence please call the Fundraising Department at the Royal Surrey County Hospital on 01483 464146 or email rsc-tr.fundraising@nhs.net
Legacies
STRAY DOG NUMBERS RISE IN SOUTH EAST The 2014 annual Dogs Trust Stray Dogs Survey launched this month revealing that 9,419 stray and abandoned dogs were handled by local councils across the Meridian region between 1st April 2013 and 31st March 2014. This represents a 2% increase from the 9,200 dogs handled during the same period last year. But would you know what to do if your dog went missing? Rather worryingly, 64% of owners in the South East were unaware that it is the Local Authority’s responsibility to pick up and care for missing strays. A further 75 per cent of respondents were also unaware that they had only seven days to recover a missing dog once he/she is in local authority care before ownership can be transferred to a new owner or they are potentially put to sleep if a new home cannot be found. On average, dog owners thought they had 15 days to recover a missing dog, more than double the official time allocated – a figure which could help account for the 378 dogs in the Meridian region that were unnecessarily put to sleep this year. Although Local Authorities continue to encourage responsible dog ownership and do not want to put dogs to sleep, they do struggle to cope in this difficult economic climate. Clarissa Baldwin OBE, Chief Executive of Dogs Trust says: “The number of instances of straying on our streets is declining in the UK as a whole, but we still have a significant job to do when it comes to raising awareness about responsible dog ownership. Owners are unsure of who to reach out to and how much time they have to recover their dog should he or she go missing. Microchipping not only helps speed up the process of reuniting an owner with their dog, it is also significantly reducing the number of strays overall. We’re calling on
Photograph © Brian Young
dog owners across the UK to come along to one of our free microchipping events at www.chipmydog.org.uk so that we can continue to improve the situation ahead of the change in law in Wales in 2015 and England in 2016 which will make microchipping compulsory.”
Who’ll keep him happy when your client’s gone? We will – as long as your client has a Canine Care Card. It’s a FREE service from Dogs Trust that guarantees a bereaved dog a home for life. At Dogs Trust, we never put down a healthy dog. We’ll care for them at one of our 18 rehoming centres, located around the UK. One in every four of your clients has a canine companion. Naturally they’ll want to make provision for their faithful friend. And now you can help them at absolutely no cost. So contact us today for your FREE pack of Canine Care Card leaflets – and make a dog-lover happy.
Call
020 7837 0006
Or e-mail
today
ccc@dogstrust.org.uk
Or write to: Dogs Trust, Canine Care Card, FREEPOST WD360, 17 Wakley St, London EC1B 1NA (no stamp required) Please quote “DTSL”. All information will be treated as strictly confidential. This service is currently only available for residents of the UK, Ireland, Channel Islands & the Isle of Man
www.dogstrust.org.uk Registered Charity Numbers: 227523 & SC037843
Hampshire Legal
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Management
TACKLING ECONOMIC CHANGES by Paul McCluskey PAUL MCCLUSKEY, HEAD OF PROFESSIONAL PRACTICES, SME BANKING AT LLOYDS BANK COMMERCIAL BANKING, COMMENTS ON HOW LAW FIRMS CAN ENSURE THEY HAVE A FLUID CASHFLOW IN PLACE TO TACKLE ANY ECONOMIC CHANGES THEY MAY FACE. As the economic recovery continues, many analysts are predicting that interest rates will rise in the foreseeable future, prompting questions about the level of impact such an increase could have on the professional services sector. However, whether a rate increase occurs or not, the fact remains that law firms should always strive to achieve streamlined and efficient management of their financial affairs, leaving them well placed to thrive with a solid cashflow in place, no matter what economic conditions they face. In order to ensure a strong focus on good financial behaviours which will safeguard the interests of a law business, it’s important to maintain rigorous control over budgets, expenditure and working capital, whilst impressing the view that everybody within a business has a responsibility for the efficiency of its running.
Drawing upon the team’s in-depth analysis, businesses are best placed to take preventative measures in the event of reduced cash flow, and install corrective procedures to collect fees, improve billing, and ultimately reduce the debt exposure of working capital overdrafts. The good news for law practices is that the outlook is relatively positive. According to the Law Society Financial benchmarking survey 2013, fee income has increased by a median of 4.1%, and the interest paid to firms has increased by 24% against a backdrop of declining deposit rates, demonstrating how more client money is being paid through banks.
This responsibility comes in line with the principles outlined by the Solicitor’s Regulation Authority (SRA) Code of Conduct, which calls upon its members to act with integrity, and in a manner which upholds the rule of law, without allowing the independence of a firm to be compromised.
Looking further ahead, the survey has indicated that fee income rises are set to continue to rise by 3.7% by the end of the year. So how does this impact on firms and their financial practices?
It’s a key consideration which ensures that companies always act in the best interests of each client, helping to maintain confidence in the sector by going to all necessary lengths to protect their money and assets.
The answer, simply, is that businesses can reap the benefits of a system that relies more heavily on good governance rather than borrowings. It’s important to ensure that effective cash management measures are in place, including robust management accounts, a commitment to working within predefined budgets, and regular reviews with partners.
In order to maintain this positive progress, staff training is strongly advised as a way to ensure that the financial pressures on the business are understood by all, with employees at all levels of the business working together with a keen focus on generating further income and safeguarding the interests of the firm.
We’re committed to serving the professional services sector, with strategies in place to support law practices, and ensure that we offer a selection of banking facilities designed to facilitate growth.
To make changes that can deliver an instant impact, good behaviours like addressing Work in Progress and lock-up can ensure that cash flow remains at high levels, and even help to reduce the level of borrowing needed for growth.
For firms with plans to accelerate their growth ambitions, our ongoing participation in the Funding for Lending scheme (FLS) remains a key part of our philosophy, and as part of the Government-backed scheme Lloyds Bank is offering discounts of one per cent to businesses in all sectors for the life of their loan.
Through our dedicated professional services team, Lloyds Bank is working closely with business owners to discuss issues and work out the best practices to maximise the growth strategies of legal businesses, ensuring they are well positioned to overcome potential hurdles.
Since the scheme was introduced two years ago, it’s been helping to reduce the borrowing costs for small and medium-sized businesses, and represents one of the many ways that we’ve been supporting the growth ambitions not just of law firms, but for British business in general.
Our professional practices specialists offer expert guidance to businesses operating in areas including accountancy, legal practice and surveyance, with a team of LEXCEL accredited managers on hand, each boasting unrivalled industry experience, utilising their expertise to identify any early warning signs of a change in the financial landscape.
By applying this astute and responsible approach to financial matters, firms can ensure that they can maximise the potential of the current positive economic climate, in which the industry is thriving, whilst safeguarding their interests, no matter what constraints they may face in the future.
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Management
PUTTING A PRICE ON FAMILY HISTORY Homeowners could be putting family heirlooms at risk by failing to recognise their monetary value writes Nicki Whittaker, a High Value Home Specialist at NFU Mutual. Heirlooms, such as paintings and jewellery, which have been passed down through the generations, often have great sentimental value. Unfortunately, because these items are rarely viewed in terms of their monetary value, there is a real danger that they will not be adequately insured. A recent survey conducted by NFU Mutual highlighted a worrying tendency for homeowners to undervalue or overlook items which they had inherited. Indeed, in 90% of valuations undertaken by NFU Mutual’s valuation partners, homeowners had either undervalued items or simply had no idea of an item’s value. The survey revealed that inherited items, such as jewellery, watches and furniture, were most commonly undervalued by homeowners, typically by 45%. The problem is exacerbated by the fact that most homeowners do not reassess the value of their home contents for decades, forgetting that the price of gold, the death of an artist or the popularity of items from certain periods can significantly affect the value of certain heirlooms. One valuation specialist recalled sitting down in a policyholder’s kitchen for coffee at the end of a visit and spotting an interesting piece of china sitting in the cupboard with the mugs. Upon closer inspection, the item turned out to be a vase handed down from the policyholder’s great aunt and worth many thousands of pounds. Another valuation expert told of a walnut bureau that the owner thought was perhaps worth £1,000 but was actually worth closer to £40,000 and could have been worth more had it been better cared for! Unfortunately, it is not until these items are stolen, or damaged in a major incident such as a flood or fire that a homeowner will even give a thought to their value or replacement and, by then, it is often too late. The survey, which was undertaken to coincide with the launch NFU Mutual Bespoke, a new insurance product for high value homes, revealed a real problem with the insurance of inherited items. Part of the problem comes from the fact that, inherited items are rarely looked at in a monetary light, with artwork, for example, found to be undervalued in two-thirds of cases. Heirlooms are often rich in family history and, therefore, it is essential that they are safeguarded for future generations. This doesn’t mean they cannot be enjoyed or even used but it does mean that they should be insured for their true financial worth and not just their sentimental value.
MAKE 1000 LAKESIDE THE DESTINATION FOR YOUR MEETING OR CONFERENCE IN 2014/15 As the stunning 1000 Lakeside North Harbour Portsmouth development continues to gain a reputation as the destination for business on the south coast, you too can experience the buzz by using the newly refurbished conference and meeting facilities to make your event an outstanding success. Set in acres of amazing grounds with an impressive lake and magnificent wildlife, 1000 Lakeside, with its full height glazed atrium and licensed Real Cooking Café, offers a versatile all year round venue. Three temperature controlled rooms, seating from 4 to 50 people, offers free wi-fi, white boards, flip charts and local telephone calls - and with catering and audio visual equipment available as an option, your meeting is guaranteed to be remembered for all the right reasons. Rooms are available by the hour or on a day delegate rate, which includes catering. Karen Tyrrell, Lakeside’s Sales, Marketing and Client Liaison Manager says: “1000 Lakeside’s onsite conference team will ensure
your meeting goes perfectly. Having already set the room up to your brief, they’ll be on hand during the day should you have any last minute requests. Plus the Café and Atrium can provide light, airy and bright areas which can be used for registration or breakout space. “With loads of free onsite parking and fabulous retail facilities, 1000 Lakeside is just minutes from junction 12 of the M27 and Cosham train station, making it one of the most accessible venues around. We’re looking forward to welcoming businesses from around the area to our fabulous location.” For more information call Carlly on 023 9231 3943 or email meet@lakesidenorthharbour.com
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Management
HOW DID IT GO? By the time this goes to print most law firms will have agreed (or be just about to agree) their Professional Indemnity insurance for another year. Although firms can move renewal dates to any other date in the year, so far at least, most still remain in October. So how did it go? It is always difficult to make the time to review the process as most clients are happy the task is concluded and are keen to move on. However it is worth spending a small amount of time to consider a few points to help with future renewal negotiations. Did you receive your renewal terms in good time to make a decision? If not, what factors could influence this? Possibly request the renewal declaration earlier from your broker? Maybe it was outside your brokers control with underwriters taking too long to send terms. Either way, an understanding of what you require in future years and a discussion
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with your brokers as to your expected timeline would be beneficial. How was the communication? Did you have to constantly chase, or were your brokers constantly chasing you? What do you prefer? As a broker we have lots of communications with insurers on behalf of our clients. Choosing how much of this is relevant and keeping our clients informed is a fine balance. When a client advises their broker what they prefer it often makes for a far more efficient renewal negotiation. The competing quotation. Did you put your existing arrangements to the test by obtaining alternative terms? Did you stay
with your existing broker anyway? Why was that? As brokers we are often in each of these situations. Reasons vary greatly for success and failure; however honest feedback is critical for brokers. If your broker retained your business it is beneficial to advise them why, so they can build on this. If they were unsuccessful either obtaining or retaining your business, then its most likely they would want to try again in future years. Advising them on what needs to be improved will again help with a more efficient process in the future. I hope this information has been useful, in our experience the grass is always greener on the side of the fence you choose to cultivate. If you would like more information or a no obligation conversation regarding your insurance I can be contacted on 0845 270 6720. Tristan Webb, Managing Director, Aspire Insurance Services
Management
£216 MILLION BEREAVEMENT BILL AS FAMILIES URGED TO REVIEW LIFE INSURANCE • Up to £216m in IHT taken from life insurance policies in 2011/12 • Extra paperwork only obstacle between average saving of up to £41,000 • Up to 40% of life insurance pay-outs could be lost in tax An urgent review of life insurance policies is being called for after the figures from HM Revenue & Customs (HMRC) revealed bereaved families are being hit with unnecessary Inheritance Tax (IHT) bills totalling up to £216 million. The latest figures from the taxman show the problem is getting worse. More than 5,200 people left their families with an IHT bill on their life insurance pay-out in the 2011/12 tax year, up by around 5% in two years and averaging £41,000. Sean McCann, chartered financial planner at NFU Mutual, said: “This is completely unnecessary and should not be happening. “Life insurance policies should, wherever possible, be written into a trust to prevent a significant chunk going to the taxman. Otherwise, up to 40 per cent of the pay-out could be claimed by the taxman when it could be going to bereaved families instead. “Writing a policy into trust also has the benefit of speed of payment. When a policy has been written into trust, payment can reach the family bank account within three to four weeks. If it had to go through probate instead, it could delay payment for several months. “Even if you don’t think you have an IHT problem, the speed of pay-out from a policy in trust should be an incentive to review your policy.
DBB LAW LLP (ANDOVER AND STOCKBRIDGE)
WERE PLEASED TO WELCOME NEW ASSOCIATE SOLICITOR TSYRINA TAN IN JULY 2014. Tsyrina has over 20 years’ experience as a practising solicitor and has further enhanced her Private Client expertise through the Society of Trust and Estate Planning's (STEP) Diploma exams. Her Private Client work includes estate planning, will drafting, powers of attorney, Court of Protection applications, Estate and Trust administration and advice for the Elderly. Tsyrina has a friendly, pragmatic and understanding approach towards clients and she has drawn on her experience as an established family law practitioner. Michelle Duckworth, Managing Partner at DBB Solicitors says “We are highly committed to offering clients practical advice in a clear, concise and efficient manner. Tsyrina is keen to promote our Private Client services and to enhance DBB’s reputation.”
“At different life stages, some of our services are more relevant than others” Family Wealth Preservation Wealth Management Retirement Planning Protection Planning Tax Planning Mortgages
“Often, this money is vital to keeping the family business running, or means surviving families can make ends meet – whether it’s to replace lost income or to pay for extra childcare while the surviving parent goes out to work. ”Trusts are really simple to set up and, with most life insurance companies providing the forms free of charge, it shouldn’t cost anything other than spending a few more minutes to complete. “However, HM Revenue & Customs’ figures show around 75,000 people left behind a life insurance policy in 2011/12 which wasn’t written into a trust. That’s 75,000 families who could have been made worse off from an IHT bill or slow payment.”
S4 Financial Ltd is an Independent Financial Advisory firm, which is authorised and regulated by the Financial Conduct Authority. S4 Financial Ltd is entered on the FCA register (www.fsa.gov.uk/register/) under reference 401372.
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News
ANDREW CAPLEN - PRESIDENT OF THE LAW SOCIETY “THE FIRST THREE MONTHS” Almost exactly three months ago, I took up post as the President of The Law Society of England and Wales. It has certainly been a busy twelve weeks or so, with my days filled with meetings, visits and speeches. And there does not appear to be a lessening of the pace during the next few weeks! I have had the opportunity to meet a number of Solicitors. From members of the City of London Law Society to colleagues practising in Birmingham and North Yorkshire (Harrogate, Ilkley and Skipton). My first trip outside London was to West Wales, to Camarthan, Haverfordwest and Buith Wells. At the latter, I met a number of Solicitors who were exhibiting (their legal services!) at the Royal Welsh Agricultural Show. Meetings with stakeholders have also been important. I have monthly “catch-ups” with the Chair and Chief Executive of both the SRA and the Legal Services Board. I also attended the Royal Courts of Justice for the swearing-in of the new Attorney General and Solicitor General, and then met them both at their Westminster offices a few weeks later. Political engagement is an important part of my role. The Law Society recently published its own manifesto of justice issues that we consider any incoming administration should consider - there is, of course, a
General Election due next year. in order to promote this, I attended the Labour Party Conference in Manchester a few weeks ago and spoke at a number of fringe events. The Vice President attended the Conservatives’ Conference in Birmingham and I am currently with the Liberal Democrats in Glasgow. Criminal Legal Aid continues to retain a high priority. Since becoming President I have met a number of times with the Practitioner Groups and have sought to speak at every opportunity about the difficulties with the Government’s proposals. I would like to encourage everyone to respond to the latest consultation issued by the Ministry of Justice. Although most of my time as President will be UK based, I have had the opportunity to travel abroad on two occasions. The first was to attend the American Bar Association’s conference in Boston and then that of the Canadian Bar Association in St. John’s, Newfoundland. Boston was particularly busy - I spoke at four separate sessions on matters as diverse as “Business and Human Rights” to the pending trans-Atlantic trade agreement. I have also spent three days in Belgium. One of these days was spent in individual meetings with Solicitor MEP’s in the European Parliament. The other two were with a Gazette journalist visiting some of the First World War battle sites. A large number of Solicitors and Articled Clerks were killed in that war - their names are remembered on the walls of the Reading Room in Chancery Lane.
The Gazette journalist had managed to locate the grave of the first Solicitor killed in WW1, in Ypres town cemetery. Early one evening I laid a wreath on his grave. It was a very moving moment. Finally, last week marked the Opening of the Legal Year (OLY) in England and Wales. The traditional service in Westminster Abbey was followed by the Lord Chancellor’s breakfast in the Great Hall at Westminster. It was a tremendous event. The Law Society and Bar Council hosted over 60 Law Society/Bar leaders from around the world at OLY. A roundtable at Chancery Lane chaired by Lord Igor Judge highlighted the differences in our legal systems yet emphasised our shared ethical values as lawyers. Andrew Caplen President of the Law Society of England and Wales Law Society Council Member for Hampshire and the Isle of Wight Andrew.Caplen@lawsociety.org.uk
LOANS TO PARTICIPATORS - ARE YOUR CLIENTS ‘BED AND BREAKFASTING’? Close companies and loans to participators Close companies are UK resident companies controlled by five or fewer participators (i.e. shareholders), or any number of directorshareholders. Briefly, if a close company makes a loan to a participator (LTP), then a ‘s455’ tax charge of 25% of the value of the loan may be incurred by the company if that loan is not repaid within 9 months and 1 day of the end of the accounting period in which it was made. If the 25% tax charge is levied this can only be recovered by the company 9 months and 1 day after the end of the accounting period in which the loan has been repaid to it. This can have significant cash flow implications. A number of changes were made to these provisions in Finance Act 2013 and this article focuses on the changes made to the ‘bed and breakfasting’ rules, a term used to describe the brief repayment of a loan in order to circumvent the tax charge.
The 30 day rule The new 30 day rule means that if a participator makes a loan repayment to the company of £5,000 or more at any time, and within 30 days either before or after that loan repayment further withdrawals are made totalling at least £5,000; then the repayment is treated as relating to the new borrowing and not the original debt, thus the s455 tax remains payable on the original LTP. ABC Limited is a close company, with a 30 September 2013 year end, owned equally by Mr and Mrs Smith. Mr Smith borrowed £10,000 from ABC Limited in September
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2013 (an LTP¬). He fully repaid this amount on 1 January 2014, at which point we would assume that no s455 tax is due as the loan has been repaid within 9 months and 1 day of the accounting period in which the LTP was made. However, let us assume that subsequently, Mrs Smith borrowed £6,000 from ABC Limited on 14 January 2014, which is within 30 days of Mr Smith’s £10,000 repayment. As Mrs Smith is an associate of Mr Smith, this part of the repayment is disregarded. The remaining £4,000 is treated as a repayment as normal and s455 tax of ((£10,000 - £4,000) x 25%) £1,500 will be due by 1 July 2014. This will be repaid by HMRC 9 months and 1 day after the accounting period in which the £6,000 loan is written off or repaid, assuming it is not part of a further ‘bed and breakfasting’ transaction.
The arrangements rule This rule applies where the balance of an LTP is £15,000 or more immediately before any repayment is made, and, at the time of repayment, there are ‘arrangements or an intention’ to draw further loans from the company (s464C, CTA 2010). In this situation, relief is denied, even if the loan is not redrawn within 30 days of repayment. To illustrate, using ABC Limited. In September 2013, Mr Smith borrows £20,000 (instead of £10,000) from the company and repays this on 10 June 2014 (within 9 months) by way of a transfer from his personal savings account. On 30 July 2014 Mr Smith transfers £20,000 back from the company to his savings account, so that he is able to pay off an excessive credit card bill which is
due on 31 July 2014. It may be argued that there is an informal agreement between Mr Smith and his company to make a subsequent loan as Mr Smith would have been aware of the need to pay his credit card bill at the time that he used his savings to repay the loan. If this is treated as an arrangement, the £20,000 repayment is disregarded and the £5,000 s455 tax is payable in full. However, it should be noted that if an LTP is cleared by way of a taxable income stream such as by the voting of a dividend, the 30 day rule and the arrangements rule will not apply. Wilkins Kennedy LLP act for a number of clients who are affected by the new LTP provisions and would be happy to discuss this matter further with interested parties. For further information please contact Naomi Nesbit, Tax Partner T: 01962 852263 E: naomi.nesbit@wilkinskennedy.com
Notices
BOURNEMOUTH COMMERCIAL PROPERTY LAWYER •
This is an excellent opportunity for an experienced Commercial Property lawyer.
•
We value enthusiasm and commitment as well as ability and experience.
• The ideal candidate will have at least 2 years experience, have undertaken good quality work, have good client care skills, and actively engage in business development.
RESIDENTIAL CONVEYANCER •
This is an excellent opportunity for an experienced Residential Conveyancer.
•
We value enthusiasm and commitment as well as ability and experience.
• The ideal candidate will have at least 2 years experience, have undertaken good quality work, have good client care skills, and actively engage in business development.
Please apply in confidence to: John Munro, Laceys Solicitors, 5 Poole Road, Bournemouth, Dorset BH2 5QL or by email at j.munro@laceyssolicitors.co.uk
GURNEY-CHAMPION & CO. SOLICITORS Gurney-Champion & Co of Portsmouth are looking for two lawyers for immediate start:
ROMSEY Experienced Commercial & Residential Conveyancing Solicitor required to conduct and develop an established work load. The successful candidate will have excellent communication, organisation and time management skills together with GSH. The ability to work well in a team essential. Salary according to experience. C.V and covering letter to ajrh@footner-ewing.co.uk or by post to Footner & Ewing 50 The Hundred Romsey SO51 8XH.
SOUTHAMPTON Experienced Private Client Solicitor required for city centre office of long established firm to take over and develop the client base of retiring Partner. • STEP membership preferred • GSH and ability to work well in a team essential • Good prospects for right candidate • Salary according to qualifications and experience C.V. to gc@footner-ewing.co.uk or by post to Footner & Ewing, 19 Brunswick Place, Southampton, SO15 2SZ
1. A solicitor or legal executive to cover commercial conveyancing 2. A solicitor or legal executive to cover private client work Full or part time applicants would be considered. Some experience would be preferred but not essential. Apply with CV to Nick Gurney-Champion, Gurney-Champion & Co., 104 Victoria Road North, Southsea, Portsmouth PO5 1QE or by email to ngc@championlawyers.co.uk
Company:
Index Property Information
Job Title:
BUSINESS DEVELOPMENT MANAGER
AN APOLOGY FROM BRIGHTER LAW GROUP At the beginning of October, BLG attempted to deliver the Hampshire edition of our “Conveyancers’ Chronicle”, in which we featured some company and industry information that we felt might be of interest. Our postal service used a franking machine but somehow this did not take into account the size of the envelope. Consequently you may have received a card from the Post Office notifying you of an additional charge.
Job Type (permanent, full time etc): Full time
I am very sorry if we have inconvenienced you in any way. I am especially embarrassed because our products and services are specifically designed to create savings and efficiencies and we have clearly failed in this instance.
Location:
Office/Field based in London/Surrey/Berkshire/Hampshire and Sussex/Kent areas
David Burrell, Brighter Law Group
Salary:
Dependent upon experience.
For sale by retiring practioner
Contact:
Please send a CV and covering letter to richard.norman@indexpi.co.uk
EXCELLENT WEBSITE ADDRESS FOR MEDIATOR
Deadline for application: 30th November 2014
www.mediation-services.co.uk
Description:
Telephone: 01420 538456 or email: mervynandstephanie@outlook.com
Responsible for a defined geographical territory, your role will be to exceed sales targets for both new and existing clients and to ensure clients receive an outstanding level of service at all times. In order to be successful in this role, candidates will have proven B2B sales experience, almost certainly gained in the legal services or conveyancing industry. Confident, articulate, ambitious, selfmotivated and proactive, you will have well-developed presentation skills, excellent organisational skills and have experience of dealing with contacts at Director or Partner level. In return you will be rewarded with a generous basic salary, together with bonus structure and the usual benefits you would expect.
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MISSING WILLS Pamela Mary Adlam (formerly Fernandes) 28 Barnes Lane Sarisbury Green Warsash SO31 7EZ Dob: 24/04/1947 Dod: 04/07/2014