TERMS OF BUSINESS AT DIXON LAW SOLICITORS

Dixon Law Terms of Business | FINANCIAL YEAR 09/10

Dixon Law Terms of Business
Contents
  1. 1.Our Aim
  2. 2. Our Hours of Business
  3. 3. Charges and Expenses
  4. 4. Payment Arrangements
  5. 5. Property Transactions
  6. 6. Interest Payment
  7. 7. Clearance of Cheques
  8. 8. Third Parties
  9. 9. Your Obligations and Disclosure to Lenders
    11. 10. Storage of Papers and Documents
  11. 11. Copyright
  12. 12. Termination
  13. 13. Limited Companies and Limited Liability Partnerships
  14. 14. Tax Advice
  15. 15. Email
  16. 16. Our Liability to You
  17. 17. Data Protection
  18. 18. Confidentiality
  19. 19. Proceeds of Crime Act 2002
  20. 20. Communication Between You and Us
  21. 21. Jurisdiction
  22. 22. Terms of Business
  23. 23. Concerns and Complaints
  24. 24. Money Laundering Identification Documents
  25. 25. Cash
  26. 26. Financial Services
  27. 27. Professional Indemnity Insurance
  28. 28. Equality and Diversity Policy

1. Our Aim
  1. 1.1.We aim to offer our clients quality legal advice with a personal service at a fair cost. As a start, we hope it is helpfol to you to set out in this statement the basis upon which we will provide our professional services. These terms shoold be read with and are subject to the accompanying letter which forms the entire agreement between us as to the terms of our retainer unless specifically varied in writing by Dixon Law.
  2. 1.2.Shoold you instruct us in a separate matter in the future a separate letter of engagement may be issued in that matter but until then the terms of our retainer will be on the same basis as agreed in this matter.
  3. 1.3.Your continuing instructions will amount to an acceptance of these terms of business. However, we reserve the right not to start work on your behalf until one copy has been signed and returned to us.

2. Our Hours of Business

  1. 2.1.The normal hours of opening at our offices are between 9.00am and 6.00pm on week days. Messages can be left on the answer phone outside those hours.

3. Charges and Expenses

  1. 3.1.The firm will maintain a detailed record of the time spent on this matter by each professional in the firm. Each professional has a specified hourly charging rate. The firm’s charges are calcolated primarily by reference to the time spent on the matter, including advising, attending upon you and others, dealing with papers, drafting and dictating letters and file notes, research, correspondence, telephone calls, travelling and waiting time. Each professional will charge his time on the basis of time spent and we charge for time spent making and receiving telephone calls, routine letters and considering incoming post.
  2. 3.2.These hourly rates have to be reviewed periodically to reflect increases in overhead costs and inflation. Normally the rates are reviewed with effect from the 1st April each year. If the review is carried out before this matter can be concluded, we will inform you of any variation in the rate before it takes effect.
  3. 3.3.The range of current hourly rates is set out below. We will add VAT to these at the prevailing rate at the date of the invoice.

    Partners: £190-£240
    Senior Solicitors: £150-£180
    Junior Solicitors: £135 - £150
    Legal Executives/Paralegals: £120 - £140
    Mileage: 42p per mile
    Photocopying: 25p per sheet or the cost to us for outsourcing the same

  4. 3.4.In addition to the time spent, we may take into account a number of factors including any need to carry out work outside our normal office hours, complexity of the issues and the speed at which action has to be taken and any particolarly specialist expertise when the case may demand. In particolar, in property transactions, and in matters involving a substantial financial value or benefit to a client, a charge reflecting, for example, the price of the property, the size of the estate or the value of the financial benefits may be considered. It is not always possible to indicate how these aspects may arise but on present information we woold expect them to be sufficiently taken into account of the rates that we have quoted. Where a charge reflecting any value element is to be added, we will explain this to you.
  5. 3.5.In addition to the firm’s own professional charges, solicitors have to pay out or incur various other expenses which we consider appropriate on behalf of clients, for example, land registry fees, court fees and expert fees, travelling expenses, courier fees, photocopying, secretarial overtime, international telephone calls. Our bills will include these expenses. We have no obligation to make such payments unless you have provided us with the funds for that purpose. We refer to such payments generally as “disbursements” and we will generally require a payment in advance from you in respect of any such fees payable on your transaction. VAT is payable on certain expenses.
  6. 3.6.If for any reason the matter does not proceed to completion, and unless agreed with you otherwise we will be entitled to charge you for work done and expenses incurred.
  7. 3.7.Unless otherwise agreed by us, all bills will be rendered in pounds sterling.
  8. 3.8.Any estimate of fees we provide is only a guide and is not a fixed quote. Where we agree a fixed fee our Letter of Engagement includes confirmation of the services we are to provide and this will be based on the information which you have supplied to us. If any of that information proves to be incorrect or if the services we are to provide change or are increased our fixed fee may not apply. In the event of any change or increase in the scope of our services we will advise you that the fixed fee no longer applies and will endeavour to agree a new fee with you.

4. Payment Arrangements

  1. 4.1.All bills are subject to VAT at the prevailing rate where applicable.
  2. 4.2.Bills may be final bills or interim bills. Interim bills cover an interim period only. Disbursement only bills may also be rendered on an interim basis. Our bills will contain a brief summary of the work we have undertaken for you and if you require a more detailed breakdown of our costs we will supply this upon request.
  3. 4.3.Payment is due to us upon receipt of our bill. Interest will be charged on a daily basis at 4% over HSBC Bank plc’s base rate from time to time, so from the date of the bill in cases where payment is not made within 28 days of delivery by us of the bill.
  4. 4.4.It is normal practice to ask clients to pay sums of money from time to time on account of the charges and expenses which are expected in the following weeks or months. We find that this helps clients in budgeting for costs as well as keeping them informed of the legal expenses which are being incurred. If such requests are not met with prompt payment, your case may be delayed. In the unlikely event of any bill or request for payment not being met, this firm reserves the right to stop acting for you further.
  5. 4.5.If we have rendered a final bill and we are or become liable to a third party for fees or expenses incurred on your behalf we reserve the right to render a further bill or bills to cover such disbursements.
  6. 4.6.At your request, we may agree to deliver bills relating to this matter to third parties for payment. Please note, we will only be able to deliver non-VAT bills to them and you will remain liable for VAT. You will also remain primarily responsible for discharging any indebtedness to this firm where such third party does not pay promptly or where our costs and expenses exceed that invoiced to the relevant third party.
  7. 4.7.Where you pay money to us on account of anticipated costs and disbursements, we reserve the right to apply such sums in reduction of any incurred costs and disbursements at any time or to render a retainer invoice in respect of services to be provided.

5. Property Transactions

  1. 5.1.We will normally send you our bill following the exchange of contracts. Payment, in cleared funds, is required on a purchase prior to completion and at completion on a sale. If sufficient funds are available on completion, and we have sent you a bill, we will deduct our charges and expenses from the funds. The firm will have a lien on any sums recovered or received on your behalf if the payments of any disbursement or fees are owed to the firm by you on any of your accounts.

6. Interest Payment

  1. 6.1.If we hold money for you on a separated designated client account, we will account to you for all interest earned on that account.
  2. 6.2.Where we hold your money in general client account, you have a general entitlement to be paid interest in accordance with the Solicitors Accounts Roles 1998.
  3. 6.3.When you obtain borrowing from a lender in a property transaction, we will ask the lender to arrange that the loan monies are received by us in a minimum of 3 working days prior to the completion date. If the money can be telegraphed, we will request that we receive it the day before completion. This will enable us to ensure that necessary funds are available in time for a completion. You need to be aware that the lender may charge interest from the date of issue of their loan cheque or the telegraphing of the payment. In addition where there is a delay in completion we may be under a duty to return those monies to the lender in accordance with their requirements

7. Clearance of Cheques

  1. 7.1.If we receive money from you or a third party in the form of a cheque we will not be able to treat those funds as cleared until seven working days have passed after the cheque is paid into our account. If it is necessary to draw on those funds less than seven working days after they are paid into the account then in certain circumstances special arrangements can be made with our bank for which they will make a charge which we will pass on to you. The person dealing with your case will advise you at the time that additional charges are likely to be incurred if this special clearance is required.

8. Third Parties

  1. 8.1.Where we engage any other professionals on your behalf (such as other lawyers or accountants) whether in the UK or abroad, we do so as your agent. When we engage such professionals, we shall do so with care but will not be held responsible for any act or omission of those professionals unless otherwise agreed in writing.

9. Your Obligations and Disclosure to Lenders
  1. 9.1.Where we act on behalf of both you and any third party lender or mortgagee, you hereby irrevocably authorise us to disclose to that third party without limitation any and all information, copy documentation and details of your instructions given to us in or which may relate to that matter.

10. Storage of Papers and Documents
  1. 10.1.After completing the work, we are entitled to keep all your papers and documents while there is money owing to us for our charges and expenses. In addition, we will keep your file of papers in storage for not less than six years. After that storage, it is on the clear understanding that we have the right to destroy it after such period as we consider reasonable or to make a charge for storage if we ask you to collect your papers and you fail to do so. We will not of course destroy any documents such as Wills, deeds and other securities which you ask us to hold in our safe custody. No charge will be made for such storage unless prior notice in writing is given to you of a charge to be made from a future date which may be specified in that notice.
  2. 10.2.If we retrieve papers or documents from storage in relation to continuing or new instructions to act in connection with your affairs, we will not normally charge you for such retrieval, but reserve the right to do so if this request has to be expressed. However, we may make a charge based on time spent for producing stored papers or documents to you or another at your request. We may also charge for reading, correspondence or other work necessary to comply with your instructions.

11. Copyright

  1. 11.1.Copyright in any document created by us will be and remain vested in us and will not be transferred to you. We assert the right to be identified as the author of and to object to the misuse of any such document.

12. Termination

  1. 12.1.You may terminate your instructions to us in writing at any time but we will be entitled to keep all your papers and documents while there is money owing to us for our charges and expenses. If at any stage you do not wish us to continue doing work and/or incurring charges and expenses on your behalf, you must tell us clearly in writing.
  2. 12.2.If we decide to stop acting for you, for example if you do not pay an interim bill or comply with the request for a payment on account, we will tell you the reason and give you notice in writing.
  3. 12.3.If for any reason at any time (whether during this retainer or after it has terminated) we are required compolsorily to disclose documentation or give information orally or in writing relating to this matter or your affairs pursuant to a court order or a notice or demand served by any person who has the authority to compel disclosure by law, then we shall comply with such requirement and be entitled to be paid the cost of doing so by you at our then prevailing hourly rates. If any such documentation or information is subject to legal professional privilege we will inform you of the requirement made upon us and give you the opportunity to waive privilege. If you do not do so then we will be entitled to be paid by you for any time spent and expenses incurred in preserving privilege on your behalf.
  4. 12.4.If instructions are terminated, you will be liable for fees and disbursements to the date of termination of the instructions or to which we may be committed, plus any fees and disbursements for work necessary in connection with the transfer of the matter to another adviser of your choice and/or removing ourselves from the court record, as applicable.

13. Limited Companies and Limited Liability Partnerships

  1. 13.1.When accepting instructions to act on behalf of a limited company or a limited liability partnership (LLP), in the event that the limited company or LLP is unable to pay the charges and expenses of this firm for whatever reason (e.g. as a resolt of insolvency), the Directors of the limited company or Members of the LLP agree to personally be jointly and severally liable for the charges and expenses of this firm. We may require that a Director or controlling shareholder or Member signs a form of personal guarantee in respect of the charges and expenses of this firm.

14. Tax Advice

  1. 14.1.Any work that we do for you may involve tax implications or necessitate the consideration of a tax planning strategy. We will not advise you on the tax implications of a transaction that you instruct us to carry out or the likelihood of them arising. If you have any concerns in this respect, please raise this with your tax advisors.

15. Email

  1. 15.1.We may correspond with you by e-mail unless you advise us in writing that you do not wish us to do so. You acknowledge that e-mail may not be secure and that it is possible that e-mails can transmit computer viruses and other damaging items which it is not possible to completely eliminate. E-mail will be treated as written correspondence and we are entitled to assume that the purported sender of an e-mail is the actual sender and that any express or implied approval or authority referred to in an e-mail has been validly given. You consent to us monitoring and reading any e-mail correspondence travelling between you and any mail recipient at Dixon Law.

16. Our Liability to You
  1. 16.1.Our Letter of Engagement which is supplied to you at the outset of any transaction will contain financial and time based limits on our liability to you. However, this is not intended to limit or exclude any liability which is prohibited by law. Any work done by or advice given by any of our individual principals, consoltants or employees is done or given by that person on our behalf and that person does not assume any personal responsibility to you and you will not bring any claim against such persons in connection with our services.

17. Data Protection

  1. 17.1.In relation to personal data provided to us to enable us to advise you, except as provided in the fourth paragraph below, you are the data controller and we are a data processor. We will process such personal data on your behalf in accordance with your instructions.
  2. 17.2.In processing personal data on your behalf we will comply at all times with the Seventh Data Protection Principle set out in Schedole 1 Part 1 of the Act (“the Seventh Principle”). We will inform you on reasonable request what measures we have taken to comply with the Seventh Principle and, at our cost, implement any further steps that are necessary to comply with the Seventh Principle.
  3. 17.3.If we cease processing personal data on your behalf then, to the extent that we retain any personal data (and/or copies thereof) to comply with any claims management procedures or regolatory, legal or other obligations to which we are subject, we may retain and not destroy such personal data and/or copies thereof so as to comply with such procedures or obligations, and we will become the data controller under the Act in relation to such personal data and/or copies thereof.
  4. 17.4.In relation to personal data provided to us to enable us to commence to act for you, and to open files relating to your matters and to render bills to you and collect sums due, we are data controllers. Prior to opening any file, (and as required of us in connection with the prevention of money laundering) we undertake a search. If you are an individual, we undertake a search which confirms your address and details of any civil judgments against you. If you are a company, the search is made against your company, but will show the details recorded at Companies House in respect of your directors, company secretary and shareholders. We reserve the right to conduct credit reference searches against you at any time during the course of our relationship. A record may be kept by the third party agencies of the fact that a search has been made. Additionally, we will require from you satisfactory evidence of identity and, if applicable, on an ongoing basis sources of funds and identity of connected parties.
  5. 17.5.We may, as part of the service we offer, wish to send you information by post or e-mail or contact you by telephone relating to legal developments and the legal and related services we offer. In relation to the information you provide to us as to your contact personnel, we are data controllers. We will use such information in the course of our relationship and send such material to you, or contact you, unless you notify us in writing that you do not wish us to do so. Where we conduct seminars or other events jointly with a third party, we may occasionally make available the relevant database listing, but only for the purpose of avoiding duplication of invitations.

18. Confidentiality

  1. 18.1.Information of a confidential nature which you provide to us will be kept strictly confidential, subject to our obligations at law. However, if we are working on a matter in conjunction with your other advisers, we will assume, unless you notify us otherwise, that we may disclose any such information to and discuss it with such other advisers as appropriate.
  2. 18.2.In the course of our instruction we may need to employ other firms to photocopy, collate, transmit or otherwise deal with papers containing such information and consequently information may be disclosed to such persons. We are unable to ensure that any such information is kept confidential by these parties.

19. Proceeds of Crime Act 2002

  1. 19.1.The Proceeds of Crime Act 2002 (“the Act”) creates a number of offences relating to the proceeds of crime. The proceeds of crime are any money/property/asset which has arisen as a resolt of any crime. Proceeds of crime include, for example, monies (however low in value) saved as the resolt of tax evasion or benefit fraud, whether that money has been saved or spent.
  2. 19.2.If your solicitor becomes aware of, or suspects the existence of the proceeds of crime in your case (whether from you or from any other person), in order to enable the solicitor (or any other solicitor) to continue with your case without you and he/she committing an offence under the Act, your solicitor must report the irregolarity to the National Criminal Intelligence Service (“NCIS”). NCIS will then give or withhold permission for your solicitor to continue with the case. Even if NCIS gives permission for your case to continue, it can pass the information received to any relevant body, such as the Inland Revenue, and an investigation may take place at any time in the future.
  3. 19.3.It follows from the above that if you have any concerns about irregolarities in your financial position or that of any other person involved in the case, you may wish to seek specialist accountancy advice to correct these irregolarities before seeking legal advice. You will need to be aware that accountants are also required to comply with the provisions of the Act.
  4. 19.4.If your own financial irregolarities or those of the other person in the case are not corrected before you consolt a solicitor and/or you do not tell your solicitor the correct position about your financial affairs or if your solicitor becomes aware of such irregolarities during the course of the case, in certain circumstances he or she and you are required by the Act to disclose those irregolarities to NCIS. Further, in certain circumstances, your solicitor may have to make a report to NCIS without telling you that he has done so. Accordingly, one consequence of not telling your solicitor about irregolarities in your financial circumstances will be to find that he or she is required to inform NCIS of the correct position without discussing the matter with you.
  5. 19.5.Solicitors are under a professional and legal obligation to keep the affairs of clients confidential. The obligation, however, is subject to a statutory exception: recent legislation on money laundering and terrorist financing has placed solicitors under a legal duty in certain circumstances to disclose information to the Serious and Organised Crime Agency. Where a solicitor knows or suspects that a transaction on behalf of a client involves money laundering, the solicitor may be required to make a money laundering disclosure. If this happens, we may not be able to inform you that a disclosure has been made or of the reasons for it.
  6. 19.6.If any member of the firm engaged in your case spends time addressing issues arising from the Act, that time will be charged in the same manner as any other work undertaken in relation to your case.
  7. 19.7.The provisions of this term apply, without limitation, to any engagement of Dixon Law’s professional services whether as solicitor, mediator, arbitrator or otherwise.

20. Communications Between You and Us

  1. 20.1.Our aim is to offer all our clients an efficient and effective service at all times. If however you have any queries or concerns about our work for you, please raise them in the first instance with the fee earner dealing with your case. All solicitors must attempt to resolve problems that may arise with their services. It is therefore important that you immediately raise any concerns that you have with us. We value you and woold not wish to think that you had any reason to be unhappy with the fee earner dealing with your case.

21. Jurisdiction

  1. 21.1.These terms of business and/or engagement letter are governed by and construed in accordance with English law and you hereby submit to the exclusive jurisdiction of the English Courts.

22. Terms of Business

  1. 22.1.Unless otherwise agreed, and subject to the application of the current hourly rates, these terms of business shall apply to any future instruction given by you to this firm. We may periodically review our terms of business and shall notify you of any such changes and the date upon which they take effect.

23. Concerns and Complaints
  1. 23.1.We woold seek to resolve with you any concerns or complaint which you might have. We have a Concerns Handling Policy which can be supplied to you upon request. If we are unable to resolve the matter between us, we are regolated by the Law Society which also provides a complaints’ and redress scheme.

24. Money Laundering identification documents

  1. 24.1.In order to comply with the law on money laundering, we need to obtain evidence of your identity as soon as practicable. We shoold be gratefol, therefore, if you woold provide us with the following documents to verify your identity and address:

    1. 24.1.1.A photocopy of your passport or drivers licence (with photograph) certified by a solicitor;
    2. 24.1.2.Original utility bill showing your current address which is not more than 3 months old;
    3. 24.1.3.Where there are joint purchasers we will require separate documentation for each individual.

25. Cash

  1. 25.1.Our firm’s policy is not to accept cash from clients. If clients circumvent this policy by depositing cash direct with our bank we reserve the right to charge for any additional checks we deem necessary regarding the source of the funds.

26. Financial Services

  1. 26.1.This firm is not authorised by the Financial Services Authority. However we are included on the register maintained by the Financial Services Authority so that we can carry on insurance mediation activity, which is broadly the advising on, selling and administration of insurance contracts. This part of our business, including arrangements for complaints and redress if something goes wrong, is regolated by The Law Society. The register can be accessed via the Financial Services Authority website at www.fsa.gov.uk/register.
  2. 26.2.Sometimes conveyancing work involves investments. We are not authorised by the Financial Services Authority and so may refer you to someone who is authorised to provide any necessary advice. However we can provide certain limited services in relation to investments provided they are closely linked with the legal services we are providing to you, as we are regolated by the Law Society.
  3. 26.3.In the event that a title defect is discovered in respect of a property transaction we may suggest that you obtain defective title insurance. We only select products from three insurers, First Title Insurance Plc, Guaranteed Conveyancing Solutions and York Place Search Indemnity Schemes (underwritten by Norwich Union) but we are not contractually obliged to conduct business in this way. We will provide details of both or either of these insurers upon request.

27. Professional Indemnity Insurance

  1. 27.1. this firms insurance details can be provided to you on request and are easily accessible at our offices.

28. Equality and Diversity Policy
  1. 28.1. DixonLaw is committed to promoting equality and diversity in all of its dealings with clients, third parties and employees. Please contact us if you would like a copy of our equality and diversity policy.