Law Society damages fund incurs €2.24m loss
THE Law Society's Compensation Fund incurred losses of over €2.24m in 2011 and 2010.
The compensation fund is in place to compensate solicitor's clients who have sustained loss as a consequence of dishonesty on the part of a solicitor or an employee of a solicitor.
According to the Law Society's Compensation Fund's financial statements for 2011, it incurred a loss of €998,052 and this followed a loss of €1.24m in 2010.
The losses chiefly arose from a provision for compensation claims of €4.4m in 2010 and a much lower €1.9m in 2011.
The accounts also show that €110,750 in disciplinary fines and investigation levies were imposed on solicitors in 2011 and this followed €311,000 under the same heading in 2010.
The fund is financed by the country's solicitors, who each year pay €2,148 for a practice certificate and in 2011 €700 of this payment was applied to the Compensation Fund.
The contribution levy for the fund increased by €40 per solicitor in 2011, resulting in solicitors contributing €5.8m to the scheme – an increase on the €5.3m contributed in 2010.