SRA Handbook

You and others

Version 21 of the Handbook was published on 06/12/2018. For more information, please click 'History' Above

4th Section: You and others

Chapter 11: Relations with third parties

This chapter is about ensuring you do not take unfair advantage of those you deal with and that you act in a manner which promotes the proper operation of the legal system.

This includes your conduct in relation to undertakings; there is no obligation to give or receive an undertaking on behalf of a client but, if you do, you must ensure that you achieve the outcomes listed in this chapter.

The conduct requirements in this area extend beyond professional and business matters. They apply in any circumstances in which you may use your professional title to advance your personal interests.

The outcomes in this chapter show how the Principles apply in the context of your relations with third parties.

Outcomes

You must achieve these outcomes:

O(11.1)

you do not take unfair advantage of third parties in either your professional or personal capacity;

O(11.2)

you perform all undertakings given by you within an agreed timescale or within a reasonable amount of time;

O(11.3)

where you act for a seller of land, you inform all buyers immediately of the seller's intention to deal with more than one buyer;

O(11.4)

you properly administer oaths, affirmations or declarations where you are authorised to do so.

Indicative behaviours

Acting in the following way(s) may tend to show that you have achieved these outcomes and therefore complied with the Principles:

IB(11.1)

providing sufficient time and information to enable the costs in any matter to be agreed;

IB(11.2)

returning documents or money sent subject to an express condition if you are unable to comply with that condition;

IB(11.3)

returning documents or money on demand if they are sent on condition that they are held to the sender's order;

IB(11.4)

ensuring that you do not communicate with another party when you are aware that the other party has retained a lawyer in a matter, except:

(a)

to request the name and address of the other party's lawyer; or

(b)

the other party's lawyer consents to you communicating with the client; or

(c)

where there are exceptional circumstances;

IB(11.5)

maintaining an effective system which records when undertakings have been given and when they have been discharged;

IB(11.6)

where an undertaking is given which is dependent upon the happening of a future event and it becomes apparent the future event will not occur, notifying the recipient of this.

Acting in the following way(s) may tend to show that you have not achieved these outcomes and therefore not complied with the Principles:

IB(11.7)

taking unfair advantage of an opposing party's lack of legal knowledge where they have not instructed a lawyer;

IB(11.8)

demanding anything for yourself or on behalf of your client, that is not legally recoverable, such as when you are instructed to collect a simple debt, demanding from the debtor the cost of the letter of claim since it cannot be said at that stage that such a cost is legally recoverable;

IB(11.9)

using your professional status or qualification to take unfair advantage of another person in order to advance your personal interests;

IB(11.10)

taking unfair advantage of a public office held by you, or a member of your family, or a member of your firm or their family.

In-house practice

The outcomes in this chapter apply to your in-house practice.

Notes

(i)

This chapter should be read in conjunction with Chapter 7 (Management of your business) in relation to the system you will need to have in place to control undertakings.

Chapter 12: Separate businesses

This chapter deals with your obligations when you have links to a separate business that is not authorised by the SRA or another approved regulator.

You can be a manager or employee of a separate business. However, you cannot practise as a solicitor, REL or RFL in a separate business except as permitted by Rule 4 (In-house practice) of the SRA Practice Framework Rules (see also Rules 1-3).

Clients of a separate business will not have the same regulatory protections as clients of an authorised body and it is important that this is clear to clients of the separate business particularly where they are being referred from the authorised body or cases are being divided with the authorised body.

Outcomes

You must achieve these outcomes:

O(12.1)

you ensure, and have safeguards in place to ensure, that clients are clear about the extent to which the services that you and the separate business offer are regulated;

O(12.2)

you do not represent, directly or indirectly, the separate business as being regulated by the SRA or any of its services being regulated by the SRA;

O(12.3)

the separate business does not carry on:

(a)

reserved legal activities; or

(b)

immigration work unless that work is regulated by the Office of the Immigration Services Commissioner;

O(12.4)

you only

(a)

refer, recommend or introduce a client to the separate business;

(b)

put your client and the separate business in touch with each other; or

(c)

divide, or allow to be divided, a client's matter between you and the separate business,

where the client has given informed consent.

In-house practice

The outcomes in this chapter apply to your in-house practice.