DLG LEGAL SERVICES & SOLICITORS CODE OF CONDUCT
In my blog earlier today – DIRECT LINE OR DIRECT LYING? – INSURERS AT IT AGAIN (7) I set out paragraph 14 of the Terms of Business sent by DLG Legal Services, a firm of solicitors and part of the Direct Line Group, to clients.
That purports to limit liability in negligence to 200% of the amount of their fees for the individual matter or £100,000.00, whichever is the lesser.
Several people, including Richard Moorhead and my own business partner Robert Males have pointed out that this appears to be a breach of the Solicitors Code of Conduct.
Outcome 1.8 of the Code of Conduct states that clients have the benefit of compulsory professional indemnity insurance “and you do not exclude or attempt to exclude liability below the minimum level of cover required by the SRA Indemnity Insurance Rules 2013 which require a minimum cover of £2 million for a partnership or £3 million for an incorporated firm.”
Outcomes are compulsory and are designed to achieve the principles which in this case would be:-
- Act with integrity
- Act in the best interest of each client
- Behave in a way that maintains the trust the public places in you and in the provision of legal services.
I am not holding my breath that the Solicitors Regulation Authority will take any action. Of course if it was any ordinary firm of solicitors they would be down on us like a ton of bricks.