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Flanagan on Law and Order Law Society GazetteGazette€3.75 March 2010 crcrimeime watch:watch: fflanaganlanagan onon lawlaw andand orderorder INSIDE: SolIcItorS’ undertakings • looking aftEr thE bottoM line • kNowing NaMa • lEttErS Law Society annuaL conference 9th/10th April 2010 Book online at lawsociety.ie onference package Lyrath eState hoteL c (deLegateS): €275 Kilkenny CPD programme on Friday afternoon (3 CPD hours) • Gala dinner on Friday evening • One night’s bed and breakfast • Conference business session on Saturday morning • (3 CPD hours) • Lunch on Saturday conference package (accompanying perSonS): €175 • Gala dinner on Friday evening • One night’s bed and breakfast • Lunch on Saturday conference buSineSS SeSSion friday 9 apriL 2010 keynote SpeakerS 1.30pm Registration 2pm Address by the President of the Law Society, Gerard Doherty 2.10-5pm CPD programme 8pm Gala dinner Saturday 10 apriL 2010 9.30am-12.30pm Conference business session, with keynote speakers 12.30pm Lunch Dermot Ahern, Minister for Mr Justice Nicholas Kearns, Justice, Equality and Law President of the High Court Reform SponSored by Jardine Lloyd Thompson Ireland Limited president’s message Law Society Gazette march 2010 Helping hand n 12 February, I informed you by e-bulletin that 7,457 solicitors had taken out practising certificates for 2010 – an increase of 30 on the same date in 2009. The figures represent a reduction to 0.4% Oin the annual rate of increase in the numbers of solicitors practising, compared with an annual rate of increase of 4.5% in 2006. It is beyond doubt that the depth and persistence of the economic recession has caused this reduction. And, while the actual numbers taking out practising certificates was not as low as had been feared, it is undoubtedly the case that significant numbers of qualified solicitors, many newly admitted, are having difficulty securing employment within the profession. advantage of the broad range of services outlined in the directory The Society continues to provide support and assistance to support their professional growth, career development and to those of our colleagues who are out of work. As you will personal needs. be aware, the Society appointed Keith O’Malley as its career support advisor at the beginning of May 2009. In the nine Commercial undertakings months to end-January 2010, over 700 solicitors have made Before Christmas, I issued an e-bulletin to the profession in contact with the career support service. By the end of its first relation to the matter of commercial undertakings. While year, the service will have provided one-to-one consultations some solicitors’ firms have secured separate insurance cover for to over 250 solicitors, responded to circa 2,300 email enquiries commercial undertakings, the Society has strongly recommended and 1,600 telephone enquiries from members, that solicitors should not issue undertakings in relation provided feedback on 1,000 CVs and provided to commercial loans. training in career matters to over 150 colleagues. “The Society Where solicitors have obtained additional cover for commercial undertakings, the terms of such cover increased demand has strongly are a matter between the insurer and the solicitor. While I am pleased to report that a significant recommended Where there are no universally-agreed terms of cover, number of those solicitors who were registered problems will inevitably arise in seeking to match the with the Society’s career support service during that solicitors terms of insurance with the specific undertakings in any 2009 have secured employment, the service has should individual transaction. In addition, a system without encountered increased demand since Christmas, agreed documentation is almost impossible to regulate, as some trainees are not being kept on by not issue both for the Society and for the Financial Regulator. firms when they qualify. These newly qualified undertakings The legal, business and political communities in colleagues are strongly encouraged to register Ireland are only now starting to comprehend the with career support to avail of the various in relation to enormity of the consequences of a decade of reckless strategies that have proved successful for their commercial lending. An essential part of any banking system is to predecessors during 2009. In addition, a repeat ensure that proper security is in place where loans, of the series of career seminars on interviewing, loans” particularly of a substantial nature, are advanced. CV preparation and networking commenced in All of these issues were discussed at the most recent Dublin on 3 February 2010 and in Cork on 25 meeting of the Council held on 19 February, and the February 2010. I am hoping that Blackhall Place will remain an Council has agreed that regulations should be drafted to prohibit important focal point for these colleagues, both as a resource for the giving of undertakings in commercial transactions. Obviously, information and support, and as a vital communication link with the ‘devil will be in the detail’ of such regulations – all aspects the rest of the profession. of which will be thoroughly debated by the Council. In the In recent weeks, each member of the Society will have meantime, practitioners are again recommended not to provide received a copy of the Society’s new Support Services Directory, undertakings in the case of commercial loans. which summarises the support services on offer to all members in one user-friendly booklet. I would encourage all members Gerard Doherty to make Law Society membership work for them by taking President www.lawsocietygazette.ie 1 Law Society Gazette march 2010 COntents L A W S O C I E T Y On the cover L a W SO c IETY a week is a long time in politics, Gazette€3.75 M a rch 2010 or so they say, so who knows what may have happened by the time this Gazette hits your desk? In the meantime, we talk gazette to charlie Flanagan TD, solicitor and Fine Gael spokesman on march 2010 C R I M E justice WAT C H : pic: lensmen and assocIates Fllanagan on llaw and ord e r Volume 104, number 2 INSIDE: SOLICITORS’ UNDERTAKINGS • LOOKING AFTER THE BOTTOM LINE • KNOWING NAMA • LETTERS subscriptions: €57 regulars 1 president’s message 4 news analysis 10 10 News feature: revised Compendium to the Solicitors Acts 12 Human rights watch: assisted human reproduction 12 One to watch: Companies (Miscellaneous Provisions) Act 2009 Comment 7 15 15 Letters 36 people and places 40 Obituaries 42 student spotlight Book reviews 45 Judicial Review (2nd edition) Briefing 46 46 Council report – 22 January 2010 47 Practice notes 37 49 Legislation update: acts passed in 2009 52 Solicitors Disciplinary Tribunal 55 Firstlaw update 57 Eurlegal: Services Directive 62 professional notices editor: mark mcDermott. deputy editor: Dr Garrett O’Boyle. designer: Nuala redmond. editorial secretaries: catherine Kearney, Valerie Farrell. For professional notice rates (lost land certificates, wills, title deeds, employment, miscellaneous), see page 63. Commercial advertising: Seán Ó hOisín, 10 arran road, Dublin 9; tel: 01 837 5018, fax: 01 884 4626, mobile: 086 811 7116, email: [email protected]. printing: Turner’s Printing company Ltd, Longford. editorial board: michael Kealey (chairman), mark mcDermott (secretary), Paul Egan, richard hammond, Simon hannigan, mary Keane, aisling Kelly, Patrick J mcGonagle, 42 aaron mcKenna, Ken murphy. 2 www.lawsocietygazette.ie COntents Law Society Gazette march 2010 get more at lawsociety.ie prOfessiOnal nOtiCes: send small advert details, with payment, to: Gazette Office, Blackhall Place, Dublin 7, tel: 01 672 4828, or email: [email protected]. Gazette readers can access back issues of the all CHeques sHOuld Be made paYaBle tO: law sOCietY Of ireland. magazine as far back as Jan/Feb 1997, right up COmmerCial adVERTISING: contact Seán Ó hOisín, 10 arran road, Dublin 9, to the current issue at lawsociety.ie. tel: 01 837 5018, fax: 884 4626, mobile: 086 811 7116, email: [email protected] You can also check out: • Current news HaVe YOu mOVed? members of the profession should send change-of-address • Forthcoming events, including information details to: IT Section, Blackhall Place, Dublin 7, or to: [email protected] on the Law Society’s annual conference in HOw tO reaCH us: Law Society Gazette, Blackhall Place, Dublin 7. Kilkenny in april Tel: 01 672 4828, fax: 01 672 4877, email: [email protected] • Employment opportunities • The latest Cpd courses FSc independently-certified wood and paper products used by the Law Society Gazette come from ecologically-managed forests. Visit: www.fsc.org … as well as lots of other useful information PEFc certifies that wood and paper products used by the Law Society Gazette are sourced by suppliers from sustainable, managed forests. Visit: www.pefc.org features COVER STOrY: 16 Charlie’s angles Charlie Flanagan TD, solicitor and Fine Gael’s justice spokesman, says he’s up for the job, given the opportunity. Mark McDermott met him on the day that Willie O’Dea’s affidavit came up for discussion in the Dáil Keep me covered 20 A recent spate of claims against solicitors for breach of undertakings has led to a hardening of the professional indemnity insurance market and a relaxation of the mandatory minimum terms for PII. Stephen Chessher and Michelle Kilroy survey the land for solicitors found at the wrong end of commercial property transactions the bottom line 24 Inadequate profits lead to insufficient investment in your practice and in pension provision and, ultimately, will be reflected in an inadequate retirement income. It’s time to get with the programme, says Yvonne McCormack 20 nama drama ding dong! 28 Given that no assets have yet been transferred to NAMA, it remains to be seen how effective it will be in achieving its purposes. Hugh B Byrne and Louis McEntagart give an overview of some of the parts of the NAMA Act that may be relevant to practitioners suits you, sir 32 There has been much recent discussion of mortgages and borrowers defaulting on them.
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