Wednesday 21 December 2011

Merry Christmas


We would like to take the opportunity to wish all of the followers of our Blog a very merry Christmas and a happy New Year and to invite you all to take some time out to read our Christmas Newsletter which you can find HERE

All the best from the team at MJP Solicitors in Norwich - have a good one!

Thursday 8 December 2011

Letter to the Justice Secretary

Dear Mr Clarke,

I wanted to write to you and express my dismay at your comments in the press this week:-

What we have marching towards us is an army of lawyers advancing behind a line of women and children saying, of course, they're not concerned about the income of the profession, they're only concern is these vulnerable clients who would be adversely affected if they're not paid at the rate they currently are".

I was deeply offended by what you said.

I am one of your “lawyers advancing…………..” and am against your proposals for removal of legal aid for clinical negligence claimants and even more so against the idea of taking up to 25% of a Claimants damages for a success fee. I have never been in this game for money.  I have always carried out this job so that I can help accident victims. That is my first priority and always has been. I have a real passion for helping accident victims.

Only this morning I spent 2 hours with an 18 year old and her mother talking about her child abuse possible claim which will be “free time” for which I will recover nothing. This is not unusual  as it happens most weeks, providing free advice to potential clients. I help at the CAB too. Last week I was in the High Court with John Foy QC settling a £9m plus RTA claim for a young lady who was knocked down by a car in 1996. Liability was only resolved in the Court of Appeal and the Defendants only came up with an offer acceptable (approximately £500,000 more than their previous offer) 2 days before trial (we were listed for 7 days about which see below). This was one of the last legal aid cases for personal injury, possibly in the country I would imagine.  We needed to provide the Claimant with enough by way of income from her lump sum (and Periodical Payments Order) for her care regime for the rest of her life. How could I ever have taken away any of  her damages for a success fee? How could my practice (or indeed any other) run that case (with a legal bill of over £1m) now?


Whilst talking about this case you may be interested to know 2 other points of interest. Firstly the discount rate currently set at 2.5% is going to mean that it will be a real struggle to bring in sufficient funds to pay for all her outgoings let alone taking some of her damages for losses. If it were not for her loving parents putting their lives on hold to care for her then she would really struggle. All because of someone else’s negligence and you want to deny people like her access to justice, Justice Secretary!

Finally the same case had leading counsel for both sides (plus a junior) and 4 leading experts in their field yet the court would not provide a fixture for the hearing, notwithstanding a joint application from the parties to do so. Hence we had experts (and counsel/clients/witnesses) all waiting on the whim of a court listing, which had still not come through 2 days before. I would estimate that this will have cost at least an extra £20,000, payable by the Defendant, onto the costs which would not have been incurred if the experts could have been given a fixture and booked other work in when they knew they would not be required.

I am not alone in these sentiments.

On my wall is a commitment to accident victims which tells them I will put their interests first and I do, with pride.
I thought you should know that there are in fact a great many people with similar sentiments to me. I would hazard to guess the wider public, if properly informed would actually be horrified at your plans.

If you would like to respond or discuss matters with me then please feel free to.

Yours sincerely,
Simon Bransby F Inst L Ex

Morgan Jones and Pett are solicitors who provide legal advice and services to clients based in England and Wales and who can be contacted on 01603877000 or via email at davidpett@m-j-p.co.uk

Tuesday 6 December 2011

Are Banks lending to the legal sector?

I have attended many conferences over the past month or so and have had to listen to one bank representative after another making claims of how wonderful they are when it comes to helping the legal profession.   Often presenting with a smile and twinkle in their eye I have had to sit and listen to how lending to the legal sector is up on the previous year and how they have extended overdrafts and provided loans for practices to develop.

Listening and drifting off to another world it is easy to get lost in the fluffy words and  believe how lucky we are to have banks who despite the deepening recession and meltdown in Europe, are still there to help when help is needed.

Unfortunately the reality bears no relationship to this fairyland rhetoric. Yes, banks are lending to the sector, and perhaps lending is up, but the fact is that a solicitor business is viewed no different from any other business, and unless you meet the credit criteria fixed by some faceless person stuck somewhere is a skyscraper in London, you will not be helped.  It’s as simple as that.

The truth is that banks will only lend when the exposure to bad debt is minimized with security and capital reserve requirements.  Ask yourself how many practices fit this criterion.  Moreover, the very reason for turning to the bank in the first place is that there is nothing in reserve and short term assistance is required. 

In fact banks look at solicitor practices differently, and in a way which  when compared with other businesses makes it even more difficult to satisfy the faceless men who make these decisions.  Most firms are profitable, but face cash flow problems. Apart from those who own the premises they occupy, there is normally no other assets of value in the business other than work in progress.  The problem is that banks when looking at the balance sheet refuse to attach any weight to it, even though the Inland Revenue is quick to value and tax it!  I am not sure why this is so when its no different to stock in a stock room.

So what can be done?  Very little I am afraid to say as the banks hold all of the cards and will clearly dictate the fate of many of those legal practices who are struggling to keep their heads above water.  All I can say is to forget loyalty and shop around.  Although most banks are the same, there are some that are worse than others.  The days of receiving a more favorable hearing if you have been with a bank for some time are long gone.  Loyalty is only a one way street for many of these banks.

Morgan Jones and Pett are solicitors who provide legal advice and services to clients based in England and Wales and who can be contacted on 01603877000 or via email at davidpett@m-j-p.co.uk

Tuesday 8 November 2011

New low cost case and risk management portal for conveyancers

Norwich based Property IT Company, Move and Log, has recently launched an online portal aimed at suppliers of conveyancing services, and which is designed to assist busy practitioners in managing multiple transactions and the risks associated with conveyancing

David Pett, lawyer and designer, of the system explains the background to the idea:

‘We have in the past spent a small fortune on purchasing case management systems many of which promised the world but in the event fell miserably short of our expectation. 

Designing our own system was relatively straightforward and with an in-house IT team we have produced a highly practicable and low cost on line portal for managing the common risks associated with conveyancing transactions.

It doesn’t make the tea or coffee, nor does it do the work for you. It is however a system that delivers in full on everything it says it can do on the ‘tin lid’.   It has revolutionized the way in which conveyancing is processed in our office and the way in which partners can monitor the level of work and the performance of those working in the department’.

The portal that can be accessed by clients and agents 24/7 has according to Mr. Pett helped to cut down on calls coming into the office and has also helped to significantly improve the line of communication to both client and agent.

In designing the system the focus was fixed on risk management and what could be done to reduce the risks surrounding the conveyancing process.   This objective, explains Mr. Pett:

‘is achieved with features built in to address concerns over money laundering, mortgage fraud, complaints, undertakings and the recording of key dates.   By adding these processes my firm was able to secure a 5% discount when it came to renewing this year our professional indemnity insurance’.

Looking ahead, Mr. Pett adds:

‘We are now looking to share this technology with other practices that might be looking to introduce case and risk management systems and to offer the portal with no set up costs or ongoing support charges.    At the same time we are busy integrating the system with third party suppliers such as search and indemnity insurance providers in the hope that in time with commission payments funding the maintenance and future development of the system we will be able to offer the portal as a free service’.


For further information David Pett can be contacted at david.pett@moveandlong.co.uk





Is the client always right?

It was once said that as a nation we are very reserved in our ways and are reluctant to complain when something goes wrong. This may be down to a sense of reasonableness, a desire to give people the benefit of doubt and to realise that in life mistakes do from time to time occur.

I have in recent times however noticed a major shift in attitude, people in general I find are less tolerant when it comes to mistakes and are less likely to be forgiving when things do not go their way.  This may be to do with the lack of money; the scramble to make savings and even the hope that by complaining a financial gain may follow.

Working in the service industry I work hard putting into place procedures and training sessions for staff to ensure that customer relations is given the priority it deserves.  I work tirelessly to do all I can to ensure mistakes do not happen but as with most aspects of life it is inevitable that there will be times when oversights or mistakes are made.  

I always like to think that if you admit the mistake as soon as it happens and do not fall into the trap of trying to defend the indefensible that the client will understand and a swift resolution should then follow.  

In the majority of cases this is often the outcome, though speaking to others it seems there is of late an increasing trend for complainants to seize the opportunity to make life difficult for the person or company responsible for the mistake.  More often than not this particular stance in money motivated  - the hope is that by taking the offensive it will result in a financial reward.

The difficulty this causes is that however hard one works to find a satisfactory resolution if the agenda of the complainant is different the chances of preserving a congenial relationship with the client/customer is almost bound to be lost.  You find yourself in a ‘no win’ situation and one that leaves even the most conscientious practitioner feeling extremely deflated. 

Much emphasis is given to the use of complaints procedures and of the need to follow these at all times.    There is no doubt that a process of this type is essential but I do question the effectiveness of such procedures in dealing with the hard nosed complainant who is determined to get his or her ounce of flesh irrespective of the merits or otherwise of the complaint.

The problem service providers face is that with increased access to consumer redress schemes, and the fear of adverse publicity on Google and other sites where the client/customer can rate the supplier, the complainant will always have the upper hand.    How many of us would risk finding ourselves on the end of a negative rating and one that could be set in stone even where there is no justification. 

So what can one do to avoid this?  Well in short very little as even with the best will in the world one can not avoid the serial complainer or the complainant who complains for no reason other than to seek a reduction in your fee or some other financial gain.  All one can do is to operate a robust complaints procedure and to be firm and fair in its application. 

Undertaking high volume of work particularly as low cost increases the risk of complaint not only statistically but in terms of clients/customers seem to expect more for their money and are more likely to complain if the service does not live up to their expectation.

The upshot of all of this is that complaints are an occupational hazard and one that in addition to operating a complaints procedure we should make provision for both financially and in the setting aside of management time.


Morgan Jones and Pett are solicitors who provide legal advice and services to clients based in England and Wales and who can be contacted on 01603877000 or via email at davidpett@m-j-p.co.uk

Thursday 6 October 2011

What is equity release?

Equity release is a term that refers to various ways in which mainly older homeowners can use their homes to generate income or lump sums, either with a mortgage repayable on death, or by selling the property (or part of the property) but continue to live in it during their lifetime.

If anybody thinking about entering into a scheme of this type it is most important to seek advice from a solicitor who has experience in dealing with these transactions.

A good solicitor will warn you about certain aspects of these arrangements which are as follows:

Maintenance and repair

You will continue to be responsible for maintaining and repairing the property and therefore you should ensure that you have sufficient reserves to meet your obligations.

Some arrangements place an obligation on you to seek the consent of the lender before carrying out any alterations or making any additions.

All adult owners and occupiers in these arrangements have to be part of the loan agreement. If they are not and you were for example to die then the other adults in the property would have to move out.

Moving home

Most of these arrangements will allow you to move home providing the new home that you are moving into will act as sufficient security for the loan. If you were to move to a property which didn’t act as sufficient security you may have to repay all or part of the existing loan before you could move.

Welfare benefits

Receiving a large amount of money from an equity release could affect your entitlement to means tested welfare benefits and services both now and in the future. One area is of particular importance and that concerns possible financial support towards the cost of the care services.

Tax

There could be tax implications and it is important that you should seek advice from an accountant or tax specialist about these. Some arrangements can be structured in such a way as to reduce or eliminate liability to inheritance tax.

Beneficiaries

Releasing equity from the property will of course diminish the value of your estate and the amount your beneficiaries will inherit upon your death. It is always important therefore to discuss the issues with your beneficiaries to ensure that they fully understand the implications to avoid any misunderstanding in the future.

There are a lot of credible schemes out there that operate in this field but equally there are a number of less desirable schemes and it is for this reason as I say at the beginning it is important to seek expert advice from a solicitor on these arrangements before making a final decision.

Any questions please feel free to email me.

Morgan Jones and Pett are solicitors who provide legal advice and services to clients based in England and Wales and who can be contacted on 01603877000 or via email at davidpett@m-j-p.co.uk

Dont let romance blind you when buying a home!

I have acted for many first time homebuyers and as you would expect many of these clients have had to make significant financial sacrifices to save money for a deposit.  For many of these clients their heads are very much in the clouds. The romance of living and owning a home together for the very first time makes it difficult to discuss and provide advice on the financial implications of what is clearly a major life changing decision.

In a number of these cases advice has to be given because one partner may be putting more money into the transaction than the other. It is not uncommon for the deposit to be as much as 30% of the purchase price and for this to be funded by savings accumulated before the couple met. This is not of course an arrangement confined to the first time buyers.  There are also clients who are for example looking to buy a property with a new partner following death, separation or divorce.

The common thread is that at this point in time the relationship may be at an early stage and the buyers are only really concerned about the immediate future, and not what might lie ahead.

In general, couples purchasing a home instruct me that they wish to purchase the property as “joint tenants”. The significance of this is that if one of the partners were to die then the share of the profit in the property would automatically pass to the other partner, even if the deceased partner makes a different provision in his or her will.  A Court would not be able to interfere in that arrangement even if the deceased partner had contributed more towards the purchase of the property when it was originally purchased.

Even though it is often an unpalatable exercise I always advise my clients that they should think about whether it would still be their wish for their share to pass to the other in the event of death or separation.  More than often they shrug their shoulders and I am greeted with a perplexed look.

There are times however when I am instructed to set up the way in which the property is bought so as to provide for the equity (money left over after the mortgage and fees are paid) in the property once it is sold, to be divided on an unequal and predetermined basis.

If one party for example put 2/3 of the money forward for the deposit and the other the remaining 1/3 then they might instruct me to ensure that the property is held in such a way so as to provide that 70% of the equity/profit in the property goes to one, and 30% of it goes towards the other.

There are also three or four other different ways in which unequal contributions can be recorded and it is therefore important that if you are in this situation and seeking advice that you ask your solicitor to explain these options to you. The way in which the division of the proceeds is expressed at the outset can have quite a substantial bearing on the financial outcome in the event of a future sale.

Even though your solicitor may try and persuade you to look beyond the romance of owning your first home together you may still decide even though unequal contributions are made, for the property to be held jointly. This is understandable. There is however a half way house in that you can instruct your solicitor to record that you are holding the property as joint tenants but that if anything happens in the future, and one of you decides that you want to serve notice to say to the other to say this arrangement should no longer apply, that the net process should then be divided in accordance with shares predetermined at the point of purchase.

I am happy as ever to answer any questions you might have about this or any aspect of property transactions. Please feel free to email me at my email address shown below.

Morgan Jones and Pett are solicitors who provide legal advice and services to clients based in England and Wales and who can be contacted on 01603877000 or via email at davidpett@m-j-p.co.uk

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