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Abolition of scale fees
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In response to comments made by the Law Societies of England and Hong Kong in defence of scale fees, a spokesman for the Legal Department said today (Tuesday) that he was not surprised that these bodies should oppose the abolition of scale fees in Hong Kong. However, consumer groups in both jurisdictions are overwhelmingly opposed to scale fees.
As to the effect of the abolition of scale fees in England, the spokesman pointed to the report of the English Law Society's special working party on conveyancing services, which reported in March 1994. The report included the following findings:
"We have been advised that any scale of fees........would be impossible to justify in the public interest"
"We have concluded that compulsory and recommended fee scales would be unworkable and ineffective"
"Research has yet to establish a link between unrealistically low prices and higher-than-average levels of complaints or indemnity claims."
Since then, some English solicitors have been trying to establish such a link but, in the recent words of the past chairman of the special working party. "Despite extensive research no conclusive connection has been found between low cost conveyancing and negligence."
The spokesman added that the English Law Society was not proposing to re- introduce mandatory scale fees. Its proposal is that there should be guideline minimum fees, and that any solicitor charging lower fees should not be covered by the collective indemnity fund. Any such change would need to be approved by the Master of the Rolls, Sir Thomas Bingham, who has already warned that the proposals may be unlawful or contrary to public policy.
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