Lawyers paying the price

LAW FIRMS in the UK are feeling the pinch as the Law Society issues a tougher framework for practices following the scandal of disgraced Irish lawyer Michael Lynn.

Lawyers have seen professional insurance claims double over the last year as firms fight to cover themselves against cases such as the Michael Lynn saga which saw the rogue lawyer disappear with 80 million euros.

The Law Society and the Solicitors’ Mutual Defence Fund (SMDF) collects payments from almost half of the UK’s lawyers and is a non profit making underwriting service for lawyers.

The SMDF fund paid out 4.2 million euros in 2007, covering almost all the former clients of Michael Lynn while in the first six months of 2008 the number of claims made to the SMDF totalled 13.5 million euros, again mostly relating to the Michael Lynn case.

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