Will the members of Ireland’s Law Society agree to provide emergency financial support for the SMDF (Solicitors Mutual Defence Fund)? The answer to that question hangs on the outcome of a postal ballot called for at a special general meeting of the Society.
The SMDF, set up to provide affordable professional indemnity insurance for the Society’s members, is set be wound up anyway. But with uninsured liabilities of some €16 million, how orderly will that wind up be? The proposal being voted on is that a levy should be imposed on all of Ireland’s practicing solicitors (both the minority insured by the Fund and the majority who are covered by commercial insurers) to ensure that existing claims can be paid.
If the proposal gets voted down, there would seem to be no alternative to the appointment of a liquidator who could refuse to pay out on those claims. It would also mean that firms insured by the Fund would be forced to seek out professional indemnity cover from commercial insurers – something which many of them will find difficult if not impossible to do.
Announcement of the result of the ballot is expected in mid-June.
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