Page 264 - IOM Law Society Rules Book

ADVOCATES ACCOUNTS RULES 2008

(a) appropriate systems are in place to ensure compliance;
(b) appropriate instructions were given to the client;
(c) the client’s mistake is remedied promptly upon discovery; and
(d) appropriate steps are taken to avoid future errors by the client.
(ix) “Properly” in rule 19(2) implies that the work has actually been done, whether at the end
of the matter or at an interim stage, and that the advocate is entitled to appropriate the
money for costs.
(x) Costs transferred out of a client account in accordance with rule 19(2) and (3) must be
specific sums relating to the bill or other written notification of costs, and covered by
the amount held for the particular client or controlled trust. Round sum withdrawals on
account of costs will be a breach of the rules.
(xi) In the case of a controlled trust, the paying party will be the controlled trustee(s)
themselves. The advocate must keep the original bill or notification of costs on the file,
in addition to complying with rule 32(8) (central record or file of copy bills, etc).
(xii) Undrawn costs must not remain in a client account as a “cushion” against any future
errors which could result in a shortage on that account, and cannot be regarded as
available to set off against any general shortage on client account.
(xiii) The rules do not require a bill of costs for an agreed fee, although an advocate’s VAT
position may mean that in practice a bill is needed. If there is no bill, the written
evidence of the agreement must be filed as a written notification of costs under rule
32(8)(b).

Rule 20 – Receipt of mixed payments

(1) A “mixed payment” is one, which includes client money or controlled trust money as
well as office money.

(2) A mixed payment must either;

(a) be split between a client account and office account as appropriate; or

(b) be placed without delay in a client account.

(3) If the entire payment is placed in a client account, all office money must be transferred
out of the client account within 14 days of receipt.

(4) See rule 19(1)(b) and (c) for additional ways of dealing with (among other things)
mixed payments received in response to a bill or other notification of costs.

(5) See rule 21(1)(b) for (among other things) mixed payments of Legal Aid costs received
from the Treasury.

Note
“Without delay” is defined in rule 2(2)(bb).

Rule 21 – Treatment of payments to legal aid practitioners

Payments of Legal Aid Costs from the Treasury

Rule 21 – Treatment of payments to legal aid practitioners page 21