SLCC issues reminder over duty to offer ADR
Solicitors are under a duty to offer clients details of alternative dispute resolution (ADR) procedures at the conclusion of their internal complaints processes, the Scottish Legal Complaints Commission has reminded the profession.
The duty arises under the EU's ADR Directive, which came into force throughout Europe on 1 October 2015. It aims to allow consumers and traders to resolve their disputes in an easy, fast and inexpensive way without going to court. Due to the contractual nature of the relationship between solicitors and their clients, where there has been payment for legal services, the regulations must be applied.
The duty applies even though there are currently no certified ADR entities appointed in Scotland specifically for Scottish legal services. Legal firms should provide details of a certified ADR provider (those certified at present are Ombudsman Services, ProMediate and Small Claims Mediation (UK) Ltd), and inform the client whether or not they (the firm) intend to use that provider.
While the SLCC itself operates a free statutory dispute resolution scheme, which it expects most legal firms to continue to use, it is not yet a certified ADR entity for legal services in Scotland, and has put on hold any application to become certified to allow for further consideration on what changes might be necessary in terms of its own rules and legislation, and the potential impact on both consumers of legal services and the legal profession.
It points out that firms are not obliged to use an ADR scheme, and are therefore at liberty to continue its own scheme. However, firms are obliged to tell a consumer about a certified ADR provider.
From 15 February 2016, additional requirements will apply to all businesses who sell their goods or services online.