SLCC records rise in complaints in 2021-22 report

A rise in the number of complaints about solicitors has been reported by the Scottish Legal Complaints Commission in its annual report for the year to 30 June 2022, published today.

New complaints received totalled 1,159, up from 1,054 in 2020-21. Of these, 1,146 were about solicitors or firms of solicitors (up from 1,033) and 12 about advocates (down from 21). The numbers accepted for investigation were 492 about solicitors (up from 437) and five about advocates (down from six). There were no complaints about commercial attorneys.

Complaints closed at all stages totalled 1,158, down from 1,186, and 459 remained open at the end of the year, up from 388. “The overall timescales went down and we updated our public estimated timescale for all stages from 11 months to 9.5 months”, the report states.

But it describes non-co-operation by solicitors with its investigations as “now the single biggest delay in our investigation times”, and during the year it took the “unprecedented step” of raising Court of Session actions to recover files. “We will continue to do this as long as is necessary to be able to deliver our statutory duties.”

Of complaints closed, 162 were rejected as premature (down from 196), 646 were included at eligibility stage, including accepted conduct (up from 545), 80, or 76% of cases referred, were resolved by mediation (down from 90), 137 after investigation (down from 224), and 133 by determination (up from 131). Just over 300 were resolved, withdrawn or discontinued before a decision to accept or reject.

Decisions resulted in awards totalling:

• £240,586.78 in compensation for inconvenience and distress;
• £112,487.52 in compensation for financial loss; and
• £68,728.89 in fee reductions and fee or outlay refunds.

During the year the SLCC trialled simultaneous investigations with the Law Society of Scotland for hybrid complaints so that both bodies investigate at the same time. “This has only been practical since we moved to digital investigation files”, the report states. “There is a huge potential benefit to those involved in the complaints process, as they don’t need to wait for one organisation to finish to start the next investigation.”

Surplus

In its annual accounts the SLCC reports a surplus of £343,488 for the year, down from £533,108 in 2020-21. This results from income being £151,862 higher than expected, due to higher complaint levy income and recovered secondment income, and expenditure underspending by £185,445 through staffing and member costs.

The accounts report adds: “However, the board is also considering the potential need for reserves to empower longer term efficiency work, for example, a potential downsizing of property need with upfront costs but the potential for long term savings. The need for operating reserves, and for this type of investment reserve, will be fully considered in the budgeting process for 2023-24 (which take place in the autumn of 2022). There is also the need to consider the impact of increasing costs due to inflation and pay on the SLCC’s finances.”

"Year of change"

Chief executive Neil Stevenson commented: “This has truly been a year of change and adaptation for the SLCC as we have built on the learning of the past two years in supporting our customers and our staff, and look at how we drive and adapt to future change.

“We reduced the levy as soon as complaints and costs started to fall and reduced it even further the following year as that trend continued. However, with complaints rising again we’ve recently been recruiting new staff to deal with the increasing numbers. That, alongside changes in the wider operating environment of rising inflation, legal costs and energy prices, creates greater uncertainties in our planning.

“However, I believe there are real opportunities to improve the overall framework for legal complaints and regulation, and our own ways of working within it, and we want to seize those.”

Jim Martin, SLCC chair, who is standing down at the end of 2022, added: “We have continued to grow as a complaints and oversight body, and we will continue to use that experience and expertise to call for reform that will improve the efficiency and effectiveness of legal service regulation and complaints. 

“Although we continue to look for and implement efficiencies in our ways of working, we believe that the key opportunities for improvement are in reducing delays in getting the files and responses we need from firms to investigate cases, and in removing unnecessary prescription in the statutory process.

“I want to commend the organisation, its staff and board for the hard work that has gone into that drive for improvement again this year, one which I know will continue to be a key theme in the years to come.”

Access the annual report here, and the annual accounts here.