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Legal Services Bill [HL]

moved Amendment No. 149ZM: 149ZM: Schedule 16, page 228, line 12, at end insert— ““( ) after ““relieving that loss”” omit ““or hardship””,”” The noble Lord said: This amendment concerns the compensation fund, which is a discretionary fund of last resort. It is designed to provide a measure of compensation for clients where legal claims that they may have against solicitors cannot be met. For example, their claims might fall outside the scope of indemnity insurance. Although it is reasonable that loss to the client should entitle him to consideration for a grant from the fund, it is not so obvious why that should be the case with hardship on its own. The amendment would therefore remove hardship as a criterion of entry to the compensation scheme and loss would become the sole criterion, which seems entirely appropriate. If the principle of Amendment No. 149ZM were accepted, we would seek a number of consequential amendments. We are asking the Government to provide justification for allowing hardship without loss as a basis for an application to the compensation fund. I beg to move.