Parry-Jones v Law Society

JurisdictionEngland & Wales
JudgeLORD JUSTICE DIPLOCK,LORD JUSTICE SALMON,THE MASTER of THE ROLLS,THE MASTER OF THE ROLLS
Judgment Date15 November 1967
Judgment citation (vLex)[1967] EWCA Civ J1115-2
Date15 November 1967
CourtCourt of Appeal (Civil Division)
Parry-Jones
Plaintiff
Appellant
and
The Law Society and others
Defendants
Respondents

[1967] EWCA Civ J1115-2

Before

The Master of the Rolls (Lord Denning)

Lord Justice Diplock and

Lord Justice Salmon

In The Supreme Court of Judicature

Court of Appeal

Civil Division

From Mr Justice Buckley

THE APPELLANT appeared in person.

MR THOMAS BINGHAM (instructed by Messrs Hempsons) appeared as Counsel for the Respondents.

1

THE MASTER OF THE ROLLS. For many years now the Law Society have made rules about clients' money. Every solicitor has to keep his clients' money in a separate account relating to clients' money. This has been a very important safeguard for clients all over the country. Every solicitor has also every year to engage an accountant to examine his accounts and to give a certificate that he is complying with the rules, In addition, the Council can send down an accountant of their own choice to make an investigation of the solicitor's books to see if he is complying with the rules.

2

On the 9th February, 1967, and also on the 3rd March, 1967, the Law Society wrote to Mr 'Parry-Jones requiring him to produce at his office his various books of account for the inspection of Mr Harden, the Law Society's investigating accountant. As far as we know, Mr Parry-Jones has complied with that request and the investigation has been held. But in the course of it, Mr Parry-Jones raised two points of some importance. And he has brought an action to test the position. The first point is this. He says that he is not bound to produce to the accountant a document or information which is privileged from production. We all know that, as between solicitor and client, there are two privileges. The first is the privilege relating to legal proceedings, commonly called legal professional privilege. A solicitor must not produce or disclose in any legal proceedings any of the communications between himself and his client without the client's consent. The second privilege arises out of the confidence subsisting between solicitor and client similar to the confidence which applies between doctor and patient, banker and customer, accountant and client, and the like. The law implies a term into the contract whereby a professional man is to keep his client's affairs secret and not to disclose them to anyone without just cause, see Tournier v. National Provincial Bank, 1924, 1 King's Bench, at pages 479-481. This particularly applies inthe relationship of solicitor and client. The solicitor is not to disclose bis client's affairs to anyone at all except under the most special and exceptional circumstances. In reliance on these principles, Mr Parry-Jones says that" the accountant sent by the Law Society should not be allowed to see documents or information relating to a client's affairs.

3

We have been into the matter with the help of Mr Parry-Jones (who has argued his case very well on his own behalf) and Mr Bingham on behalf of the Law Society. In my opinion the contract between solicitor and client must be taken to contain this implications. The solicitor must obey the law, and, in particular, he must comply with the rules made under the authority of statute for the conduct of the profession. If the rules require him to disclose his client's affairs, then he must do so.

4

The rules are made under Section 29 of the Solicitors Act, 1957. It says: "The Council shall make rules - (a)- as to the opening and keeping by solicitors of accounts at banks for clients' money; (b) as to the keeping by solicitors of accounts containing particulars and information as to moneys received, held or paid by them for or on account of their clients; and (c) empowering the Council to take such action as may be necessary to enable them to ascertain whether or not the rules are being complied with". All the matters contained in (a), (b) and (c) are clients' matters. The books and accounts contain information as to clients' affairs. By enabling the Council to "take such action as may be necessary", the statute imports that rules can be made whereby the Council can look into the solicitor's books and supporting documents in order to see that the rules are complied with, even if it does mean disclosing the clients' affaire.

5

Under the statute the Council have made Rule ll(1) of the Accounts Rules, which says: "In order to ascertain whether these rules have been complied with, the Council, acting either-(a) on their own motion; or (b) on a written statement or request transmitted to them by or on behalf of the governing body of a Provincial Law Society or a Committee thereof; or (c) on a written complaint lodged with them by a third party, may require any solicitor to produce" his books, and so forth. In my opinion that rule is a valid rule which overrides any privilege or confidence which otherwise might subsist between solicitor and client. It enables the Law Society for the public good to hold an investigation, even if it involves getting information as to clients' affairs. But they and their accountant must, of...

To continue reading

Request your trial
109 cases
5 firm's commentaries
  • The Final Whistle On Sports Direct -v- Financial Reporting Council – Game Over?
    • United Kingdom
    • Mondaq UK
    • 21 February 2020
    ...Court of Appeal's decision has revisited both the authorities from which the concept originates (Parry-Jones -v- The Law Society and Ors [1969] 1 Ch 1 and R (Morgan Grenfell & Co Ltd) -v- Special Commissioner of Income Tax and Another [2002] UKHL 21, [2003] 1 AC 563) and the cases which......
  • Investigations & Legal Professional Privilege
    • United Kingdom
    • Mondaq United Kingdom
    • 24 May 2002
    ...preservationî of legal professional privilege. Lord Hoffman explained the 1970 Act provision by reference to Parry-Jones v Law Society [1969] 1 Ch 1, in which the Court Appeal held that the Law Society could require a solicitor to produce documents relating to his practice to an appointed i......
  • The Perimeters Of Privilege: England And Wales Court Of Appeal Takes Exception To Exception
    • United Kingdom
    • Mondaq UK
    • 3 March 2020
    ...degree of clarity and finality to these issues. Footnotes 1 [2020] EWCA Civ 177; https://www.bailii.org/ew/cases/EWCA/Civ/2020/177.html 2 [1969] 1 Ch 1 3 [2003] 1 AC 563 Visit us at mayerbrown.com Mayer Brown is a global legal services provider comprising legal practices that are separate e......
  • Court Of Appeal Finds Regulator Cannot Demand Production Of Client's Privileged Documents Unless Statute Overrides Privilege
    • United Kingdom
    • Mondaq UK
    • 5 March 2020
    ...SDI was nevertheless required to produce privileged documents. Those comments related to the rationale behind Parry-Jones v Law Society [1969] 1 Ch 1, in which the Court of Appeal held that a solicitor being investigated by the Law Society could not refuse to hand over documents requested p......
  • Request a trial to view additional results
8 books & journal articles
  • Mortal dangers, moral hazard and mortgage lending by solicitors: an international perspective
    • United Kingdom
    • Journal of Financial Crime No. 10-3, July 2003
    • 1 July 2003
    ...not inform her becausethey were concerned about `tipping o' Ðsee p. 368, perLord Bridge. See also Phipson on Evidence (2000) p. 508.(35) [1969] 1 Ch 1, 8.(36) [2002] UKHL 21.(37) Ibid., para. 32.(38) The SDT found that Mr E `acted in a systematicallydishonest manner', SDT 8321/2001 p. 30.(......
  • Common Law Bank Secrecy and its Implications for US Securities Laws
    • United Kingdom
    • Journal of Money Laundering Control No. 2-4, February 1999
    • 1 February 1999
    ...confidences, see Minter v Priest (1930) AC 558 (Eng.); O'Rourke ν Darbishire (1920) AC 581 (Eng.). (64) See Parry Jones ν Law Society [1969] 1 Ch. 1, 9 (Eng.). (65) See Ellinger, ref. 61. (66) Powell, R. (1961) 'Law of Agency', 2nd edn, pp. 25-26. (67) [1924] LKB 461 (Eng.). (68) Hapgood, M......
  • Money Laundering: Transnational Criminals, Globalisation and the Forces of ‘Redomestication’
    • United Kingdom
    • Journal of Money Laundering Control No. 1-1, January 1997
    • 1 January 1997
    ...pp. C-57-C-60. (26) Megrah, M. and Ryder, F. R. (1972) 'Paget's Law of Bank-ing', 8th edn, Butterworths, London, p. 167. (27) [1968] 1 All ER 177, at p. 180. Cited in Chorley and Smart, ref. 22. (28) [1974] QB 76. Cited in Chorley and Smart, ref. 22, p. 13. (29) See also Williams and Others......
  • Bank secrecy in Australia: terrorism legislation as the new exception to the Tournier rule
    • United Kingdom
    • Journal of Money Laundering Control No. 8-1, January 2005
    • 1 January 2005
    ...67; Australian Analysis Reportsand Analysis Centre, with details available at http://www.austrac.gov.au/.(15) Parry-Jones v Law Society [1969] 1 Ch. 1 at p. 9per Diplock LJ.(16) eg Evidence Act 1906 (WA) ss. 89±94; 1929 (SA) Part 5; 1971(ACT) Part 5.(17) Smorgon v Commissioner of Taxation o......
  • Request a trial to view additional results
1 provisions
  • Liverpool Corporation Act 1969
    • United Kingdom
    • UK Non-devolved
    • 1 January 1969
    ...whether the statutory undertakers could obtain adequate access to individual buildings by means of, and adequate Liverpool Corporation Act 1969 Ch. 1? accommodation for apparatus in, streets or city walkways or parts of city walkways to which subsection (1) of section 21 (Statutory undertak......

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT