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Bankrupt lawyers' Act passes in Senate

A law to let bankrupt lawyers practise in Bermuda was passed in the Senate yesterday— without amendment.

Last week a motion to defer The Bermuda Bar Amendment Act 2008 for more consultation was defeated by the casting vote of Deputy Speaker Dame Jennifer Smith.

The law will allow attorneys such as Julian Hall — who has twice been made bankrupt to work. Bankrupt lawyers have been banned from practising since 1984.

The Act repeals provisions of the Bermuda Bar Act 1974 which prevent an undischarged bankrupt from practising.

It will allow bankrupt lawyers to continue to work, but with conditions including being restricted from practising real estate law and operating trust accounts.

The lawyer would also be restricted from receiving advance fees such as retainers.

Senate leader David Burch lashed the Opposition for seeking to defer the bill which he said corrected a long-standing wrong from the 1984 bill which he said had been an attempt to remove, punish and crucify one individual.

"It's wickedness, that's what it is," said Sen. Burch.

Earlier the Opposition had complained about the lack of consultation but Sen. Burch said consultation these days too often was seen by groups as "do as I say".

Sen. Burch continued: "In 1984 you consulted no one. Legislation that comes here is never perfect, you pass legislation then you come with amendments.

"We think today we have the opportunity 24 years later to do the right thing."

Earlier this week the Bar Association said it supported the bill in principle but as it was formulated it did not sufficiently protect the integrity of the profession and the members of the public.

United Bermuda Party Senator Michael Fahy said the Opposition also supported the amendment but he said lawyers had not been given enough time to review the draft bill and he urged Government to withdraw the amendment for more talks.

Attorney General Kim Wilson wrote to the Bermuda Bar Association last month about her proposal to change the law to allow bankrupt lawyers to practise here for the first time since 1984, explaining that she wanted to table it in the legislature this session.

The Association's elected Bar Council gave its approval in principle to the proposal before seeing the draft legislation and then canvassed members' views, giving them less than a week to reply to an e-mail poll.

Ninety lawyers responded, representing less than a quarter of the association's 385-strong membership, with 70 of those supporting the change. Then a meeting was held and most present backed a motion voicing concern.

The Bar Council wanted a provision enabling it to impose additional restrictions when it was appropriate and it said the provision on trust funds was not clear enough.

Senate President Carol Bassett said she had looked for bankruptcy provisions in the acts governing professions such as accountancy and could find nothing.

She said the Bermuda Bar Act was the only one to discuss bankruptcy and it was time to remove it and get the Bankruptcy Act to govern all professions.