Minister says loan issue will be studied

Any outstanding issues relating to how solicitors deal with mortgage lending will be addressed, the Dáil was assured.

Minister for Justice Brian Lenihan said it was in everybody's interest that the best practices, which clearly existed, were followed.

"In so far as there are any matters to be reviewed, or issues to addressed, the responsible Ministers will do so."

Mr Lenihan, whose script was read to the Dáil by Minister of State for Agriculture Trevor Sargent, was replying, on the adjournment, to Meath East FF TD and solicitor Thomas Byrne. The Government backbencher stressed the need for further regulation of the system of solicitors' undertakings on mortgage lending.

Mr Lenihan said he could not comment on individual cases, especially as the issues raised were linked to a matter currently before the courts.

"It is important to understand what, in particular, constitutes a solicitor's undertaking as distinct from any other type of undertaking.

"Essentially, the undertaking by a solicitor is a promise or guarantee given by the solicitor in his or her professional capacity to do, or undertake to do, certain things.

"As the undertaking is given in the solicitor's professional capacity, it must be honoured by the solicitor.

"Where a solicitor fails to honour an undertaking, it is considered to be professional misconduct and, as a result, the solicitor is rendered liable to the Law Society's disciplinary procedures and to investigation by the solicitors' disciplinary tribunal."

Mr Lenihan said the tribunal, appointed by the President of the High Court with lay members, was independent of the Law Society.

The tribunal, he added, had limited judicial powers and its primary function was to establish, by evidence and documents, the facts of a complaint and to decide whether misconduct was proved.

"Where there is a finding of misconduct, the tribunal can itself impose a sanction on the solicitor which can include a direction to pay restitution to any aggrieved party, or the tribunal may refer its findings and recommendation to the President of the High Court who, ultimately, will decide on the nature of the sanction to be imposed on the solicitor, which can range up to striking of the solicitor off the roll."