delete Solicitors (Compensation for Inadequate Professional Services) Order 2005
This Order amends Schedule 1A to the Solicitors Act 1974, raising the maximum compensation that can be awarded for inadequate professional services by solicitors from £5,000 to £15,000.
This regulation caps liability for solicitors, limiting client recovery for inadequate services. A compensation cap distorts the market for legal services by reducing solicitors' incentives to maintain quality, creates moral hazard by insulating professionals from full consequences of poor service, and prevents clients from recovering full losses when damages exceed £15,000. Such price controls on liability protect the profession at clients' expense and should be removed to restore accountability and allow contractual freedom.