Insurers of solicitors’ firms that have been intervened by the Law Society are not entitled to search through all the Law Society’s documents for evidence that would enable them to refuse an indemnity, the High Court has ruled.

In Quinn Direct Insurance v Law Society of England & Wales [2009] EWHC 2588 (Ch), claims had been made by third parties against a two-partner firm regarding payments made out of the client account in connection with conveyancing transactions carried out by one of the partners. Quinn contended these claims suggested dishonesty by that partner and declined to provide an indemnity to him on those cases. After the Law Society intervened in the firm and took possession of all its files, Quinn requested access to see whether there was evidence linking the other partner to the dishonest actions.

Quinn argued that since solicitors’ insurance was part of a statutory regime, it was entitled to access the documents just as the Law Society was; further Quinn claimed the right under the insurance policy’s clause on dealing with notice and claims.

However, Justice Peter Smith held that providing insurance under the provisions of the Solicitors Act 1974 did not allow Quinn to act like the Law Society or give it unfettered access to the documents. This would also be a breach of the clients’ confidence or privilege, and as legal custodian of the documents, it was the Law Society’s duty to preserve confidentiality and privilege where it arose. The Law Society was entitled to consider specific requests for specific documents, but could not turn over all the firm’s files. Smith J also held that the policy did not create a free-standing obligation to provide information whenever the insurer required it.