The Law Society has launched proceedings against the Secretary of State for Justice Jack Straw and the Office for Legal Complaints (OLC) over the impending impact of the Legal Services Act.

The unusual case saw the Law Society go head-to-head with the Government in a three-day hearing in the Queen's Bench Division of the High Court that started earlier this week (15 February).

The hearing, which followed a claim form issued on 22 December, comes as the OLC prepares to take over solicitor complaint-handling from the Law Society in the second half of this year. The Law Society is not seeking damages but wants a "declaration as to the legal consequences of the proposed transfer of function".

In particular, the society wants clarification on whether the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) or a Cabinet Office paper on staff transfers in the public sector apply.

TUPE preserves employees' terms and conditions when a business is transferred to a new employer and the Law Society is concerned it will be financially liable for current employees if there are redundancies or if it has failed to inform or consult on redundancies or on TUPE.

Hill Dickinson is advising the Law Society while LG is advising the OLC. The Government is being advised by Treasury Solicitors.

Law Society director of government relations Russell Wallman said: "The Law Society strongly supports the establishment of the OLC but expects those currently employed by the Legal Complaints Service to transfer to the OLC as the Government pledged."

The Ministry of Justice and OLC declined to comment.