NEXT week about
1,000 solicitors from throughout England and Wales gather for their
annual conference. Numbers are likely to be at record levels, and not
just because the venue is London, the legal capital of the world.
Solicitors ó corporate ěfat catsî or legal aid lawyers in the high
street ó are facing an overhaul that will fundamentally change the way
they work and offer services to the public.
In a decade not just the name but the traditional life of a solicitor
may have vanished. In its place, lawyers and para- legals will share
one-stop shops: they will set up with accountants or bankers in
multiprofessional practices. Or they will sit in booths in supermarkets
and chainstores, giving legal advice to people as they shop.
And as lawyers move into the marketplace, the market will move into
law. Banks, building societies and others will give legal advice to
their clients, handling probate and estates.
Janet Paraskeva, who for three years has been chief executive of the
Law Society, sees the proposals as a challenge. ěThe profession ó and
the society ó is facing what could be a very exciting time. We are
looking at a revolution in legal services, and from the perspective of
all the professions, not just solicitors, and what it means for lawyers
in this country, with the global markets City lawyers service and for
the future of the high street and publicly funded work. It is about new
ways of delivering access to justice.î
Fresh ways of providing legal services to the public are one thing;
regulating those services is another. In July the Lord Chancellor
announced a review by David Clementi, chairman of the Prudential, while
predicting that the Law Society was likely to lose its right to
selfregulation. It is something that solicitors will fight. ěWhat is
important is the professionís independence, and part of that is
self-regulation,î Paraskeva says. ěThat has to be its mainstay . . .
itís non-negotiable.î
The profession is already multifaceted. It covers all kinds of legal
work and law practices that are poles apart in earnings, working styles
and laws applied. But, Paraskeva argues, the common thread is the
ethics, standards and professional rules they work to: they are all
solicitors. The Law Society, as regulator, enforces the rules.
It also, though, has the job of ensuring that consumers ó the public
ó obtain proper and speedy redress if dissatisfied. On this second limb
the society has faced increasing criticism. Despite measures costing Ł21
million and a period of respite when the backlog was cut, complaints are
rising again. Last week the society announced a move to stem the tide, a
new complaints directorate to deal only with the public and not with the
enforcement of rules. The focus, Paraskeva says, will be on customer
care and speedy handling of complaints of shoddy work. ěWe are putting
the consumer first. Itís a statement by the profession that recognises
the importance of handling complaints.î
The Lord Chancellor has been looking at whether to invoke powers that
he has to appoint a new complaints commissioner as an overarching
complaints regulator that can impose fines. Will the societyís new
complaints body stave off this move? That is not its intention,
Paraskeva says. ěIt is to ensure that we handle complaints better.î But
she opposes what she says would be just ěanother layer of bureaucracy
and costî.
The societyís record on complaints has made solicitors vulnerable
over regulation. But if they have their backs against the wall on
regulation, they are leading the charge over what is dubbed Tesco Law.
Big City firms want to be able to set up with accountants, and many
would not opppose being allowed to provide services for the public while
being employed by supermarkets or Marks & Spencer. ěIf a way can be
found to regulate it, people realise that there are real commercial
benefits and opportunities for them in opening up the market ó though
some worry about the impact of competition on the high street,î
Paraskeva says.
Richard Miller, chairman of the Legal Aid Practitionersí Group, fears
that that competition could kill the small firm and access to legal
services. ěLegal aid work in many firms is cross-subsidised,î he says.
ěIf prices come down because of competition, many firms wonít be able to
subsidise legal aid work. Itís like the high street greengrocer or
chemist ó many have been forced to close.
ěIf the Government is committed to a network of publicly funded legal
services, it has to address that problem. We will have to look at other
models, at GP practices ó salaried services. But the Clementi review is
going to have a major impact.î
Meanwhile, with legal aid rates squeezed, access to legal services is
already threatened. Middle-income litigants face a similar problem.
Richard Fox, immediate past chairman of the London Solicitorsí
Litigation Association, says that ěno win, no feeî deals have not proved
to be the promised panacea. ěIt is very hard to get the funding to run
claims and insurance premiums can be substantial. And at the end of it,
thereís all the argument over costs. So theyíve not worked in widening
access to justice as we hoped.î
A radical review is needed, he says, which could see ěno win, no feeî
work replaced by US-style contingency fees, where lawyers are paid with
a slice of the damages.
Paraskeva does not believe that the reforms mean the death of the
high street solicitor, rather a wider choice so that the public can
choose the kind of lawyer they want. ěItís a real opportunity for the
profession to reshape itself, building on its strengths,î she says. In
her three years, competition has had the biggest impact. ěSolicitors
have realised that they must look at delivering services in a
competitive way, and they are now ready to embrace that.î
Changes in store
Regulatory framework for all legal services ó possibly on Financial
Services Authority model
Lawyers, accountants and bankers will be able to form one-stop
partnerships; probate market opened up
Lawyers to be allowed to offer services to the public while employed
by banks, supermarkets and others