Jonathan Goldsmith
Friday, 17 May 2013

This week, the Council of the International Bar Association (IBA) will consider Anti-Corruption Guidelines for Bar Associations. I remember when this was discussed in one of the IBA policy groups of which I am a member. The representatives from bars in the west (and from at least one other developed country) fell silent as if a rude word had been said, and commented in embarrassment that this had nothing to do with them. Of course, they could not oppose the IBA issuing such guidelines, but they felt it had no relevance to their work or the work of their lawyer members.

We in the UK fall into the category of thinking that corruption is something which largely happens elsewhere, where people have religions or skin colours different from our own. But there was a recent conference held by the University of Liverpool and the Centre for Crime and Justice Studies called ‘How corrupt is Britain?’.

The background note for this note said: ‘Thanks to the daily reporting of major newspapers getting involved in phone tapping and payoffs to police officers, the seemingly endless examples of the falsification of police statements in some of our highest-profile cases such as Stephen Lawrence and Hillsborough, LIBOR rate-fixing, payment protection insurance mis-selling, horsemeat in our burgers, arms companies bribing foreign governments, drug companies illegally paying other drug companies to keep accessible medicines off the market, politicians being paid to ask questions and fixing expenses claims and so on and on and on, this whopping great myth is no longer plausible.’

There was a debate about the conference on Radio 4 Today’s programme, where the representative from Transparency International UK (TI-UK), an NGO committed to fighting corruption, disagreed that the UK faced such a serious problem. But it turned out to be a matter of definition. TI-UK goes along with the World Bank definition of corruption as the abuse of public office for private gain. This definition would not cover, though, some of our most serious examples, such as the LIBOR rate-fixing scandal or the phone hacking and subsequent intimidation of governments by newspapers. However, the TI-UK representative did say on the radio – and this should give us all pause – that one of the symptoms of corruption in the UK was the provision of international corruption-related services by lawyers and estate agents.

So, assuming we define it properly, corruption is our affair. Solicitors have sometimes played a major role in rooting it out – think of the part played by a handful of our colleagues in bringing the phone-hacking cases into the public eye. A lawyer, Osita Mba, was involved as a whistleblower in another of the scandals which was mentioned during the Radio 4 interview on corruption – the so-called sweetheart deal between the UK tax authorities and Goldman Sachs about how much interest Goldman Sachs should have paid in their tax settlement. In both the cases highlighted, the lawyers paid a heavy price for their struggles: the solicitors in the phone-hacking cases were themselves followed by private detectives to see if they were having an affair, and Mr Mba was suspended and subject to an intrusive investigation. In other words, fighting corruption (in its broadest definition) is not easy.

In their turn, the Law Society and the SRA have played a role in the fight against money laundering, and have issued guidance about its broader relation, corruption. The IBA’s own new guidance does not give very specific instructions about what more bars and law societies should do. It focuses on two areas in particular: the education of lawyers, and positioning the legal profession at the forefront of the campaign. Of course, as we have seen with the definition, corruption differs from country to country, and specific advice for bars in Afghanistan would be meaningless in the UK, and vice versa (do they have phone-hacking tabloids in Afghanistan, do their banks set a worldwide rate?).

That bars and their member lawyers have a role is without question. What is also clear is that, while the bar part is relatively easy, to take specific action will often take great courage from the lawyer, and this comes from commitment to a moral code. The ultra-liberalisation of the legal profession ushered in by the Legal Services Act 2007, with its undue emphasis on market values (structures, ownership, competition among others), is not necessarily the way to instil this into lawyers.

Research some years back at 10 Israeli nurseries showed that parents were less often late to pick up their children before fines were installed for late pick-up – the moral duty to arrive on time was much stronger than the financial disincentive, which allowed people to think that they could monetise their moral duties. I believe that the ability to fight corruption will come from a greater emphasis, not on market values, but on lawyers’ codes.

Jonathan Goldsmith is secretary general of the Council of Bars and Law Societies of Europe, which represents about one million European lawyers through its member bars and law societies. He blogs weekly for the Gazette on European affairs



Jonathan Goldsmith
Monday, 13 May 2013

A report was published by the European Commission this week, keenly awaited by dedicated followers of European legal fashion. It gives important insights into lawyer cross-border mobility in Europe.

By way of background, lawyers are the only profession, and one of the few sectors, which have their own sectoral directives at European level. Most others are covered by what are called horizontal directives, covering various professions and other groups lumped together. The lawyers’ directives (services: 77/249/EEC and establishment: 98/5/EC) were coming up for review, and questions had been asked as to whether lawyers should continue to have such special treatment, and, if so, what - if any - changes should be made to the directives. This report gives some answers.

In response to the big question as to whether the framework of specific lawyers’ directives should continue, the study (prepared by a consortium composed of a consultancy called Panteia, together with Maastricht University) concludes clearly: ‘The researchers think it is still necessary. Abolishing the separate legal framework for lawyers (the Lawyers’ Directives) would either lead to a less liberal regime for lawyers, or, if the system is to retain its liberal character, it would make necessary the adoption of many lawyer-specific articles in the Professional Qualifications Directive, with the result not of simplifying but rather of complicating things.’

As for specific changes, my opinion is that nothing very serious could be found to change. This is confirmed by the following sentence: ‘At EU level, the study has provided no indications that the needs of clients of cross-border legal services are not being met as a result of flaws in the legal framework or a lack of mobility of lawyers.’ As a result, the authors have pursued many smaller matters. To save you having to read all 305 pages, I will give you a brief flavour of some of them.

From the perspective of solicitors, maybe the most interesting refers to the regulation of law firms. The directives currently cover individual lawyers only, but ‘the researchers conclude that it would be good to broaden the scope of the Directives so that law firms (at least those without non-lawyer managers/owners) are recognised by them so that they can make use of the freedoms provided by them. When the Directives would include firms, it can be made clear under what conditions who/what can be refused and who/what should be allowed.’ This would be a large step, which might raise questions on whether non-EU nationals could take advantage of the directives through an EU law firm, something currently not allowed.

And so we come to the title of this piece: the issue of alternative business structures (pay attention, Legal Services Board). Article 11(5) of the Establishment Directive is the clause which currently allows a member state to keep an ABS from moving into its territory. However, ‘the researchers conclude that there is no compelling reason to change the general approach of article 11(5) of the Lawyers’ Establishment Directive’. If the Commission follows this advice, it will have a negative impact on the exportability of the ABS model.

Regarding ethics, the position is very broadly that there is a rule that both home and host state rules apply (there are variations, such as that host rules prevail where temporary services are being provided before a court). This is called ‘double deontology’ in EU parlance. There has been much discussion about whether double deontology causes irresoluble conflicts, but little hard evidence. ‘The researchers think that dismissing double deontology in favour of single deontology (home country rules for temporary services; host country rules for established lawyers) will likely be the most effective in removing the difficulties in the area of deontology.’ We will see whether national bars will be happy with this, because it means loss of control over member lawyers in one or other situation.

Regarding professional indemnity insurance, there are current problems about coverage in another member state, which are believed to arise out of the risks the insurance industry is prepared to take and the absence of true cross-border insurance. This is being looked at, among other things, by a new expert group on insurance at EU level. However, ‘the researchers suggest changing the Directive so that it states that when a lawyer renders temporary cross-border services these must be covered by his home country insurance’.

There is much more. We shall be dealing with it over the coming months. I opened with the Kinks, and so close with them, too: ‘Oh yeah, you really got me now, You got me so I can't sleep at night’.

Jonathan Goldsmith is secretary general of the Council of Bars and Law Societies of Europe, which represents about one million European lawyers through its member bars and law societies. He blogs weekly for the Gazette on European affairs



Jonathan Goldsmith
Tuesday, 7 May 2013

The struggle over the financial limits for small claims is an issue which is traditionally difficult for lawyer policymakers, because of the apparent conflict between public and private interests. The raising of personal injury claim levels in the UK has caused a fuss, and now the topic has appeared on the EU justice agenda.

I can think of two different policy areas in the past where the apparent conflict also occurred. When law centres began to be established in the 1970s, there was an argument as to whether the Law Society should waive the conditions on practising certificates to allow free advice to be given to anyone off the street by someone with the status of a lawyer employed by a third-party organisation. Privately, many feared that free advice would erode the market of high street solicitors – until it was discovered that many law firms established themselves around law centres, and were making money from their referrals. The arguments disappeared.

Similarly, many countries still ban foreign lawyers from entering their jurisdictions because their lawyers fear that the big Anglo-Saxon firms will erode their market share. This is despite the fact that markets which have opened – for instance, Hong Kong or Brussels, never mind London – have found that local firms benefited from the influx of foreign lawyers, and picked up clients and expertise.

Now the European Commission is carrying out a consultation on the European small-claims procedure, and one of the issues is whether the current qualifying limit of €2,000 should be raised. In the one corner, there is the pro-lawyer argument, which can look to unsympathetic outsiders like corporatism (‘consumers need legal advice if they are to be successful in a claim’) and, in the other, the representatives of consumerism (‘claiming your rights should be cheap and easy’) - although to unsympathetic outsiders that can also look like cutting costs without concerns for justice.

When lawyers put arguments against raising the limit on small claims – the European consultation raises the possibility of an extension to €10,000 – it immediately looks as if we are trying to protect our market share, particularly in times of economic crisis. But it seems to me that the question of market share is irrelevant, since the outcome can go either way. That is why I have given the past scenarios above about the result for market share in different legal circumstances. Of course it might mean that citizens will not use lawyers for larger claims. But at present the European small-claims procedure is hardly used at all. The counter-argument is that, if the limit is substantially raised, more citizens might use it, and may well turn to lawyers for help in cross-border cases. Similarly, the consumerist argument about access to justice, and its counter about cutting costs without concern for justice, slug themselves to a standstill, at least until the test is tried.

That is why I prefer the purely public interest argument that citizens should benefit from legal advice before making a claim. It is true, and borne out by experience. I know of two liberal countries where the courts have led campaigns to bring lawyers back into litigation, on the grounds that it is more efficient in terms of time and money, and leads to a better administration of justice. (I stress that my organisation, the Council of Bars and Law Societies of Europe, CCBE, has yet to discuss the question of small claims, and so these are purely personal views.)

So what is the European small-claims procedure? It was established on 1 January 2009 in all member states other than Denmark through Regulation 861/2007. It was introduced for the usual reasons: to simplify and speed up small-scale cross-border litigation, and to reduce costs.

It has the following features: there is a written procedure, but with the possibility to hold a hearing; there are multilingual standard forms; there is no mandatory legal representation; the loser-pays principle is limited to reasonable costs; it encourages the use of IT, for example videoconferences – and the use of technology will grow, since the small-claims procedure is one of those being piloted in the e-CODEX project, linking up member states’ e-justice systems, which will in due course make more electronic legal transactions a reality; it is available for small and medium-sized enterprises (SMEs); and judgments are directly enforceable in other member states.

After almost five years of use, the European Commission is carrying out this assessment, with a view to presenting a report by the end of the year, accompanied, if necessary, by a proposal for revision. The deadline is 10 June 2013. It is not too late to give your views - only don’t mention market share...

Jonathan Goldsmith is secretary general of the Council of Bars and Law Societies of Europe, which represents about one million European lawyers through its member bars and law societies. He blogs weekly for the Gazette on European affairs



Jonathan Goldsmith
Tuesday, 30 April 2013

You may wonder what the secretary general of the Council of Bars and Law Societies of Europe (CCBE) does all day. This is a proper question, since solicitors contribute to my pay. So here goes, with all events taken from last week. If you want to see how I am dressed, click here, which will also show you at what pace I issue my excellent advice.

‘I am the very model of a modern secretary general,
I've information vegetable, animal, and mineral,
I know the ways of Europe, directives quite historical,
From Portugal to Latvia, in order categorical.’

Take the Professional Qualifications Directive (2005/36/EC), which is currently being amended. One of the proposed amendments from the European Commission seeks to include notaries within the scope of the directive. If that were to happen, then for the first time ever notaries would be governed by the free movement provisions of an EU directive. For a long time, notaries argued that they were excluded from free movement, but a court case (C 47/08, C 50/08, C 51/08, C 52/08, C 53/08, C 54/08 and C 61/08) in the European Court of Justice settled that against their wishes.

The position now is as follows: the European Commission wants them fully included in the amended directive; the European Parliament wants them to be partially included (meaning that a notary candidate could file an application to establish in another member state, but that the freedom of service provisions would not apply to the supply of public services); and the Council wants them fully excluded. What should be the position of the CCBE, particularly in view of the fact that our members have varying relations with their national chambers of notaries at local level? There is not much time to decide, since the three institutions are meeting on the matter in the coming days. Here is my advice:

‘I know our members’ history, Germany’s and Slovenian;
They expect us to consult them, and not attempt to lean on them,
They fear we might be guilty of the sins of Heliogabalus,
So please research their views, or there’ll be conflicts quite parabolous.’

Technology plays a daily more significant role in our work. Two examples arise from this week. We have become concerned about the proliferation of national rules on government access to data, and its impact on legal professional privilege. The access includes snooping by all types of law enforcement and other government agencies. Everyone immediately thinks of the USA Patriot Act of 2001 as the chief wrongdoer, but an interesting paper by Hogan Lovells shows that many governments are as bad or worse. Do we need to amend our guidance to lawyers on cloud computing because of this widespread government interference in data, to make sure lawyers are more aware of it?

Second, we are building a lawyer e-identity system, funded by the European Commission, to assist with cross-border electronic transactions within the e-CODEX project. Do we build it on the basis of digital certificates? How can we ensure a balance of competing interests: that whatever takes place in the virtual world does not demand higher standards than the paper world, while at the same time ensuring that there is security and reliability in remote, automated transactions.

This is my role, straight from Gilbert and Sullivan, without any need of amendment:

‘I'm very well acquainted, too, with matters mathematical,
I understand equations, both the simple and quadratical,
About binomial theorem I'm teeming with a lot o' news,
With many cheerful facts about the square of the hypotenuse.’

It doesn’t end there. The Financial Action Task Force has just sent around a draft paper on what they call typologies of lawyer vulnerability to money laundering, and wants our views. This paper was expected, and outlines the kinds of cases in which lawyers are most at risk of being used for money laundering and terrorist financing purposes. There will be a meeting next month with the principal players, including the CCBE, to discuss it further. The paper is confidential at this stage.

You can see why I end my advice in the following way:

‘So I can write a washing bill in Babylonic cuneiform,
And tell you ev'ry detail of Caractacus's uniform:
In short, in matters vegetable, animal, and mineral,
I am the very model of a modern secretary general.’

Jonathan Goldsmith is secretary general of the Council of Bars and Law Societies of Europe, which represents about one million European lawyers through its member bars and law societies. He blogs weekly for the Gazette on European affairs



Jonathan Goldsmith
Monday, 22 April 2013

A part of your tax that funds the EU’s budget goes towards the improvement of human rights and the rule of law in countries around the world. This makes sense to me, because a stable world enables us to enjoy those things which governments are supposed to provide: an environment for improved trade, easier travel and general peace for EU citizens – never mind the improvements for citizens of the country being assisted. Many people criticise everything the EU does, but I am not one. However, in this respect the organisation of their funding leaves much to be desired, as I will show.

I know that there are arguments as to whether aid is beneficial in the first place. Some people think that aid encourages dependency and stifles initiative, that most of it is misdirected, and that middle-class international development professionals benefit most from it. I can think of one organisation abroad which receives justice assistance from various distinguished bodies, but is still unable to organise the proverbial you-know-what in a brewery for its members.

Nevertheless, I write on the basis of optimism - that such aid can help, if only at the most basic level of maintaining a dialogue between countries, or in our case between lawyers, on important matters. And some of the programmes can be practical and useful, such as (to use US-funded projects from the body cited below) setting up legal aid clinics, assisting law schools in introducing new courses and practical training, and helping bars to develop bar exams or codes of legal ethics.

If we can agree with the optimistic premise, there are good examples of how other governments provide rule of law money (since the EU is not alone in investing in justice outside its borders). The American Bar Association – the US body mentioned above - has an impressive organisation, the Rule of Law Initiative, which has received many millions of dollars from the US government (chiefly USAID) over the years.

Its board is made of the great and good, mostly American but including our own Lord Goldsmith of Iraq invasion fame – and significantly it has an advisory body including no fewer than four justices of the US Supreme Court. It has a staff of over 400, and implements legal reform programmes in more than 40 countries in Africa, Asia, Europe, Latin America and the Middle East. In an admirable twist, it has a pool of short- and long-term volunteers who, since the organisation’s launch, have contributed more than $200m in pro bono technical legal assistance.

For those countries which are sensitive to working with the US, the Canadian government provides a helpful alternative: it similarly funds the Canadian Bar Association through the Canadian International Development Agency (CIDA), and so offers the same kind of programmes in a number of countries.

The US and Canadian examples involve a structure where the money goes through a single source of obvious expertise, enabling planning and assessment to take place on a sensible, year-by-year basis. The bars have access to the full range of their members, knowledgeable in many areas of law, who can also offer assistance on a pro bono basis.

The EU, unfortunately, employs the opposite approach: a scatter-gun. The funding comes from different directorates – Enlargement, Development and Co-operation, External Action Service, for instance – none of them knowledgeable on justice issues (they operate various programmes with different success rates). Some of the money is provided by headquarters in Brussels, the rest dispensed through local EU delegations in particular countries. This means that, to obtain funding, you have to keep your eye on many places. Among the very wide range of successful applicants, consultancies figure highly, helping to run biscuit factories one day and legal aid clinics the next, regardless of expertise. They are good at putting in applications with the required buzzwords, since they depend on it for their survival, and the Commission knows them from previous applications.

This is not wise. It places the EU behind our competitors in promoting European legal values and legal systems to countries around the world. It puts obstacles in the way of building long-term relationships between relevant legal partners. But it continues because the structure and organisation of the Commission is so fixed that there is no way round this multiplicity of funding sources and applicants.

There are solutions: either there should be a single agency (as in the US or Canada) to which external justice funding is provided; or all funding for external justice projects should go through the Commission directorate responsible for justice at EU level, DG Justice. This answer is so simple, but no one in the Commission seems able to implement it. I beg them to put our tax pounds to better use.

Jonathan Goldsmith is secretary general of the Council of Bars and Law Societies of Europe, which represents about one million European lawyers through its member bars and law societies. He blogs weekly for the Gazette on European affairs



Jonathan Goldsmith
Monday, 15 April 2013

There hasn’t been much written in the Gazette about the death of Mrs Thatcher. Maybe the other contributors are too young to have lived through her premiership? I was not a fan, and so if you are one of the millions who voted for her and continued to adore her to the end, stop reading now.

This is a personal take on her influence on the legal profession and me, and not a comprehensive account.

Personally, she was a sort of guardian angel to me, but not in the way she intended. When she was first elected, I was a young advice worker, and so a member of the group she considered the enemy within. The publication of her Housing Bill (before its passage as the Housing Act 1980) gave me the first step up in my career, because I made my name in the organisation for which I worked by giving endless training to droves of other young advice workers who would need to advise on it. We were staggered by a policy to reduce an already inadequate public housing stock (we were advising people on long waiting lists at the same time) through selling off parts to the lucky few who happened to be in occupation at the time, and at an attractive discount.

The current bedroom tax is a direct consequence of this policy, and Lord Heseltine recently blithely shed all responsibility for today’s shortage of public housing by saying he had intended to buy new stock with the proceeds, but his department had not followed up on it. Believe me, he might be surprised by this outcome, but none of us in that series of training sessions over 30 years ago thought anything else would happen.

She continued to guide my career secretly. I was busy applying for advancement in advice centres or organisations specialising in housing or immigration advice. Whenever I was turned down for a job, the curse of Thatcher, as if she had personally tapped her wand, closed down that particular centre almost immediately, filling me with guilty relief that I had not impressed my interviewers more. There is a serious point, though – her assault on local government funding removed a large amount of legal advice and other support for local communities, which no amount of Big Society has ever replaced.

By the time I joined the Law Society in the mid-1980s, her attention had turned to the legal profession. She was going to change everything, after all. The break-up of the conveyancing monopoly and the introduction of licensed conveyancers in the Administration of Justice Act 1985 was supposed to be the first step. Interestingly, it was a rather damp squib, and changed not much at all. Her urge to do to the liberal professions what she had achieved against the trade unions seemed to wane after that, and it was left to her spiritual heir, Tony Blair, to finish the work, with the passage of the Legal Services Act 2007 and the birth of its handmaiden, the Legal Services Board.

Curiously, I am in the lucky position of being able to answer the question, much asked in recent days, about what would have happened if she had not come to power. It is usually asked by acolytes, to whom it is obvious that she saved the country. Their favourite narrative is one of redemption. In fact, it used to be fashionable to say that every country – people normally meant France – needed a Mrs Thatcher. But I live in a country, Belgium, untouched by Thatcherism.

Here, the job of a waiter in a restaurant or a counter assistant in a shop is not undertaken by a teenager or a student on a low wage or temporary contract, but by the same people for years, because they are paid a proper wage in a respected career (and consequently restaurant tips are not expected, either). Here, employers have to pay over 30% social charges on every job, so that benefits can be provided to employees as a result: for instance, a female worker with a sick child can have someone come to her home via the social security scheme to look after her child while she works. Here, wages are automatically indexed in line with the annual cost of living. Shocking!

In other words, I live in social Europe, which is at the opposite end of the scale to Mrs Thatcher’s values. It doesn’t matter whether you agree with Belgian social legislation or not. And we know that Belgium has cohesion problems (think Scotland). But the question is: has Belgium collapsed because Thatcherism didn’t save it? A look at the relative prosperity and economic stability of Belgium will give you the answer.

The Thatcherite ghost governments which introduced and implemented the Legal Services Act 2007 were similarly inspired by the rhetoric of redemption: they were saving the legal profession from its own inherent conflicts, saving the public from the bad faith of the legal profession. But the Belgian legal system, and those from other EU member states, have not been similarly saved, and appear to be healthy, independent and offering services appreciated by governments and citizens.

She was famous for this saying about her policies – TINA, there is no alternative. Tina was always a figure of redemption fantasy. Replace Tina with a real person, J-Lo – Just Look Overseas.

Jonathan Goldsmith is secretary general of the Council of Bars and Law Societies of Europe, which represents about one million European lawyers through its member bars and law societies. He blogs weekly for the Gazette on European affairs



Jonathan Goldsmith
Monday, 8 April 2013

There is a tradition which is stronger on the continent than in the UK, that of the Festschrift or Liber Amicorum. ‘Celebratory book’ is probably the closest in English. For the second time, I have been asked to contribute to one, and it is thoughts about the lawyer in whose honour the book is being produced which form the background to what I want to say this week. Since the eventual publication is intended as a surprise, no identity will be disclosed.

The lawyer concerned - I shall call her Catherine - is a francophone and loves the French language above most things. She feels correctly that language does more than communicate surface meaning. It conveys cultural concepts which are embedded in a society, and are often untranslatable.

In the law, there are many such concepts. We could start with our very own title, the word ‘solicitor’. It should never be translated - and in proper texts is not - since nothing in another language can convey its significance. To consider its nearest French equivalents, a solicitor is neither an ‘avocat’ (more or less a barrister in our terms, typically allied to court work and advocacy) nor a ‘notaire’ (which in its purest form is a public officer carrying out delegated acts on behalf of the state).

Catherine is particularly exercised by legal professional privilege, which is called ‘professional secrecy’ in her system. Again the two concepts have apparent surface similarities which conceal deep differences of approach. Legal professional privilege is at root a case-based rule of evidence, which can be waived by the client. ‘Professional secrecy’, on the other hand, is derived from the penal code, whose breach is a criminal offence. ‘Professional secrecy’ is not simply a professional or contractual duty, but a matter of public order, and it cannot be waived by the client. (And don’t let’s start on ‘public order’, which again means different things in the two systems.)

There are many more examples, but the point is that language conveys cultural concepts, as all translators know, and the use of just one language risks errors and misunderstandings not only across legal cultures, but in understanding oneself at home. This latter point is the most important. Catherine argues for the retention of French at international level, not only to help unlock the meaning of civil law systems used in many countries around the world, but also to reflect better on the common law, whose advantages and disadvantages would not be fully known to us otherwise, since it would not have been properly compared to anything else.

This is the heart of the argument. Real understanding, whether of the law and justice or anything else, comes not just - or even not much - from consideration of the concept on its own, but from comparison across as wide a range of other notions as possible. Is the world really understandable in just one language, whose range of concepts is necessarily limited by the cultural imagination which gives rise to its words? If everyone who had ever lived had only ever spoken English, would we be as advanced in our understanding as we are today? Catherine would say ‘no’.

This is the time to undertake an exercise. For a moment, we anglophones should put ourselves in the shoes of a non-English speaker. The world immediately becomes a less accommodating place, since English has invaded so many spaces, and continues to do so. There are a million possible examples from airports, museums, loan-words, shops and street conversations between strangers in foreign cities, in all of which English dominates or is the only second language used after the local native tongue.

This never-ending spread of English has turned the unlikely figure of Catherine into an anti-colonial warrior. She worships the French language and the cultural products it has engendered, for instance its literature and its law. She believes that by speaking French when she can, and so supporting its strength for as long as possible, she is striking a blow against the notion that one language - it happens to be English at the moment - can explain everything in the world. (That is a shocking idea, to think that we cannot understand everything through the use of our native tongue.)

You might ask whether Catherine would be such an anti-colonialist if it were French which were dominant, as it was for so long. Knowing her, and being honest, I think the answer would be ‘no’, since she so believes in its unbeatable beauty. But she has learned the hard way. By having English forced on her, she has come to see that two are better than one on the road to understanding. The pros and cons of her beloved ‘avocat’ or ‘secret professionel’ can best be realised by standing them against similar concepts from a different culture, and so seeing their outlines better. As a result, we anglophones should all wish Catherine well in her one-woman linguistic warfare.

Jonathan Goldsmith is secretary general of the Council of Bars and Law Societies of Europe, which represents about one million European lawyers through its member bars and law societies. He blogs weekly for the Gazette on European affairs



Jonathan Goldsmith
Tuesday, 2 April 2013

A report has just been published by the European Commission which measures how EU member states are faring comparatively in a number of areas of their legal system. It is part of the continuing drive to use justice as a means of encouraging economic growth in the EU. This is the equivalent of the Oscar ceremony for EU legal systems, and, if the commission is too bashful to give prizes, I will play the MC opening the envelope and making bad jokes.

First, the report itself: it is called the Justice Scoreboard, and aims to provide objective, reliable and comparable data on the functioning of legal systems in all member states. It is based primarily on indicators for efficiency: the length of proceedings, the rate of resolving cases, and the number of pending cases. It also examines indicators to improve the quality and efficiency of legal systems, in particular monitoring and evaluation of court activities, IT systems for courts, alternative dispute resolution methods and training of judges. Finally, it presents findings relating to the perceived independence of legal systems.

The link with growth is that the commission feels that effective legal systems are important structural components of an attractive business environment. It believes, doubtless correctly, that trusting that the rule of law is fully upheld directly translates into confidence to invest in an economy. So, given that the UK government is constantly criticising the EU for not doing enough to stimulate growth, how does the UK itself fare in the comparative tables?

Well, the UK comes consistently bottom of the class in providing data, and is awarded the wooden spoon in this category. Whenever there is an absence of data, there is a small handful of countries concerned, and the UK is always among them. As a result, it is impossible to see how the UK is faring in how long cases typically take to be resolved in the various member states, the rate of resolving contentious civil and commercial cases, the budget for courts per inhabitant, and the number of judges per 100,000 inhabitants.

Things get better after that. Maybe the UK government provided data only when it could look good?

Our next best result is in the category of the extent to which member states use electronic systems to manage cases. England and Wales comes in 16th out of 29 (not 27, because of the 3 jurisdictions in the UK). Scotland fares better at 12th place. So we are in the bottom half, which is not that good. For the number of lawyers per 100,000 inhabitants, England and Wales is in 4th place, behind Luxembourg, Greece and Italy. That can be seen as both good (easier access to justice) and bad (we are over-lawyered), although it obviously depends on distribution and knowing the golden mean. For compulsory training of judges, England and Wales is in 6th place, with Scotland 3rd.

For perceived judicial independence, something in which the UK needs to excel if it is to remain the jurisdiction of choice for litigation, the UK comes in at 6th (after Finland, Netherlands, Ireland, Germany and Sweden). The data comes from the World Economic Forum. For the perceived independence of civil justice, the position is about the same – 7th place for the UK, with some of the same countries ahead of it. The data comes from the World Justice Project. The commission makes the point that the data are important not only for growth, but also for EU law. Whenever a national court upholds EU law, it acts as a ‘European Union court’, for instance in enforcing EU competition law or other legislation. Shortcomings in a national justice system can therefore affect the functioning of the single market.

The commission will in future translate the key findings into several actions: there will be country-specific analyses prepared; regional development and social funds will be available for the reform of legal systems in the next relevant financing round; and the commission will work with member states to improve the quality and availability of comparable data for further exercises (prepare your excuses, UK government). Overall, the UK does well but never wins the leading actor award. We should aim to become the Daniel Day-Lewis of the legal world.

Jonathan Goldsmith is secretary general of the Council of Bars and Law Societies of Europe, which represents about one million European lawyers through its member bars and law societies. He blogs weekly for the Gazette on European affairs



Jonathan Goldsmith
Monday, 25 March 2013

The Law Society’s Research Unit is in the process of publishing multi-part assessments of the legal services market. The reports often confirm what we already know – for instance, that there are two solicitors’ professions, and aren’t the City types doing well, while those poor devils in the small and medium-sized firms are struggling somewhat?

I shall focus on a single aspect of the research, relating to the profitability of small and medium firms. We know that City lawyers’ earnings are generally in the stratosphere, but what do the rest earn? This is of particular interest because I have recently seen comparative lawyers’ earnings figures from a number of continental jurisdictions. It is instructive to see how solicitors in small firms fare in relation to their European counterparts.

Of course, comparisons should compare like with like, and that is one of the advantages of the continental study, which uses the same definitions across various countries. It has been undertaken by the bars of six member states - Germany, Belgium (French- and German-speaking lawyers), Spain, France, Italy and Luxembourg. A small working group of their representatives was established in 2010. The data relates to around half a million lawyers, roughly half the total number of European lawyers.

To start with solicitors, sole practitioners (if I understand the tables properly) had ‘mean profits’ of £40,000 in 2009/10 (which signifies the gross figure before deducting notional salaries and notional interest). This rose to around £60,000 per partner in firms with 2-4 partners; £100,000 in firms with 5-10 partners; and £140,000 with firms of 11-25 partners.

Of course, figures for lawyers on the continent are in euros (currently £1 equals around €1.16, although the ratio would have been different for the period in question.) The average annual taxable income in 2009 of lawyers in Belgium (French-speaking), Italy and Spain stood at between €46,000 and €48,000, where ‘average annual taxable income’ means gross fees minus expenses paid to third parties, operating expenses and reimbursements (employees, lawyers, bailiffs, experts, translators). It is interesting to note that the figures for these three countries stood within the same narrow band – and that the figures compare roughly with the figure that solo practitioner solicitors earned in the same period (of course we need to bear in mind that there will be differences of definition).

The UK is not alone in having two professions working side by side. The splits are somewhat different in other countries. So the German figures for 2008 show that the gross annual income of lawyers was €52,000 in western Germany but only €40,000 in the east. And in France, the average income figures are pushed up because of the earnings in Paris, which are 60% higher than elsewhere in the country. So, France’s average income did not sit within the €46,000-€48,000 band, but rather at €74,586.

There are other interesting outcomes. France has the most women lawyers among the six countries surveyed (at 50.9% in 2011), Germany the least (32%). Statistics like these might induce policymakers to consider why there are such wide differences among neighbours. There are 165 bars in Italy (161 in France), but only 28 in Germany – all the six have national bodies, but the local bars retain important regulatory functions. The number of lawyers per 100,000 inhabitants meanwhile was the lowest for France in 2011 (84 – but France has traditionally had a lower number of lawyers than its comparably sized neighbours), while there were 278 per 100,000 for Spain – and 359 for Luxembourg (which is thought to be due to the size of the country, its banking sector and its hosting the headquarters of the European Court of Justice in Luxembourg).

I would urge the Law Society to join the group of six, not only to bring its research expertise to the pool, but also to ensure that in future we have comparable figures from a wider swathe of Europe. Then we will really know whether we would be better off as lawyers in France – and, if so, we could ask the Law Society what it intends to do about it.

Jonathan Goldsmith is secretary general of the Council of Bars and Law Societies of Europe, which represents about one million European lawyers through its member bars and law societies. He blogs weekly for the Gazette on European affairs



Jonathan Goldsmith
Monday, 18 March 2013

It’s time to look again at the European courts in Luxembourg. I shall start with the particular, two recent and interesting cases affecting lawyers, and move to the general, the courts’ record in relation to efficiency and the appointment of judges.

The Italian Bar, the Consiglio Nazionale Forense (CNF), announced last month that it has submitted a reference for a preliminary ruling to the Court of Justice arising out of forum shopping for lawyers’ titles. I believe that there are in fact two cases - C-58/13 and C-59/13 - although no documentation has yet been published. The background is that young Italian law graduates have been shopping in Spain for their professional qualification.

Although Spain has now introduced a bar exam, partly to avoid just this kind of activity, there are still a number of young Italian citizens who have found it easier to go to Spain, study the requisite number of subjects there, become Spanish lawyers without a bar exam, and then go back to Italy and demand that the bar admit them as Spanish lawyers. After that, they will be able to do anything that an Italian lawyer can do. (This is not the first Court of Justice case about forum shopping in Spain, either.)

The CNF asks the court whether there is an obligation for local bars to enrol as established lawyers those Italian citizens (with an Italian law degree) who go to Spain to obtain their professional title, or if there might be a ground for refusal where there are objective circumstances to believe that such practice constitutes an abuse of law, citing Article 4 of the Treaty of the European Union.

The second case has just been decided: Ordem dos Técnicos Oficiais de Contas (OTOC) against the Portuguese Competition Authority (Case C-1/12). It concerns Portuguese chartered accountants, who are required by law to undergo compulsory continuing education, part of which is provided by their professional body (OTOC), and part of which is open to be provided either by OTOC or by accredited providers. The decision to accept or reject the registration of training bodies and the decision to approve or reject training sessions proposed by those other bodies are taken by OTOC following payment of a fee.

The court held, among other things, that ‘a regulation adopted by a professional association putting into place a system of compulsory training for chartered accountants in order to guarantee the quality of their services constitutes a restriction on competition which is prohibited by EU law to the extent to which – this being a matter for the national court to ascertain – it eliminates competition within a substantial portion of the relevant market, to the benefit of that professional association, and in so far as it imposes, on the remaining portion of that market, discriminatory conditions to the detriment of competitors of the association’. Yet get the picture: if you are the accrediting body and also participating in the market, you cannot load the market in your favour.

The European courts have just published their annual statistics. The good news is that the duration of proceedings before the Court of Justice and the General Court continues to decrease significantly. In 2012, the Court of Justice completed 595 cases and had 632 new cases brought before it. The number of new cases remains very high and is the second highest annual number of new cases in the court’s history. The General Court completed 688 cases in 2012. In addition, the duration of proceedings decreased appreciably, with an average duration of 24.8 months, that is to say, 1.9 months shorter than in 2011.

But still there are challenges. For instance, there will be a high number of General Court judges’ terms of office coming to an end this year: an expiry of 13 mandates (out of a possible 27) on 30 September 2013, with four other judges being recent appointments. Apparently, some member states will not reappoint existing judges with good reputations. A high turnover of judges in the General Court tends to lead to a significant reduction in the number of cases determined. Therefore, the 2012 statistics just outlined might show movement in the opposite direction in the coming years. The question is: should not a sitting judge of proven competence and willing to continue in office have his or her mandate renewed, regardless of, say, a change in the domestic political situation?

The court tends to be the overlooked institution in the battles that play out over the other giants of the EU framework. It is the duty of lawyers to keep its outcomes and efficiency in the spotlight.

Jonathan Goldsmith is secretary general of the Council of Bars and Law Societies of Europe, which represents about one million European lawyers through its member bars and law societies. He blogs weekly for the Gazette on European affairs