Letters to the editor

Monday, 29 April 2013

If I remember rightly, referral fees are banned. I am troubled. I hear more than mere anecdotes of telephone calls to referrers from solicitors offering so much up to the end of April, then so much after that, per case. These are solicitors with no existing arrangements with potential referrers. How what is offered is not a referral fee beats me.

Am I missing something? Or are the teeth of the enforcers already so blunted by feeding off pre-packed sales of bust businesses in the legal services market, not to mention licensing insurance companies to purchase legal work through alternative business structures, that the subverters of the ban can knowingly go unpunished?

John Holtom, managing partner, Legal Solutions Partnership, Luton



Monday, 29 April 2013

Forgive me for raising a matter affecting the families of murder victims, when we are engrossed in our own future, but it is important.

A suspected murderer had gone on the run, hiding away for many weeks. I had represented him before and had no doubt I would represent him on this murder case. However, I was not able to release the victim’s body to his family until I had my own pathologist report. I needed legal aid.

‘We need the defendant’s signature first,’ they said. ‘But he is on the run and the deceased family urgently need to cremate their son.’

‘Sorry, no signature from the defendant... no legal aid.’

The victim’s family had already suffered the trauma of their son’s death. Now they had to wait until my client was arrested and able to sign the forms.

An administrative system crying out for urgent, compassionate, reform. I wrote to the Home Office and did not hear back. Maybe publishing this letter will make someone listen. I do not hold my breath.

Bert Gibson, semi-retired criminal solicitor, Newcastle upon Tyne



Monday, 22 April 2013

It may be a matter of semantics, but to a solicitor there is a distinction of substance between the concepts of ‘customer’ and ‘client’. All clients are by definition also ‘customers’ and deserve a level of service that recognises commercial realities, including increasing competition from the nationals who are better experienced at packaged services and ‘customer care’.

But a ‘customer’ is not necessarily a ‘client’ where solicitors are concerned, because they are also owed a fiduciary duty of care. We have seen how the ‘dumbing down’ of training over the years has led to an oversupply of lawyers, which is perhaps reflected in the increased number of disciplinary actions and SRA interventions, unrelated to the economic downturn.

The same consequence may in time follow as a result of the change in the nature of the relationship from ‘solicitor’ to ‘seller’. As an aside, the Legal Ombudsman’s case study of Mr A is a rare positive for lawyers, as it hopefully reflects a shift to a more balanced approach to complaints resolution. I dare say that in the days of the OSS/LCS, a case worker would have scrutinised the file to find evidence of every technical breach, whether or not raised by the client and without regard to the fact that the lawyer had actually done a good job.

In the case study, the firm would probably have been ordered to reduce the fees by half.

Brendan Pang, Stokes Partners, Crewkerne, Somerset



Monday, 22 April 2013

Dennis Sheridan’s article on family law arbitration sets out the key benefits of the new Institute of Family Law Arbitrators (IFLA) scheme, but risks being dangerously misleading in one respect, namely that ‘awards’ made under the scheme are ‘final and binding’. More worryingly, he makes this claim in relating what an appointed IFLA scheme arbitrator said to clients in the early stages of proceedings.

Just because article 13.3 of the IFLA scheme rules describes the ‘award’ as ‘final and binding’ subject to limited grounds of challenge and appeal, does not make it so. Indeed, article 13.4 recognises that it may be necessary for the parties to apply to the courts to get an order in the same or similar terms as the award/part thereof.

It is technically incorrect to say that these ‘awards’ are binding. Trite as it is, jurisdiction to make final financial awards is the court’s alone. Nuptial agreements are not binding and arbitration is not a special case. Section 81(1)(a) of the Arbitration Act 1996 makes clear that the court’s jurisdiction is unaffected here, and section 25 of the Matrimonial Causes Act 1973 applies.

Even if arbitrated awards were treated as akin to section 34(1) of the MCA 1973 maintenance agreements, so as to withstand section 81(1)(a) of the AA 1996, section 81(1)(c) entitles a court to refuse to recognise and/or enforce an ‘award’ on public policy grounds. Any case in which a judge would reach a different result under section 25 than under the ‘award’ should satisfy section 81(1)(c).

Second, even if a judge would be unlikely to override an arbitrated ‘award’, it is misleading to describe that factual reality with the legal terminology of bindingness. We do not pretend that the agreement that forms the basis of a consent order is binding before the order is made, so why would we do so for arbitrated ‘awards’? Talking about ‘awards’ that are unlikely to be overridden – ‘as good as binding’? – is best avoided as ‘binding’ is liable to confuse the public. Why risk litigants misunderstanding their own legal right to apply to court for a binding order?

Further, religiously based arbitrators understand their limits; why risk the public misunderstanding the nature of religious tribunals’ work? The current law is based on the concern that only the court can sufficiently protect the parties’ interests in these disputes, hence only it can make binding decisions. If we no longer think this is the case, we need to have that debate, not pretend we have already had it.

Family law arbitration may have many benefits for the right type of parties in the right type of dispute. But a ‘final and binding’ decision is not one of them.

Lucinda Ferguson, lecturer in family law, University of Oxford



Monday, 22 April 2013

The 8 April Gazette contains the president’s invitation to submit suggestions as to how the Law Society could help solicitors. Here is mine.

In the same issue the Gazette reports that more law firms are ignoring Law Society warnings about the dangers of taking out professional indemnity insurance (PII) policies with unrated insurers. The chief executive of the Society says that firms should consider the financial security of insurers. The fact is that few law firms are equipped to make a meaningful assessment of this kind.

Solicitors are required to take out PII with a qualifying insurer – that is, an insurer which has entered into an agreement in such terms as the Law Society may prescribe. In my view the Society should take responsibility for assessing the financial strength of insurers and prescribe appropriate terms accordingly. The result would be to eliminate a source of worry for 10,000 firms of solicitors.

Ronnie Fox, principal, Fox Solicitors, London EC3



Monday, 22 April 2013

A dip in interpreter provision. And on whose figures? Even Capita is now hard-pressed to attempt to present a positive picture. I have striven again and again in letters to the Ministry of Justice, from the secretary of state downwards, to secure a straight answer to a simple though basic question: whose figures and reports is the MoJ reliant upon?

I am far from being alone in a firmer than ever conviction that it is Capita on whom it is relying. And this to the exclusion of complaints from my branch of the profession, from the bar and from the judiciary at all levels. After all the ministry, in its present arrogant and smug mood, can be having no truck with evidence of failure of its ill-conceived contractual venture.

Why else would it have forbidden the judiciary to disclose its own stark evidence of non-delivery both in terms of absent interpreters and abysmally poor quality among those interpreters actually attending?

This is a wasteful exercise, first of all, and what is more a recipe for miscarriage of justice cases that will come to light in the years to come.

Malcolm Fowler, Dennings, Tipton



Monday, 22 April 2013

Richard Edwards asks whether it is just him who thinks the government is protecting the interests of the City while destroying concepts such as fairness, access to justice and equality of arms. No Mr Edwards, it is not just you.

This government, and this secretary of state in particular, is displaying the same type of enthusiasm for these retrograde measures as led to the now deceased class warrior Margaret Thatcher being reviled for the impact she wrought on communities outside the City of London.

Myles Hickey, Dowse & Co, London E8



Monday, 22 April 2013

About a week ago we received yet another email from the Solictors Regulation Authority, on this occasion regarding a number of important rule changes in connection with personal injury cases.

The letter commenced ‘Dear sirs’. As far as we are aware there are a large number of firms nowadays where women are partners/directors, including our own. We wonder how addressing a firm in this manner squares with the SRA’s espoused policy in relation to equality and diversity?

Hugh Joseph and Jennifer McCarthy, Hugh Joseph McCarthy Solicitors, Stockport



Monday, 15 April 2013

There are a number of difficulties and risks associated with the government’s proposals on price-competitive tendering. I am sure that the representative bodies will do an effective job of highlighting many of these flaws. I wish to highlight a major operational risk.

In the late 1990s, the Legal Aid Board piloted price-competitive tendering with crime firms in London. I was a manager at the board overseeing the pilot. We used the same sealed envelope method proposed in the consultation paper and all firms were paid at different rates. Around 25 firms participated in the London pilot. Shortly after the pilot started, the firms involved naturally identified each other and started to meet. One of the major conclusions drawn was that the board would never wish to contract with a small number of firms in each procurement area because this would hand a significant amount of power and influence to a small number of providers.

The government proposes to contract (for instance) with as few as five providers for the procurement area of Leicestershire and as few as four for Kent. Under this proposed model, industrial action has a strong prospect of being effective. For instance, if there was an increase in the number of arrests, the government will be obliged to provide additional funding to the remaining contractors to comply with its access to justice obligations. The government would not be in a strong negotiating position given that it had contracted with so few firms.

The risk to the taxpayer of restricting competition in the way proposed in the consultation is too high. For that reason alone the proposals should be significantly amended or abolished.

David Gilmore, DG Legal, Old Dalby, Leicestershire



Monday, 15 April 2013

Chris Grayling’s comments about the restriction of legal aid for prisoner complaints are either another example of political posturing from the justice secretary or, more worryingly, show an alarming ignorance of how such cases have been funded for over three years.

Grayling says that the cuts will lead to savings of £4m a year and reduce the number of cases brought against prisons and staff by 11,000. No mention is made of the fact that the vast majority of prisoner complaints are already dealt with by prisoners themselves with no assistance from a lawyer, not least because legal aid was effectively removed from such cases by the last Labour government in 2009. Although the Legal Services Commission can grant funding for ‘treatment’ cases, it has only done so in about 20 cases during the last three years, and even then these cases are subject to standard fees, currently a little over £200 per case. It is therefore difficult to see how these proposals are going to dramatically improve the UK economy or lead to a reduction in litigation, given the tiny numbers of such cases the government actually funds.

The Prisoners’ Advice Service is a legal charity which provides free legal advice to prisoners. Most complaints we receive from prisoners about their treatment are far from frivolous and will sometimes require outside assistance. This is either because the complaint raises issues of wider public importance or involves a breach of individual human dignity. Recent examples include a prisoner forced to use a cell toilet in full view of other inmates and staff, simply because it would cost too much money to alter the Victorian cells where he was held to include privacy screens. Other examples are the now routine handcuffing of almost all prisoners escorted by prison staff to outside hospital visits, regardless of age, frailty, or medical incapacity.

Grayling is apparently appalled at the ‘unnecessary legal cases’ being brought, but this does not reflect the landscape within which legal aid has had to operate for over a decade. This has seen year-on-year cuts and whole areas of law taken out of the scope of public funding. Grayling is being entirely disingenuous in his claims. The Prisoners’ Advice Service would oppose any further cuts, and want the previous restrictions reversed so that prisoners with genuine and meritorious complaints can once again access appropriate legal advice.

Matthew Evans, managing solicitor, Prisoners’ Advice Service, London EC1



Monday, 15 April 2013

Adam Sampson (8 April) decries the use of the word ‘client’ in favour of ‘customer’. Despite him possibly confusing Julius Caesar with Cicero as a renowned lawyer in the Roman courts, Mr Sampson should be wary of rejecting the client relationship. In classical times there was a mutuality of obligation between patron and client, and something of that relationship is still required between solicitor and client.

He says in the emerging legal market customers are buying legal services as though at a supermarket. That clearly is not the case, as the existence of the Legal Ombudsman makes clear. When we have a Supermarket Ombudsman – where customers can complain about the service they have received and the price they paid for goods, and they can subsequently be fined or prevented from carrying out their business – then Mr Sampson can with all honesty say we live in a similar environment.

The use of the word ‘customer’ by the ombudsman and also by the Legal Services Board betrays their misunderstanding of the relationship between a solicitor and a client, and also discloses that contempt (some may say an almost irrational fear and loathing) of professionalism.

I should state that this is my view and not that of the Law Society or its membership board.

David Taylor, St John’s Chambers, London SW11



Monday, 15 April 2013

This profession has been squeezed to bursting point through government and consumer pressure. The new legal brands promise the world for half the price of ‘conventional’ firms, but how realistic is that? Efficiency through IT and management processes may allow legal services to be provided more cheaply, but the biggest cost is still the cost of staff, and a paralegal, in many areas of practice, is no substitute for a qualified lawyer. Often a client does not know the difference and if they receive poor service they may assume they were dealing with a qualified lawyer.

The truth is that good legal services can only be provided by qualified lawyers. Even process-driven areas of practice need a good deal of qualified lawyer involvement and that comes at a cost. Just as many consumers would not eat processed food if they knew what went into it, the average consumer, if they knew what went into cheaper legal services, may want to opt for the more expensive ‘conventional’ firm services. Those firms which are financially stable and focus on quality and good service will survive and prosper.

Luke Tucker Harrison, Debenhams Ottaway, St Albans



Monday, 8 April 2013

Yet another highly respected, innovative and award-winning solicitors’ practice fails, with untold misery for staff who now find themselves unemployed, and probably with family and financial commitments they cannot meet. Surely, someone must see that there is something radically wrong with the profession. Is it simply a matter of greed by a few who desire to have all the market? Is it plain stupidity of some who take on work at ridiculously low margins trying to emulate the ‘Tesco law’ model?

When will it be recognised that it does not matter what competitors are doing. Almost any business can survive providing it supplies a needed, good-quality and consistent service at a reasonable price. After all, that is all the public have ever wanted. I might be accused of being naive, but I have just posted another record year.

Trevor Moore, notary public & solicitor, Ibstock, Leicestershire



Monday, 8 April 2013

If a new client instructs me on the sale of a property and I have not acted for that person before, then in addition to the normal ID checks and due diligence, I can recommend asking the would-be client if they can tell me in what year they purchased and who acted for them.

The latter detail can be verified by the Land Registry.

Richard Cohen, Kennard Wells Solicitors, Epping, London



Monday, 8 April 2013

In the last edition of the Gazette (25 March) the Law Society announced that it had managed to secure a postponement on the abolition of the recoverability of success fees and insurance premiums in insolvency cases until 2015.

Picture the scene: a trustee in bankruptcy applies for an order for sale of a property jointly owned by the husband and wife following the husband’s bankruptcy. The trustee’s solicitors will be able to charge up to double their normal fee and the after-the-event premium, leaving the wife with little or nothing to house herself out of the sale proceeds. How is this a good thing?

Peter Hatvany, partner, Parker Bullen, Wiltshire and Hampshire



Monday, 8 April 2013

As a junior solicitor (and non-practising barrister) it is sad that I, along with many of my colleagues, have said goodbye to publicly funded work.

The law school ideal of helping those in need could not be further from the truth. In a recent care case I spent seven hours at court, which included only 30 minutes in front of the judge and the same consulting with my client. All of this at the expense of the public purse.

The system is highly inefficient and does require streamlining. Unfortunately, the government changes are misguided and will result in further, longer delays as the courts referee disputes between litigants in person.

John Nee, Rochester, Kent



Monday, 8 April 2013

I was very interested to see the report on the roundtable discussion on diversity (see 18 March), and disappointed in equal measure – although not particularly surprised – to see no mention of age diversity.

When I was at law school, there was a student social group for career-changers. Other than this, I have never encountered anyone in the legal profession seriously addressing problems that affect older people joining the profession, such as:
The enormous financial risk of paying upfront for legal education (without the benefit of local authority subsidies, student loans or the ‘bank of mum and dad’), for the uncertain prospect of a training contract at the minimum wage.
Comparability of qualifications gained 20 years ago with those of today. Some training contract application forms required a list of GCSE results as one of the first questions and, no doubt, the employing firm expected to see a list of A*s – GCSEs did not exist when I was at school, never mind A*s. Conversely, not all HR staff seem to know what an S-level is.
Potential employers not accepting that an each-way commute of 50 miles or more is acceptable (relocation expenses would be prohibitive for a job which is not fully covered by the Employment Rights Act for the first two years).

Admittedly, this is just anecdotal experience, and it may be there is no systemic problem. At law school, students over 35 seemed to make up about 5% of the cohort: perhaps older trainees and NQs are proportionately represented in the major firms. I hope someone will correct my impression that every under-represented group is being offered assistance, except the one of which I’m a member.

Frances Marshall, Farnborough, Hampshire



Monday, 8 April 2013

Richard Dawkins would make short work of Jonathan Goldsmith’s musings on religion and science (25 March), ruthlessly dismissing the idea that justice exists beyond us as an ‘eternal lamp’. If science is the ultimate explanation, then justice, exactly like law, is a rapidly changing artificial human construct, determined like everything by an overriding biological survival instinct.

Humans after all are just clever animals, and justice, like law, truth, kindness and so on, is ultimately just a meaningless chemical reaction in the brain.

The idea that ‘human beings cannot change principles of justice’ has no place in a purely scientific view of the world – instead it comes straight from this country’s Judeo-Christian heritage and DNA. If there really is an ‘eternal lamp’ of justice then that strongly implies the existence of a just god. Surely, Jonathan Goldsmith can do better than ‘not to think too much about’ this ultimate issue?

Alastair Bates, Gilbert Stephens, Sidmouth, Devon



Monday, 8 April 2013

Perhaps it is just me, but the amount of TLC afforded by the government to the City seems extraordinarily generous. To begin with we have the implementation of the civil justice reforms. All serious commentators agree that they herald a transfer of wealth from accident victims and their advisers (disproportionately concentrated in the regions, in particular the north-west) to insurers based in the City.

Second, and precisely when the government announced the extension of the portals and fixed costs for personal injury work, I was reading that the chancellor was over in Brussels fighting to protect the bonuses of bankers in the City. I now learn from the Gazette (18 March) that our lord chancellor has initiated a plan to protect the profits of City law firms. This really is a striking state of affairs, especially coming on the back of the decimation of legal aid, not to mention the harsh reforms heaped upon the criminal injuries scheme.

It may be the coalition has calculated that woolly concepts such as fairness, access to justice or equality of arms are expendable, but it is surely not all about the economy (in the Square Mile) – stupid.

Richard Edwards, solicitor-advocate, E Rex Makin & Co, Liverpool



Monday, 8 April 2013

As the recent ‘Trials and tribulation’ article on the Jackson reforms pointed out, predicting and controlling costs is at the heart of the reforms. Thoughts though now need to turn to the immediate requirements under the new system.

The most basic of these is that solicitors need to ‘tag’ work in their time-recording system by phase. If this is not done at the point of entry (that is, when the work is done), then it will have to be done retrospectively either by solicitors or their costs specialists. Unless the work is properly described in a firm’s time-recording system it will be necessary to revert back to the file itself, whether paper or electronic. This will be both time-consuming and costly. The necessity to record work accurately – and more fully – will be a new discipline for many solicitors but it is one that they will have to master.

It is not only future work that will need to be ‘phased’ – work done to date also needs to be reviewed. The guidance notes on completion of the budgeting form Precedent H state that pre-action work only goes into that phase of the budget if it does not belong under another phase. Solicitors therefore need to allocate work already done to the relevant phase such as witness statements, expert reports or disclosure.

It goes without saying that this exercise should start with those cases that are closest to issue. The fee-earner in control of the case will be the best person to decide which work falls into each phase but otherwise firms should use their costs specialists to carry out this task. Indeed, the future use of costs experts throughout the life of a case (rather than just at the end) is arguably the most important ‘new’ discipline that solicitors need to master.

Sue Nash, Costs lawyer and founder of Omnia, High Wycombe, Bucks