Stobart offers pay-as-you-go barristers - but no plans to be ABS

Eddie Stobart lorries are a familiar sight in the UK
Thursday 17 May 2012 by Catherine Baksi

The logistics company known for its distinctive Eddie Stobart lorries has launched a legal service to help the public cut the cost of legal disputes by linking clients directly with barristers without the need for a solicitor.

Stobart Barristers, part of the Stobart Group, says it has a panel of over 1,000 barristers, juniors and QCs, across the UK offering businesses and individuals help in all areas of law. It provides a fixed-fee service, through a ‘pay-as-you-go’ model during the litigation process, giving the client control of the process and enabling them to end it after each stage.

Stobart’s business model spurns the structures introduced by the Legal Services Act. It is not a ProcureCo and chief executive Trevor Howarth, who is group legal director, said it has no plan to become an alternative business structure.

Instead, Stobart Barristers operates under the direct public access (DPA) legislation introduced in 2004, which licensed direct access to barristers.

Howarth told the Gazette that the Stobart Group has itself instructed barristers without using solicitors since 2008, cutting legal costs by 50% ‘on a conservative estimate’. He said over the years, the company has honed the model, which is suitable for private individuals as well as companies, and is now offering it to others.

The venture aims to achieve a £10m turnover in its first three years, Howarth said. A sister company, Stobart Support Services, provides the necessary paralegal services to support barristers and help prepare cases, and Stobart Group will provide the marketing service.

Howarth pointed to research carried out by the Populus Omnibus in April, which showed that 55% of the 2,036 adults interviewed were put off pursuing legal action due to uncertainty over total costs and 36% said the lack of control of a litigation process would stop them taking action. He said just 14% were aware of DPA legislation and only 22% of people said they would know how to engage a barrister without using a solicitor.

Howarth said: ‘Our fixed-fee, pay-as-you-go approach gives back control to the individual client and for the time they can stop the process at any stage. From the bar’s point of view, they don’t have the infrastructure or ability to provide the preparatory and litigation work, or the marketing, so we provide that,’ he said. ‘We are one of the first companies to look at the bar and see the benefits it offers,’ he said.

But he added: ‘We are not offering it to the bar at large, only to selected barristers that we want to work with. All panel barristers have to be licensed to make public access work.’

The group’s website explains why the FTSE 250 transport company is offering the service, stating: ‘We hate waste. We work hard to minimise non-productive time and maximise the utilisation of our fleet. It’s the same with the law - we think dealing with legal issues the old way is just wasting money.’

The site features a promotional film featuring Mark Windgate, known to viewers of TV series The Bill as DC Carver, says the service ‘saves times, money and worry compared with doing it the old way. You’ve got nothing to lose except the solicitor’s bill'.

Comments

Pay as you go

"A pay-as-you-go model during the litigation process, giving the client control of the process and enabling them [sic] to end it after each stage." Is that not the "model" which solicitors have been operating for hundreds of years? Yes, you can end it at any time - and you will pick up the costs for discontinuing.

Giuven that DPA already exists (and is designed specifically to do away with the middleman), what exactly is it that Stobart is providing in this model? An introduction to a barrister on its panel and some help with the preparation of bundles? Who is going to check silly little things like whether the client might have some insurance cover to deal with legal costs?

Genius

This news has made me laugh out loud in an open plan office. Not because I think it ludicrous but because it is absolute genius. Stobarts are a very well known and popular household name, not least thanks to their "trampers" who have been wowing the TV viewing nation in their recent series. Joe or Jane Public is not necessarily going to stop and think - finger raised - "Ah. But isn't that the model which solicitors have been operating for hundreds of years?"

This is exactly why the profession is facing so much uncertainty - we cannot think laterally.

It will interesting to see how this develops, but I think we mock at our peril.

The Taxi cab rule?

Presumably the Bar will have to rename the taxi rank rule. Will the next truck in line please leave chambers to pick up their client from Court Number 1?

Lay by litigiation?

Lay by litigation?

How nice that Howard and his

How nice that Howard and his coterie are trying to resolve the problem of excess potential trainees- employ them as "Para- legals" and get them to stack lorry loads of briefs!

Do they not understand that clients, sorry customers, want to instruct highly trained and qualified lawyers, not 18 year old "para-legals" and that barristers simply are not trained or able to deal with clients on a regular face to face basis?

Having dealt with Stobarts in the past, when there lamentable inhouse legal skills lead to cases dragging on unnecessarily, I see very little threat from this latest gimmick.

lamentable legal skills...

Interesting points Rich.

Of the logistics companies, I'd probably be most interested in what UPS would do in this space. Their sophistication and diversification in the US has been staggering.

I'm not sure how I "feel" about news like this - but if looks more significant than the launch of a new franchise.

BT is also entering into legal services, doing defendant claims work for other corporates, and they also understand the logistics space.

We've all been focused on banks and retailers - it's becoming clear they're only part of the story.

Stobart Chambers

In one swoop, Stobarts have just set up the definitely the biggest chambers and probably the biggest law firm in the country, that provides direct public access to lawyers more cheaply than ever before.

How long will it be before membership of this or that chambers becomes irrelevant to the general run of common law work?

Once they get going, others will respond with similar models and competitive rates.

The learned Prof. Susskind was right. Lots of lawyers fighting over lower work volumes = 50% drop in cost of lawyers. I only disagree with his timeframe. I think this is happening now.

I don't see this as a threat, it's more of a marketing exercise

This story broke a couple of weeks ago when StobartBarristers sponsored a race at Chester. Intrigued, a visit to its website clarified what it's all about.
This is surely an attempt by the Bar to evaluate to what extent there is an appetite for direct access. Given the situation some sectors within the Bar find themselves, who can blame them for wanting to test the water.
As to its application in litigation services, the Bar will recognise that this cannot be the answer. If there was a real opportunity to obtain meaningful amounts of work in this way, a system of working would have to be devised at that point. The flaws in the present proposal (e.g. hired gun arriving for a day's advocacy, unsupported) are too obvious for words.

Is there not the slight

Is there not the slight (minor) problem that this is a criminal offence? Of course nobody (not least our beloved law society) will do anything about it.

But as the press release / sorry article says, this venture "spurns the structure introduced by the Legal Services Act". It goes on, saying of the bar, that "they don’t have the infrastructure or ability to provide the preparatory and litigation work ... so we provide that."

Now who's going to be the first to stand up and read what section 12(1)(b) Legal Services Act 2007 says.

Being a mere solicitor, with x years of training in the law, and a few more years experience, I probably don't know much about Acts of Parliament, but I can't recall being allowed to circumvent them simply because it is profitable to do so.

Of course they will say that they are merely giving advice on the steps necessary to conduct litigation (although the press release above says that they do it). But my view is that this is not permitted under the Act, given that to allow them to do that render pointless section 12(1)(b) and the associated mechanism of obtaining approval to conduct a reserved legal activity.

Stobart's

And isn't the alternative that they offering claims management services? Are they registered / regulated by the MOJ? they don't show up on a search of the MOJ web site but I'm not sure how reliable that is as to who is and isn't registered to provide claims management services.

Stobart

I was interested to read the DomcCoop and Gary Hodkinson posts.

A cursory look at the Companies House website indicates that within the Stobart group, there is not only Stobart Barristers Ltd and Stobart Barrister Support Services Ltd but also Stobart Law Ltd and Stobart Claims Management Ltd.

I suspect that the Stobart directors will have considered very carefully the surrounding legal framework, no doubt taking direct advice from one of the public access QCs on their own panel.

As I understand the model, in court proceedings, one Stobart company will provide an introduction to a barrister who will advise and be the advocate in court but the individual will conduct the proceedings himself as a litigant in person drawing on the assistance of another Stobart company to assist in the preparation of witness statements, trial bundles etc. No doubt the claims management company will intervene as necessary.

The structure itself is reasonably complex but I suspect that any litigant who wishes to proceed in this way will have to be prepared to do a great deal of work him or herself. That same person with intelligence and time is likely to be able to get all the necessary advice and guidance from the directories and manuals available at good libraries, booksellers and over the internet, perhaps also with help from a law graduate who has completed the LPC but can’t get a training contract!

Section 12 (1)(b)

Section 12(1)(b) provides that the conduct of litigation as a reserved activity. As pointed out above, the idea is presumably that Stobart will not be conducting the litigation: the client will act in person.

That then invites the questions: what exactly is the client getting from Stobart for for his money and how much money are we talking about? The answer to the first question appears to be (a) an introduction to a barrister and (b) some sort of help from paralegals (presumably, putting bundles together and such like. The second question does not appear to be clearly answered on the Stobart website.

No doubt Stobart will be careful not to give legal advice or expose itself to any duty of care, beyond the duty to point the client in the direction of a reasonably competent barrister and act as counsel's (or the client's?) agent if counsel wants further information/instructions from the client - but the reality is that Stobart is going to have clients on the phone to them all the time, asking for help - which is, of course, why clients use solicitors in the first place. I wonder what insurance cover Stobart has for this venture?

There aren't many cases on

There aren't many cases on what comstitites "conduct of litigation", amd those that do are under the Courts And Legal Services Act 1991 / Solicitors Act 1974.

I am aware of the arguments because I obtained advice for a debt collection agency client of mine who wanted to do the very thing Stobart is offering. Advice in a nutshell was you could argue that client is a litigant in person, using documents you have procured, but the dividing line between advising a client on, say, what words to put on an N244, and being seen to have drafted that N244 through the agency of the client is a grey and thin dividing line.

Second, I have one at the moment. We have sued two people for circa £½million. They use "legal consultants" who instruct a direct access barrister. Said consultant has so far: 1. completed and filed acknowledgments of service; 2. given his address as the address for service; and 3. made an application for extension of time for service of defence.

I have cross-applied, but the useless Salford Business Centre returned the application un-issued after 14 days saying that the "evidence in Part C" (the small box for a witness statement on the second page of the application notice) needs completing - even though the evidence is a separate, attached witness statement - but that's another story.

Legal Consultant says he doesn't conduct litigation. He says he gives legal advice to the client on the need to apply for an extension of time, and legal advice on what form to use and how to fill it in. Legal advice is not a reserved activity. Client then as litigant in person accepts that advice, and instructs legal consultant to complete the form as a typist. typing is obviously not a reserved activity either. client approves and signs form, and consultant sends it.

In my view Parliament passed a law restricting who may conduct litigation, and setting out what proces a non-lawyer has to follow to get that right. In such a case, a contrived and artificial structure to circumvent the Act by simply labelling a client "litigant in person" - when the client is I'm reality legally represented - ought not to be permitted.

Stobart

Eduardo Reyes, the Gazette features editor, has written elsewhere on this site:

“I expect many Gazette readers will pick holes in the Stobart model... but it has the air of a development that could do much more to change legal services than the launch of a new franchise (and) this is a space worth watching”.

Perhaps a Stobart director might be prepared to give Mr Reyes an interview and explain in detail how the model will operate so as not contravene the law.

If it is on the borderlines of legality, will the Stobart barristers really want to be associated with it?

Incidentally, DomCoop, aren't there also problems with privilege attaching to communications between the individual and the Stobart support company?

Unless I am mistaken, it was

Unless I am mistaken, it was comfirmed beyond doubt that privilege does not apply in this scenario by Prudential.

In my case, I will certainly apply for disclosure if it gets that far.

Query is a barrister duty bound to advise Stobart client that it is in their interests not to use Stobart? Conflict requiring withdrawal? There is some Bar Council guidance, but again vague.

Double standards

"In my view Parliament passed a law restricting who may conduct litigation, and setting out what proces a non-lawyer has to follow to get that right. In such a case, a contrived and artificial structure to circumvent the Act by simply labelling a client "litigant in person" - when the client is I'm reality legally represented - ought not to be permitted".

"Perhaps a Stobart director might be prepared to give Mr Reyes an interview and explain in detail how the model will operate so as not contravene the law.

If it is on the borderlines of legality, will the Stobart barristers really want to be associated with it"?
........................

I see you guys are trying to pick holes in something else. You do make me laugh.
In practice solicitors spend so much time placing their own often distorted interpretation of the law, circumvent the law (and in some cases ignore the law completely) when it suits - and then roundly criticise anyone else they think is doing the same when it is against your interests.

In my view many solicitors act on the borderline of legality themselves and in addition charge hefty fees. Perhaps that is a good enough argument to remove them from the equation completely.

Fine-let's not have any rules

Fine-let's not have any rules at all as to who can act in litigation for others. Then no-one needs to be a solicitor with all the liability attaching to it.

But you were one of those complaining about the internet cases-and seeking the ritual sacrifice of the "offending" solicitors because they "broke the rules".

So which do you want-rules or no rules? Or only rules that you want?

Stobart

Kelly

You have quoted from my earlier post.

I don't know if you include me amongst those you intimate criticise out of self interest but just to put the record straight, I retired as a solicitor some time ago.

I am concerned with these developments as an observer. If, however, there is an issue as to the legality of what Stobart are doing, then everyone who is concerned with the rule of law should have an interest.

Alan

DomCoop

Dom - a couple of points (not related to each other):

1. On the privilege question, see Walter Lilly & Co Ltd v MacKay [2012] EWHC 649 (TCC). It's on bailii.

2. Have a look at the website of Family Law Clinic.

In my view, going on the record for a client (as the consultant has done in your Salford case) clearly amounts to conducting litigation. But, in the light of Walter Lilly, any advice which he is giving in relation to the litigation is arguable privileged.

Thanks for that. FYI legal

Thanks for that. FYI legal consultant says he jas not gone on record, but that his clients are involved in business in the jurisdiction at the address of his office (that business being this litigation) and that his client's business address is his. therefore clients are still "in person", but communicated to via him.

I don't agree that Walter Lilly says litigation privilege would apply in this situation, just that it is not settles.

the website you suggest is interesting (especially the terms and conditions and franchise sections). I have seen the anti-solicitor postings on here of Nicola Matheson-Durrant, but never knew of the financial benefit to her and her franchisees (who complete a whole four days training before being able to sell to clients) of undermining the profession.

Stobart

DomCoop at 12.15 today raised the question of conflict of interest and Bar Council guidance.

It appears that Rule 603 of the Bar’s Code of Conduct, “provides that, amongst other things, a barrister must not accept instructions to act if to do so would cause him to be professionally embarrassed and that includes being embarrassed by a conflict or the risk of a conflict between the interests of the barrister and some other person or where there is a high risk of confidential information being used other than for the benefit of that client”.

It seems to me that there has to be high risk of communications between the client and the Stobart support company not being privileged given the Court of Appeal decision in the Prudential case and, indeed, the first instance decision in the Walter Lilly case, which has also been mentioned..

Another issue is whether or not an individual who is successful in an action would be able to recover the costs paid to the Stobart support company, as distinct from the amount paid to Counsel. Agassi v HM Inspector of Taxes [2005] EWCA Civ 1507 seems to be authority that general assistance in litigation is not recoverable unless paid to a solicitor.

Privilege

Stobart will presumably say that they are not giving legal advice and are merely acting as the agent of the client and/or counsel in passing on communcations between client and counsel; and, if litigation is in contemplation or under way, they will say that litigation privilege applies anyway (that point having been left open in Walter Lilly). As a belt-and-braces measure, most communications will no doubt be sent with a large hearing asserting that they are subject to privilege.

As regards the legal consultant in DomCoop's case, I suppose he (the consultant) would say that he is also just an agent and that he has not gone on the record because (as a non-solicitor) there is no way he could go on the record, even if he wanted to (which he does not). But acting as the address for service and issuing applications looks to me like conducting litigation or intermeddling, which could presumably open him up to (at least) a wasted costs order, if only because he is warranting that he has some form of authority to act on behalf of the clients. Being involved in litigation in England and Wales surely cannot amount to carrying on business here. If the clients are overseas, what about security for costs?

On the question of costs, see the Bar Council's guidance, "Recovery of costs in non-solicitor cases". Stobart may be in a difficult position, because they will want to say that they are not instructing counsel, merely acting as an introduction service/go-between; but, on that basis, why should the client to be able to recover their fees from the opponent?

As is recited in paragraph 3(c) of the Bar Council's guidance (above), "[b]efore accepting Public Access instructions a barrister must take reasonable steps to ascertain whether it would be in the best interests of the client or in the interests of justice for the lay client to instruct a solicitor".

No doubt Stobart will have taken advice on all these points.

pompous barristers

Their website says that the reason to go them rather than directly to chambers is "Because we are passing high volumes of business to our barrister panel, we can demand better rates and faster service on your behalf".
I think stobart barristers should be forced to abandon the wig and wear Stobart truckers green and red baseball caps. At least being in the pockets of such a down to earth, no nonsense company must prick their pomposity!

Stobart

I have just read Richard’s post about Stobart barristers wearing green and red baseball caps. There have been quite a few jokes on the internet about Stobart’s entry into the legal market but clearly this is a substantial, and well known group, whose plans should be taken seriously.

Important issues have, however, been raised as to whether it is conducting litigation, the risk to clients that their communications with Stobart might not be privileged and whether a successful client will be able to recover the amounts paid to Stobart from the unsuccessful party. These issues should also be addressed seriously.

Further, it was reported that, “Howarth told the Gazette that the Stobart Group has itself instructed barristers without using solicitors since 2008...”.

Nevertheless, it appears that, in a hearing before Mr Justice Underhill in the Employment Appeal Tribunal as recently as 24 November 2011 (Eddie Stobart Ltd v J Moreman UKEAT/0223/11/ZT), Stobart were represented by Ms Joanne Woodward of Counsel , who is indeed listed in the Public Access Directory. In this instance, however, Ms Woodward seems to have been instructed by Messrs Hill Dickinson Solicitors.

It would be interesting to know when Stobart considers its own model to be unsuitable.

I see a lot of theories and a

I see a lot of theories and a lot of analysis being poured into how the business model would work but in my opinion this business model already works and it's called - chambers.

The ingredients are as follows: barristers, some paralegals and some admin and sales clerks.

Would Stobart Barristers succeed in changing the market? Depends on the rates that they are practicing but I think not since there are too many hands involved in dealing with the files and two many profit margins involved.

Would Stobart Barristers succeed as a business? It is likely in effect all they did is taken their existing panel and opened it to a wider variety of cases. Therefore they will have a running caseload of Stobart cases and another newly developed stream of cases coming through Stobart Barristers.

Time will tell. The pressure to change is there and it appears to be consistent but then again so is the smoke coming from burning hay the question is will the pressure be affirmed or will the wind of time blow it away?