PILOT SCHEME: Database to be made available free of charge

Law firms are being encouraged to give up their precedents to in-house lawyers under a pilot initiative launched by the London branch of the Law Society's Commerce & Industry (C&I) Group.

Branch chairman Anthony Armitage is currently negotiating with law firms to create a central database of precedents for banking, regulatory, property and other work, which will be made available free of charge to C&I members.

City firm Nicholson Graham & Jones and Watford practice Matthew Arnold & Baldwin have already agreed in principle to hand over precedents, while City giant DLA is currently in talks over doing so.

'There is a very significant demand among London C&I members for a precedent database,' said Mr Armitage.

'Law firms have traditionally been very protective of their precedents.

But the value that a law firm adds is not really in the precedent, but in how it is used and the advice that goes around it.

'If a law firm is confident in its skills and specialism, it will still be able to add that value.

The response from law firms so far has been positive.'

The scheme is currently in the initial stages of development, but should ultimately create a comprehensive database of loan documents, sale contracts, lease agreements, surrender documents and more.

Only one example of each type of precedent will be available on the database.

The law firm which provides it will keep its own branding on the document and be responsible for keeping it up to date.

The scheme will initially be for London C&I group members only but if successful, it will be rolled out to the entire membership next year.

Meanwhile, the C&I Group will next year begin a series of regional forums focusing on the role and work of in-house lawyers within their organisation in relation to corporate governance, and eventually produce guidance for members.

Rachel Rothwell