The Law Society announced that Lord Hunt of Wirral will lead its review on regulation. The review will make a number of recommendations aimed at ensuring legal services are regulated effectively for consumers, businesses and the legal sector.
The review has already proved controversial, with Peter Williamson, the chair of the Solicitors Regulation Authority, hitting out at the Law Society for overstepping its remit and “confusing representative and regulatory functions”.
The Law Society may have calmed some nerves by appointing Lord Hunt to lead the review, who has experience of both the legal profession and regulation in other sectors. He was also heavily involved in the drafting of the Legal Services Act, which required the Law Society to split its representative and regulatory functions.
Speaking of his appointment, Lord Hunt said: “The structure of regulation governing lawyers is changing rapidly, as is the legal services market itself, and it is critically important that the substance of regulation keeps pace. The Law Society has asked me to advise and report on good modern regulatory practice, working closely with the SRA and with external stakeholders. I hope my work will make a significant contribution towards thinking on regulatory issues and will help to shape the future development of regulation of the legal profession.”
The review is expected to take nine months. The Legal Services Board, which will ultimately have oversight of the regulation of the profession, will start work during 2009.
Up to 100 courts could close and nearly 10,000 jobs may be lost by cuts of more than £900 million at the Ministry of Justice (MOJ), according to The Times. Key initiatives, such as the programme to tackle knife crime, may also be threatened.
The economic problems, including high inflation and growing unemployment, mean that the government’s welfare bill is expected to rise, which is having a knock on impact on other government spending. If the level of job cuts is as the Times reported, it will represent more than a tenth of the workforce of the MOJ, with one in three being made through redundancies.
According to the newspaper, £1 billion of policy initiatives are also in jeopardy and there are plans to charge immigrants for deportation appeal hearings and to halve the legal representation at court hearings over the future of children.
Other government departments announcing job cuts include the Department for Work and Pensions, Revenue & Customs and the Home Office and the Communities Department.
The Access to Justice Foundation was launched this week to fund pro bono legal services to people who cannot afford to pay but who also cannot get legal aid.
The Foundation will raise the money to fund these cases through section 194 of the Legal Services Act. This enables the courts to require a party losing a case against someone with pro bono legal help to make a payment to the Foundation equal to an order for costs. Until now, the losing party has not been liable for any costs, although if they had won they would have been able to seek them.
The Foundation will distribute its funds to pro bono organisations across the UK, including new regional legal support trusts, based on the successful London Legal Support Trust. Along with the Foundation, these trusts will be a key part of the strategic infrastructure supporting pro bono work and will pass funds on to advice agencies and law centres.
This is a cross-profession initiative, working with the voluntary sector and led by the National Pro Bono Coordinating Committee chaired by the Attorney General, Baroness Scotland QC. Lord Goldsmith QC, former Attorney General, will chair the Foundation.
Speaking at the launch at Coutts bank, Baroness Scotland, said: "This is a historic launch. As guardian of the public interest it is of great importance to me that the Access to Justice Foundation has been created.
"With its charitable status it owes no obligation or affiliation to any one cause, save the overriding cause of improving access to justice. The key to its work will be to distribute funds strategically to where they are needed. A fundamental part of this is the creation of the regional legal support trusts, with which the Foundation will work closely, just as it will work closely with the national pro bono organisations that coordinate work delivered in this country and across the developing world."
Judges in civil courts will no longer wear wigs. Mr Justice Nicholas Blake, who ruled in favour of the Gurkhas this week, said as he left the courtroom: "This must be the last judgment in an administrative court by a judge wearing a wig,".
The end of the wig marks the end of 300 years of tradition and follows a review by Lord Phillips, the lord chief justice, who felt the headgear contributed to the view the public has of judges as fusty and out of touch. Civil court judges will also no longer wear wing collars and bands and have simpler robes.
Wigs will still be worn by judges presiding over criminal trials, who argued that they give them some degree of anonymity.
The move away from traditional dress is primarily to reflect the modernisation of the judiciary. It will also reduce the running costs of producing and maintaining court dress.
The changes were made after consultation with both the public the judiciary in England and Wales.
Justice Secretary Jack Straw expressed concern about ‘no win, no fee’ arrangements and announced plans to crack down on the “excessive fees charged by lawyers”.
Speaking at the Labour Party conference in Manchester on Sunday, Mr Straw said: "It's claimed they have provided greater access to justice, but the behaviour of some lawyers in ramping up their fees in these cases is nothing short of scandalous.
"So I am going to tighten up the system and consider whether to cap more tightly the level of success fees that lawyers can charge."
This came just days after the NHS Litigation Authority claimed the annual legal bill for the NHS has risen to £90 million a year, a 122% increase in four years, despite little change in the number of cases. The Authority said this was largely due to ‘no win, no fee’ claims, in which some solicitors double their rates to up to £600 per hour.
But the announcement has provoked an angry reaction. Speaking to the Times newspaper, Des Hudson, the chief executive of the Law Society said: “The former Lord Chancellor [Lord Irvine of Lairg] agreed that the maximum success fee should be 100 per cent, because otherwise it would be uneconomical for lawyers to run cases that have a 50-50 chance of success — and people would be left without access to justice.”
Mr Straw also announced further reforms to the justice system designed to put victims first, including introducing online court records and making community sentences more visible to the public.
The campaign for age equality suffered a setback this week when the European Court of Justice (ECJ) ruled that it was not a breach of EU equality laws for the UK to set a compulsory retirement age.
Age Concern had claimed that forcing people to stop work at or after 65 without compensation breached the equal treatment directive, which bans employment discrimination on a number of factors, including age, although it excludes pensioners.
But an advocate general at the ECJ rejected the claim, arguing that a fixed retirement age does not necessarily go against the EU rules. He agreed that UK rules on mandatory retirement are covered by the EU directive, but made it clear that age discrimination could be justified in certain circumstances.
Commenting on the judgement, Gordon Lishman, director general of Age Concern, said: “This is a set back, but it is not a disaster. The advocate general's opinion confirms that the EU Directive requires age discrimination to be justified. It’s now up to the UK government to prove to the High Court that their social and employment policies are important enough to justify kicking people out of work at 65. Until then, older workers face more uncertainty about their right to work.
“Millions of older workers in the EU will be fuming that the Advocate General thinks ageism counts for less than other forms of discrimination. This is not a minority issue. In the UK ageism is already the most commonly experienced form of prejudice and more than a million people are already working past state pension age.”
The opinion is not legally binding, but is normally followed by EU judges. The final verdict is due in about six months.
The European Commission is referring the UK to the European Court of Justice because of its failure to implement the fifth motor insurance directive.
The directive introduces some new rights for policyholders and improves the protection for victims of traffic accidents. For example, where a vehicle has a false or no registration plate, a victim’s claim will be met by the guarantee fund in the country of the accident (in the UK this will be the Motor Insurers’ Bureau).
However, some of the provisions already apply in the UK, for example, the right for pedestrians and cyclist to seek compensation in the event of an accident (although with no guarantee of success, for example, if they are wholly liable themselves.)
The agreed date for implementing the directive (2005/14/EC) into national law was 11 June 2007.
Spouses and civil partners will receive more if their partner dies without a will under new government proposals.
At the moment, the bereaved get the first £125,000 of their partner’s estate if they die intestate; this increases to £200,000 if they had no children. But there are concerns that these amounts, set in 1993, are too low.
Following a public consultation, the government has decided to raise the levels bereaved partners get, called the statutory legacy. From 1 February 2009 spouses and civil partners of those who die without a will receive the first £250,000 of the deceased’s estate, and £450,000 if the deceased leaves no children.
Justice Minister Bridget Prentice said: “This increase will give extra protection to married couples and civil partners whose spouse or civil partner dies without making a will.”
However, she added how important it was for everyone to make proper arrangements for their loved ones in the event of their deaths: “Married couples and civil partners should not assume that when their spouse or civil partner dies, they will automatically be entitled to everything. It is up to individuals to make sure that their wishes are respected by making a will.
“My message to people is, don't leave it to chance. Make sure your loved ones are properly provided for by leaving a will.”
For more information, visit the Ministry of Justice website.
Male solicitors earn on average £19,000 more than females and white solicitors earn on average £10,000 more than black and minority ethnic solicitors, a survey by the Law Society found this week.
In response, the Association of Women Solicitors launched a two-year equal pay campaign to draw attention to the inequalities of pay in the legal sector, investigate the causes and propose solutions.
Speaking at the AWS’ inaugural Fiona Woolf lecture, Fiona Woolf, past president of the Law Society and past chair of the AWS, said: “The gap is a symptom of the difficulties we in the legal sector are facing as we try to implement new ways of working that take account of contemporary realities.
“If legal practices are to win the war for talent, we need to find ways to make flexible work successful - not just for women, but everyone who is attempting to juggle a career with other commitments.”
In response, Katherine Rake, director of the Fawcett Society, said: “The gaping chasm in pay between male and female solicitors is highly disturbing, but sadly not surprising. Across the professions women are paid less than men. The paucity of senior flexible roles, long working hours culture, and plain old fashioned discrimination all conspire to shut women out of the boardroom and reduce their wage packet.”
Commenting on the survey’s findings about the pay gap between white and BME lawyers, Sailesh Mehta, chair of the Society of Asian Lawyers said they would work with the Law Society and senior partners in larger firms to find out the causes of the problem and find practical solutions.
The Lord Chancellor, Jack Straw, published the annual report for the Ministry of Justice this week. The report is the first for the new department, which was set up in May 2007 by bringing together the Department of Constitutional Affairs with the National Offender Management Service and the Office of Criminal Justice Reform.
As well as reviewing the past year, the report sets out future key priorities, including public protection and re-offending and improving relations with the judiciary while streamlining leadership across the whole of the department's agenda.
To read the report visit http://www.justice.gov.uk/publications/annual-report-2008.htm
The Lord Chancellor and Secretary of State for Justice, Jack Straw, announced the appointment of David Edmonds as the first chair of the Legal Services Board.
David Edmonds was a senior civil servant and CEO of the Housing Corporation and spent seven years as managing director within the NatWest Group. He also spent five years as Director General of Telecommunications and was on the founding board of Ofcom. He is currently the chair of the Board of NHS Direct.
Jack Straw said: "I am delighted that David Edmonds will be taking on this important role. I am confident that he will provide excellent leadership for the first Legal Services Board.
"The Legal Services Board is a new office, created as part of the wider legal services reforms as embodied in the Legal Services Act 2007. The aims of the organisation are clear - to put the consumer first and to promote competition, innovation and transparency.
As the first chair, Mr Edmonds will take the lead in setting the strategic direction of the board to ensure that these aims are met".
Commenting on the appointment, Andrew Holroyd, Law Society President, said: "We look forward to working with David Edmonds to help ensure that the regulatory environment enables high quality legal services to flourish for the benefit of the public and the profession. I wish him every success in his new post."
Mr Edmonds will formally take up post on 1 May 2008. His appointment lasts until May 2011.
From 6 April a new offence for prosecuting companies and other organisations where a gross health and safety failure has caused someone's death comes into force. The Corporate Manslaughter and Corporate Homicide Act 2007 is a landmark in law and the culmination of ten years of campaigning by unions and other groups. It means directors and senior managers will find themselves under increasing scrutiny if work-related deaths happen as a result of gross corporate failures.
In a podcast interview for The Law Report, Russell Jones & Walker's expert Judith Seddon discusses the provisions of the Act and how they differ from previously. She also covers the link between the act and the health and safety regime as well as the impact it will have on corporations and what will happen if they are charged and found guilty. Listen to the interview now.
The Lord Chancellor, Jack Straw, has announced new proposals to give Parliament more power to hold the government to account and strengthen its relationship with the people.
As well as giving Parliament a clear process to approve decisions about going to war and more scrutiny of treaties, the proposals remove the protest restrictions around parliament. The power of the Attorney-General to give directions to prosecutors in individual cases will be removed. The proposals also remove the power of the Prime Minister to make judicial appointments, and of the Lord Chancellor to make appointments below the high court.
Speaking in parliament, Jack Straw said "The reforms proposed today are a significant commitment to ensure that power lies where it should - with Parliament and the people".
The changes are set out in the draft constitutional renewal bill and build on proposals and consultations in the 2007 Governance of Britain green paper and the Constitutional Renewal white paper. For a list of the key proposals visit the Ministry of Justice website.
Redundant and obsolete acts will soon be repealed thanks to legislation introduced in the House of Lords. The Statute Law (Repeals) Bill will finally remove meaningless laws on areas like workhouses, county gaols and the former East India Company.
Lord Chancellor and Secretary of State for Justice Jack Straw said:
"Laws on turnpikes, workhouses, and the Peterloo massacre are rightly of interest to historians, but there is no need to retain them on the statute book. Obsolete laws can raise people's expectations and invite costly and pointless legal activity. This is a necessary and overdue parliamentary spring clean."
Leading the debate Lord Bach said:
"The removal of these redundant and sometimes absurd pieces of legislation from the statute book help to simplify and modernise the law."
Other legal curiosities under repeal:
The bill implements joint recommendations of the Law Commission and Scottish Law Commission. It was prepared on the basis of extensive consultation, and those potentially affected by the repeal of the provisions were given opportunity to contribute their views.
For more information see justice.gov.uk.
In a speech on 6 March, the Lord Chancellor commended the UK’s legal profession as being one of the finest in the world, but stressed that reform was vital if it was to stay ahead of the game.
Speaking at the launch of the Law Society’s campaign on 'markets, justice and legal ethics', Jack Straw spoke about the significant contribution the legal sector makes to the British economy and to society as a whole. He also emphasised that while the profession has been underpinned by the same values and ethics for generations, it is not immune to change.
He described the Legal Services Act 2007 as a 'catalyst for more growth in the profession and for the legal services market to flourish' and acknowledged the legislation had benefited from dialogue between the professions, consumer groups and the government. He said alternative business structures were a key aspect of the reforms that would enable the profession to respond better to the needs of consumers and allow lawyers themselves to have more flexibility in the way they worked.
Mr Straw also spoke about the moral and business case for a diverse legal profession, the reforms to legal aid and the importance of pro bono work. He closed by recognising the ethical commitment to justice at the root of the legal sector and how it was vital this remained if the profession was to continue to lead on the world stage.
The Justice Secretary, Jack Straw, announced changes to the structure of the Ministry of Justice (MOJ) this week.
Mr Straw said the aim of the new structure was to enable the MOJ to focus more on its key priorities, including protecting the public, reducing reoffending and improving access to justice.
The main changes are in the National Offender Management Service (NOMS) where HM Prison Service and the Probation Service will be brought together in NOMS under a streamlined headquarters and regional structure.
Three other new directorates will cover: criminal justice and offender management; democracy, constitution and the law; and access to justice, covering legal aid, courts and tribunals and regulation of the legal profession. A corporate performance director will bring together key cross-cutting functions.
Mr Straw added: “These changes will ensure a more joined-up approach to issues of justice and constitutional reform and will ensure that we create the right conditions for the delivery of the Ministry of Justice's wide agenda.
In response, human rights organisation JUSTICE expressed concern that the new structure diminished the importance of legal aid. The director, Roger Smith, said: “Legal aid is now contained within one directorate embracing courts, tribunals and regulation of the legal profession. There is a real danger that the misguided inclusion of prisons and probation within the Ministry’s remit is swamping a concern with access to justice.”
The MOJ was created in May 2007 from the Department of Constitutional Affairs and parts of the Home Office. It has responsibility for prisons and probation, the courts and tribunals and legal aid, as well as important policy responsibilities ranging from constitutional reform and devolution, democracy and human rights to the justice system.
The new top structure will come into place on 1 April with the more detailed changes being implemented over the following few months.
In an interview for The Law Report, Bridget Prentice reiterates the focus on consumers that has been behind the Legal Service Act and said the future looks bright for the legal profession.
"What is important to me and what is the thrust behind this Act is that the consumer has the choice...They will be able to go to one place and get all the different forms of advice that they need under one roof. And I think that is really what the consumer wants. And the competition that will come as a result of that, I think, will help raise standards."
She added: "I think that we have a really good message to sell and that other countries who were perhaps a bit negative about what we were doing in the Legal Services Act will come to discover that we are very much ahead of the game here and that our professions are going to be able to go and expand internationally in a way that they haven't been able to do before."
To listen to the full interview and get your CPD points, click here.
Pioneering legal education website The Law Report today publishes the first legal CPD video podcast. The podcast is a market leaders' debate about this year's hot legal topic, alternative business structures, and explores what impact they will really have on the legal profession.
To make the video podcast easier to use, The Law Report website has been revamped following users' feedback. The site already has a wealth of CPD-accredited content in audio podcast format. Providing video podcasts as well enables The Law Report to explore complicated issues in more detail and gives users the benefits of attending a conference or seminar without having to leave their office. They can even download it to an iPod or similar device to watch on the train or at home. They are a great way to get competitively priced, convenient CPD.
The first video podcast, Alternative Business Structures: Here and Now is a discussion between some of the profession’s leading experts. It will be of interest to anyone wanting to know more about how to ensure their law business remains competitive and stays ahead of the game once the provisions in the Legal Services Act come on stream.