Legal Futures Focus on supervision: lessons for law firms following the Mazur appeal

By Legal Futures Associate Miller Insurance ^[1]

The Court of Appeal’s ruling in Mazur is a victory for CILEX and its members. The judgment affirms the vital contribution of CILEX professionals and other non-qualified fee earners to the justice system, acknowledging the qualifications, experience, and expertise they bring.

The ruling also brings welcome relief to firms concerned that their modus operandi risked both prejudicing their clients and potentially exposing them to significant risk of professional claims against the practice.

From ambiguity to clarity

By rejecting a rigid distinction between ‘assisting’ and ‘conducting’ litigation – the central point of ambiguity – the Court decision has, in effect, endorsed pragmatic legal team structures that emphasise supervision, accountability, and professional standards.

The uncertainty caused by the original Mazur ruling affected many CILEX members, paralegals, trainees, and other non-qualified fee earners; it is hoped that they can now progress their careers with greater clarity and confidence. However, the judgment does not entirely settle the question of what constitutes adequate supervision or the limits of delegation, and it is possible that further litigation will be required to address some of the remaining regulatory shortcomings within the Legal Services Act.

Law Society vice-president Brett Dixon commented: “Whilst the court did not accept all of the Law Society’s points, its judgment provides an outline framework for those involved in litigation to use in assessing whether supervision is adequate and lawful.” Both the Law Society and the Solicitors Regulation Authority have welcomed the clarification provided and have committed to updating their guidance to ensure greater consistency and clarity for practitioners.

Best practice guidance

By implementing the following best practices, firms can mitigate regulatory and operational risks, while continuing to support access to justice and uphold high professional standards in the light of the Court of Appeal’s Mazur ruling. Evidencing these steps will also help impacted firms present themselves to insurers as part of their renewal presentations.

Review supervision structures: Ensure all delegation within legal teams is underpinned by clear, robust supervision. The judgment emphasises the importance of adequate and lawful supervision by authorised persons, so review reporting lines and supervisory responsibilities regularly.
Update internal policies and training: Align internal policies and training with the latest regulatory guidance from professional bodies (e.g., Law Society, SRA, CILEx Regulation) to ensure all staff understand the boundaries of their roles and the importance of supervision.
Document delegations and supervision: Maintain detailed records of all delegated tasks and the supervision provided. This evidences compliance and transparency, and can be critical if challenged.
Regular regulatory engagement: Monitor updates from regulators and seek early guidance on complex or ambiguous matters.
Transparent client communication: Clearly explain to clients who is acting for them, the extent of delegation, and supervisory arrangements. This ensures accountability and manages client expectations, addressing concerns raised by the claimants in Mazur.
Monitor for further developments: As the judgment did not fully define all boundaries, remain alert for further regulatory or case law developments, and be prepared to adapt risk management practices accordingly.
Promote a culture of accountability: Nurture an environment where all staff, including paralegals and legal executives, understand their responsibility to raise concerns about supervision or delegation.
Business continuity planning: Given the uncertainty and disruption caused by the initial Mazur decision, firms should incorporate regulatory disruption into their business continuity and risk management planning.

Miller is here to help

Having adequate and meaningful supervision in place is not just a regulatory point, but crucial to both professional indemnity insurers and operational resilience. Miller works closely with its clients to help them understand and respond to evolving risk landscapes, ensuring that the structures and controls they have in place meet both regulatory expectations and insurers’ requirements.

By supporting our legal clients with practical risk management guidance, tailored insurance solutions, and up-to-date insights on regulatory changes and emerging risks, we help firms evidence robust supervision, and an embedded culture of accountability – key factors not only for compliance but also for presenting a strong risk profile at renewal.