Market monitor

Four local authorities in the south of England are set to create an alternative business structure in a bid to increase their income in a time of budget cuts. Brighton & Hove City Council, East Sussex County Council, Surrey County Council and West Sussex County Council are first to bring together their legal teams in a partnership.

Knights, the law firm backed by leading businessman James Caan, is targeting accountants, tax specialists and town planners as part of a plan to recruit a 100 more professionals this year. Chief executive David Beech said he expected around half of the new recruits to be non-lawyers.

Cardiff-based Capital Law has today launched a £50m fund – backed by a hedge fund – to help its clients pursue litigation, in a first for a law firm. Senior partner Chris Nott said the fund had already helped a small business sue a government department for £1m and another client bring a professional negligence claim against one of the big four accountants.

Business as usual “is not an option for many, if indeed any, traditional legal service providers”, the Law Society has warned today in a major report on what the legal market may look like in 2020. It said that the opportunities for solicitors in the coming years “cannot be distinguished from the opportunities for other types of lawyer, or non-lawyer-owned businesses”.

The AA has shut its alternative business structure, AA Law, to new clients, it has emerged. The motoring giant said: “Following a strategic review the AA decided that the level of customers it was introducing did not justify the maintenance of a standalone business.”

Co-operative Legal Services is making a significant investment in face-to-face advice for the first time after acquiring a wills, trust and probate company. It is further evidence that, despite changes in the wider group following its well-publicised troubles, legal services remains a core service.

NAHL Group – the listed business that owns National Accident Helpline – has grown its footprint in the conveyancing market with the acquisition of a property search company. It is paying £2m for Searches UK, with £1.66 up front and a further £350,000 payable on or before 30 June.

Listed UK businesses with a strong legal element have proven good investments over the past year, outperforming the FTSE indicies, a Legal Futures analysis has shown. While both the FTSE 100 and FTSE All-Share indicies fell during 2015, almost all law-related shares were up – some spectacularly so.

The number of complaints to the Legal Ombudsman about claims management companies is gathering pace and passed 15,000 in the first nine months of 2015, it has emerged. LeO said almost half of the complaints were about fees.

LV= has created its legal offering to offer an extra service to its members and customers, rather than to make any great profit, its claims director has told Legal Futures. The new venture is not an alternative business structure, unlike all the other such arrangements between insurers and law firms.