Practice Management

Tech-savvy law students were last week invited to pursue careers delivering legal services via technology businesses instead of the conventional route of joining a legal firm, at a meeting of IT executives committed to establishing London as a global hub for lawtech start-ups.

Barristers who outsource work must not “ask for or accept” any payment from third parties, the Bar Council has warned. However, third parties can “for commercial reasons” offer services to barristers at lower than normal rates, so long as the “entire benefit” is passed to lay clients.

Plans by the Solicitors Regulation Authority to introduce a centrally assessed Solicitors Qualifying Examination could create an “even greater diversity problem” for the profession, the Law Society has warned. The society said it could be a “huge issue for those without financial support”.

The Law Society yesterday rowed back from its support for would-be solicitors being able to qualify without degrees, putting it at odds with government backing for apprenticeships. Its chief executive said allowing it risked damaging the profession’s standing and even the global status of England and Wales as a jurisdiction.

Findings of dishonesty, especially against solicitors, should not be made without “the most careful consideration” of what they say in their defence, appeal judges have warned in a case in which they overturned a High Court decision that two solicitors were guilty of “dishonest assistance in a breach of trust”.

Commercial law firms have a limited “window of opportunity” to adopt new delivery models which is unlikely to “remain open forever”, a report has warned. Jomati Consultants also revealed that four City firms are on course to receive almost £8m in government grants as a result of opening low cost centres.

Law firms are “in good shape financially”, with median income increasing by 5.4% last year, according to Law Society research. The survey found the median fee income for a partner had reached almost £620,000 and a solicitor almost £118,000 – but more partners than last year are drawing too much.

Small law firms have the most to lose if a Solicitors Qualifying Examination is introduced as it may downgrade the value of being part of the profession, a leading legal academic has warned. Professor Anthony Bradney said the exam could be a way for solicitors to “very rapidly lose their reputation”.

Elite Insurance, one of only three unrated indemnity insurers of law firms and the only one based in Britain, announced yesterday that it is leaving the market. Elite cited increased risks of client account fraud and the government’s planned increase to the small claims limit as reasons for the move.

A barrister’s advice to a claimant to settle her case at the doors of the court after a key witness failed to appear was not negligent, the High Court has ruled. It has been described as good news for the profession given “a climate of post-settlement remorse” among claimants.