Market monitor

Scotland’s larger law firms saw a rise in profits last year despite a 11% dip across the profession as a whole, research has found. The Law Society of Scotland’s survey showed that average profits per equity partner fell from £72,000 in 2009 to £64,000 last year. It is the second consecutive drop, from a high in 2008 of £104,000.

A service that enables law firms to offer trade mark registrations under their own brand without lifting a finger has been launched for the first time in the latest twist on legal process outsourcing. Under the ‘white label’ trade mark registration service, all work is undertaken by intellectual property specialist solicitors Azrights in the background without the knowledge of clients.

Alternative ways of delivering legal services continue to grow with the launch of two web-based, fixed-fee Q&A services, and what is claimed to be the first Twitter “law firm”. The two websites – www.expert-answers.co.uk and www.questiontheexpert.com – both use panels of qualified lawyers to answer questions put by users, while @thelegaloracle is the brainchild of the founder of personal injury referral network Loyalty Law.

The recession has encouraged in-house lawyers to make more use of what they see as a new, business-minded Bar by instructing them directly, research has revealed. The report, commissioned by Hardwicke Chambers and conducted by Legal Futures Associate Jures, found greater expertise and better value for money than solicitors were also factors.

The latest in our series of extracts from Climate Change, a report on the impact of the Legal Services Act published by accountants Baker Tilly, considers what kinds of law firms might float and the impact it could have on the practice and staff

National law firm group QualitySolicitors (QS) is opening 54 new branches across England and Wales on Thursday, including what it says is the first ever legal store in a shopping centre. Claiming the store will be “the start of a revolution in legal services”, QualitySolicitors Freeman Harris in Lewisham shopping centre, south London, will offer free initial consultations, late-night opening on Thursdays as well as weekend opening, and fixed-priced services, including “instant wills” drafted while clients finish their shopping.

The government is set to take forward Lord Young’s proposals to extend the road traffic claims process to all low-value personal injury and clinical negligence cases, while the Jackson reforms are imminent, the Ministry of Justice confirmed today.

Is it time for solicitors to panic? The significance of the announcement that the AA and Saga have launched legal services websites is less in what they are offering but in the fact that they are the latest big brands to see potential in the legal market.

The first of a series of extracts from Climate Change, a report on the impact of the Legal Services Act published by accountants Baker Tilly, considers what kinds of law firms and investors will be interested in taking advantage of alternative business structures. And just what would a big law firm do with a £50m cash injection?

The AA and Saga have today launched legal services websites targeted at Middle England as pressure on high street solicitors cranks up. Both companies – which are owned by the same private equity businesses – have tied up with volume law firm Cogent Law to offer services sitting behind an online document-assembly platform provided by legal IT company Epoq Legal.

The chairman of the Legal Services Board has called on the Solicitors Regulation Authority (SRA) to be more flexible in its approach to law firms which are looking to do deals with external investors before alternative business structures (ABSs) become a reality on 6 October 2011. In a major speech, David Edmonds also suggested that the rules which prevent solicitors having unregulated separate businesses carrying out unreserved legal work are anti-competitive.

Australian law firm Slater & Gordon – the first in the world to go public – is keeping a close eye on developments in England and Wales and would consider entering the market, its managing director has revealed. Andrew Grech also gave an insight into the lengthy process they went through to float.

In the final part of his series on external investment in law firms, Jeremy Black of Deloitte explains that private equity firms have one goal – to make money – and briefly looks at the implications of raising funds through listing.

Personal injury claims and other low-value legal matters should be “delawyered” to some degree, former Lord Chancellor Lord Falconer has argued. The peer, who was the architect of the Legal Services Act, said alternative business structures would help in this process. Welcoming the “commoditisation” of personal injury work, he said it is “fundamentally a good thing that the market should only be charged what the service requires”.

There will be no ‘big bang’ in legal services in the near future and if solicitors are waiting for it before deciding on their firm’s survival strategy, they risk being overtaken by events, a leading solicitor has warned. Neil Kinsella, managing partner of national law firm Russell Jones & Walker, also said that firms could be “dancing with the devil” by accepting private equity investment.