Market monitor

Most listed UK businesses with a strong legal element did not prove good investments in 2016, although litigation finance business Burford Capital and national law firm Gateley both bucked the trend in eye-catching fashion, a Legal Futures analysis has found.

Two barristers have launched a Bar Standards Board-regulated entity offering commercial advice as an alternative to traditional chambers, hoping to pass on the savings from low overheads to clients. Lorna Hackett and David Dabbs have formed Hampshire-based Hackett & Dabbs.

Large law firms should consider becoming “general contractors” to manage their clients’ disaggregated legal needs amidst growing demand from in-house lawyers to use alternative legal services providers – with the Big Four accountants a threat “that cannot be overstated” – a new report has suggested.

Lawyers must be prepared to give their clients advice rather than a range of options, the managing director of a fast-growing wealth management and legal services firm has said. The Progeny Group has doubled in size in the past year to 70 staff, including 15 lawyers, and aims to grow just as quickly this year.

Lawyers who attract a sufficient number of positive client reviews are able to charge higher fees, the head of an online lawyer-matching service has claimed. He also said that having a single “odd-ball review” among a dozen good reviews could increase a lawyer’s standing.

City law firm Fieldfisher has created an ‘alternative legal solutions’ platform that offers financial services clients “customisable and process-efficient services, all of which go beyond the traditional law firm offering” – and at a lower cost.

A legal business which employs paralegals to handle straightforward work directly for clients while managing qualified lawyers on the advisory aspects of their case, has been launched by a serial legal services entrepreneur. He describes it as the UK’s first “para-law firm”.

Pioneering alternative business structure Triton Global has been acquired by national law firm DWF in a pre-pack administration deal that saves all 215 jobs. Triton is a multi-disciplinary insurance business combining legal advice, claims administration and loss adjusting that became one of the first ABSs to introduce employee ownership.

A financial health analysis of law firms based on annual accounts has predicted that at least 500 firms are heading for collapse in the next three years, with law firms at greater financial risk than businesses as a whole – but the profession was warned that the toll could be higher still.

The Ministry of Justice has revived the idea of price competitive tendering for legal aid contracts – this time for court-based duty solicitor advice on housing. The proposals would cut the number of housing duty solicitor schemes by more than half, from 117 in 2015-6 to 48.

A ‘Global Britain’ summit is to be held in the spring to highlight “the vital role played by the legal services sector in underpinning our economy”, the Ministry of Justice announced today. Lord Chancellor Liz Truss also spoke out about the importance of cross-border cooperation in civil justice continuing after Brexit.

Commercial law firms need to adopt a “redesigned approach to legal services”, including “paraprofessionals, technologists, information specialists, process managers and others” as well as lawyers, a major report has argued.

RSM has become the largest firm of accountants outside of the Big Four to launch a legal practice with an alternative business structure licence. The UK’s seventh largest provider of audit, tax and consulting services – which has revenues approaching £300m a year – will target mid-tier and owner-managed businesses with RSM Legal.

Leading London law firm and alternative business structure Mishcon de Reya yesterday announced the creation of an incubator for lawtech start-ups, with the founder saying it was less about investment than helping to change the firm’s culture to embrace technology.

A DIY online information service run by the law firm owned by global insurance giant Markel has been opened up to individual SME subscribers. LHS Solicitors charges £45 a year for full access to a ‘digital hub’ which has templates, factsheets, guides, and legal documents, aimed at businesses.