Modern Law Magazine Issue 21 by Charlton Grant

The Business of Law

December 2015 | Issue 21 | ISSN 2050-5744 Achieving financial independence: What is financial independence and how do I achieve this? Lawrence Mason reports. The Eclipse Proclaim Modern Law Awards 2015: Charlotte Parkinson takes a look at the winners from this year’s awards and summarises the event. An innovative proposition? Charlotte Parkinson speaks to the Chief Executive of new legal aggregator The Law Superstore (TLS), Matthew Briggs, for the inside scoop on the new venture.

Modern Law Magazine | December 2015 | Issue 21

“It has certainly become important to some firms to have sufficient scale in order to be able to make investments to safeguard their future and give them opportunities to grow” Jeremy Black

Elisabeth Davies “We can’t just talk about access to justice for consumers, we now have to talk about access to justice for specific groups of consumers who are experiencing ‘that’ type of law and who have ‘those’ personal circumstances”

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t the end of November, I was lucky enough to be invited to the Legal Leeds event, jointly hosted by the Legal Services Board (LSB), Legal Ombudsman (LeO), Legal Services Consumer Panel (LSCP) and Leeds Law Society at Leeds Town Hall. The event provided the opportunity for legal professionals and service providers from the Yorkshire region to hear directly from each organisation and learn about their plans for further collaboration moving into 2016. This is likely to be the first in a new series of local events, so keep an eye out for one near you next year. Before the event, I sat down with our cover star, Elisabeth Davies, the Chair of the Legal Services Consumer Panel (LSCP) to talk about working with regulators, and why the organisation is moving away from static definitions of Consumer Vulnerability. Read the full interview from page 13. As this issue is the last of 2015, we also have a financial focus, so that you can asses where your firm is and where it needs to be in 2016. I spoke to Jeremy Black, a Partner in the Professional Practices Group at Deloitte, to find out about their quarterly survey into the Top 100 UK law firms and why firms’ need to differentiate themselves utilising investment (from page 17). Taking a look at the legal market in a broader sense, is Andy Poole, the Legal Sector Partner

at Armstrong Watson. Andy considers some market trends, from mergers to outsourcing and makes some financial predictions for 2016 from page 7. This year’s Eclipse Proclaim Modern Law Awards took place on 19th November at the Hurlingham Club, London. As ever, the event attracted 500 legal professionals and was a great success. To find out about the winners and see some photo’s from the event, take a look at the full coverage from page 50 onwards. For more details on our upcoming events (which are detailed below), please contact ellie.campbell@charltongrant for general enquiries, and martin@charltongrant.co.uk for sponsorship enquiries. Alternatively, call 01765 600909. I hope you enjoy this issue and if you have any feedback or suggestions for a future edition, please get in touch with me via the details below. I wish you all a very Merry Christmas and Happy New Year.

Charlotte Parkinson, Group Editor, Modern Law Magazine. 01765 600909 | charlotte.parkinson@charltongrant.co.uk @modernchar

Dates for your Diary: Modern Law Conference | Tuesday 7th June 2016 | Old Trafford, Manchester United, Manchester Modern Law Conveyancing Awards | Thursday 14th July 2016 | The Rum Warehouse, Liverpool

Modern Law Magazine Project Director Kate McKittrick

Group Editor Charlotte Parkinson

Events Director Julia Todd

Production/Editorial Assistant Ebony Lawson

Contact t: 01765 600909 or e: info@modernlawmagazine.com Modern Law Events: www.modernlawevents.co.uk Modern Law Awards: www.modernlawawards.co.uk All material is copyrighted both written and illustrated. Reproduction in part or whole is strictly forbidden without the written permission of the publisher. All images and information is collated from extensive research and along with advertisements is published in good faith. Although the author and publisher have made every effort to ensure that the information in this publication was correct at press time, the author and publisher do not assume and hereby disclaim any liability to any party for any loss, damage, or disruption caused by errors or omissions, whether such errors or omissions result from negligence, accident, or any other cause.

ML // December 2015

CONTENTS 03-08 Intro & THE News 07 Andy Poole talks news

The legal sector partner from Armstrong Watson considers legal finance matters as we reach the end of 2015.

11-20 The INTERVIEWS 13 Interview with...Elisabeth Davies

On 26th November, the Legal Services Board (LSB), Legal Ombudsman (LeO), Legal Services Consumer Panel (LSCP) and Leeds Law Society held a collaborative event in at Leeds Town Hall. Charlotte Parkinson, Modern Law, sat down with the Chair of the LSCP before the event to discuss working with regulators, and moving away from static definitions of Consumer Vulnerability.

17 Interview with...Jeremy Black

As Deloitte releases its quarterly survey into the top 100 UK law firms, Charlotte Parkinson, Modern Law speaks to a Partner in the Professional Practices group, about what the survey shows about how the top-tier of the UK legal market is performing, and why firms need to differentiate themselves utilising investment.

21-41 The views 23 Q. Can my commercial client get

ATE legal expenses insurance for an appeal? (Their ‘solid’ claim most unexpectedly lost at trial there is no policy currently in place.)

Matthew Williams, AmTrust Law

23 The legal needs of small businesses New research

Richard Moriarty, Legal Services Board (LSB)

25 Financial Predictions for 2016

Steve Arundale, Royal Bank of Scotland/ NatWest, Commercial & Private Banking

25 Know your clients

Lisa Beale, Checkaprofessional.com

27 AI will see you now...

Sucheet Amin, Aequitas Legal & inCase™

27 Obstruction to justice?

Linsey Carroll, Box Legal Ltd

28 Why should we care what sort of divorce our clients experience?

Adriana Galimberti-Rennie,, Collaborative Resolution Ltd,

29 The only way to go?

Lesley Graves, Citadel Law

29 Considering your brand

Kevin Ferriby, Informed Financial Planning

Editorial Columnists Andy Poole Legal Sector Partner Armstrong Watson

Gregory van Dyk Watson Managing Director Isokon Limited

Lisa Beale Head Checkaprofessional.com

Ross Weldon Marketing Specialist Clio EMEA

Charles Christian Editor-in-Chief The Legal IT Insider

Jasvinder Jhumat Head of Corporate Business alldayPA Legal

Charles Peter CEO Datalaw Ltd

Jo Hodges Director of Sales & Marketing Redbrick Solutions

Mark Montgomery Customer Strategy & Marketing Director myhomemove

Steve Arundale Commercial Head of Professional Services & Financial Institutions, Sectors & Specialist Business RBS & NatWest Commercial & Private Banking

Cian O’Sullivan Top Dog & Founder Beagle

Jonathan Simon Executive Director Willis

Darren Gower Marketing Director Eclipse Legal Systems part of Capita plc

Kevin Ferriby Senior Financial Planner Informed Financial Planning

David Simon Chairman Triton Global Erica Willmott Marketing Assistant Conveyancing Data Services

ML // December 2015

Lesley Graves Managing Director Citadel Law Linsey Carroll In-house lawyer Box Legal Limited

Matthew Williams Head AmTrust Law Nik Ellis Managing Director Laird Assessors Noel Inge Managing Director CILEx Law School Richard Moriarty Chief Executive Legal Services Board (LSB) Robert Parness Costs Consultant Burcher Jennings

Sucheet Amin Managing Director Aequitas Legal & Founder of inCase™ Zoe Holland Managing Director Zebra Legal Consulting

43-58 The Features

30 Educating the profession

Scott Bozinis, CEO InfoTrack

30 A world of opportunity

Nik Ellis, Laird Assessors

43 An innovative proposition?

31 Minimising the risks

Jonathan Simon, Willis

31 Managing your WIP

Zoe Holland, ZebraLC™

33 Increasing profitability...

Norman Kenvyn, VFS Legal

33 What could AI mean for clients?

Robert Parness, Burcher Jennings

35 Real service, by real humans

45 Is a Robot going to steal your job away in 2016?

Ross Weldon, Clio EMEA

It depends on how you look at it. Cian O’Sullivan, Beagle

36 A changing legal landscape

Mark Montgomery, myhomemove

37 What does autumn mean to you?

Charles Peter, Datalaw Ltd

39 Cyber risks: act now

David Simon, Triton Global

Gregory van Dyk Watson, Isokon Limited

41 The next generation

Noel Inge, CILEx Law School

The third annual Modern Law Awards took place on 19th November at the Hurlingham Club, London. Charlotte Parkinson, Modern Law takes a look at the winners and summarises the event.

55 Regional Focus: Manchester

Jo Hodges, Redbrick Solutions

41 Probate: Tesco Law is Dead!

Cyber security is the practice of putting preventative measures in place to reduce the risk of a data breach. Sarah Green explains how to ensure you are on top of your firms’ cyber security.

Awards 2015

39 PI Claims: minimising the risk

What is financial independence and how do I achieve this? Lawrence Mason reports.

50 The Eclipse Proclaim Modern Law

Erica Willmott, Conveyancing Data Services

37 CPD: the best solution?

48 Don’t be the next victim

36 Should lawyers be worried about AI?

Our resident IT guru Charles Christian explains the latest ‘flavour of the month’ in legal IT.

47 Achieving financial independence

Jasvinder Jhumat, alldayPA Legal

35 Focus on the delivery

In advance of the launch of the legal services aggregator, The Law Superstore (TLS), Charlotte Parkinson, Modern Law spoke to the Chief Executive, Matthew Briggs for the inside scoop on the new venture.

As part of Modern Law’s ongoing Regional Focus, Charlotte Parkinson, Modern Law, spoke to the President of the Manchester Law Society, to find out about the changing needs of society members, and the need to interact with the general public.

57 Regional Focus

Matthew Claughton, Managing Director of crime specialist Olliers outlines his firms’ plans for criminal defence provision in 2016 and beyond.

58 5 minutes with... Scott Bozinis 58 Consilia Legal’s fixed-fee strategy, powered by Eclipse’s Proclaim Practice Management System

55 ML // December 2015

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Andy Poole Talks News

Andy Poole talks news

The legal sector partner from Armstrong Watson considers legal finance matters as we reach the end of 2015. planning/retirement is a concern for a large proportion of the profession.

s everybody involved in the legal sector knows, there has been a huge amount of upheaval in the provision of legal services during the past few years. We’re seeing a hugely polarised position right now. Some firms are doing very well, with transactional volumes and commercial property work returning in particular. Others are not faring quite so well, including those specialising in personal injury and legal aid work. Ignoring work types, the firms that are powering ahead appear to be those with a lean management structure; lean processes; effective pricing strategies; and finance savvy fee earners. Firms that have not addressed those matters risk being left behind. Recruitment appears to be a major headache for many and succession

‘We’re going to be looking at many more firms coming to us to advise them on orderly closures of their firms’

Criminal legal aid Even before the recent tender announcements, we’ve been involved with a number of struggling criminal legal aid firms. The rate cuts almost removed the profit margins for many of those firms, particularly those that were not in a position to benefit from economies of scale or the efficiencies of lean management. We’ve seen some of the struggling legal aid firms close the doors and go through the agonising process of identifying firms to transfer the contracts/clients to, and the even more agonising process of looking after valued staff members, whilst attempting to avoid a costly SRA intervention. Given the announcements, there will be many more facing the closure process. That closure process may be a whole firm, or it could be a department within a firm. Those that closed before the announcements were made may have been able to recover some value for the work in progress transferred to another firm. In some rare cases, they may have benefitted from an uplift to that value for repeat clients. After the announcements, those values have only gone one way. We’re going to be looking at many more firms coming to us to advise them on orderly closures of their firms. Those that we’ve been involved with in the past tend to go well if planned properly and we often find that different types of work in progress are taken by different firms. The trick is in obtaining value for that work when there is public knowledge of the closure. Personal injury There is a great deal of flux in the personal injury (PI) market post Jackson/LASPO with the banning of referral fees; extension of the portal; reduction of fixed recoverable costs in the portal, and impact on success fees and ATE insurance premiums. We’re finding many firms turn to us

with simple instructions – “Should we continue to undertake personal injury work, and if so, what should we change to make it more profitable and generate cash earlier”. In some of those cases, we are finding solutions. Some firms are attempting to switch to higher value, but higher lock-up, clinical negligence work. I’m personally very wary about that switch since the experience and knowledge required is different; working capital requirements increase; and it may be a long time before a firm realises that it has made mistakes and claims arise down the line. In other cases, we need to assist in closing down the department (or if the sole work type is PI, the whole firm). A number of firms are active in acquiring PI work in progress (WIP) and we are seeing a huge variety in the values paid, which are usually a percentage of the WIP value. The highest we’ve seen is 100 per cent of the WIP value to the point of transfer, plus all of the subsequently recovered success fee. We’ve also seen deals around 20-40 per cent of WIP. The factors impacting the disposal value will include the reason for the sale and the timing of the payments. Care is needed in drafting the legal documentation for the transfer, particularly following the very recent Jones v Spire Healthcare case (Case no. A13YJ811, 11.9.15) where the costs of the acquiring firm were not allowed following an attempted assignment of WIP. We’re not lawyers, and would always suggest that those involved in these transactions take proper legal advice. What we’re experiencing is that outsourcing the WIP to an agent firm (the acquirer) is the safest route to protect the costs of the acquiring firm and the success fees (i.e. preLASPO status) of the pre-LASPO cases. Outsourcing may not be an option where a selling firm is ceasing and going into administration, as the selling firm would have had to retain its SRA recognition. Where outsourcing is not possible,

ML // December 2015

Andy Poole Talks News

‘Outsourcing may not be an option where a selling firm is ceasing and going into administration, as the selling firm would have had to retain its SRA recognition’ we’re seeing firms attempt to assign the cases to the acquiring firm, but Jones v Spire Healthcare has shown the risks of that – many are therefore trying to protect themselves by backing up the assignment with a novation in case the assignment doesn’t work. Time will tell which is ultimately the most successful route. Consolidation Jeremy Black notes in his interview in this edition of Modern Law Magazine that he is seeing a lot more activity with firms merging or being taken over. I would agree with that. We’re advising in nine separate active law firm mergers right now – the highest number we’ve been involved in concurrently for some time. I’ve already covered some of the factors driving the market towards consolidation; Jeremy links the increased merger activity with difficult times and with the ability of larger firms to invest. That investment reasoning includes the ability for firms to move to lean processes; train their fee earners so that they understand the impact of their personal actions on the financial performance of the firm; introduce alternative pricing structures; spread the cost of compliance requirements, including the COLP and COFA, over a larger number of fee earners; benefit from other economies of scale; deliver services to a wider geographical area; deliver new services to an existing geographical area; diversify; and to permit succession/retirement/recruitment. Whatever the initial reasons are to look at a potential merger, there should always be a strategic benefit to the firm. Pricing/lean management Lean management in particular appears to be a buzzword in legal circles at the present time. Effectively, it is optimising the efficiency of services provided to clients by undertaking the minimum number of steps by the right people at the right time. It helps to cut costs and to make firms aware of their own costs of production. I link it with pricing, since as it permits firms to map out standard steps to provide certain services and to know the cost of production of those services, it allows them to set standard pricing – either at fixed rates or at value rates. This is something that clients like in particular and it gives them comfort that a firm is experienced in acting on such matters if the firm can tell them exactly what will be involved and what the costs are, even if it is up to a choice point where the services may take a different route. Recruitment Many firms are reporting to me that recruitment is a particular issue at the moment. This is particularly the case

‘We’re advising in nine separate active law firm mergers right now – the highest number we’ve been involved in concurrently for some time’

ML // December 2015

in more rural areas where it is proving difficult to attract fee earners from the cities. That is most probably because of the competition for fee earners between firms in those cities forcing salaries up. This appears to be particularly the case for property lawyers given the decline in the property market and then the recent recovery. Retirement/succession During recent years, profits dipped for many firms, and cash dipped further still. Profits have recovered in the main, but cash is still often lagging behind. That has meant that partners’ capital accounts have been increasing because firms cannot pay out all of their profits as drawings. At the same time, new partner admissions have been restricted due to lower profit pools; lack of talent and lack of risk appetite by potential partners. When you combine all of that, the profession is faced with a huge succession issue on the horizon. We have an ageing population of partners; fewer potential new partners and cash to find to pay out the larger capital account balance for retiring partners. Add in the fact that expensive professional indemnity insurance run-off cover would need to be acquired in order to cease practising and the issue becomes even greater. Structure Recent changes in tax legislation are impacting the choices of many firms in whether they should structure themselves as a sole practitioner/partnership/LLP/company/hybrid. In my next column for Modern Law, I will cover this in greater detail. In essence, the tax changes are slowing the stampede of limited company conversions, but in most cases it is still just about more tax beneficial to operate as a company than the other non-hybrid options. SRA Accounts rules There have been a number of recent SRA consultations on the Accounts Rules. These have resulted in certain changes being introduced, with effect from accounting periods ended on/after 1 November 2015. Most of the changes impact the role of the reporting accountant, and we appear to be moving to a regime where only material control weakness issues will be reported to the SRA. That may result in the SRA then taking a closer look at the reports that are qualified. For further information on that, and what firms should be doing to protect themselves now, visit www. armstrongwatson.co.uk/legalsector. Andy Poole is the Legal Sector Partner at Armstrong Watson, specialising exclusively in advising law firms. The Law Society has exclusively endorsed Armstrong Watson for the provision of accountancy services to law firms throughout the whole of the North of England. This article is a general guide to issues facing the legal sector. It is not a substitute for professional advice which takes account of your specific circumstances. Subjects covered change constantly and develop. No responsibility can be accepted by the author for any loss occasioned by any person acting or refraining from acting on the basis of this article.

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11-20

The Interviews

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Interview with... Elisabeth Davies

Interview with... Elisabeth Davies On 26th November, the Legal Services Board (LSB), Legal Ombudsman (LeO), Legal Services Consumer Panel (LSCP) and Leeds Law Society held a collaborative event in at Leeds Town Hall. Charlotte Parkinson, Modern Law, sat down with the Chair of the LSCP before the event to discuss working with regulators, and moving away from static definitions of Consumer Vulnerability.

Q A

Can you explain some of the recent work the Legal Services Consumer Panel (LSCP) have undertaken on behalf of vulnerable consumers? In many ways, our work over the recent years has reflected a shift in thinking around vulnerable consumers more generally. Previously, we have done work looking at consumers who are hard of hearing or who have a learning difficulty but more recently, like many organisations, we have reframed what Consumer Vulnerability means and moved away from the static definitions, and from examining specific demographics of the population. We now also know that the purchase of legal services itself can make consumers feel vulnerable, as well as things that may be going on in a person’s life. These factors are no longer static and they may shift over time. That has been a very important shift to encourage the regulators to understand, which is why we produced a Toolkit for the regulators last year. The Toolkit was created to help regulators to understand consumer vulnerability in all aspects of their work, in terms of Policymaking and their core regulatory functions such as Supervision. One of the things we try and do as a Panel is identify the problem and assess whether we can be part of the solution. We are working collaboratively with the regulators, in some instances, training their staff to understand the needs of vulnerable consumers and looking at trying to embed it in their own work. We recently finished a wave of training for the Bar Standards Board, where we worked jointly with them and ran workshops. It is important to ground the training in something practical so it is relevant to the regulator at that time.

‘We are working collaboratively with the regulators, in some instances, training their staff to understand the needs of vulnerable consumers and looking at trying to embed it in their own work’

Q A

What are the LSCP, the LSB and LeO hoping to gain from the event? The aim of the event is to raise awareness and understanding as well as learning from each other. As a panel, we have a remit for England and Wales and we are very conscious of not being London-centric as there are potential pitfalls that can come with that. It is really important for us to try and get out of London and one of the things that is good about events like today is that we can

get out and meet providers. We do a number of events with organisations like local law societies. As we are a consumer body, it is easy for people to fall into the trap of creating a sense of ‘consumers against providers’ but if we are going to improve things, we need to work with and understand the experiences of both those groups.

What factors have impacted consumers’ access to fair legal representation since the LSCP was established?

ML // December 2015

Interview with... Elisabeth Davies

‘As we are a consumer body, it is easy for people to fall into the trap of creating a sense of ‘consumers against providers’ but if we are going to improve things, we need to work with…both those groups’

Our Tracker Survey was recently published and that includes 5 years worth of data looking at what has changed for consumers in terms of how they choose and use legal services. What that has shown us is that a variety of different factors are affecting what ‘active consumers’ access. We know consumers are shopping around more, demanding clearer fee structures – particularly fixed fees (moving away from hourly rates), we know they are starting to use IT more and are finding it less difficult to make comparisons when it comes to using legal services. We have also seen a greater focus on unbundling, where consumers are deciding which parts of the process they can do themselves to reduce costs and where they need professional expertise. The legal aid cuts and changes to the advice giving sector have created challenges for users including the risk of widening the gap between those who are empowered and those who are not. Increasingly, we require a nuanced response when looking at different sections of the population and that is quite difficult to achieve. We can’t just talk about access to justice for consumers, we now have to talk about access to justice for specific groups of consumers who are experiencing ‘that’ type of law and who have ‘those’ personal circumstances.

Do you think the complaints handling process is effective at the moment – is LeO a suitable choice for the handling of CMC complaints or should this fall to the FCA? Is LeO coping with the number of complaints? In terms of the first Tier of the complaints handling process, we did some joint research with LeO to understand why there are still 42% of consumers who are

‘Silent Sufferers’. This means they have used legal services and they are dissatisfied but are not doing anything about it. When this is compared across the professional services sector, the average figure is about 28% so there is certainly a question about why more dissatisfied people are doing nothing in legal services. We know from the research with LeO that people do find it very difficult to complain about legal services because of legal jargon and they also think complaining about their lawyer may have an impact on the outcome of their case. If you then consider the access to redress side of the complaints process, we have done some Benchmarking. We have a real role here in terms of looking at criteria such as caseloads as well as timings, quality and costs as these are all factors that matter so much to consumers. We previously Benchmarked LeO against a number of other Ombudsman schemes and we hope this sort of report helps LeO. Finally, there’s the aspect of needing to focus on raising standards, as that has been a challenge for LeO to prioritise from the outset. An Ombudsman scheme should involve looking at the information gathered from claims, undertaking Thematic reviews, influencing the regulators and ‘closing the loop’ all with a view to improving standards. We have not yet seen enough of that. It has to get better as this is what really demonstrates the difference between an access to redress scheme and an Ombudsman scheme.

Q A

The recent LSCP Tracker Survey found that 46% of all transactions are fixed fee deals – do you expect this to increase? The chances are that this will continue to increase as it has done over the last 5 years as consumers have been demanding a shift from hourly-rates to fixed fee charging models. We all want certainty around our

budgeting and how we plan for services that we use. If consumers are continuing to need that type of pricing structure it will continue. It could become the preferred method of charging in terms of meeting unmet need, and for people who may be less willing to pay anything if they feel there is a sliding scale. The profession is adjusting to this and fixed fees are being utilised in some areas of law more so than others, particularly the lower cost volume transactions such as conveyancing or will-writing, which do lend themselves to a fixed fee charging model, as it is easier to segment the work. In other areas of law, this will be more challenging for the profession to respond to. It will be interesting to see whether we see more types of innovation coming into play in that respect.

Q A

What can the profession do to increase public confidence? Do the LSCP and LSB have a role to play here? One way to achieve this is around open data. Better informed consumers who can shop around and exercise choice, feel more satisfied with the services they receive and have more confidence and trust in their provider. That is the real opportunity in terms of providing clarity around transparency, pricing and fee structures, and that information needs to be more readily available in a useable format to consumers. If you want people to have confidence in your services, your services have to meet people’s needs.

How has the rise in the online provision of legal services altered consumer experience – for the better or worse, or both? Does face-to-face still have a role? A Absolutely, face-to-face services have to have a role and online is different for different groups of consumers. Looking at the role of online divorce tools as an example, we know from our research that consumers did a fair amount of self-selection. Consumers thought about their personal circumstances, looked at what was available online and made a decision as to what was right for them. These consumers expressed high levels of satisfaction as the service was tailored to their individual

‘We can’t just talk about access to justice for consumers, we now have to talk about access to justice for specific groups of consumers who are experiencing ‘that’ type of law and who have ‘those’ personal circumstances’ ML // December 2015

Interview with... Elisabeth Davies

Elisabeth Davies

‘Fixed fees are being utilised in some areas of law more so than others, particularly the lower cost volume transactions’ needs. Face-to-face still represents the majority of legal services transactions, although online and over the phone are definitely on the increase – although slower than we might have expected. We know that those consumers who search for and find a provider online are far more likely to stay online, and similarly, those consumers who find out about a service face-to-face will stay with face-to-face provision. It is important to offer mixed provision to meet the need of a variety of different consumers in a variety of circumstances. Considering unbundling, in future we may see a mixture of consumers undertaking some aspects of the legal journey themselves or online and utilising a professional for others; digital and non-digital shouldn’t be seen as exclusive models. Digital is at its most effective when it takes account of what is going on nondigitally. It is about choice and keeping service provision tailored and targeted.

Q A

What are the LSCP doing in terms of data capture and the disclosure of information to improve consumer experience? Open data was one of our founding aims and objectives and is a thread that has been running throughout our work plans

over the last 6 years. Over the course of the last 2 years, we have taken some significant steps by encouraging the regulators to put more data out in the public domain. The datasets that are out there at the moment are basic but they are a start. Since we began doing this, many philosophical and practical issues around IT systems have been raised. The LSB has commissioned us to take our thinking on open data forward and we are currently researching what more needs to be done to open access to regulatory data; specifically around what information should be made available, for example, contact name and number, practice details and specific practice areas. We are also spending a lot of time reflecting on access to complaints data, price transparency, disciplinary information and are really trying to understand what information the regulators hold and which parts of this information should be made available. It is important that we ensure the regulators make the information accessible, it is not good enough to simply hold the information. In terms of how we work on this, there has been a sense of peer-to-peer review over the last year. We will be lead by the regulators and we will continue to work with them together but also continue to undertake our own bilateral research.

Elisabeth Davies became the Legal Services Consumer Panel’s second Chair in the summer of 2011. Elisabeth’s career, combining professional and voluntary commitments, has centred on consumer engagement and a deepseated belief in developing services that are truly consumer-focused. She has worked across the charitable and public sectors with a particular focus on the needs of health and social care users. She is currently Deputy Chief Executive at Arthritis Care. Former roles include at Carers UK, Age UK, the World Cancer Research Fund and as the founding Chief Executive of the UK Breast Cancer Coalition, Patient Association of the Year in 2003. Within the NHS, Elisabeth has combined executive and nonexecutive roles. She was Head of Policy, Planning and Partnerships at the NHS National Patient Safety Agency, leading on patient and public reporting. Non-Executive roles include former Deputy Chair of Wandsworth Primary Care Trust and prior to this Joint Chair of South West London Community NHS Trust. Elisabeth has also worked across the advice giving sector. She was previously Director of Policy and Development at the Refugee Council and is a former Trustee of the Immigration Advisory Service. She is also a former Chair of Wandsworth Citizens Advice Bureaux.

ML // December 2015

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Interview with... Jeremy Black

Q A

Why does Deloitte conduct its quarterly survey into the top 100 UK law firms? When we started our surveys eight years ago, the only surveys there were, were annual, which used to come out some months after the year-end each year in September or October. We felt our clients wanted accessible, up-to-date and high-level information on how busy things were generally for law firms. That’s why we designed our quarterly survey, which is very quick to complete and only requires a small amount of information from participants.

Q A

How have report trends altered since Deloitte began conducting the report over 8 years ago? It has been an interesting time – up until 2007/8, law firms had been on a long run of growth and the numbers were improving every quarter and every year. Since Lehman Brothers and the financial crisis, the numbers have moved around a lot more and the performance of different parts of the market have differed over the years. There has been a lot more dynamism in the results of the firms, both positive and negative. The amount of law firm mergers has increased quite dramatically over the last few years, before 2007/8 (because the majority of firms were doing quite well in a favourable market), there weren’t that many mergers. Since things became more difficult, we have seen a lot more activity with firms merging or being taken over, as well as more lateral hires.

What was the most surprising piece of data revealed by the Q1 report and why?

‘Since things became more difficult, we have seen a lot more activity with firms merging or being taken over, as well as more lateral hires’

For some time, there has been a lot of pressure on rates and there still is, however, many firms have initiatives in place to try and improve the rates they are recovering. Certainly, this quarter, there has been some improvement on rates, which is generally very encouraging.

Q A

How is merger activity affecting the legal sector at the moment? It depends on which firms we look at. One of the things we are noticing, is that for firms to differentiate themselves and compete effectively, it can be necessary for them to invest in specific areas to a greater

degree than they may have had to in the past. When it comes to investing, it is easier for larger firms, because making an investment of a similar size to a smaller firm, absorbs a smaller percentage of the overall profit. It has certainly become important to some firms to have sufficient scale in order to be able to make investments to safeguard their future and give them opportunities to grow.

Q A

What does the report tell us about average fees per fee earner? Overall, for the quarter, the fees per fee earner for firms were £58,000, which was an

ML // December 2015

Interview with... Jeremy Black

‘It has certainly become important to some firms to have sufficient scale in order to be able to make investments to safeguard their future and give them opportunities to grow’ increase of 3.5 per cent on the same quarter in the previous year. The movement in chargeable hours per fee earner across the survey was only about half a per cent. The difference is likely to predominantly relate to rates, suggesting that they have been able to achieve an additional 3 per cent.

Q A

What impact is the work firms are doing on pricing and legal service delivery having on the legal sector? There are a number of factors that have contributed to firms being able to charge higher rates. The initiatives they have implemented have started to bear fruit. Some of this comes from those firms who have looked at certain types of work that isn’t profitable and stepped away from it. Some firms have been able to have more constructive conversations with their clients around the fees they need to recover to make the work financially viable. There are also some areas, such as corporate, litigation and property, where there is now excess demand for the services, with not enough lawyers, which also means they can recover slightly higher rates.

Q A

How are firms with international/oversees bases performing against the UK? This depends partly on the firms’ international footprint, as an example, Europe is difficult at the moment. There is an additional factor to consider, which is that if a firm is drawing up its results in Sterling,

‘There has been quite an uplift in some places in the UK, and many US firms are competing quite aggressively by upping their salaries, which some UK firms feeling they have had to match to be able to compete’ ML // December 2015

because the Euro is weaker than it was a year ago, any revenues that are coming in in Euros will be worth less in Sterling terms. There are other places, particularly the Far East, where things are more positive at the moment, and currently, the UK market is pretty good, however, if firms have a large network of international offices, things can be more difficult.

Q A

What factors could impede law firms’ profitability this year? One of the areas that is making some firms nervous is the fee earner salaries. There has been quite an uplift in some places in the UK, and many US firms are competing quite aggressively by upping their salaries, which some UK firms feel they have had to match to be able to compete. Whilst there is some increase in revenue, there are definitely going to be some increasing costs. As an example, property costs in London are increasing. There are certainly some challenges ahead in relation to costs in the year ahead.

Q A

What are your predictions for law firms’ financial performance for the rest of this year and beyond? One of the things we need to be careful of with the quarterly survey is that it gives the averages for the market. What we are seeing more and more is that there are many firms who are doing considerably better than those averages and many doing considerably worse. Firms are either competing on the basis of a specialism – and where they are able to do that, they are able to do pretty well (depending on the specialism). Or, they have an international network that means they are able to serve certain clients more effectively than they would have been. There are a lot more winners and losers than there have been in the past and I would expect to continue to see this going forwards. Up to 2007/8, most firms were growing and things were quite stable but the World is more connected now because of the internet and globalisation, so we

Jeremy Black Jeremy is a partner in Deloitte’s Professional Practices group where he has worked for over 20 years. He provides firms with advice in a range of areas including strategy, mergers, remuneration, financing, working capital management and the use of KPIs. Jeremy holds an MBA in Legal Practice for which he wrote a research project on outside ownership of law firms, and has since worked with a number of firms who have evolved under the ABS regime. He is the author of the Law Society’s ‘COFAs Toolkit’.

‘Firms will need to ensure they are nimble and able to react to these changes – just carrying on without making the necessary changes will not be successful going forwards’ won’t see such a period of stability going forwards and there will be many more disruptions. We have seen this recently with China, where the weakness with the Chinese Economy can have a large impact in the UK and elsewhere. Firms will need to ensure they are nimble and able to react to these changes – just carrying on without making the necessary changes will not be successful going forwards.

Profits Profits Profits Profits Profits Profits

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Total TotalContributions Contributions Total TotalContributions Contributions Total Total Contributions Contributions 43% 43% with with

43% 43% with with fee fee income income 43% 43% with fee fee income income < £1.5m < with £1.5m fee fee income income < £1.5m < £1.5m < £1.5m < £1.5m

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Fees Fees Fees Fees Fees Fees 65% 65% 65% 65% 65% 65%

ofof firms firms believe believe that that of of firms firms believe believe that that Fee Fee income income will will grow grow over over ofFee firms of firms believe believe that that Fee income income will will grow grow over over the the next next year. year. That’s That’s down down Fee Fee income income will will grow grow over over the the next next year. year. That’s That’s down down from from 81% 81% last last year. year. the the next next year. year. That’s That’s down down from from 81% 81% last last year. year. from from 81%81% lastlast year. year.

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smaller smaller firms. firms. grow grow compared compared to 55% for for smaller smaller firms. firms.to 55% smaller smaller firms. firms. Firms Firms expecting expecting Firms Firms expecting expecting income income toto grow grow Firms expecting expecting income income to to grow grow byFirms by over over 10% 10% income income to10% grow to grow by by over over 10% throughout throughout the the by by over over 10% 10% throughout throughout the next next year: year: the throughout throughout thethe next next year: year: next next year: year: Large firms firms Small Small firms firms Large Large firms firms Small Small firms firms Large Large Large firms firms Small Small firms firms A reduction A reduction from from last last year: year: 37% 37% larger larger A reduction A reduction from from last last year: year: 37% 37% larger larger firms firms and and 24% 24% smaller smaller firms. firms. Afirms reduction A reduction from from last last year: year: 37%37% larger larger firms and and 24% 24% smaller smaller firms. firms. firms firms andand 24%24% smaller smaller firms. firms.

12% 12% 24% 24% 12% 12% 24% 24% 12% 12% 24% 24%

Lock-up Lock-up Lock-up Lock-up Lock-up Lock-up

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8% 8% 8% 8% 8% 8%

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Legal Legal Conference Conference Series Series Legal Legal Conference Conference Series Series Legal Legal Conference Conference Series Series Survey Survey – – 2016 2016 Predictions Predictions Survey Survey 2016 2016 Predictions Predictions Survey Survey––– –2016 2016Predictions Predictions

Source: Legal Conference Series Survey Results - September 2015. Source: Source: Legal Legal Conference Conference Series Series Survey Survey Results Results - September - September 2015. 2015. National Westminster BankSeries Plc. Registered in England Wales No.929027. Registered Source: Source: Source: Legal Legal Legal Conference Conference Conference Series Series Survey Survey Survey Results Results Results - September - September -and September 2015. 2015. 2015. National National Westminster Westminster Bank Bank Plc. Plc. Registered Registered in England in England and and Wales Wales No.929027. No.929027. Registered Registered Office: 135 Bishopsgate, London EC2M 3UR.Authorised by the Prudential Authority and National National National Westminster Westminster Westminster Bank Bank Bank Plc. Plc. Registered Plc. Registered Registered in England in England in England and and Wales and Wales Wales No.929027. No.929027. No.929027. Registered Registered Registered Office: Office: 135 135 Bishopsgate, Bishopsgate, London London EC2M EC2M 3UR.Authorised 3UR.Authorised byby thethe Prudential Prudential Authority Authority and and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Office: Office: Office: 135 135 Bishopsgate, 135 Bishopsgate, Bishopsgate, London London London EC2M EC2M EC2M 3UR.Authorised 3UR.Authorised 3UR.Authorised byPrudential by the by the Prudential the Prudential Prudential Authority Authority Authority and and and regulated regulated by by the the Financial Financial Conduct Conduct Authority Authority and and thethe Prudential Regulation Regulation Authority. Authority. regulated regulated regulated byby the by the Financial the Financial Financial Conduct Conduct Conduct Authority Authority Authority and and the and the Prudential the Prudential Prudential Regulation Regulation Regulation Authority. Authority. Authority.

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Q. Can my commercial client get ATE legal expenses insurance for an appeal? (Their ‘solid’ claim most unexpectedly lost at trial – there is no policy currently in place.) A. Maybe…

1. The more usual time for an after the event (ATE) legal expenses insurance policy to be put in place, is at some point prior to the first instance trial of a claim. Cover is frequently taken out at a relatively early stage. The majority of disputes settle and the fact parties may be able to negotiate at various points prior to trial, is often assisted by the ‘staging’ of the insurance premium (so that the earlier the settlement the less premium is payable). Unfortunately, and as anyone involved in dispute resolution knows, there are occasions when even a ‘dead cert’ just doesn’t settle and worse, goes onto trial and loses! At that point, appeal may seem the only option. Even if the claim succeeds, there is always the risk the other side will find someway of getting leave to appeal. In either case, involvement in an appeal will involve further cost/cost risk. If an ATE policy is already in place, whether the further risk will/can be covered depends on the policy. There are policies which provide appeal cover subject to terms/ advice on merits etc and when underwriting a claim as a whole, the process can factor in the appeal risk. On an application for ‘stand-alone appeal’ cover, the risk is a significantly different proposition. Such cover (if available) is likely to be harder to find and the different risk profile will inevitably be reflected in the premium. The application process is likely to be more complicated than following any required procedures under an existing policy. As to the extent of cover, in practical terms, appeal cover is likely to be for exposure to future costs only (not retrospective cover for first instance costs, and there is case law on this in the context of recoverable premiums). However ‘good’ a claim appears at the outset, a claimant may be well advised to factor in to pre action ‘commercial deliberations’, the additional hassle and expense involved should cover become desirable at a later stage. If at the outset the claim appears as good to underwriters as it does to the legal team it may be possible to select a policy with appropriate staging and appeal provisions and with a competitive and cost effective premium. At a later date, the commercials, merits and general viability could look very different…

Matthew Williams, Head of AmTrust Law. If you have any further questions regarding this or would like to discuss further with AmTrust, please visit our LinkedIn Forum: www.linkedin.com/company/amtrust-law

The legal needs of small businesses – New research

mall businesses – those employing up to 50 people – encounter a range of legal issues as they start up and grow. Given their small size, they will often need to turn to external experts as they won’t have all the knowledge and skills they need in-house. Recent research published by the Legal Services Board suggests that when legal issues arise, small businesses are not always getting the help they need. The research is the largest ever survey of the legal problems faced by small businesses with over 10,000 firms participating. The research also covered firms’ strategies and actions for dealing with legal problems. It updates similar research from 2013. The research suggests that significant market opportunities for legal services providers exist. Half of small businesses reporting a legal issue said it had a negative impact. 26% of businesses reported loss of income and 9% reported loss of a contract or customer. In fact, total annual losses to small businesses due to legal problems is estimated at £9.79bn. This is the equivalent of one third of current turnover in the UK legal sector. Fewer than one in 10 small businesses either employed in-house lawyers or had a retainer with an external provider. Over half of small businesses experiencing a problem tried to resolve it themselves and when advice was sought, accountants were consulted more often than lawyers. Cost, unfortunately, is a major deterrent for small businesses. Just 13% of small businesses surveyed viewed lawyers as cost effective - although this figure is much higher amongst those small businesses who have used a lawyer in the past. This suggests a potentially large untapped market for law firms to access, if they could present small businesses with affordable options. The researchers, based at Kingston University, suggest a number of strategies for law firms to consider. One is greater market segmentation and targeting services differently at business start-ups, firms with owners/ managers of differing ethnic minority origin or with a disability, as well as sector specific offerings. They also suggest law firms could focus more strongly on portraying themselves as helping to anticipate and avoid legal problems, rather than as advisers of last resort, which is how they currently appear to be perceived. Law firms undoubtedly face a challenge accessing these potential customers and convincing them of the value of their services. However, the potential rewards if law firms can get this right surely makes this untapped market an opportunity they cannot afford to miss. The report can be found here: https://research. legalservicesboard.org.uk/news/latest-research-smallbusiness/ Richard Moriarty, Chief Executive, Legal Services Board (LSB).

ML // December 2015

The Views

Financial predictions for 2016

Know your clients

uring October, the bank hosted six legal conferences across the UK, attended by over 400 delegates. We took this opportunity to ask firms to predict what 2016 may deliver in terms of business performance and 338 firms took part in the survey (of which 192 firms reported fee income over £1.5m).

t is reported that more than half of SME’s in England and Wales are handling their own legal matters, as they are concerned about the value for money offered by law firms. It has become clear however, that many SME’s have realised that without much needed advice, they are at risk of financial losses, which could affect their reputation.

The underlying trend remains positive with 65% of firms believing that fee income will continue to grow. However, this number is 16% lower than the previous year - suggesting that for some, the current level of business is now the new norm post-recession and the ability to repeat growth levels witnessed over the last two years will become more challenging. Firms with revenue above £1.5m appear more confident with 72% predicting growth.

Many other businesses have quickly recognised the gap in this market and added legal services to those being supplied already to SME’s, such as an add-on to business insurance. The most common areas requiring legal advice are, employment, tax, trading, premises and regulation, but it is still surprising just how many SME’s deal with problems on their own, or obtain another form of independent help, rather than seek legal advice.

It was encouraging to observe that firms recognise the need to improve efficiency and 79% employ a detailed time recording policy. In turn, efficiency should improve profitability and yet only 45% of firms believe that profit margins will improve during 2016. If firms were focused on achieving increased billable hours from their fee earners then arguably more would be able to achieve an improved profit margin.

Insurers and Brokers whom already have the trust of their clients, have rather cleverly taken advantage and strengthened their relationships with their SME clients, by taking the time to research their clients business and address their growing needs, in such areas as employment agreements, or specific contracts.

A consequence that often arises as a result of improved activity is deterioration in lock up as busy lawyers take longer to attend to billings. The predictions suggest that only 35% of firms will see a reduction in work in progress and 39% an improvement in debtor days during 2016. Once again, this is a reduction on the position advised in 2015 at 43% and 44% days respectively. Firms should never underestimate the importance of positive cash flow and as such, focus on reducing lock up remains a critical business objective. Further predictions from the survey can be found on page 20. Steve Arundale, Commercial Head of Professional Services, Large Corporates & Sectors, Royal Bank of Scotland/ NatWest, Commercial & Private Banking.

Why wait for clients to come to you and just use one of your services? By getting to know more about a client, it can help identify further needs, or reveal future plans they may have, where your firm may be able to assist. This should follow suit for all clients, no matter what services they engage in at the outset: today’s first time buyer could be tomorrow’s entrepreneur. Clients like to be valued, make them feel you honestly care and are interested in them. Take the time to ask your clients for feedback about your services, doing this will really tell you how your practice is perceived by your paying clients and will help you identify whether you may need to make any tweaks to how you operate. You may be pleasantly surprised, as they may be so pleased with your services, so if they do, shout about it, don’t hide it away. Letting prospective clients know about your good reputation, will provide reassurance, build trust and offer transparency. When paying for any service, we expect quality, regardless of the price. Find out more about what your clients think of your services. Lisa Beale, Head of Checkaprofessional.com.

ML // December 2015

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The Views

AI will see you now... In their new book ‘The Future of the Professions’, Professor Richard Susskind and son Daniel predict a “gradual replacement of professionals by increasingly capable systems”. Do you agree or disagree with this prediction and why, and what could AI mean for the law?

n early November, I came across an American article that reported on a survey of law firm heads who stated that in the next 10 years, US firm employees would be replaced by Artificial Intelligence (AI). To find the survey, Google “Altmanweil law firms in transition 2015” and click the first result which should be a PDF link to the report.

The survey claimed 47% of respondents stated paralegals would be replaced in the next 5-10 years; 35% said that would extend to first year associates and 13.5% to service partners. It is hard not to ignore the survey and look at what that means closer to home. The survey makes reference to “nontraditional service providers” as a “permanent change in the legal market”. Here, we have ABSs that are challenging the traditional methods of delivering legal services as they look to scale their businesses into national giants. I can see ABSs and large law firms looking to new technology and AI as a solution to over-staffing and below standard productivity. As they start to drive demand from technology providers, solutions will become available to the rest of the market and change will be inevitable. We shouldn’t forget the client either. The survey makes a good point: “not changing more because ‘Clients aren’t asking for it’ is a terrible mistake.” Clients are becoming comfortable with automation. They see it online, hear it on the telephone and experience it every day of their lives. It really isn’t far-fetched to assume that one day, clients will happily accept AI servicing their legal needs. In my view, it is a shame that AI could even be considered as a replacement for professionals in our industry. However, the simple truth is that with fixed fees becoming more prevalent across many legal sectors, law firms need to find ways to maintain their margins against static, if not increasing, overheads.

Obstruction to Justice?

he UK government introduced the Insurance Premium Tax (IPT) back in 1994, to raise revenue from the insurance sector, which was then viewed as being under-taxed. The tax has remained steady at a rate of 6% since January 2011, but in the most recent budget, the Chancellor announced that the rate of IPT will increase from 6% to 9.5%. The rate rise took effect from 1st November 2015. It is forecast that IPT raises around £3.2bn in revenue for the government, and with the new rate increase, it’s expected to generate a further £1.75bn a year. At a time when the government is attempting to increase access to Justice with the introduction of the Jackson reforms and Qualified One Way Costs Shifting, will this increase in the IPT rate undo the work done to improve access to justice? In his defence, the Chancellor argues that the cost of insurance premiums in general has fallen for many families, and that Britain’s IPT was well below that of other countries – Germany, for example is set at 19%. Whilst this may be seen by some as an unpopular measure, and counter intuitive to the access to justice ethos, this really is the first large rate rise since 1997. For the insurance industry in general, it could be the point at which client’s decide that insurance is simply too expensive, and refuse to take out cover at such an additional cost. At Box Legal, we also strive to make policies and premiums work for the client. Even with the increase (which affects all policies paid after 1st November 2015 regardless of when they were taken out), the cost of the Box Legal premium is relatively modest in comparison to the risk of having to pay the mounting disbursements of the claim, or the Defendant’s adverse costs should the Claimant fail to beat a well made Part 36 offer. In the meantime, solicitors should ensure that they have proper procedures in place to assist with the recovery of the increased IPT rate. Panel firms who insure with Box Legal have received support and advice from the legal team to assist with the increase. Linsey Carroll, In-house solicitor, Box Legal Ltd.

Typically the largest entry on the P&L is that of salaries. If a firm needs to make changes to maintain its survival, this is the area where the biggest impact can be made and it really isn’t difficult to see that if AI is up to the task, it will replace humans, certainly in administrative areas. Sucheet Amin, Managing Director, Aequitas Legal & Founder of inCase™.

Noel Inge, Managing Director, CILEx Law School.

ML // December 2015

The Views

Why should we care what sort of divorce our clients experience?

peaking at the 25th conference for collaborative practitioners in Washington last month I met legal, mental health, financial and mediation professionals from, across the world, but was shocked to be the only person from our shores. Collaborative practice is growing in USA, Canada, Australia etc., where both the law and spirit of its intention have begun to converge. So why are we lagging behind? While collaborative practice may prove to be one of the best solutions for many divorcing couples, its real effectiveness hinges on the multiple skills and perspectives within the team. So why aren’t more clients banging on doors asking about a service that delivers a less painful divorce? As an emerging discipline, we have to ask, what can we do better? What can we put in place to support practitioners? Despite many undergoing training, practitioners need on-going support to practice collaboratively! They have to change the trajectory of clients who come wanting to know their ‘rights’ feeling angry, afraid, withdrawn, stunned, mistrustful. This natural part of divorce, is why we need to build relationships so clients recognise we have a deep understanding of what they are going through AND a willingness to support the best possible outcome in the round, (beyond any legal requirements). This is the core of

providing a collaborative divorce service. We can’t develop true professional competence without practice, and mastery isn’t built solely on short training with professional support meetings and case reviews every few years. It requires drip-feeding to change mind-sets and a daily routine where we refine our ability to understand ourselves and don’t get in the way of clients taking charge of their divorce! We need to walk a tightrope, providing clients information, support and a route out of conflict, but only when they are the most important people in the room can we build a climate where their ending transforms into a less painful process and healing begins even if they didn’t want this ending. Collaborative practice is a process of each becoming more authentic and integrating this with what we do in our communications and interventions with others. Effective collaborators stick their necks out to create ‘safe enough’ communication environments. They sit in the eye of a raging storm to find out what the clients actually mean because they know agreements won’t be nailed until both perspectives are validated. Adriana Galimberti-Rennie, Owner, Collaborative Resolution Ltd, Head of Painless Divorce, Chartered Psychologist, Collaborator, Writer, International Trainer, BBC Expert, Member of Modern Law Editorial Board.

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The Views

The only way to go?

Considering your brand

How can legal practitioners protect themselves from increasingly common professional negligence claims?

Is it possible for a small/high street legal practice to have a ‘brand’?

mploy the best people.

I could stop there and save the reader from wasted time, effort and money – which quite frankly is the bottom line. When it comes to professional negligence, we all know that aftermath of uncovering a claim made against a law firm is costly both professionally and financially. The reality is that by hiring the best people who are consistently monitoring themselves and really care about their wider role within their organisation in terms of client care, expertise, learning, governance and being risk aware, is crucial. The guidance from the SRA, The Law Society and countless books on the market for COLPs and those really interested in legal risk tell us that training, systems and process are all key in maintaining a risk aware law firm. We have prominent legal futurists telling us that there will be a “gradual replacement of professionals by increasingly capable systems” and “the end of lawyers is nigh”, but as far as I am aware there’s no “capable system” or “App” in development or on the market that can deal with the professional negligence risk that every provider of legal services faces every day. So good news for lawyers who do want to continue to practice law, doing it well, serving their clients and sorting out their legal problems – we’re not all doomed! The complexities of law, evidence, client instructions and challenges to disputes that impact on ensuring compliance with the SRA Code of Conduct each and every time complex legal issues arise cannot be downloaded in an App or any “innovative” system. The only way of ensuring true compliance with the Code is by employing and retaining the very best people at every level within your organisation and ensuring there is a firm wide approach to the highest standards and risk awareness.

running a practice.

t is a common perception for small firms to believe they don’t need branding, that such activity is restricted to large international practices. Even if you do believe in branding it is likely that - as a small business owner - it is low on an already challenging priority list as you keep up with the demands of

Branding for small businesses is really about reputation. It applies from answering the phone, to writing letters and all contact with your clients and the outside world. It begins by identifying what you are trying to convey e.g. professionalism, technical expertise, friendly customer service and to whom e.g. other business owners, divorcees, young couples. Then ensure everything in your business conveys this message in a way your target audience understands and that is applied clearly and consistently at all times. Many small businesses already make a good impression without considering their “brand” however by stopping to consider it imagine what an impression could be made all of the time. It is not whether it is possible for a small or high street legal practice to have a brand, they already have one. It is just a question of what they do with it. Some examples of branding projects in small legal practices can be as simple as follows: • Review of client documentation and Terms – what do the clients receive and when? Is it in plain English that they will understand? • How are phone calls managed? Are clients on hold/left waiting/ speaking to machines? Is this in line with the practice’s brand? • Client Feedback exercises – what do your clients say about you? What is the client experience really like for them? • Does the company name, logo and website convey what you want it to the right people? Personality in branding is everything.

Whenever there is a case of professional negligence in any of Citadel Law’s clients or indeed in any of our team’s previous firms, it is always down to human error and nothing else. So doesn’t that tell us that hiring the best people and ensuring consistent monitoring of them by the best people is, in fact, the only way to go?

By stopping to consider what your brand is and how to deliver it consistently allows you to create better impressions. Undoubtedly, this in turn leads to fulfilled clients and increased revenue. My message to owners of small legal practices would be: ignore brand at your peril.

Lesley Graves is a solicitor and Managing Director of personal injury consulting law firm Citadel Law.

Kevin Ferriby, Managing Director, Informed Financial Planning.

ML // December 2015

The Views

Educating the profession

hroughout October and November 2015, the SRA posted over 30 warnings of fraudulent activity occurring in the legal sector. As the legal industry regularly deals with large sums of money, it is viewed as an easy target for criminals and terrorists to launder money in a single transaction.

There has been plenty of media attention around money laundering and cyber crime lately, including a documentary on Channel 4 suggesting that property transactions in particular are often used to launder ‘dirty’ money. Furthermore, it’s not just funds from abroad that need to be verified –criminals are operating covertly in local areas too. Although the true scale of money laundering is difficult to measure, various sources suggest that between £23bn and £57bn is laundered every year in the UK. If even a small percentage of this could be attributed to law firms, the figures run into the millions, meaning many law firms are running a risk to themselves and their clients if they aren’t carrying out the necessary due diligence. It is compulsory for firms to meet a number of criteria including verification of the client’s identity and the source of funds. Our data suggests that many solicitors continue to rely on ID checks – if at all – rather than using a comprehensive verification tool such as AML, which immediately checks an individual and their family against 150 databases worldwide. Similarly, it’s imperative that any firms party to a transaction are verified. A basic ID check is no longer sufficient to protect your firm and clients. There are many compelling reasons why firms must build these verifications into their processes, the least of which is that it is a legal obligation. The current view of the industry is that law firm management is not equipped to convey the risk associated with money laundering to their staff, and subsequently, they fail to implement the necessary tools that ensure full compliance. I believe the Law Society and the SRA must continue to educate the profession on the importance of carrying out comprehensive customer due diligence. It is also the responsibility of service providers to ensure lawyers are provided with easy access to tools such as AML and Lawyer Checker, thus ensuring compulsory due diligence is followed every time. Scott Bozinis, CEO, InfoTrack.

A world of opportunity

would say that I’m shocked that 80% of law firms haven’t responded to the digital age, but we still receive a few documents via fax; I think we threw away our last actual fax machine over a decade ago and replaced it with simple software.

I picture a client sending us salient information, via API with a touch of a key, whilst the other types a letter, prints it out and takes it to one of those loo-roll carbonated-paper fax machines. Whilst waiting for the machine to eat the paper I wonder if he contemplates why his competitor is doing better. Smaller firms by their very nature tend to be more flexible and have the ability to respond to innovative technology, although the word ‘respond’ tends to imply a reactive approach. Disruptive firms are being creative and thinking about what problems need solving. Taking a proactive approach; we have an idea, how can technology assist us and make it better, simpler, quicker? The more established or traditional law firms have relied on tried and tested formula for many years. Tweaks here and there may have produced good systems, but technology has changed all that. Those standing still will fall quickly in the wake of the technologically adept. At the very least, websites should be interactive, useful tools that are mobile responsive. Internal IT systems should communicate with every other external source (for example: our system talks to the DVLA, HPI, Sage, Glass’s Guide, Audatex, etc). The work force should be trained and well connected via smart phones or tablets. A local law firm has introduced Artificial Intelligence (AI) to allow instantaneous, consistent and intelligent support and management of cases. If this works well it will give them a distinct advantage over the ‘faxers’. We’ve been working on a project with an AI company to develop visual recognition techniques which we hope will allow our system to identify primary data from vehicle images, in particular whether a vehicle is a total loss or repairable and associated costs. Imagine sending us photographs and receiving an initial report detailing pertinent data within seconds. Are traditional lawyers worried that computers will replace them? Possibly, but switch thinking to the probability that effective AI can do the boring manual work, allowing a professional to focus on more meaningful and creative tasks. Nik Ellis, Managing Director, Laird Assessors.

ML // December 2015

The Views

Minimising the risks

Managing your WIP

How can legal practitioners protect themselves from increasingly common conveyancing professional negligence claims?

A recent survey conducted by NatWest ahead of their legal sector conferences found some participants believed a reduction in debtor and WIP days would help improve cash flow. Do you agree?

onveyancing claims, in my experience as a broker, account for roughly a third of all notifications of claims against solicitors, but during a recession, the figure can rise to closer to half. As the UK economy has been out of recession for some time, and property teams continue to receive an increasing number of new commercial and residential instructions, now is an opportune time for firms to review their risk management processes. This can protect firms from the next batch of negligence claims which I believe will increase when the economy slows again. What steps can firms take to minimise the number of claims in the future? 1. Reports/Certificates on Title Fee earners should work from the most up to date Conveyancing/CML Handbook: a spate of reported cases last year showed lenders attempting to recover higher damages under breach of trust principles. Potential problems identified should be expressly flagged to the client in correspondence, not just mentioned in the Report/Certificate. 2. Recording Instructions Transactional lawyers often overlook making attendance notes, which makes successful defence of claims difficult. Emails are an excellent form of attendance note as recipients have the opportunity to challenge the record of the meeting. Hand-written notes should always be scanned so a permanent record is on the system if a file is not maintained electronically. 3. Break Notices Replacement tenants are often difficult to find, so ensure all critical dates are diarised with the break date included in a central diary. Responsibility for who is to serve the notice should be clarified at an early stage and correct advice on the steps necessary to secure a successful break should be provided. 4. Drafting Errors Double check the figures contained in completion statements and pass responsibility for the accuracy of complicated formulae back to the client or, where appropriate, other professional advisers. Advise fee earners to avoid relying on precedents: always ensure the document is ‘fit for purpose’. 5. Fraud Ensure robust money laundering and identity checks are carried out. 6. Beware The Friday Afternoon Fraud Property departments have significant sums routinely passing through their client accounts. Requests from clients to amend bank account details should always be verified by a phone call or face-to-face meeting. When calls are purportedly received from a firm’s bank’s counter-fraud team, independently validate the calls by contacting somebody you usually deal with at the bank. Always use a separate phone line to avoid planned call interception by the fraudster.

ock-up (unbilled work in progress plus debtors, excluding VAT) is the biggest hinder on cash flow that we see in our consulting projects. Excessive lock-up can have significant negative effects on a law firm, particularly at a time when investment is required to innovate.

The options firms have for funding lock-up are limited: they borrow from the bank, partners contribute more capital themselves or the firm restricts partners’ drawings or distributions. The key is putting procedures in place to reduce lock-up on an on-going basis and keep focussed. Lock-up is not just the curse of personal injury firms. Keeping track of WIP is required by all law firms, and even more important in contingent areas of work. Firms can help reduce lock-up days by: • Agreeing the amount to be billed ahead of time with clients • Discussing interim billing options with clients • Invoicing promptly upon concluding work (whether or not also billing on an interim basis) • Employing consistency when it comes to credit control; partners must be on board, disciplined and timely to help improve cash-flow • Impressing upon fee earners/partners the importance of assuming responsibility for tackling lock-up and helping to collect bills. It’s best to maintain open relationships/discussions with clients about billing to ensure the process is a smooth one • Keep track of contingent WIP and identify problems with aged WIP and/or toxic WIP as early as possible • Capture matter/case level data, which is critical to WIP management. Tracking WIP via matter level data through software and/ or case management systems is also a good investment for the short and long-term cash flow of the business. Firms should look at data as the critical element in providing granular visibility of matter/case control and thus enabling them to grasp management of WIP effectively. Zoe Holland, Managing Director, ZebraLC™ .

Jonathan Simon, Executive Director, Willis.

ML // December 2015

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05724 Advert update.indd 1

04/02/2015 11:48

The Views

Increasing profitability... “How can costs advance funding help increase law firm profitability and could this type of funding benefit a firms’ cash flow?”

t first glance the above question would appear to be a paradox in that if you borrow funds, there will be a cost, so how can this increase a law firm’s profitability?

Firstly: what is meant by Costs Advance Funding ‘CAF’? When a case has been won and a bill of costs has been served, CAF funding simply provides an immediate advance of funds for the law firm who issued the bill. The next question would then be why would a law firm want to consider funding against a served bill? We are all aware that bills are not paid upon receipt, subject to P.O.D. and subsequent negotiation. It frequently takes considerable time for all parties to agree the settlement amount, delaying the payment to the law firm. Interim payments are sometimes negotiated but these are becoming less frequent and so the law firm is put into a position of having won a case but facing a long wait for the ‘cash’. This leads, reluctantly, to inappropriate settlements to simply expedite payment. However with a CAF facility in place the benefits include: • Injection of funds at the time the bill is served, removing the need for an interim payment • Immediately enhances the law firm’s cash flow, as they do not have to wait until the bill has been negotiated and then settled • The advance is only repaid when the bill is settled, the law firm just pays a low monthly interest cost until then • Finally, and most importantly, it strengthens the law firm’s (and costs draftsman) negotiating position in not having to take an inappropriate settlement just to facilitate the cash flow. This directly improves the profitability on a case as the increase in settlement value should exceed a few months interest. VFS Legal Funding is one of the country’s leading specialist providers of finance into the legal sector and the ‘CAF’ product we provide is actively used by a complete cross section of law firms in conjunction with their cost draftsman. VFS Legal Funding have taken a fresh approach to funding within the legal sector, providing innovative products that focus on aligning the law firm’s cash flow directly to each individual case and not just a fixed period. Our clients use our cost effective solutions, frequently in place of the traditional, staid and often expensive fixed period capital and interest repayment loans are testament to its effectiveness. Norman Kenvyn, Founder & CEO, VFS Legal. norman@vfslegal.com

What could AI mean for clients? In their new book: “The Future of the Professions”, Professor Richard Susskind and son Daniel predict a gradual replacement of professionals by increasingly capable systems. Do you agree or disagree with this prediction and why, and what could AI mean for the law?

rofessor Susskind is far from alone in his prediction; according to an Oxford University study, around 35% of jobs in the UK are at risk of replacement by machines within the next 20 years. Boston Consulting Group puts the figure at 25% within the next 10 years. These predictions are part of a trend which has been ongoing since the industrial revolution. Today, machines already perform many tasks which would once have been the preserve of humans. Within the law, legal papers (which were at one time beautifully and laboriously written and illuminated by hand) were supplanted by typed documents which are themselves, in many cases, being replaced by electronic documents which can be filled out by any individual, or even software, on a computer screen. Copy typists were replaced by photocopiers, telephonists by voicemail and, in some cases, secretaries by word-processors operated by fee earners themselves. Even amongst firms which still employ dictation, some use software to directly transcribe words onto the screen. This sort of mechanical process work was the lowhanging fruit as far as automation was concerned. However, current predictions such as Professor Susskind’s, envisage the automation of actual legal work. Already experimental software in the US can accurately predict the outcome of almost 70% of Supreme Court cases and research in this area is progressing at pace. It is hard to argue against the Susskinds’ thesis. The growing pressures on law firms (both regulatory and competitive) make the reduction of cost very attractive, and labour usually forms a high proportion of expenditure. Author Martin Ford predicts that industrial robots will cost 16% less to employ than humans by 2025. Increasing sophistication of software means that the law is unlikely to be shielded from similar developments. What this is likely to mean in practice is an acceleration of the trend of recent years, with more consolidation in the legal world and a concentration of market share, and consequently wealth in those firms able to afford the substantial capital investment in new technologies. More routine tasks and perhaps even some legal analysis will be undertaken by software with lawyers confined more to overseeing roles, advocacy and higher value cases. What this may mean for clients is less clear but if the writer’s experience with a telecommunications provider is any guide – waiting 40 minutes on the telephone for a machine to state the obvious before hanging up – then the future is bleak. Robert Parness, Costs Consultant, Burcher Jennings.

ML // December 2015

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The Views

Real service, by real humans In their new book: ‘The Future of the Professions’, Professor Richard Susskind and son Daniel predict a “gradual replacement of professionals by increasingly capable systems”. Do you agree or disagree with this prediction and why, and what could this mean for the future of law?

‘T

he Future of the Professions’ book predicts the decline in today’s professions and describes the systems that will soon replace them. Concluding upon own research and extensive experience of working alongside law firms and senior judges, Professor Richard Susskind and son Daniel argue lawyers won’t survive the future unless they change the way they work. It’s true, the legal world is changing. Firms need to adapt their business strategies to cater for today’s client demands if they wish to rise above the competition and succeed in the future. When legal advice is just one Google search term away, firms cannot afford to jeopardise client relationships. Therefore, in today’s internet era, lawyers face the ambiguous challenge of growing their firm to respond to the increasing number of client interactions, across a widening range of customer service channels. The ‘connected’ client wants to contact your firm 24 hours a day, on a channel of their choice. But providing this level of service is not straight-forward for lawyers. Most legal clients are distressed and require urgent attention. However, most lawyers and attorneys will ignore reciprocating until suited to their busy time schedule. These clients will then move onto the next available law firm on their list. If you want to convert potential leads into clients, you must be on-hand to answer enquiries around the clock. There are virtual systems in place to enable smarter ways of working and a more efficient law firm. These systems help clients serve themselves more effectively while creating time for lawyers to deal with the issues that require an emotional understanding. On the surface, ‘The Future of the Professions’ argument makes sense, but if we dig deeper we see robotic systems are only a novelty. Nothing will replace real client service delivered by real human beings. The future of the law firm will be real human beings engaging in real conversation with real clients; addressing their needs with understanding and compassion at their time of need. To change doesn’t necessarily mean the end of the legal world. The future is in the hands of tomorrow’s flexible, smart-working, fresh-thinking lawyers. Smart telephone answering solutions allow your firm to be on-demand for clients 24/7, whilst keeping your schedule flexible to adapt to the changing market conditions.

Focus on the delivery Is content still king or is the correct delivery channel the key defining factor in marketing a law firm/chambers?

o you want to have to go out and find your clients or do you want them to come to you? If you want them to come to you then yes, content is still king and should maintain its position as one of your most important marketing activities.

The main reason many legal professionals have expressed doubt about the ability of content to attract clients is that the space has become cluttered and it’s becoming harder and harder for lawyers to make their content stand out from the crowd. Try the tips below to make your content stand out and build trust and awareness among potential clients. • HELP: The goal of all content should be to help first, sell later. You want your content to build awareness of your firm and also trust in your firm. So when writing content ask yourself “Would this information be valuable to a client?”. • SPECIALISE: Search engines give preference to websites that have targeted and relevant content, so when developing content for your blog or website don’t stray from your areas of specialisation, stick to what you know and talk about that. • ANALYSE: Remember to check in on your Google Analytics regularly to see what content is attracting traffic and what’s not. Once you have a better idea of what people are looking for then you can focus on providing more content in this vein. Once you’ve got your content right you can choose your delivery channels. Distribute your content thoughtfully, delivering to those who will find it interesting. You have two choices, the channels you own (newsletter, blog, webinars, guides) and the channels you don’t (guest blog posts, articles in other publications, publishing on LinkedIn). When building your profile, the channels you don’t own are a good starting point as you can piggyback on the existing interest in these outlets. LinkedIn is quickly becoming one of the internet’s largest publishers of content and could be particularly beneficial to those of you operating in business law, due to its popularity with professionals from all sectors. Once you’ve began to grow your reputation start with a blog and then experiment with other outlets such as a monthly newsletter, all the time measuring what’s generating the most interest. Content is still king, but make sure it rides in a suitable carriage. Ross Weldon, Marketing Specialist, Clio EMEA.

Jasvinder Jhumat, Head of Corporate Business, alldayPA Legal.

ML // December 2015

The Views

Should lawyers be worried about AI? It depends on how you look at it.

s a fellow at CodeX: The Stanford Center for Legal Informatics and the founder and CEO of a legal tech company that uses artificial intelligence, I get asked this question or variants of it often. An answer like “it depends” is such a lawyer answer, my apologies. As a primer, artificial intelligence (AI) is a very loosely used term for task augmentation and automation. When the task is more than a mere yes or no, or requires some form of complex rule to solve, and you can get a computer to do that task, you arguably have an artificial intelligence system. Most lawyers will recognise e-discovery as an area where automation is used. Rules can be set to comb through your digital storage to find those applicable gems. There is now e-diligence, where companies will use AI to parse large numbers of documents as part of a diligence process, looking for those nasty little bits. We even use automated source code review for due diligence. All of the aforementioned tasks were traditionally done in manual form. Times have changed, there is a need for AI based technology now, because the volume of information is unmanageable in manual form. Lawyers face strong pressures to reduce fees and time, and to do more with less. Lawyers need not fear technology assisted document review, they should embrace it, because it will help them address client demands. Automated legal research, intellectual property automation, contract analysis and litigation outcome prediction are just a few examples of AI-driven technology that are entering or in the market now. For a technology savvy lawyer, these tools are exactly what the doctor ordered. That group of lawyers should not be worried. They help reduce ‘overlawyering’ (the concept of lawyers performing and charging for services that are not part of their core competency). Lawyers who feel that an AI-based system might make a mistake and therefore they must do everything themselves, should be worried. Remember, the threshold for professional negligence is not strict liability. The argument that perfection is a mandatory requirement is false. People are not perfect, and “it depends” is often the best answer. There is system automation and augmentation everywhere— air traffic control, stock markets, even medical tests, (x-rays, and EKGs). Mistakes happen. That being said, in all of those systems there is professional supervision and oversight, to ensure a clear and careful balance between automated reliance, and real expertise. Artificial intelligence systems will benefit lawyers. Lawyers who dismiss those systems will be left to the side, and they should be worried. While the traditional role of a lawyer is changing, fear not—embrace the change. Cian O’Sullivan, Top Dog & Founder, Beagle.

A changing legal landscape In their new book: ‘The Future of the Professions’, Professor Richard Susskind and son Daniel predict a “gradual replacement of professionals by increasingly capable systems”. Do you agree or disagree with this prediction and why, and what could AI mean for the law?

rofessor Richard Susskind’s writing on the legal sector is always thought provoking and usually prescient. The theory of Artificial Intelligence replacing work currently being done by professionals has always made sense, but the last couple of years have seen step-changes in technology that will move that theory into reality. Volume legal services such as conveyancing are where AI will have the biggest impact in the short term. There is huge excitement at myhomemove at the potential the latest ‘cognitive learning’ systems have to reduce risk, improve efficiency and support great service through data, which is richer and more readily available. Implementing such technologies will probably result in a gradual reduction in professional time, rather than outright replacement of professionals. The need for professionals is likely to remain but delivering less ‘process’ and more ‘service’. It seems inevitable that, as higher volume legal services firms adopt and adapt these technologies, the potential for them to become mainstream in other areas of law increases. One example is the technology that has existed for decades to define and automatically identify complex keywords, phrases and identifiers on incoming mail, documents and email and allow them to be flagged or filtered. Current versions of these technologies can actively learn, based on feedback, to continuously become better at their ‘jobs’, identifying and extracting the key data needed for decision making and compliance, and flagging a decreasing number of ‘unknown’ scenarios for guidance from expert staff. In the conveyancing sector, the impact of this technology will ultimately be to add capacity to a market that continues to suffer from severe skills shortages. It will also challenge traditional career progression routes as some of the activities that junior staff in firms used to cut their teeth on, will no longer exist so more structured training will be essential. Law is no different to any other ‘knowledge’ sector. It is inevitable that many aspects of legal process will be substantially supported by increasingly capable systems and, in doing so, the landscape of law careers and businesses will significantly change. Mark Montgomery, Customer Strategy and Marketing Director, myhomemove.

ML // December 2015

The Views

What does autumn mean to you?

rinking a Starbucks Pumpkin Spiced Latte while sat on a sofa watching the outside world? Country walks with the family kicking the red, gold and orange leaves in your new Hunter wellies? Or does it mean that you know that holiday season has come to an end and now you know you are going to be busy helping people complete the sale of their home? Whatever it means to you, autumn means that the nights draw in, temperatures drop and the wet and windy weather increases as we transition from summer to winter. To some of us, this means that the risk of areas around our home flooding increases which more often than not brings devastating consequences to our homes and sometimes our lives. According to the Office for National Statistics (ONS), Britain’s population has been growing twice as fast as the rest of Europe for the last decade with more than 64 million people now living here. The population has grown by five million since 2001, the same amount it gained in the previous 37 years. That’s a rate of 0.7% a year, just over twice the EU average of 0.34%. Yet immigration accounts for five times as much of the growth since the millennium as in the period before, ONS added. We only have to read the daily newspapers which reveal that not only is there a national housing shortage but also our population will continue to grow as we aid refugees over the next five years. Currently the UK needs to build 240,000 houses a year to meet demand. The Government also have plans to improve and modernise transportation; with talks of building a third runway at Heathrow and extending the HS2 railway lines. However all the building and expanding of cities causes flooding. When property is built on flood plains, trees are cut down, town planners change the course of rivers and the roads are tarmacked, it leaves nowhere for the water to go. After a heavy downpour of seasonal rain, the water collects as the urban drainage system cannot cope and so we are left with devastating pluvial flooding. As Britain’s population grows, our landscape becomes densely built upon and our climate changes, it is apparent that our risk of flooding has greatly increased. Erica Willmott, Marketing Assistant, Conveyancing Data Services.

CPD: the best solution? Is the new SRA solicitor CPD scheme really a Trojan horse with a hidden agenda? aving been subject to the tick-box exercise that was the mandatory 16 hour CPD requirement, which undoubtedly led many practitioners to stretch the parameters of their professional interests in what can only be described as a rush to the finishline approach, the legal profession, myself included, recognised the need for CPD to change and change it has, but is it a case of be careful what you wish for? Contrary to the optimistic belief that solicitors are no longer required to undertake legal training, the SRA’s new approach to CPD focuses on the competence of the practitioner and compliance with Principle 5 of the SRA Handbook which emphasises the need to ‘provide a proper standard of service’. This sounds easy enough, but so did completing 16 hours CPD training in an area of law within a 12 month period. Under the pretence of removing the ‘red tape’ from the training process and thereby making solicitor’s lives easier, the SRA have in effect dramatically reduced their regulatory responsibility to ensure that solicitors are adequately trained. Although solicitors will be required to make an annual declaration that they have considered their training needs and have taken measures to maintain their competence, the SRA have been characteristically vague in terms of the evidentiary proof they require or how this information will be monitored. In my opinion the SRA have created a minefield in which firms could be open to retrospective action regarding inadequate training, especially now that this is no longer accredited, whilst also inadvertently making it easier for solicitors to abuse the system, if they are so inclined. The veiled threat of what will happen if solicitors do not keep accurate records reinforces the notion that the SRA’s scheme has no teeth. As we all know, without the threat of regulatory non-compliance, there is no incentive for solicitors to embrace change in spirit in which it is introduced. On the surface, affording solicitors the freedom and flexibility to decide for themselves what training and development they need to undertake, appears to be a win win situation for all concerned. However in reality, the new approach will be both laborious and labour intensive and has resulted in many time poor solicitors looking back at the old scheme with a certain fondness. A solution is required.

Charles Peter, CEO, Datalaw Ltd.

ML // December 2015

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The Views

Cyber risks: act now

yber crime is a significant threat to law firms, with PwC’s recently published Annual Law Firm Survey highlighting that 62% of UK law firms have reported a cyber attack this year. When compared to the 40% of firms reporting an attack last year, it is clear that the threat is increasing, as fraudsters become more sophisticated in their approach.

The Federation of Small Businesses estimates the average cost of cyber crime to be £4,000 pa, per firm. Whilst Norton estimate the global cost of all online crime to be in the region of £237bn, clearly cyber crime is a threat not to be overlooked. Law firms make particularly attractive targets for cyber criminals because of the nature of the information they hold. The majority of attacks come in the form of ‘Phishing’ emails, (over three quarters) but attacks can also come in the form of: • Malware (harmful software) • Hacking • Ransomware • DDoS attacks • Bogus firms. The SRA recommend the following ten steps to help protect your firm: • User education and awareness • Incident management • Mobile and home working policies • Information risk management regime • Managing user privileges • Removable media controls • Monitoring • Secure configuration • Malware protection • Network security. The full recommendations can be found in GCHQ’s ‘Ten Steps to Reducing cyber Crime’ factsheet https://www.gov. uk/government/publications/cyber-risk-management-aboard-level-responsibility/10-steps-summary Considering the growing reliance on the internet to conduct business, we should anticipate that cyber crime attempts will also increase. It is essential that firms have a robust disaster recovery plan in place, should the worst happen, but worryingly, according to the PwC report, only 32% of firms are ‘very confident’ in their IT disaster recovery capabilities. According to the SRA, Cyber criminals have caused “substantial losses” to 50 law firms this year, ranging from £50,000 to £2m, and a further 20 firms had fallen victim to e-mail redirection scams, involving “very substantial” amounts of money. All firms are at risk of reputational damage, increased PI cover, reprimand by the SRA and ICO, and potentially even the closure of the firm if the amounts lost are significant enough. Firms must act now to ensure the security of their data as we will no doubt be hearing of more and more sophisticated attacks in 2016.

PI Claims: minimising the risk How can legal practitioners protect themselves from increasingly common professional negligence claims?

he legal profession is still benefitting from something of a “soft market” in terms of PI premiums – the result (amazingly) of too many underwriters chasing the business of law practices, together with the recent, but gradual, move away from the common renewal date which has bedevilled the legal profession for too many years. Even so, a poor claims history is something to be avoided, so here is a checklist of measures to minimise the risk of PI claims coming along. 1. Get off on the right foot - take proper care over the retainer letter in the first place. Make sure it explains what work you are agreeing to do...and what you are not going to do. Too many claims arise because the client assumes that the lawyer is looking after everything on a transaction, whereas the lawyer knows the limitations of his competence and happily believes that the client shares that view of those limitations. A common example is the tax treatment of certain aspect of a M&A transaction. Unless the lawyer draws a clear line in the sand in the retainer, there may be an unfortunate “misunderstanding”. Equally damaging, such a situation can give rise to mutual blame being bandied about between solicitor and (for example) accountant. Of course in property transactions, not only could there be uncertainty as to the responsibility for tax advice but also sometimes the lawyer may be expected to be advising on planning issues as well. 2. Never underestimate the importance of client confidentiality. Client confidentiality has always been important, but the impact of the internet and social media means that an indiscreet word can get out more quickly than ever before. Update your training and policies for all staff, not just lawyers, to make sure that everyone is clear about where the line is, and knows from whom to seek a second opinion! 3. Don’t become lazy about the financial aspects of legal work. Manage the estimating and billing thoroughly. Giving proper advice to the client on fees and billing is essential, and not just because it is a professional duty. A client unhappy about the bill is more likely to become dissatisfied generally, and a claim could result. Many notified PI claims see the light of day by way of counterclaim after the firm sues for its fees. David Simon, Chairman, Triton Global.

Jo Hodges, Sales & Marketing Director, Redbrick Solutions.

ML // December 2015

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The Views

Probate: Tesco Law is Dead!

esco Law was a chimera. It was never a serious contender for probate work. The fact is that most of us will still call our known and trusted local law firm when we experience a death in the family. It is after all where Dad’s Will has been safeguarded over the years.

The real challenge to the law firm is the law firm itself: to deliver a quality service while keeping costs down. On the surface, these appear to be divergent objectives. The goal of the modern efficient law firm should be to achieve a Gross Profit Margin (GPM) of 50% at the very least. And ideally closer to 70%. This is achievable by the probate department. The only way to reach these levels of profitability is technology. Almost all articles about probate estate administration deal with the legal issues, with no regard to the actual organisation of the work - the very area in which your profit or loss is determined. Any firm that is not properly organised around well developed competent software is in competition with itself. The competitor is not Tesco Law, or the online advert offering a cut-price service, or the teenage son who believes he can do the work just as competently at zero cost. Your reputation is fundamental to securing the work, without which your Will Bank can quickly become a wasted resource. Competent software consists of an all embracing accounting engine designed to cope with the full variety of assets and liabilities, other than in the most basic estates - together with an integrated case management with workflows, a calendar of reminder tasks, and a mailmerge facility to extract the data from the accounting database. The two need to work hand in hand with each other. One without the other will not succeed. This technology will enable you to devolve much of the routine work to the lesser qualified members of the team paralegals and secretaries. Properly trained and supervised, they will be able to input financial data and generate letters and documents. This business model is proven, and it works. And the cost savings are significant. The time saved will enable the more qualified members of the private client team to devote more time to supervision and client care. For further information please contact Gregory van Dyk Watson, Managing Director of Isokon Limited via gregory@ isokon.com or call 020 7482 6555. Alternatively visit www.isokon.com

The next generation Apprenticeships are increasingly in the news, as the government pushes to reach its target of three million during the course of this Parliament. Recent commentary has focused on the theme of quality versus quantity. What should the legal services sector make of this?

he government has announced its intention to protect the word ‘apprenticeship’, by giving it a specific legal definition, to be included in the draft Enterprise Bill. In announcing the initiative, Skills Minister Nick Boles said; “Everyone knows what a university degree means. It’s an official title. Young people doing apprenticeships should get the same level of distinction.” The statutory definition is likely to specify the minimum term of employment as well as the outcomes in terms of skills or qualifications, in response to some unscrupulous employers and providers passing off low-level training and short-term contracts as apprenticeships. CILEx Law School welcomes this initiative. However, there is already a means of identifying good apprenticeship programmes: schemes which attract public funding have already got strict requirements in place in terms of the length and specification of the programme. Apprenticeships being adopted by legal services providers include the Level 2 Intermediate Apprenticeship in Legal Administration and the Level 3 Advanced Apprenticeship in Legal Services, both of which attract public funding, as will the new Trailblazer apprenticeships, which have recently been announced. Another aspect of recent coverage is the lack of distinction between level and quality of an apprenticeship. The press often lumps the two together, but it is important to note that a lower level does not equate to poorer quality. The role that the apprentice is being developed into is the determining factor. For example, in legal services organisations, Level 2 is appropriate for business support staff and Level 3 for potential fee earners. This autumn has seen the first intake of apprentices to the Level 3 Advanced Apprenticeship in Legal Services complete their apprenticeship programmes. All apprentices at our employer clients who have completed their training have been kept on at their firms in a paralegal role, mostly with employer sponsorship agreements in place to support them through the balance of the training required to become chartered legal executives. That’s testament to the effective use of apprenticeships as a recruitment tool for the next generation of fee earners. Noel Inge, Managing Director, CILEx Law School.

ML // December 2015

The Law Superstore is the only real-time comparison website that matches legal providers to client needs, be they service, location, or cost. Just another legal comparison website? You decideâ&#x20AC;Ś thelawsuperstore.co.uk/partners

Beyond comparison

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The Features An innovative proposition? In advance of the launch of the legal services aggregator, The Law Superstore (TLS), Charlotte Parkinson, Modern Law spoke to the Chief Executive, Matthew Briggs for the inside scoop on the new venture.

Q A

Why did you decide to launch The Law Superstore (TLS)? TLS was borne out of the vision of a couple of individuals craving transparency in a market that is not synonymous with accessibility or transparency. The premise for TLS is also based on the digital phenomenon we are experiencing in terms of how consumers are empowering themselves to research and buy online through digital and mobile devices, together with the fact that law firms’ core skills are looking after clients and giving good advice, not necessarily the ‘dark art’ of digital marketing. We take the headache away from them in terms of future proofing themselves to reach new clients, whilst they look after running their businesses.

Q A

What are the biggest challenges you’ve had to address in the run up to the launch? The platform was very complex to build in terms of the technology itself and the user experience. Weaving all the different dynamics together to create a cohesive proposition has been a big challenge for our technical team and Solutions Director, as they have had to create the correct balance to give the front-end client an easy, informative and intuitive experience but also ensure the law firms have the control and protection they require.

What are the key features of the new online platform and what are the core ways in which it could help legal businesses? The core proposition is a whole of market legal aggregator where the client is taken on a digital journey that is very succinct, informative and intuitive. The platform allows clients to ‘dejargon’ the legalese that exists in the profession and gives them the chance

to their needs and they can then instantly select their provider of choice. There are over 30 selection criteria, which range from location and cost, to service quality.

What are the potential issues around using technology/online platforms for the provision of legal services? TLS is not a Rocket Lawyer or a LegalZoom – we are not about DIY legal services. We see ourselves very much as a technology company and we cannot offer legal advice - we are not regulated by the SRA. Our technology comes into play with the platform and the algorithms we have built – our job is to make the process easy for both the consumer and our legal partners.

A ‘We guide, match and then connect clients based on their selection criteria’ to choose what’s important to them when they choose a legal provider based on trust and reputation. For our legal partners, we offer an innovative route to market that accesses the entire market through a blend of marketing channels. There is nothing like TLS out there in the market at the moment, although some people profess to have legal comparison websites. Initially, we are launching 140 legal ‘products’ (across 12 core legal categories) and that will increase as the platform evolves. We will be lead by market demand and our partner requests.

Q A

Why/how will TLS benefit consumers/clients? TLS is desktop, tablet and mobile enabled. We have built three entirely bespoke websites as the user journey is such that having a responsive website wasn’t sufficient, we needed it to be specifically built for each of those devices. Using one single platform, the client is given a full view of all the legal areas they may require. As they start to answer questions, they are taken on a journey, which will identify exact matches

Can you give some examples of how technology has influenced and benefitted other industries/ sectors – could the legal profession benefit in a similar way? Zoopla is a good example as it joins people who are looking to buy or sell a property with other people who are looking to buy or sell a property. We see ourselves in a similar way and are like a dating agency for legal advice; we marry together clients who are looking for legal services with people who are selling legal services. But, instead of simply joining the two parties together, we guide, match and then connect clients based on their specific criteria. Our platform will be very similar to what we refer to as the ‘Big Four’, Confused. com; Compare the Market; GoCompare and Money Supermarket. TLS will sit in the technology space that joins people and services together.

Matthew Briggs is CEO of The Law Superstore (TLS). www.thelawsuperstore.co.uk/partners

ML // December 2015

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The Features

Is a Robot going to steal your job away in 2016? Our resident IT guru Charles Christian writes…

concept of AI is a system (typically a computer) that can think and react like a human being. Currently no systems can achieve this, not least because humans have an annoying habit of not thinking rationally but instead frequently resort to intuition and “gut reactions”. What instead we do have is AI having become a portmanteau term to encompass all sorts of different “smarter” forms of software system including machine learning, robotics, expert systems and neural networks. If you look at traditional “dumb” software, say case management systems, all they can do is totally dependent upon the quality of the programming that has gone into them. For example, the system doesn’t “know” of its own volition that if you haven’t had a response within 14 days from the other side, you need to issue follow-up letter #1 and, then depending up the outcome of this, you will issue documents #2, #3 or #4. It only knows this because a human has programmed a decision tree into its software. With machine learning however, the idea is the system can “learn” from how the human uses it until it eventually reaches a point where it can anticipate and suggest the answer the human is looking for. For lawyers, possibly the most familiar example of machine leaning is speech recognition software, where the more you (the human, that is) use it, the more accurate it becomes at recognising your speech patterns and translating them into text. If you use an Apple iPhone, that device’s SIRI “virtual assistant” works on the same basis and can convert speech into vocal commands. At least that’s the theory but in The pitfalls of machine learning LegalRSS_banner_Museo_Layout Page reality we 1have all seen these systems Let’s start with AI. The classic1 07/09/2015 10:39 he legal world has always been prone to outbreaks of enthusiasm for particular types of technology. Suddenly they are the flavor of the month and universal panacea for all the professions’ ills only to then, sometimes equally suddenly, fall from favour, be put back in the IT toy cupboard and generally written out of history. In recent years knowledge management systems, CRM, Blackberry phones and Microsoft SharePoint have all enjoyed their 15 minutes of fame as the best thing since sliced bread, before the carnival has moved on and some fresh technology has edged its way into the limelight. Which brings us to today, where the current focus of SNTS (Shiny New Toy Syndrome) is upon Artificial Intelligence (or AI) systems. To hear some vendors and industry “commentators” (as well as a fair number of law firm partners and senior executives) speak, you could be forgiven for thinking the Robot Apocalypse of The Terminator movies is upon us and that we will soon all be made redundant by AI systems. So, just how realistic is prospect? The answer is “not at all” – it is just the latest tech attracting a lot of hype, largely being generated by people who don’t understand AI but have drunk the Kool-Aid.

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get things disastrously wrong. In fact John Giannandrea, who currently heads up machine learning activities at Google, recently described the intelligence of computers as “remarkably dumb” and “like that of a 4-year-old child”. He went on to say that while AI and machine intelligence has come a long way, researchers are still searching for the “holy grail” of AI, which is a computer system with human-level intelligence, capable of understanding language and context. The end of lawyers? Now let’s get back to those legal software systems some people are getting very excited about. These are basically machine learning systems that can pick up patterns the more they are used so that, for example, they will eventually (you hope) automatically save an incoming email against the correct client/matter file or else be able to “suggest” the correct clauses to go into a contract document you are assembling. Definitely smarter than the average legal software system but not the end of lawyers as we know them. So, no need to worry? Well not quite, for although this type of technology has been around for the better part of 20 years, what we are now seeing is law firms and other legal service providers actually being prepared to invest in and deploy it in their practices – and this is a threat. A robot is not going to steal your job but watch out for competitors – maybe a startup you haven’t even noticed – that can work, faster, cheaper and smarter than you! Charles Christian is the Editor-at-Large for the Legal IT Insider.

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The Features

Achieving financial independence What is financial independence and how do I achieve this? Lawrence Mason reports. achieve financial independence with minimal planning; our job is to ensure that a plan is in place, and with proactive management aim to bring forward when independence is achieved.

inancial independence is essentially the point in time when a client has built sufficient assets to give them the option to hand back their blackberry and retire. Whilst it is often the case that a lawyer will, rather than retire fully, continue to work in some capacity, financial independence provides the option not to. To understand what this means, we might first start with a clients’ expenditure i.e. the income needed each year to maintain current lifestyle, often something of a surprise with one law firm partner believing his expenditure was c£120k p.a., yet following our review, it was found to be nearer £300k! Whilst a review of this can help identify savings and therefore additional resources with which to plan, current expenditure can act as a sound basis for understanding what you will need in retirement, and help to set expectations and strategy. A cash flow forecast can help to inform your financial future, also used for scenario planning as your circumstances and objectives change with time. The key is to understand how expectations of what you would like to happen in retirement meet the reality of your financial arrangements. The later that such is reviewed, the bigger the adjustments in expectations or strategy that may be necessary. That said, often our clients could

My financial arrangements - fit for purpose? Once a plan is in place, the efficacy of existing financial arrangements, such as pensions, ISAs, unit trusts, bonds and borrowings need to be assessed. This is important as lack of time, inclination, or a (sometimes understandable) cynicism around financial advisers can mean financial arrangements are not regularly reviewed. A partner that I recently met had been paying c£30k pa in insurance premiums, and following our initial review and recommendations, we saved him c£19k p.a. in payments by cancelling those that were not needed and replacing others that were. He also believed he would be unaffected by the pensions Lifetime Allowance (LTA), yet our initial review revealed an old disregarded defined benefit pension that would have led to him breaching the LTA and paying a large tax charge, had we not now recommended pension protection. Tax - To pay or not to pay? Tax will always figure in a clients’ financial plans, though the proactive use of basic tax allowances can be extremely powerful in the accumulation of capital, and dramatically increase the ‘income’ that a given amount of capital can generate in retirement. Basic tax allowances include (i) pensions, noting that high earners should review their unused pension allowances before the end of this tax year, when annual contributions fall to £10,000 per annum, (ii) ISA’s, sometimes ignored as ‘small beer’ yet many of our clients hold hundreds of thousands of pounds in these, (iii) capital gains tax

‘The proactive use of basic tax allowances can be extremely powerful in the accumulation of capital’

allowances, whereby £22,200 between husband and wife can be realised each year without tax, and (iv) from next tax year, an annual dividend allowance of £5,000 per person. Rules also change with time; recent changes on how pension benefits can be distributed on death mean pensions have become interesting as an inheritance tax planning tool. We have been advising clients on whether pensions can be passed straight to their children on first death, if the client believes that their spouse would have sufficient assets to meet their own needs in their lifetime. Plans in place, but how do I invest? The past 10 years have proven extremely challenging, with the credit crunch in 2008 and subsequent recession and most recently the slowdown in China. How does an investor negotiate such twists and turns? Our view is that there are only two sources of added value when investing: asset allocation and fund selection. The first requires a disciplined focus on value and it was this approach that led us away from commercial property at its near peak in 2006, and back in at its near low in 2009, to favour defensive assets prior to and through the credit crisis, and, subsequently, back into risk assets based on attractive evaluations. The aim is clearly to be invested in the right assets at the right time, and to achieve this, we believe decisions should be based on valuation rather than market sentiment. The second source of value is fund selection. Through a rigorous process of research and selection, we populate client portfolios with funds in which we have conviction of their ability to add value over their underlying asset class. We avoid more esoteric investments such as hedge funds, and whilst the debate over active funds versus passive funds continues to rage, we continue to focus on active managers finding that careful selection identifies managers who have demonstrated their ability to add value. Lawrence Mason is Director at Saunderson House.

ML // December 2015

The Features

Don’t be the next victim

Cyber security is the practice of putting preventative measures in place to reduce the risk of a data breach. Sarah Green explains how to ensure you are on top of your firms’ cyber security.

or an industry that relies on data, cyber security should be a paramount investment for all law firms. Why run the risk of losing your PI insurance, handing over hundreds of thousands of pounds to fraudsters or having to own up to your clients and stakeholders that you have lost their critical data as the result of a data breach? With the right systems and processes in place, these things can be avoided. It all begins with addressing risk. We know that firms aren’t shy of this, and your Risk and Compliance Managers are responsible for weighing up the liabilities to the firm from a legal and financial perspective – but are they considering the cyber risk? Think about your assets and IP, who would want them? What could they do with them? What would be the impact on your firm?

firm, from boardroom to basement, should be trained to recognise the threat of cyber-attack, underpinned by compliance to strong policies, regularly updated to reflect the shifts in modern technology. You may have heard about Friday Afternoon Fraud – firms are targeted specifically when they are at their most vulnerable, tricking their employees into leaking sensitive data or becoming an accomplice to an attack completely unbeknownst to them. Finally, now you have considered and mitigated your risk of attack, why not tell your clients how seriously you take their data security? Compliance to standards such as Cyber Essentials or ISO 27001 will put you head and shoulders above your competition, and adds that extra seal of approval to your clients. Regulatory shifts in contracts are moving more and more to the adoption of information security, and it’s only a matter of time before it is common practice to ask for these accreditations from your suppliers. Our advice? Address your risk now, don’t be the next victim. Cybercrime will only grow and grow, so now is the time to prepare ahead - you clients will thank you for it.

The internal threat So your infrastructure is now secure, but you still run the risk of falling foul to a scam phone call, or clicking a dodgy link in an email. The internal threat to your firm comes from the risk of human error and social engineering – manipulating the individual to give out information. Your end users are the ones in the line of fire here, and they need to be aware of what to look out for to prevent a breach – people are your greatest asset but can also be your greatest weakness. Everyone in your

Sarah Green, Strategic Operations Manager, Xyone Cyber Security. Xyone respond to the growing sophistication of cyber threats by providing law firms with accessible cyber security services. We identify and mitigate risk to protect yours and your client’s data from attack. Commitment to innovation, customer service and passion define our work. www.xyonecybersecurity.co.uk info@xyonecybersecurity.co.uk

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A culture of security The next job is convincing the partners. A solution can only be sought if everyone is on board with the decision to mitigate the cyber risk. Implementing a culture of security has to stem from the top. They need to know what’s at stake, if it can be protected and of course – what it’s going to cost.

So we look at the strategy. Cyber risk comes at you from three angles – the external threat, the internal threat and compliance. Let’s break that down. The external threat is the risk of being hacked. An outsider gaining access to critical information by finding a vulnerability in your infrastructure to get at your crown jewels. Why would they target you? Because they can. And because they have the increasing ability to trawl thousands of networks and websites until they find a weak one. Law firms are a massive target because data carries a price tag, and the kinds of data a law firm holds is critical. They know where to target you, they know your weaknesses. We stop this through penetration testing. Simulating attacks in the same way a real hacker would – identifying vulnerabilities and telling you where they are so they can be fixed. Top this up with regular scanning and monitoring and you’re as secure as you’re going to get against an attack of this nature. We know that new threats are discovered everyday so maintenance through monthly monitoring is essential to the health of your systems.

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The Features

The Eclipse Proclaim Modern Law Awards 2015 Modern Law’s annual awards ceremony took place on 19th November at the Hurlingham Club, London. Charlotte Parkinson takes a look at the winners and summarises the event.

he cream of the legal crop flocked to the ultra-exclusive Hurlingham Club in London for the third annual Eclipse Proclaim Modern Law Awards. Established in 2013, the awards were created to celebrate innovation and sparkling talent in the modern legal arena. As over 500 guests made their way into the Champagne Reception - sponsored by new legal services aggregator, The Law Superstore – they were greeted by Magicians (sponsored by Searches UK), and two 1920’s-style singers LulaBelle, which set the mood for the Great Gatsby themed evening. As guests took their seats for dinner, the Magicians continued to circulate around the room, wowing the tables. A sense of anticipation and excitement buzzed in the air and after a brief introduction and welcome, the actingChair of the Judging Panel and UK Chairman of Slater and Gordon, Neil Kinsella made his way to the stage to thank his fellow judges, sponsors and attendees. After consuming a sumptuous three course dinner, the new host for the Awards, comedian Jimmy Carr (who had been a big talking point prior to the event), made his way to the stage to entertain guests prior to the awards presentation. Celebrating success The Judges for this year’s awards were as prestigious as ever and included Andrew Grech, Managing Director, Slater and Gordon (Chair); George Bisnought, Managing Director, Excello Law; Diane Burleigh OBE; Sophia Cannon, Social Justice & Political Commentator and Barrister; Karl Chapman, Chief Executive Officer, Riverview Law; Martin Coyne, Managing Partner, Ralli Ltd; Martyn Day, Senior Partner, Leigh Day; Tim Dixon-Phillip, Director, Service Reality; Martyn Doyle, Director, Amberis-ate;

ML // December 2015

The Hurlingham Suite

Ed Fletcher, Chief Executive, Fletchers Solicitors; David Gilroy, Director of Stuff and Things, Conscious Solutions; Timothy Hill, Technology Policy Adviser, The Law Society; Jane Kier, Senior Partner, Kingsley Napley; Chrissie Lightfoot, CEO & Solicitor (nonpractising), The Entrepreneur Lawyer; Alistair McDonald QC, Chairman, The Bar Council; Michael Napier CBE QC (Hon), and Stephen Ward, CEO, Clerksroom. Once again, the judges had their work cut out for them, reviewing hundreds of nominations which were submitted from across the profession. One of the most coveted awards of the evening, ‘Lawyer of the Year’, went to Matthew Claughton, Managing Director of Olliers Solicitors. Claughton said of winning his award, “I am delighted to have won this Award, it reflects the effort and commitment to quality of every single member of the

Olliers team.”. Full service corporate and commercial firm gunnercooke, which was founded in 2010, scooped the ‘ABS of the Year - Over 100 Employees’ award, and the award for ‘Rising Star of the Year’ was picked up by Jonathan Hodge from Giles Wilson Solicitors. Hodge practices as a solicitor focussing on complex and high value contentious matters. The award for ‘Chambers of the Year’ went to Serjeants’ Inn Chambers which specialise in important, high profile medical, police, regulatory and public law cases, often involving political, ethical or social issues. Catherine Calder, Solicitor & Director of Client Care at Sergeants’ Inn said of winning the award, “We are absolutely delighted that the collective efforts of our barristers and staff have been recognised in this way, especially given the calibre of the other sets on the shortlist and the eminence of the panel of judges.”. Scoring a

‘The winner of this year’s Judges Choice ‘Lifetime Achievement Award’ went to the Global Co-Chairman of international business law firm DLA Piper, Sir Nigel Knowles’

The Features

double-win was conveyancing firm AVRillo Solicitors, who were awarded ‘Outstanding Commitment to Training of the Year’ (a new category which was introduced this year) and also the muchdesired ‘Client Care of the Year’. Celebrating the winners A number of other new categories were launched for this year’s awards, including ‘Business Development Professional of the Year’, which was taken home by Iain Cherry of Just Costs Solicitors. Due to popular demand, the ‘Supporting the Industry Award’ was divided into two this year to make the ‘Supporting the Industry (1-25 Employees) Award’ and ‘Supporting the Industry (26+ Employees) Award’, which were taken home by LawNet Ltd and Burcher Jennings respectively. This year’s ‘Outstanding Achievement Award’ was presented to Professor Stephen Mayson, widely known across the legal industry for his thought leadership, nonexecutive and advisory roles. Professor Mayson was unable to attend the ceremony but Michael Napier CBE QC (Hon) collected the award on his behalf. The winner of this year’s Judges Choice ‘Lifetime Achievement Award’ went to the Global Co-Chairman of international business law firm DLA Piper, Sir Nigel Knowles. The firm describes Sir Nigel as “the driving force behind DLA Piper’s remarkable growth”. Sir Nigel was Global Co-CEO and Managing Partner for nearly twenty years before becoming Global Co-Chairman on 1 January 2015. Following the awards presentation, guests enjoyed the rest of the evening’s entertainment, which was kindly sponsored by PSG and included The Gatsby Jazz Band and two professional dancers, who ensured everyone was up on the dance floor. Other entertainment on the evening included the Silent Auction, which was organised by Impulse Decisions Ltd and sponsored by mobile app, InCase™. The auction raised £6,035, to be divided between the two charities of choice, Candlelighters and Young Epilepsy.

Sucheet Amin, InCase™ and James Marsden, Impulse Decisions Ltd LulaBelle

The Gatsby Jazz Band

Modern Law would like to thank all those who attended, nominated, judged and sponsored the Eclipse Proclaim Modern Law Awards 2015. For general enquiries about next year’s awards, please contact: ellie.campbell@charltongrant.co.uk For sponsorship enquiries, please contact martin@charltongrant.co.uk Charlotte Parkinson is Group Editor of Modern Law Magazine.

The Champagne Reception

ML // December 2015

The Features

The Winners ABS OF THE YEAR - 1-25 EMPLOYEES WINNER - Castle Park Solicitors HIGHLY COMMENDED - Tracey Miller Family Law Sponsored by ISO

ABS OF THE YEAR - 26-100 EMPLOYEES

WINNER - UnionLine HIGHLY COMMENDED - Convey Law Sponsored by UKS MEDICAL

ABS OF THE YEAR - Over 100 EMPLOYEES WINNER - gunnercooke HIGHLY COMMENDED - Simpson Millar LLP Sponsored by Eclipse Legal Systems

LAWYER OF THE YEAR

WINNER - Matthew Claughton - Olliers Solicitors HIGHLY COMMENDED - Greg Stewart - GT Stewart Solicitors Sponsored by TLA Medico legal Ltd

NON-LAWYER OF THE YEAR

WINNER - Martyn Gilbert - Spencers Solicitors HIGHLY COMMENDED - Annette Byrne - Hanson Renouf / Simon Slater - Thomson Snell & Passmore LLP Sponsored by Just Costs Solicitors

TEAM OF THE YEAR

WINNER - Collaborative Resolution Ltd HIGHLY COMMENDED - Forrest Williams Solicitors Sponsored by SMARTSEARCH

RISING STAR OF THE YEAR

WINNER - Jonathan Hodge - Giles Wilson LLP HIGHLY COMMENDED - Baruch Baigel - Asserson Law Offices Sponsored by Fletchers Solicitors

INNOVATION OF THE YEAR

WINNER - SmartCredit Ltd T/As SmartSearch HIGHLY COMMENDED - ISO Sponsored by Pure Legal

ENTREPRENEUR OF THE YEAR

WINNER - Katherine Rayden - Rayden Solicitors HIGHLY COMMENDED - Jason Hathaway - Edward Hands & Lewis Solicitors Sponsored by RALLI

BEST USE OF TECHNOLOGY

WINNER - Schillings HIGHLY COMMENDED - Selachii LLP / National Centre for Domestic Violence (NCDV) Sponsored by Redbrick Solutions

BUSINESS DEVELOPMENT PROFESSIONAL OF THE YEAR WINNER - Iain Cherry - Just Costs Solicitors HIGHLY COMMENDED - Ian Morris - Edward Hands & Lewis Solicitors Sponsored by Amberis-ate

CLIENT CARE OF THE YEAR

WINNER - AVRillo Solicitors HIGHLY COMMENDED - Serjeants’ Inn Chambers Sponsored by Checkaprofessional

OUTSTANDING COMMITMENT TO TRAINING WINNER - AVRillo Solicitors HIGHLY COMMENDED - myhomemove Sponsored by INFOTRACK

NEW ENTRANT OF THE YEAR

WINNER - Costs ADR HIGHLY COMMENDED - Paradigm Family Law LLP Sponsored by Allday PA

BEST MARKETING CAMPAIGN OF THE YEAR WINNER - Stephens Scown LLP HIGHLY COMMENDED - Gorvins Solicitors Sponsored by MEDICAL RECORDS

CHAMBERS OF THE YEAR

WINNER - Serjeants’ Inn Chambers HIGHLY COMMENDED - Radcliffe Chambers Sponsored by CBT Clinics

LAW FIRM OF THE YEAR

WINNER - Schillings HIGHLY COMMENDED - Simpson Millar LLP / gunnercooke Sponsored by Tower Costs Solutions

SUPPORTING THE INDUSTRY (1-25 EMPLOYEES) WINNER - LawNet Ltd HIGHLY COMMENDED - mmadigital Sponsored by STL Group

SUPPORTING THE INDUSTRY (26+ EMPLOYEES) WINNER - Burcher Jennings HIGHLY COMMENDED - TM Group (UK) Limited Sponsored by Spectra Legal

OUTSTANDING ACHIEVEMENT OF THE YEAR WINNER - Professor Stephen Mayson Sponsored by NatWest

LIFETIME ACHIEVEMENT OF THE YEAR WINNER - Sir Nigel Knowles Sponsored by Doctors Chambers Ltd

‘The [Silent Auction] raised £6,035, to be divided between the two charities of choice, Candlelighters and Young Epilepsy’ ML // December 2015

The Features

Guests are seated for dinner

Charlotte Parkinson Jimmy Carr

Sir Nigel Knowles (middle) collects his award

Chambers of the Year: Serjeantsâ&#x20AC;&#x2122; Inn Chambers