Alternative dispute resolution is gaining traction in family law matters, Growing numbers of litigants in person add to complexity of family law cases
FAMILY LAW
Alternative dispute resolution is gaining traction in family law matters
Yorkshire Post ?
Writing for the Yorkshire Post, Wayne Lynn, a partner at Silk Family Law, takes a look at why alternative dispute resolution (ADR) has begun to develop “at quite a pace” in family law matters. The author notes that there are several types of ADR, including mediation, early neutral evaluation and private financial dispute resolution (FDR), and all three can help to resolve matters without going to court, and a private FDR completely takes the case out of the court system. Senior members of the judiciary have publicly encouraged couples to engage in ADR and lawmakers are increasingly making it a stipulation that couples must demonstrate what efforts they have made to resolve matters out of court, Lynn writes.
Growing numbers of litigants in person add to complexity of family law cases
Writing for the International Bar Association’s website, Rachael Johnson considers analysis published by the Law Society of England and Wales earlier this year which showed an increase in litigants in person (LiPs) in family law cases. Thousands of people in the jurisdiction are being forced to represent themselves in divorce or separation cases because they don’t have access to legal aid, the analysis said. Nick Emmerson, President of the Law Society, says these kinds of cases “have almost trebled since the [UK] government brought in the Legal Aid, Sentencing and Punishment of Offenders Act 2012, which cut large areas from legal aid overnight.” ?Sarah Bell, a partner at Stephens Scown in Truro, says “the court does treat litigants in person carefully,” adding that “it is more difficult for solicitors to deal with a litigant in person […] and that does quite frequently create more costs for the client who is paying to have a solicitor. ”
COMMERCIAL LAW
Billionaire trader Alex Gerko loses UK tax appeal
Bloomberg ? Financial Times ? MarketWatch ? London Evening Standard ?
The billionaire founder of British trading firm XTX Markets and the UK’s biggest individual taxpayer, Alex Gerko, has lost a legal appeal with HMRC over taxes on payouts from trading foreign currencies. Profits he and other traders made while working for hedge fund GSA Capital between 2010 and 2015 were allocated to an internal investment unit before they were ultimately distributed to the traders. The fund paid corporation tax when the amounts were first allocated, but HMRC successfully argued that the payouts to traders should additionally be treated as the higher rated income tax. Following the ruling, Gerko said: “I fundamentally disagree with the judgment, which results in massive double taxation and has wider implications for the financial industry.”
Airlines unlikely to pay compensation for flights affected by CrowdStrike outage
The Times ? Daily Mail ?
Airlines are unlikely to have to pay compensation for cancelled and delayed flights caused by the CrowdStrike outage that crippled 8.5m Windows computers across the world, according to the UK's air passenger watchdog, the Civil Aviation Authority (CAA). The CAA believes the IT meltdown will be considered "extraordinary circumstances" exempt from refund policies. However, the CAA warns that airlines may face legal action from passengers if they deny compensation based on the CAA guidance. Passengers can still claim reimbursement for expenses related to the delay, but cannot claim further compensation under EU rules. Airlines may be able to claim damages from CrowdStrike, but legal experts suggest they may be limited in the compensation they can claim.
Barclays calls for block on passive funds from investor lawsuit
Financial Times ? City AM ?
Barclays is urging the High Court in London to remove claims by passive funds from a lawsuit seeking damages related to “dark pool” violations that were settled in the US in 2016. Barclays was fined $70m at the time. Investors have been suing Barclays since 2020, claiming compensation for a drop in its share price triggered by the regulatory scrutiny. But Barclays is arguing that passive funds, which are taking part in the litigation, could not be said to have been misled by the bank as they had not read disclosures made by the lender. The FT notes that the outcome will help determine if index tracking funds can participate in other lawsuits that are piling up against UK companies over share price declines.
PROPERTY LAW
Government tells developers: Build houses now, fix pollution later
Developers will be able to start building housing projects that risk polluting rivers in order to get the government's ambitious housebuilding strategy underway. Labour has begun the process of changing environmental protections after blocking Conservative attempts to rip up "nutrient neutrality" rules before the election. Deputy prime minister Angela Rayner and environment secretary Steve Reed have told environmental groups that current rules are "not working" and that they want to find ways of restarting housing developments that have been put on hold. Under Labour's proposed model, developers would be allowed to begin work and agree mitigations during construction, rather than beforehand. This could see them, for example, agreeing to fund the creation of new wetland areas elsewhere to offset pollution from new homes. New homes could only be occupied once the mitigations were in place, with Labour arguing that this would speed up development without compromising the environment.
Experts warn Labour's housing plans could violate human rights
Reducing payouts to landowners forced to hand over their assets could trigger legal battles, according to Tom Barton, a partner at Mishcon de Reya. The government's plans to reduce compensation to landowners under revised compulsory purchase order (CPO) powers risk breaching human rights laws. The reforms aim to remove "hope value" payouts and base compensation on existing market values. However, Barton warns: “The ECHR protects the right to peaceful enjoyment of one's possessions and respect for your right to a home, and capping compensation at ‘existing use value' could be considered an infringement on this right.” Additionally, local authorities may no longer need to gain permission from the communities secretary to carry out the purchase. Jon Stott, managing director of surveying firm Ardent, said: “If Labour goes further than the previous government, it will result in a number of unintended and unwanted consequences.”
EMPLOYMENT LAW
Companies are being advised to dismiss underperforming staff ahead of workers’ rights overhaul
Employment lawyers are advising their clients to take action ahead of the government’s incoming Employment Bill, which is expected to include awarding workers’ full rights from day one. Nicholas Le Riche, an employment lawyer at BDB Pitmans, said: “We’re definitely flagging the upcoming changes with clients and highlighting that now is the time to consider their workforce structures for the rest of the year.” James Davies, an employment lawyer at Lewis Silkin, has said that some firms are also considering strengthening the terms of probationary periods. He said: “The advice we are giving at present includes looking at contracts for new hires to make sure they have properly drafted probationary periods . . . Many employers have historically managed them poorly as there was little legal significance to an employee failing a probationary period and an employer deciding a little later that it wasn’t working out.” Caspar Glyn, who is chairman of the Employment Lawyers Association, observed that employers will want to “set up and implement more rigorous systems to ensure that new staff who don’t measure up can be fairly dismissed within their probationary period.” Andrew Taggart, head of employment at Herbert Smith Freehills, added: “Businesses need to think about what changes might be needed . . . We’re advising that clients get ready to contribute meaningfully to the consultation because the devil is in the detail.”
Government says workers 'need to be able to switch off'
Daily Mail ? The i ?
Downing Street has defended plans to give employees the right to switch off from work messages outside office hours. The new Labour government is exploring plans to allow workers to avoid emails, texts, and phone calls received out of hours, without fear of reprisals. The proposals, being spearheaded by Deputy Prime Minister Angela Rayner, have faced backlash from businesses and the Conservatives. However, Sir Keir Starmer's spokeswoman insisted that the plans could increase productivity in Britain. The government's plans will come in the form of non-binding guidance in a new code of practice for businesses. The TUC has welcomed the plans, stating that no one should be pushed to the brink because of their job.?The No10 spokeswoman confirmed ministers were examining models that "support productivity and work flexibility" but said it would be down to individual employers to act. "The government is committed to making work pay and ensuring that working people are protected from exploitative practices and also are supported to ensure that employers are assisting them to be as productive as possible," she said, adding "We know that, and indeed good employers understand that, for workers to stay motivated they need to be able to switch off. That is good for productivity but of course situations may vary and people work in different fields and there are circumstances where people do need to be contacted out of hours. 'That is why there is wider work looking at this issue and different models that we have seen in different countries and looking at this issue more broadly."
Solicitors of South Asian heritage in the UK experience microaggressions at work, report says
At least six in 10 solicitors of?South Asian heritage have experienced microaggressions at work, while three in 10 have faced racial slurs, according to a new report published on the first day of South Asian Heritage Month (18 July to 17 August). The report, based on a survey of 48 South Asian partners and senior in-house counsel, highlights the challenges faced by solicitors of South Asian heritage in the UK's legal profession. The findings show that ethnicity affects work allocation decisions and hinders promotion to partner. The report recommends measures such as unbiased work allocation processes, transparency in promotion criteria, and purposeful networking and mentoring to support South Asian solicitors. South Asian Heritage Month aims to raise awareness of the contributions and experiences of South Asian communities in the UK. Law Society president Nick Emmerson encourages South Asian colleagues to connect and celebrate their unique perspectives during the month.
GENERAL LAW
Wave of criminality means benefits fraud ￡7.3bn and rising
The Daily Telegraph ? The Times ? The Guardian ?
领英推荐
A report from the Department for Work and Pensions (DWP) says British society has become increasingly tolerant of criminality, making it harder to rein in benefit fraud. The DWP said benefit fraud cost taxpayers a record ￡7.3bn last year and will increase by 5% each year hitting ￡10bn or more by the end of the decade. The DWP said that “a range of evidence indicates that there is a long-term rising trend in fraudulent behaviour towards organisations and a softening of attitudes regarding fraud in wider society.” Tolerance of tax evasion has also risen,?with officials citing a recent study suggesting that one in five Britons can now be classed as having “low integrity,” up from one in 14 just over a decade ago. The report comes as the Chancellor prepares to appoint a commissioner to recoup billions lost to Covid procurement fraud.?
Legal aid eligibility to exclude those in deep poverty by 2024
Only people living in very deep poverty will be eligible for legal aid next year if means test thresholds are not lifted sooner and adjusted to reflect recent inflation, according to research commissioned by the Law Society. The research forecasts that by 2025, people with children will typically not qualify for full civil legal aid unless they have less than half the income they need as a minimum, and those without children less than a fifth of what they need. Law Society president Nick Emmerson warns that viewing those who are already living significantly below the Minimum Income Standard as being well enough off to contribute to legal costs will lead to a denial of justice for survivors of abuse and vulnerable families. Professor Donald Hirsch stresses the importance of factoring in inflation when assessing whether people have sufficient money to cover legal costs and their essential daily needs.
Government supportive of investigation into second Post Office scandal
The i ?
The government says it is "supportive" of an investigation into claims of a second IT scandal at the Post Office. A report is due to be published in September. About 40 former sub-postmasters or their families have come forward to claim they suffered accounting problems while using Capture, a precursor to the notorious Horizon computer software system. The Post Office IT department developed Capture in-house and was aware of its bugs and glitches. The US firm Kroll has been appointed to carry out an independent investigation. Steve Marston, a former sub-postmaster, pleaded guilty to theft and false accounting offences in 1998. He insists he never stole and struggled to balance the books since the introduction of Capture.
SRA to increase fees for compensation fund
The Solicitors Regulation Authority (SRA) has decided to increase fees for the compensation fund after little opposition. Individual contributions will rise to ￡90 from ￡30, while firm contributions will increase to ￡2,220 from ￡660. The fund, which repays clients who have lost money due to solicitor misconduct, has faced significant pressure in the past year. The SRA expects ￡35m of claims following the closure of Axiom Ince. The increased contributions will help rebuild the fund reserves over the next few years. The SRA received 18 responses to the consultation, including input from the Law Society and the Association of Personal Injury Lawyers. The Law Society criticised the lack of data and called for greater transparency in explaining the calculations. The SRA will consult on the basis for deciding contributions later this year.
LEGAL TECH
Legal tech firm secures ￡2m investment from NPIF II
A legal technology company, FinLegal, has secured a ￡2m investment from the Northern Powerhouse Investment Fund II (NPIF II). The Sheffield-based firm has developed a platform used by claims firms in the UK and Australia. The funding will accelerate the company's international growth. FinLegal's platform is designed for managing class actions or large numbers of similar claims. Since its launch in 2020, the platform has processed more than two million claims and is used by leading claims firms in the UK, Australia, and the US.
UK regulator inks new AI agreement with EU and US
London Evening Standard ?
The UK's competition regulator, the Competition and Markets Authority (CMA), has signed a joint statement with EU and US counterparts to protect competition and the public from the rise of AI. The CMA and its overseas partners will share information and understanding on AI issues and use their powers to address potential risks. The statement has been signed by the European Commission, the US Federal Trade Commission, and the US Department of Justice. CMA chief executive Sarah Cardell stressed the potential of AI to drive innovation and growth, while also highlighting the need for fair and effective competition. The CMA recently launched an investigation into Microsoft's hiring practices in the AI sector and has previously raised concerns about partnerships between tech and AI firms.
FIRMS
Former Axiom Ince employees win employment claims
More than 150 former employees of Axiom Ince have successfully claimed that they were unlawfully dismissed without consultation or written notice. A tribunal ruled that the law firm failed to comply with its obligations under the Trade Union Labour Relations (Consolidation) Act 1992. The claimants will now receive a protective award of 90 days' gross pay, paid from the National Insurance Fund. The total claim is estimated to be worth ￡1.9m. Alan Lewis, employment partner at Pearson Solicitors, represented the claimants and stated that this outcome highlights the importance of appropriate consultation procedures in cases of widescale redundancies. Axiom Ince had acquired Ince & Co and Plexus Legal before its closure, resulting in over 350 redundancies.
American law firms dominate UK corporate work earnings
The Times ?
Three of the five highest-earning legal practices for UK corporate work are American as a "takeover of the City by rampaging US law firms" continues, The Times reports.?Kirkland & Ellis and Latham & Watkins are the two biggest-earning law firms for UK corporate instructions, far surpassing their nearest UK rival, Linklaters. Kirkland, founded in Chicago, earned more than ￡422m at its UK office, while Latham, originally from Los Angeles, earned ￡341m. The analysis assessed UK-based earnings prior to Allen & Overy's merger with Shearman & Sterling, putting the firm in fourth position. The figures demonstrate further "evidence of the Americanisation" of the City legal market, according to researchers.
Lawyers face problems with professional indemnity renewal
City AM ?
Law firms may face severe problems with the renewal of their professional indemnity insurance (PII) as nearly 40% of insurers consider pulling out of the market. A new survey by Browne Jacobson, along with the International Underwriting Association, found a recent case, Discovery Land v Axis, had caused concern over its very restrictive approach to the aggregation of claims. Ed Anderson, a PII partner at Browne Jacobson, explained that “solicitors already pay far too much for their PII compared to other professionals – more than double in most cases.” Anderson explained that “the dominant reason for the additional cost is that the [minimum terms and conditions] are unnecessarily restrictive for insurers and when compared to the minimum requirements, if any, of other comparable professions.”
CASES
Over 1,100 lawyers and celebrities fight for convicted eco-warriors
Daily Mail ? The Times ?
More than 1,100 lawyers, academics, artists, and celebrities are calling for an urgent meeting with the attorney general to address the "injustice" of the sentences given to five environmental activists. The activists, known as the Whole Truth Five, were sentenced to jail terms ranging from four to five years for conspiracy to cause a public nuisance. The sentences have been criticised as disproportionate and deeply troubling. The Prime Minister has faced calls to intervene in the case, and the UN human rights commissioner has expressed concern. Dale Vince, a millionaire Labour donor, and Chris Packham, a naturalist, have called for a meeting with the attorney general, describing the sentences as a "grotesque miscarriage of justice." Over 1,100 signatories, including Lord Williams of Oystermouth, Sir Geoffrey Bindman KC, and Dame Tracey Emin, have echoed this call. The sentencing has been described as "one of the greatest injustices in a British court in modern history." The activists were said to have caused economic damage and incurred significant costs to the Metropolitan Police during their protest on the M25.
Borrowers take legal action against TSB Bank over mortgage interest rates
BBC News ? City A.M. ? Daily Mail ? London Evening Standard ? The Guardian ? The Independent UK ?
The High Court has heard that more than 2,000 “mortgage prisoners” are being forced to pay “significantly higher” interest rates than they should be while being unable to change providers. Around 2,500 people are taking legal action against TSB Bank over their “Whistletree” mortgages. Lawyers claimed at a hearing on Tuesday that they are paying an interest rate that TSB is not allowed to charge. Tim Lord KC, for the borrowers, said in written submissions: "The circa 2,500 Whistletree borrowers . . . have, in some cases for eight years, been charged interest at a rate significantly higher than the rate which TSB was permitted to charge." Borrowers saw their initial lender, Northern Rock, collapse in the 2008 financial crisis, with their mortgages later taken over by TSB. They were charged a standard variable rate (SVR) which Mr Lord claimed was 2.29% higher than TSB's own SVR, and which differed from the fixed or tracker rates they paid under Northern Rock. Mr Lord said that TSB required the borrowers to apply for a new mortgage if they wished to switch to a cheaper rate, or change bank, but many customers were unable to pass affordability assessments after rules were tightened in 2014, leaving them “imprisoned.”
Conservative peer fights ‘threatening’ libel claim by energy tycoon
A High Court judge is being asked to rule that a defamation claim brought by the eco-tycoon Dale Vince against a Conservative peer amounts to unfair and bullying litigation. Former London mayoral candidate Shaun Bailey – now Lord Bailey of Paddington - says the action is intended to silence him and should be halted. A lawyer for Bailey has made a landmark application to have Vince’s libel claim deemed to be a Slapp, or strategic litigation against public participation. Bailey’s legal team says Vince’s claim is “meritless” and an “abuse of process,” and is characterised as an example of threatening litigation brought by a wealthy claimant that is designed to get Bailey to settle under duress. The case centres on comments Vince made on Times Radio after the Hamas attack on Israel last year that prompted widespread criticism.