Exclusive clubs pose unfair advantage for lawyers, Mixed feelings on MoJ's plan to increase court fees, Businesses face 20-month court delays

THE HOT STORY

Exclusive clubs pose unfair advantage for lawyers, warns Bar Council

Law Gazette / The Guardian ?

Exclusive members' clubs, such as the men-only Garrick club, have been criticised by the Bar Council for creating an unfair advantage for lawyers aspiring to become judges. The Bar Council highlighted the issue of "closed doors and exclusionary spaces" in relation to the under-representation of women in the judiciary and gender disparities in female lawyers' career progression and earnings. The chair of the Bar Council, Sam Townend, stated that it is currently up to individuals to decide whether membership of such clubs aligns with their professional values, but this may change in the future. The revelations about judges' membership of the Garrick Club have prompted resignations and calls for greater inclusivity in the legal profession.?

LAW

Mixed feelings on MoJ's plan to increase court fees

City AM ?

The Ministry of Justice (MoJ) has proposed raising court fees by 10% to generate an additional ￡34m to ￡42m annually. However, the consultation responses revealed mixed feelings towards the plan. While 37% agreed with the fee increase, 40% disagreed, and 15% were undecided. Many of those who disagreed expressed concerns about the impact on access to justice for vulnerable individuals. Respondents also suggested removing certain fees, such as divorce applications and probate grants, from the proposal. Additionally, opinions were divided on the proposal for regular inflation-based fee increases every two years. The government defended the fee increase, stating that it would help align fees with rising costs incurred by HM Courts and Tribunals Service (HMCTS) while remaining affordable.

Ministry of Justice considers adopting Netherlands' legal aid system

Law Gazette ?

The Ministry of Justice is considering adopting certain aspects of the Netherlands' civil legal aid system in England and Wales. The findings of an international comparator report commissioned for the government's civil legal aid review have been published, highlighting the potential adoption of a "high trust" method for accepting applications for legal aid certificates. The report suggests that the Netherlands' system has streamlined the application process for trusted providers, eliminating the need for certain documents and expediting the verification process. Other policy ideas to be explored include the Netherlands' tiered model for prioritising cases and the US's efforts to increase access to justice. The Law Society president, Nick Emmerson, welcomed the report and expressed interest in exploring how the Netherlands' model could be implemented in England and Wales. However, he emphasised the need for adequate funding and investment to ensure the sustainability of the legal aid system. A green paper on the matter will be published in July.?

Businesses face 20-month court delays

The Daily Telegraph ?

Businesses are experiencing court delays of nearly 20 months as backlogs increase following the pandemic. Civil case delays have risen 40% from an average of 61 weeks in 2019 to 85.7 weeks in 2023. Criminal case backlogs have also grown significantly. The delays could have serious consequences for businesses, including hefty costs and financial planning uncertainty, while the reputation of businesses subjected to false civil claims may also be affected. Calls have been made for greater use of virtual technology and AI to speed up the process. The use of virtual courts has the potential to tackle delays, according to the majority of respondents in a Thomson Reuters survey. Some 82% of respondents said virtual courts could help tackle delays, up from 76% two years ago.

Government under pressure to publish legal advice on Israel's actions in Gaza

Daily Mirror / Evening Standard ?

The government is coming under pressure to publish the legal advice it has received on Israel's actions in Gaza following claims its lawyers believe Israel has broken humanitarian law. The call comes as Commons Foreign Affairs Committee chairwoman Alicia Kearns revealed she was convinced the government had concluded that Israel was not demonstrating a commitment to international humanitarian law, but had refused to confirm that publicly. Experts point out that arms export licences cannot be granted if there is a clear risk the weapons could be used in a serious violation of international humanitarian law.?

Sunak says he is prepared to pull out of ECHR over Rwanda flights

The Times / Daily Mail ?

The prime minister has said that controlling illegal immigration is “more important” than membership of the European Convention on Human Rights (ECHR), as he defended his plan?to send asylum seekers to Rwanda. Rishi Sunak suggested that if Strasbourg blocked his attempt to deport asylum seekers, he was prepared to withdraw the UK from the ECHR. His comments that he would not let a “foreign court” interfere with a policy that was “fundamental to our sovereignty” came in an interview with The Sun’s?Never Mind the Ballots?online show.

Transgender judge seeks to join landmark Supreme Court case on legal recognition

The Guardian ?

The Guardian reports that the UK's first transgender judge, Victoria McCloud, is seeking to join a crucial Supreme Court case that could overturn legal recognition of transgender people. The senior civil judge is making an application to be an "intervener" in the Supreme Court appeal brought by the campaign group For Women Scotland about the legal definition of "woman." For Women Scotland is challenging whether Scottish government legislation aimed at improving gender balance on public boards should include transgender women. McCloud, who is supported in her application by the Good Law Project, is concerned that the effect of a successful appeal - which would affect the whole of the UK - would be to reverse her birth certificate, deeming her to be male under equality law.?

Secret courts issue record number of fines

Daily Telegraph ?

Concerns are growing over flaws in the justice system as secret courts issue a record number of fines. The fines, ranging from ￡200 to ￡10,000, were issued in 78.2% of Single Justice Procedure (SJP) cases last year, often without defendants attending or registering a plea. Campaigners have criticised the high fines, which can be imposed for minor offences. The Magistrates' Association has expressed concern over the number of defendants failing to lodge a plea, as it hampers their ability to determine appropriate fines. The Justice Secretary, Alex Chalk, is under pressure to address the issue and increase transparency in the process. The average fine has risen from under ￡200 to ￡222, and some individuals have been fined over ￡1,000. The non-plea rate of 70% suggests that many defendants are unaware of the potential consequences, including a criminal record.

FAMILY LAW

Pre-nup enquiries surge ahead of wedding season

City A.M. ?

As wedding season approaches, pre-nuptial agreement enquiries are skyrocketing, with couples prioritising their assets before tying the knot. London-based law firm Stewarts has witnessed a 51.2% increase in pre-nup enquiries in 2022 compared to the previous year. The firm highlighted that beyond pre-nups, financial arrangements continue to be front of mind for couples when contemplating a divorce. The?lawyers?reported that concerns of this nature made up 63% of all enquiries in January 2024 alone. Although pre-nup agreements are not legally binding in England and Wales, they hold persuasive power in court. Richard Hogwood, partner at Stewarts, highlights the growing interest and effectiveness of pre-nups. Couples are recognising the importance of discussing finances well in advance of their wedding day, rather than leaving it to the last minute.

Backlog crisis: Over 100,000 children affected

The Times ?

The family courts are facing a crisis as over 100,000 children are being affected by backlogs in the justice system. The Law Society, representing solicitors in England and Wales, revealed that there were 18,758 children involved in new private law applications between October and December, with a total of 78,004 children involved in private family law cases throughout 2023. The backlog crisis in the family courts has received less attention compared to the crown courts, but its impact on children is significant.

Labour donor Dale Vince ordered to inform wife of future party funding

Financial Times ?

Green energy tycoon Dale Vince, who plans to donate ￡5m to the Labour party, has been ordered by the High Court to inform his wife before he hands over more cash.

LEGAL TECH

Luminance secures ￡32m funding

City AM ?

London-based legal AI firm Luminance has raised ￡32m in Series B funding to fuel its expansion efforts in the US. Luminance’s proprietary legal AI model automates the negotiation of contracts and other legal documents to speed up what can often be a lengthy process. March Capital spearheaded the fundraising round and was joined by National Grid Partners and other existing investors such as Slaughter and May. Hyun Koo, partner at March Capital, said: “We invest in AI-native companies solving large, mission critical problems. Given the inefficiencies and complexity that exist today in legal workflows, we immediately saw the potential for Luminance to drive efficiency with its industry leading LLM.”

COMMERCIAL LAW

Lawyers need better understanding of 'emotional journey', says report

The Times ?

A study by the International Chamber of Commerce says lawyers need a better understanding of the "emotional journey" of the businesses they advise, as well as local values and practices to avoid cross-border disputes. The study of over 1,700 mid to senior-level managers indicated that the cultural backgrounds of business people and organisations profoundly influence their approaches to acquiring, maintaining and ending relationships. According to research, where conflicts arose, 50% of those questioned attributed contract failure to weak relationships between the parties, with the other half blaming contractual issues or performance. The report suggests that the ability of lawyers to understand relationships also affects a company's choice of external counsel. Some 47% of survey respondents said that they would prioritise individuals or firms showing cultural sensitivity. Roland Ziadé, an international arbitration partner at London headquartered law firm Linklaters, says there is an increasing move for lawyers to be "emotionally and culturally intelligent" as well as "legally savvy." He says the report reminds in-house and external counsel of the benefits of multilingual teams with cross-cultural experience. Jon Newman, a partner at Kirkland & Ellis, says that "emotional intelligence is a critical skill for lawyers" - but most do not understand that point as they focus on the legal or commercial aspects of their roles.

Major UK corporates sign pro bono pledge

Law Gazette ?

General counsel at major UK corporates have signed a pledge to demonstrate their support for pro bono work. The pledge, created by the In House Pro Bono Group, National Pro Bono Centre, and GC100, asks GCs and heads of legal to commit to encouraging their lawyers to do pro bono work. The pledge also requires legal teams to ask their external firms to disclose details of their pro bono activities. The pledge aims to improve access to justice and, it is said, make a better world. The National Pro Bono Centre, In House Pro Bono Group, and GC100 will provide guidance on fulfilling this element of the pledge. The pledge also addresses how pro bono work can be integrated into the company's CSR or ESG strategy.

Demand for tax lawyers hits record levels

City AM ?

According to a report by professional recruiter Search and market data analysts Vacancysoft, record levels of tax lawyer vacancies were posted in law firms in February in London and nationally. The report predicts vacancies for tax lawyers will surge to 32.5% by the end of 2024. Lawyers with a focus on the private client sector dominate these vacancies, accounting for 81.3% of the roles. Recruitment for trusts lawyers has also increased. The South represents 39.5% of total vacancies in 2023, and is expected to jump to 44.9% by the end of this year. London-centric firms are recruiting less compared to firms outside London. David Holden, director of private practice at Search, stated that the increased demand for specialists in private client and trust law is creating new career opportunities and a competitive hiring environment.

PROPERTY LAW

Government accused of 'abandoning' no-fault evictions pledge

Sky News ?

The government has been accused of reneging on its promise to ban no-fault evictions before the next general election. Housing minister Jacob Young informed Conservative MPs in a letter that Section 21 of the Housing Act, which allows landlords to evict tenants without cause, would remain until a legal system assessment is conducted. This decision contradicts the 2019 manifesto pledge to abolish Section 21. The Renters Reform Coalition accused the government of making major concessions to landlords and abandoning its promise to renters. Additionally, the proposed amendments include preventing tenants from ending contracts in the first six months and allowing landlords to match tenancies to the academic year for student renters. Critics argue that these changes favour landlords and undermine renters' rights, with Labour pledging to immediately abolish no-fault evictions if elected.?

Canary Wharf test case for cladding bill

The Times ?

The housing secretary is trying to use his new powers for the first time to force the owner of a development of flats in Canary Wharf to pay ￡20.5m to fix dangerous cladding.?Michael Gove has lodged an application with a property tribunal seeking to make Yianis Group contribute to fixing safety issues at Canary Riverside, a site on the banks of the Thames in east London comprising 325 apartments. An inspection of external walls identified problems with “cladding and insulation materials” used at the top of all the four residential buildings involved. The action represents the first time that Gove and the?Department for Levelling up, Housing and Communities have sought to use legal powers under the?Building Safety Act?of 2022.?

EMPLOYMENT LAW

Ministers to reintroduce fees for discrimination and harassment lawsuits

The Times ?

The Times looks at concerns over plans by ministers to reintroduce fees for discrimination and harassment lawsuits, seven years after they were ruled unlawful by the Supreme Court. The proposed fees, which are lower than the previous charges, have been met with criticism from lawyers, charities, and campaign groups who argue that they will hinder access to justice. The government's impact assessment concedes that the scheme will cost more to implement and administer than it will raise, and experts warn that the fees will disproportionately affect poorer individuals. The Law Society and the Bar Council have also expressed concerns about diminished access to justice. The Law Society?of Scotland warned that the proposals will cause “unacceptable access-to-justice issues for those most in need of free legal protections.” Critics argue that the reintroduction of fees will deter claims and allow bad employers to continue discriminatory practices.

Ministers plan to crack down on misuse of NDAs

City AM ?

The government has announced plans to crack down on the misuse of non-disclosure agreements (NDAs) to ensure they are not used to silence victims of crimes. The law is set to be changed to make sure NDAs cannot be legally enforced if they prevent victims from reporting a crime. The change will mean information related to criminal conduct can be discussed with law enforcement agencies and lawyers while elements of confidentiality agreements relating to commercially sensitive information or financial agreements will retain their legal effects. Justice Secretary Alex Chalk said: “We are bringing an end to the murky world of non-disclosure agreements, which are too often used to sweep criminality under the carpet and prevent victims from accessing the advice and support they need.” He added that the changes will ensue that gagging orders cannot be legally enforced against victims “to prevent justice from being delivered and their voices being heard.”

FIRMS

US firms' generous pay disrupts regional UK legal market

The Times ?

The Times looks at how rising salaries for junior lawyers at US law firms are now impacting UK regions like Bristol, Birmingham, and Leeds. In Bristol, one recruitment specialist points out that salaries for newly qualified lawyers at Burges Salmon, one of the biggest names in the city, stagnated at about ￡48,000 for more than a decade until 2019. But in the past four years they have soared by over 40% to ￡68,000. And since 2019, starting salaries at the firm's arch-rival, Osborne Clarke, have gone from ￡57,000 in 2019 to ￡70,000. Chris Clark, the director of the headhunting agency Definitum, argues that the steep rises have been driven in part by an overflow of the pay wars in the City, and also by direct competition from Square Mile firms that have opened in the regions. Researchers for The Lawyer also note that remote working has allowed regional firms to compete with City firms. Experts have suggested that the planting of a City firm's flag in a regional centre can increase salaries quickly by between 30% and 40%. That in turn creates a cyclical effect because firms that lose lawyers to that City newcomer will be forced to boost their salaries to replace losses.

Investors' lawyers charge 40% fees in mis-selling claims

The Times ?

Lawyers representing thousands of investors in mis-selling claims against St James's Place, Britain's biggest wealth management company, are charging 40% of any damages recovered in fees. AMK Legal justifies the amount by arguing that "expert representation when presenting a claim is essential to securing the maximum possible compensation." The law firm's fee percentage is significantly higher than the cap imposed on non-lawyer claims-handling companies by the Financial Conduct Authority. SJP has set aside ￡426m for compensation and AMK Legal is representing 19,500 complainants. Clients have accused SJP of charging for annual reviews of their portfolios that were never produced. Michael Jordan, head of training and development at AMK Legal, stated that clients are made aware of the fees and have the option to submit a claim themselves for free.?

Law firms' failure to handle complaints hindering legal ombudsman

Law Gazette ?

Law firms' failure to properly handle initial complaints themselves is hampering attempts to improve the legal ombudsman, according to a new report by the complaints handler. The Office for Legal Complaints (OLC) revealed that 45% of cases in 2022/23 showed inadequate first tier complaints handling by providers, leading to increased demand for the ombudsman service. The report emphasised the importance of resolving complaints at the first tier and stated that if firms address customer concerns quickly and rectify mistakes, fewer complaints would be referred. The OLC requested a budget increase of 7% for 2024/25, aiming to reduce the number of pending investigations and resolve more complaints. The Legal Services Board recognised improvements but expressed concern about the rising demand and the need for regulators to ensure better complaint handling by providers.?

Magic circle firms see decrease in partnership promotions

Law Gazette / The Times ?

Linklaters, one of the City's magic circle firms, promoted 27 solicitors to its partnership last week, about two-thirds of the figure last year. Slaughter and May and Macfarlanes also saw a decrease in partnership promotions. National?law firm?TLT has promoted five to partner, down from 10 in 2023. The decline in promotions is attributed to the stagnation in mergers and acquisitions and the need to retain lawyers with larger salaries. European firm Fieldfisher, however, has bucked the trend - electing 10 new partners, up from eight in 2023. Legal profession experts suggest that reducing partnership promotions is a way for firms to show profit per equity partner growth or stability. However, this strategy may risk the departure of senior talent.?

CASES

Post Office knew its court defence was false

BBC News / The Times ?

The Post Office spent over ￡90m fighting sub-postmasters in the High Court despite knowing that its defence was untrue, according to a draft report uncovered by the BBC. The documents show that losses in Post Office branches could be inserted remotely without postmasters' knowledge. The assertion that remote access to sub-postmasters' computers was impossible was central to the Post Office's position that there had been no miscarriages of justice. The draft?report,?named Operation Bramble, was commissioned by the Post Office in March 2016 and carried out by Deloitte. It stated that staff at Fujitsu, the firm responsible for the Horizon software system, were able to edit or delete transactions recorded by branches. Throughout the draft?report,?Deloitte?refers to having already discussed its findings with "Post Office management". While Fujitsu whistleblower Richard Roll had said the company could remotely alter sub-postmaster's cash?accounts, the report is the first documentary evidence that the Post Office knew Fujitsu staff did this without a sub-postmaster's knowledge.

Celtic hires top barrister to fight SFA charge

Daily Mail (Scot) ?

Celtic FC has hired top barrister Nick De Marco to fight Brendan Rodgers' Scottish Football Association (SFA) charge. De Marco, a King's Counsel, has been engaged to help the Parkhead boss avoid a touchline ban for his comments about officials following a defeat at Hearts. Rodgers was outraged by the decisions made by VAR John Beaton during the match. He was charged by the SFA for criticism of officials. Rodgers remains unrepentant and said that he will vigorously defend the team and the club.

Shell fights to overturn emissions ruling

Financial Times / The Irish Times / Reuters ?

Shell is fighting to convince judges in The Hague this week to overturn a landmark ruling by a lower Dutch court in 2021 compelling the oil and gas company to cut its emissions by 45% by 2030, relative to 2019, arguing it had no legal basis and overstepped the remit of the judiciary. The order related not only to Shell's own emissions, but also to those caused by the buyers and users of its products around the globe. Lawyers from UK firm Clifford Chance have argued that it is up to governments to set climate policies and goals, as courts lack a mandate to do so.

Judge's conflict of interest claimed in Tom Hayes appeal

The Times / The Times ?

One of the judges who rejected trader Tom Hayes' appeal against his interest rate "rigging" charges has been accused of failing to declare a conflict of interest. Karen Todner, Hayes' solicitor, has written to the Court of Appeal expressing concern after discovering that Mr Justice Bryan had previously sat on a case involving another trader accused of manipulating an interest rate benchmark. Todner has requested that Bryan play no part in the court's consideration of whether Hayes' case is referred to the Supreme Court. The Court of Appeal recently upheld the convictions of Hayes and another trader for manipulating Libor and Euribor.