Law Times

Page 4 NEWS July 8, 2013 Law Times • LSUC debates alternative business structures BY YAMRI TADDESE Law Times W hen it comes to designing new legal service delivery models, regulation can be a "blunt instrument" that impedes innovation, according to Law Society of Upper Canada Bencher Malcolm Mercer. Mercer, co-chairman of the law society's working group on alternative business structures, talked about the limits posed by regulation when it comes to revolutionizing the legal industry during Convocation on June 27. Although there are alternative models of service delivery other than billable hours, regulation remains a barrier, according to Mercer. "It's not a surprise that almost all of this innovation is happening outside of the regulated space," he said. "That's because the regulated space doesn't permit it because we, in effect, provide services only through billable hours and permit that only to happen." A "tightly controlled" regulatory framework, such as one that restricts the delivery of legal services to sole practitioners, partnerships or professional corporations, limits options when it comes to creating alternative business structures, said Mercer. "Our rules prohibit direct or indirect  sharing of profits. So you can't have another owner and you can't directly or indirectly share profits. You can't pay referral fees to non-licensees. The legal work must be done with direct supervision. "Multidisciplinary partnerships are permitted or practices are permitted in such narrow situations that there are, at most, a dozen now in Ontario. It's no great surprise given that they have to be controlled and supervised by lawyers. It's hard to imagine other self-respecting professionals wanting to cede that authority." Mercer made the comments during discussions at Convocation on the working group's report on alternative business structures. The report reviews regulatory frame- WHY firms to list on stock exchanges. works and models of service Like Australia, England and delivery in different jurisdictions Wales regulate alternative busiand provides initial observaness structures in part through tions on how alternative business entity regulation. These jurisstructures fared in those places. It dictions claim law firm regualso discussed the idea of ownerlation is much more effective ship of law firms by non-lawyers. than relying on individual law"The working group notes Malcolm Mercer yer compliance. that the circumstances that In many of the 150 approved prompted change, and on occasion fundamental change, in legal ser- alternative business structures in Britain, vices regulation elsewhere, may not exist non-lawyer staff members at law firms have become equity partners. in Ontario," the report states. Working group co-chairwoman Susan "However, the working group is of the view that an opportunity exists to learn McGrath also noted innovation largely from these developments, determine happens in the unregulated environment what value they may hold for lawyer and and in jurisdictions that allow alternative paralegal regulation in Ontario, and ex- business structures. She suggested that eliminating replore possible alternative models for the strictions on non-lawyer ownership "has delivery of legal services." In some of the jurisdictions the work- not resulted in a significant problem" in ing group looked at, including New South Australia. "Indeed . . . the change has been very Wales, Australia, there are no restrictions on who may own a law firm. Australia was also positive when it comes to customer LT the first country in the world to allow law complaints," she said. From a young age, it was ingrained in me by my parents that I had to pursue a career in medicine. Being a lawyer was not up for discussion. However, at some point during high school I realized that I didn't enjoy studying the life sciences. My passion was for writing, reading and for advocacy. It should have been a simple decision to become a lawyer for me, but I had to grapple with the expectations of my parents. As I matured, I made the decision that my career had to reflect my interests and strengths. Law school emerged as a suitable option. Looking back, not only was it an easy decision for me, but it was the right decision. Law school taught me a work ethic, how to think critically, to strive to live with integrity, and that with knowledge comes the power to make a difference. Everyday that I work in this profession confirms to me that lawyers play a role in society that should be respected and honoured. In hindsight I can see that the expectations that had been placed on me as a child were not the shackles I had treated them as – they were just there to test my resolve, which is good practice for any good litigator. WENT TO LAW SCHOOL To know a lawyer is to know someone passionate about solving the problems of the day. Sonu Dhanju-Dhillon, Torkin Manes, is one of the 18,000 member lawyers of the Ontario Bar Association. Learn how the OBA advocates for this unique profession, and share your story at www.whyIwenttolawschool.ca. Untitled-1 1 www.lawtimesnews.com 13-07-03 9:30 AM

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