Law Times

www.lawtimesnews.com Page 6 February 4, 2008 / Law Times W hat was historic in legal matters in 2007? I'll leave judgments about case law and such to lawyers. But in the world of law firms and the practice, I'd guess an event that might become a marker was the closing of Goodman & Carr LLP in March 2007. Law firms come and go. Leave aside the pain and the fi- nancial losses and the career dis- ruptions for those involved, and one firm's winding up might not be so consequential. One might say G&C, founded in 1965, was hardly among the ancients. In 42 years, it had a good run. But G&C's demise might come to symbolize the end of an era: the era when you could have a substantial law firm without, you know … managing it. A lot of the commentary focused on the challenges be- ing faced by all the mid-size or second-tier corporate law firms, squeezed between the specialist boutiques and the big nationals. Fair comment, but lots of those firms are still in business, and some look like they're surviving. In recent years, some rules of thumb seem to have emerged for law firms that have to hustle in a competi- tive marketplace. Statements made last spring by G&C in- siders seemed to hint that the firm was not following many of those rules. Canadian Lawyer quoted the last chair of the firm saying, rue- fully, "We were not able to be as dictatorial and ruthless as maybe we should have been, especial- ly when times are good." For "dictatorial and ruthless," read "managerial." Can enterprises worth $50 million or $60 mil- lion a year really get along if no one is empowered to implement strategic plans and make tough decisions, to decide where the firm is going, to direct its tal- ent, and even to link payment to those goals? Law Times quoted an in- sider saying, "Some of the partners with the huge clients had special arrangements with the firm and, therefore, there weren't as many capital part- ners as it may have seemed." There's a theory of law firm governance — "partners with power" — that says, no matter who has the management title, power rests with the partners who control the client relation- ship. But today that's no longer a law firm; that's just a bunch of people sharing office space. A 100-lawyer organization that operates as many separate fief- doms is not going to hold its own against one where people actually work together on pre- determined objectives. Law Times quoting that firm insider again: "It's just not fair when some partners keep coming back to you and asking you to keep car- rying them." In corporate law, clients are sophisticated consumers; even if you want to carry your partners, they will prefer law firms that can price their work very precisely to the services actually being provided. If firm leaders don't control pay, they probably don't control pricing either. On the same theme, the To- ronto Star noted that, near the end, G&C had about 85 law- yers, and 45 or so were part- ners. That's actually not far from a lot of Toronto law firms in recent decades, but corpo- rate practice is team practice to- day — and it's price-sensitive. Highly paid partners should be leading teams and delegating down, not doing grunt work themselves. Canadian Lawyer described a meeting right at the end of G&C where 40 or more partners tried to plan a survival strategy. But, as they say, nothing ever gets done in a big meeting, and such partnership democracy may be a luxury that firms can't afford. Law firm experts mostly suggest law firms in competitive situa- tions need "less democracy." Is all this just a problem for the elite firms high in the Bay Street towers? In some ways, it's even more pressing for the Main Street practitioners. In medicine, the government is pushing fam- ily doctors to work in groups, to team with allied profession- als, to use new technology, to find economies of scale. There's no OHIP in law, but as small and sole-practitioner practice gets ever more competitive, the market may be playing the same role. Christopher Moore is the author of The Law Society of Upper Canada and Ontario's Lawyers, McCarthy Tétrault, and other works in legal history. www.chris- tophermoore.ca Go ahead, tear off the band-aid S o, the Ontario Bar Association came up with a clever way to position itself at last week's appearance before the standing committee on finance and eco- nomic affairs' pre-budget hearings: Make the justice system an equal partner along- side health care and education. In other words, think about it as one of those pillars of society. And look at jus- tice the same way in terms of funding. "Unacceptable wait times aren't just for health care anymore," said OBA president Greg Goulin. "Decades of underfunding and band-aid solutions have brought us to where we are today — a system straining under its own weight and in danger of al- lowing access only by the very poor or the very rich." The OBA noted that unrepresented or self-represented litigants account for more than 50% of family law matters in many Ontario counties, and in some instances resources are allocated on "out-of-date population figures." This results in daily dockets often exceeding 100 cases. In the Ottawa area it can take up to 13 months to get before a family court judge after the settlement conference. Using the government's wait-time numbers, that means you can "have a hip replacement, knee replacement, cataract surgery, and a CT scan before you can see a family court judge," said the OBA. The association called on the govern- ment to address three "issues of impor- tance" to the legal profession: A "signifi- cant increase" in legal aid funding, with a focus on helping unrepresented family law litigants; deferral of student loan in- terest and repayment until law students complete their articling year; and to pro- vide those lawyers operating professional corporations the same ability as doctors and dentists to extend non-voting shares to family members. Yes, the government did inject legal aid with a $51-million boost over three years in 2007. Good. But obviously there's more to do. The OBA is smartly sticking to the message. In December, in response to the Throne Speech, which made poverty is- sues a priority, Goulin wrote to Premier Dalton McGuinty stating the position is "strongly supported" by the association. "Decades of band-aid solutions to jus- tice issues have left Ontarians with a sys- tem that often fails to meet the needs of Ontario's communities, and that far too many are unable to access." Says the letter: "It is a sad fact that in today's Ontario at least 35% of family law applicants are turned away by Legal Aid Ontario. Many of these applicants are never able to find timely or affordable family law resolutions. Problems com- pound and fester. Much of the damage and additional costs fall to our already strained social services." In addition, "Thousands of single par- ents and their children are forced onto social assistance because they cannot ad- equately or effectively access the family court system. Ultimately, the community has to pay the costs." Goulin urged recognition of the need for significant boosts in justice funding overall, and "most immediately in legal aid." He added that with the province's commitment to addressing poverty there now "exists an opportunity for a renewed vision for legal aid funding that specifi- cally envelopes dollar amounts for crimi- nal, civil, and family law, and in sufficient amounts to meet the desperate need that exists in Ontario today." At press time Attorney General Chris Bentley was slated to speak to the OBA's annual conference today,. Good time to rip off that band-aid. — Gretchen Drummie Editorial Obiter Editorial Obiter 2007: meet the new boss COMMENT Law Times is printed on newsprint containing 25-30 per cent post-consumer recycled materials. Please recycle this newspaper. Publications Mail Agreement Number 40762529 • ISSN 0847-5083 Law Times is published 40 times a year by Law Times Inc. 240 Edward St., Aurora, Ont. L4G 3S9 905-841-6481. lawtimes@clbmedia.ca circulations & subscriPtions $141.75 per year in Canada (GST incl., GST Reg. #R121351134) and US$266.25 for foreign address- es. 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Law Times Inc. disclaims any warranty as to the accuracy, completeness or currency of the contents of this publication and disclaims all liability in respect of the results of any action taken or not taken in reliance upon information in this publication. That's History By Christopher Moore LT *Pages 1-20.indd 6 1/31/08 6:56:17 PM

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