Law Times

Law Times • augusT 20, 2012 BY KENDYL SEBESTA Law Times tors' grip on the files of unhappy clients earlier A series of Irish bill seeks to divide lawyers' regulatory, representative functions Reforming the NEWS dations by the Irish Competition Author- ity could loosen solici- recommen- despite significant resistance to Ireland' bill. than they'd like recommending that the govern- ment stop Irish solicitors from holding on to the files of unhappy clients in an attempt to make them pay before finding a new repre- sentative. The recommendation is one of several by the Competition Authority to Ireland' s legal services regulation The Competition Authority is tary justice committee over the last several months as it attempts to address several aspects of the controversial bill. The practice has been com- mon among some of Ireland's s parliamen- independence if it goes through as proposed. "Yes, it was an initial concern for us and we do perceive it as being under definite risk," says Murphy. "I think there has been a Legal Profession global trend toward more inde- pendent regulation of the legal profession. But while we support independent regulation and al- ways have, the profession does have an interest in the high stan- dards of regulations of conduct and services." Under the bill, Ireland' regulatory authority would have 11 members, including seven lay members, appointed by the Irish government and would be able to create sub-committees. They include a complaints committee to which clients could file initial complaints. The authority would also be s new solicitors and has contributed to a growing culture of frustration among legal consumers, says Carol Boate, the Competition Authority' manager. "While it is important that so- s advocacy division licitors be paid for their work, we are recommending that it be got- ten rid of, the minister hasn't committed to that yet." Justice Minister Alan Shatter " says Boate. "However, announced government approv- al for the publication of the bill in October 2011. If passed, the bill would es- tablish a legal services regulatory authority that' Ireland's bailout agreement with s required under the International Monetary Fund and the European Union. It would also create a legal prac- titioners disciplinary tribunal and allow lawyers to partner with other businesses. The bill would also change the way legal prac- titioners charge consumers for their services. But the changes have caused heated debate among Ireland's legal community, particularly the proposal allowing the justice minister to appoint 12 members in total to the regulatory authority. By comparison, the Law Society of Ireland and the Bar Council of Ireland would be able to nominate two members but wouldn't be able to make any final decisions. The American Bar Associa- tion, the International Bar Asso- ciation, the Council of Bars and Law Societies of Europe, the Irish law society, and the bar council have all criticized the bill for that perceived loss of independence. While several other countries, including Britain, have pressed forward with independent regu- lators, some see the proposed level of government involvement as cumbersome and unnecessary. Law Society of Ireland direc- tor general Ken Murphy says while questions remain as to the final shape and direction of the bill, the law society is concerned it may limit the profession' s sion of legal services," said David Barniville, chairman of the ex- ternal relations committee of the bar council, to Ireland' ment in March. "This means that costs will ei- s parlia- ther be passed on to clients or . . . that will be the straw that breaks the camel' tioners, particularly junior prac- titioners who are struggling as it is to pay the costs and expenses of practice. s back for many practi- responsible for creating codes of conduct for solicitors and bar- risters, deciding levels of profes- sional indemnity insurance, and acting as a gatekeeper for entry to the profession. For more serious matters, the regulatory authority would be able to refer complaints to the disciplinary tribunal. The justice minister would appoint its members and the tribunal would have a lay majority. Currently, the Law Society of Ireland and the Bar Council of Ireland have both regulatory and representative functions. The bill proposes dividing these func- tions with the regulatory author- ity regulating both solicitors and barristers in Ireland. Aſter initial opposition, Mur- estimates the cost of the regulatory authority at 5.3 million to 8.6 mil- lion euros more than current costs. The bill comes at a time when Barniville said the bar council " a slew of scandals among both barristers and solicitors have rocked Ireland' legal profession. In July, for example, the jus- s confidence in the phy says the law society decided the regulatory authority would be the right body to handle com- plaints. "Our biggest concern has been that the bill maintain the public interest without improper inter- ference from the government," says Murphy. "Over the years, we've learned tice committee accused lawyers in the northern part of Ireland of making excessive claims in more than 80 per cent of the most ex- pensive criminal cases involving publicly funded legal aid. At the same time, solicitors and bar- risters working on complicated Crown court cases billed almost 22 million pounds beyond what was appropriate, according to the committee. In addition, it found some barristers were charging the same fee each day regardless of the amount of work they did. The bill hopes to tackle some of those issues by giving con- sumers the opportunity to dis- pute costs through a legal costs adjudicator. Still, Murphy says the bill will have limited effect. "The profession' ic situation is where their next fee is coming from," says Murphy. "It seems among the public concern in this current econom- s primary there is a universal belief that legal fees are too high. However, legal fees are a product of mar- ket forces. When you have high rates of unemployment and a very deep global recession, fees naturally rise. They are product of a highly competitive market- place and really, I don't see how a bill can greatly change that." Boate says another possibility raised by the bill may help miti- gate those effects. Under the bill, no profession- al code would be able to stop a multidisciplinary practice from forming. Boate says the proposal has the potential to create more transparency and diversity that could benefit the profession and consumers in the long run. "I think business people and consumers have become quite intolerant of legal services that aren't modern," says Boate. "People are expecting more from their businesses and they want more transparency. That has the potential to create tre- mendous opportunity for bar- risters and solicitors who meet those expectations. Consumers don't want to buy their legal ser- vices from Tesco, which would probably be your equivalent of Wal-Mart. They want profes- sionalism but they want it to be delivered in a modern way. If that isn't done, they see the business as anti-consumer. disciplinary partnerships. "If partnerships are to be in- But there are critics of multi- " troduced, this will dramatically contract the available numbers of barristers and greatly restrict ac- cess to justice for those who can- not afford legal representation," said bar council chairman Paul O'Higgins in a statement. The bill moved to the com- mittee stage in March. Already, Ireland' committee has received more than 100 submissions. Shatter is currently considering the sub- missions. " s parliamentary justice ing and watching to see what the minister does," says Murphy. LT At this point, we are all wait- This is the fourth instalment in Law Times' summer series on reforms to the legal profession around the world. The Law Times That's History column published on Aug. 6 inad- vertently left Justice Marshall Rothstein out of the calculations of the religious affiliations of the Supreme Court judges. The proper figures are as follows: four Jewish judges, three who are Catholic or Orthodox (including the recently retired justice Marie Deschamps), and two Protestant. CORRECTION THE TERRY FOX RUN FOR CANCER RESEARCH that no matter how oſten we point to the independence of the law society as it exists, many members of the public feel there is something suspicious about complaints being made to a body that both regulates and represents solicitors. Our hope is that the bill will increase public confidence by having complaints made to an independent body. So, yes, it' a game changer in terms of our position with the minister. latory authority will get its fund- ing and staff from. The bill hints that the government may fund the regulatory authority, but the law society and bar council, as well as others in the legal com- munity, have voiced concerns that the cost associated with it will fall to a legal profession that' But it's unclear where the regu- " already under significant eco- nomic pressure. "We believe that the type of s regulation proposed in the bill is not efficient, effective or in the public interest because it is likely to increase the cost of the provi- s Inspired By A Dream Grounded In Tradition Volunteer-Driven NO ENTRY FEE NO MINIMUM PLEDGE Walk-Run-Wheel-Ride PAGE 3 1 888 836-9786 terryfox.org SUNDAY, SEPTEMBER 16 www.lawtimesnews.com

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