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Exploring a Law Firm Business Model to Improve Access to Justice and Decrease Lawyer Dissatisfaction

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Exploring a Law Firm Business Model to Improve Access to Justice and Decrease Lawyer Dissatisfaction EXPLORING A LAW FIRM BUSINESS MODEL TO IMPROVE ACCESS TO JUSTICE AND DECREASE LAWYER DISSATISFACTION by Andrew Pilliar B.Sc.(H.), Queen’s University, 2002 J.D., The University of Toronto, 2006 A THESIS SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF LAWS in The Faculty of Graduate Studies THE UNIVERSITY OF BRITISH COLUMBIA (Vancouver) October 2012 © Andrew Pilliar, 2012 ABSTRACT Access to justice, particularly access to civil legal services, is a well-recognized problem for the Canadian legal system, with a recent estimate suggesting that 44.6 per cent of Canadians over the age of 18 – approximately 11.6 million people – have experienced a civil legal problem over the last three years, but also that less than 10 per cent of those individuals obtained legal assistance for that problem. Another problem for the Canadian legal system is the high rate of dissatisfaction among young lawyers – particularly the high rate of attrition among women and minorities. This thesis suggests a corrective for both these problems: an innovative type of law firm that provides accessible civil legal services while also providing an attractive work environment for lawyers. Through a case study of Pivot Legal LLP, a small firm formerly located in Vancouver’s Downtown Eastside, this thesis examines whether it is possible to run a sustainable legal practice that includes providing legal services to low- and middle-income individuals. Based on this case study, there is reason to believe that an innovative law firm model that provides low cost legal services is possible and would be a useful contribution to other efforts to improve access to justice. ii PREFACE The empirical research contained in this thesis was approved by the University of British Columbia’s Behavioural Research Ethics Board (“BREB”), Certificate of Approval H12-00230. iii TABLE OF CONTENTS Abstract ........................................................................................................................................... ii Preface............................................................................................................................................ iii Table of Contents ........................................................................................................................... iv List of Tables ................................................................................................................................ vii Acknowledgments........................................................................................................................ viii 1 Introduction ................................................................................................................................. 1 1.1 A (Brief) Introduction to Pivot Legal LLP........................................................................... 3 1.2 Access to Justice and Access to Legal Services ................................................................... 5 2 A History of the Access to Justice Movement .......................................................................... 13 2.1 England and the United States ........................................................................................... 13 2.1.1 First, America .............................................................................................................. 14 2.1.2 Over to England ........................................................................................................... 16 2.1.3 A “Red Scare” Drives Developments in the U.S......................................................... 18 2.1.4 England Borrows ......................................................................................................... 20 2.1.5 Cold Winds for Legal Aid – First the U.S., then the U.K. .......................................... 22 2.2 Canada and British Columbia ............................................................................................ 24 2.2.1 Distinctly Canadian Trends? ....................................................................................... 27 3 Problem One: Unmet Legal Need ............................................................................................. 36 3.1 Defining and Studying Unmet Legal Need ........................................................................ 37 3.2 Unmet Legal Need in Canada ............................................................................................ 40 3.2.1 Problem Incidence Rates ............................................................................................. 42 3.2.2 Responses to Justiciable Problems .............................................................................. 44 3.3 Role of Lawyer Cost in Responses to Justiciable Problems .............................................. 46 4 Problem Two: Lawyer Dissatisfaction ...................................................................................... 50 4.1 Understanding Career Dissatisfaction among Lawyers ..................................................... 51 4.1.1 Gender ......................................................................................................................... 54 4.1.2 Family Status ............................................................................................................... 55 4.1.3 Work Demands ............................................................................................................ 56 iv 4.1.4 Extrinsic Rewards ........................................................................................................ 57 4.1.5 Intrinsic Rewards ......................................................................................................... 58 4.1.6 Ethnicity....................................................................................................................... 58 4.1.7 Personal Characteristics and Psychological Make-up ................................................. 59 4.1.8 Organization Type and Size ........................................................................................ 60 4.1.9 Mentorship ................................................................................................................... 62 4.1.10 Conclusions on Career Satisfaction ........................................................................... 62 4.2 Lawyer Attrition ................................................................................................................. 64 4.3 Conclusions on Lawyer Discontent.................................................................................... 66 5 How Pivot Legal LLP Worked ................................................................................................. 68 5.1 Goals................................................................................................................................... 69 5.2 Revenue .............................................................................................................................. 71 5.3 Staffing ............................................................................................................................... 73 5.4 Overhead ............................................................................................................................ 75 6 Why Pivot Legal LLP Didn’t Work.......................................................................................... 77 6.1 Not Enough Revenue ......................................................................................................... 78 6.1.1 Busy, but Broke ........................................................................................................... 78 6.1.2 Lawyer “Type” ............................................................................................................ 80 6.1.3 Client Development Difficulties .................................................................................. 85 6.2 Too Many Expenses ........................................................................................................... 93 6.2.1 Death by Debt .............................................................................................................. 93 6.2.2 Unheralded Overhead .................................................................................................. 95 6.2.3 Location, Location, Size .............................................................................................. 98 6.3 Other Problems ................................................................................................................... 99 6.3.1 Lawyer Support – Insufficient Practice Overlap ....................................................... 100 6.3.2 Lawyer Support – Insufficient Support Staff ............................................................ 102 6.3.3 Decision-Making ....................................................................................................... 103 6.4 Conclusions ...................................................................................................................... 104 7 Could Pivot Legal LLP Work? ............................................................................................... 108 7.1 Motivating Lawyers ......................................................................................................... 111 8 A Toolbox for Legal Entrepreneurs ........................................................................................ 117 v 8.1 Focus
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