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Another Nail in the Coffin, Another Brick in the Wall

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Another Nail in the Coffin, Another Brick in the Wall North West Law Another Nail in the Coffin, May 2013 Another Brick in the Wall... News A cliched headline, but is this how the profession feels as more changes to legal aid, family work, New arrivals for Mills & Reeve crime, costs and more regulation offer further challenges to law firms? Julia Baskerville looks at Manchester page 6 the recently introduced LASPO and the consultation for crime contracts.... Glaisyers confirms split The recent demise of Cob- going to change. I believe a page 7 betts serves as stark re- lot of firms are sleepwalking minder that no law firm is into this, hoping that the immune from the financial problem will go away. Freeth Cartwright sets up first ABS crisis. Cobbetts, with of- Inevitably we are going to fices in Manchester, Leeds find that there are a smaller unit in Manchester page 8 and Birmingham an- number of firms, doing nounced a revenue of larger amounts of work, and £45.2m in 2011/12, yet in that is across the whole of January 2013 the firm the profession, not just legal Slater Heelis appoints first legal went into administration. aid practitioners.” apprentice page 9 The economic climate is cre- The profession has warned ating severe difficulty for that the lack of legal aid will many, if not most law firms, result in many participants yet it is the attacks by the in cases being forced to rep- Features government that could have resent themselves in court, the most serious implica- which, in turn, will make tions for the profession and cases take longer and be- for the administration of jus- come far less efficient. Talking Heads tice. Richard Miller, head of legal aid for the Law Society com- “Have we stopped being a profession The 1st April saw the intro- mented “We have warned and become an industry?” page 14 duction of the LASPO Bill, government consistently which makes major changes that, as well as all the knock- to legal aid and the way in on costs, the social conse- which cases are funded. quences will be damaging Budgeting For Costs page 15 to the whole of society, not Legal aid for family law cases just the vulnerable who will has been almost completely take the worst hit of all.” taken away, only where Regulars there is proven domestic Ironically, on the same day abuse will an individual be that LASPO came into force, under and I’m sure we will He continued: “The ultimate able to apply for legal aid. the goverment replaced the see more mergers and ac- aim of the reforms, accord- News from Bridge Street page 4 Legal Services Commission quisitions over the coming ing to the government, is to In civil law, access to legal (LSC) with the Legal Aid months. Those firms which reduce car insurance premi- aid has been removed for Agency (LAA) and at a re- relied heavily upon referrals ums. But the likes of Direct Members Reward Card employment, immigration, ported cost of £9 million..... will struggle to maintain Line have already admitted housing and clinical negli- their businesses. The SRA that they will make no differ- see your latest offers... page 21 gence matters and in other The second part of LASPO have commented that they ence. What’s left is an attack matters a household income abolishes the recoverability are prepared for unstability on the economy at a time of over £32,000 will not be of success fees and associ- in the profession.” when the country can afford eligible for legal aid and ated costs in conditional fee it least. Management Matters page 22 households with an income agreements as well as a ban Another blow to firms is the of between £14,000 and on referral fees. For PI firms raising of the small claims “Where do David Cameron £32,000 will need to be the referral fee ban will take limit from £1000 to £5000. and Chris Grayling think this Monthly Competition means tested. its toll, as many rely upon The government claim that many people will be able to work referred from claims these reforms will reduce in- find new jobs? In pandering Win a luxury Afternoon Tea for 2 at 47 King So what does this mean for managment companies. surance premiums. to the wishes of the insur- Street West page 28 the legal aid practitioners? Such Amin, of Aequitas ance lobby, this government Mike Devlin, Head of the Legal, and President of Man- Martin Coyne, Managing will imperil many families Family Department at chester Law Society says “All Partner at Ralli, said he has and will only end up increas- Stephensons Solicitors com- of the current changes will already had to make a fifth ing the welfare bill.” mented “ I see these have a dramatic effect upon of his 85-strong personal in- changes as being similar to a the the PI market. There has jury department redundant Martin believes that should neutron bomb. When the been a monumental shift in as he contends with a likely the government hike the bomb goes off it is silent, the way in which firms have 33% reduction in turnover small claims limit from but kills off everything in its worked for many years and because of the new portal £1000-£5000 most claimant, path. Suddenly firms will this has been compounded fees. “I am doing everything and defendant law firms will have their existence taken by the speed that the I can to sustain the business. close, forcing thousands of away. A lot of firms rely changes have been pushed A lot of other firms are in the support staff into unem- heavily upon publicly through. There is no doubt same boat.” funded work and all this is that some firms will go continued on page 5 Single issue £3.50, 12 month subscription £54.00 The Monthly Publication of the Manchester Law Society free to members Manchester Law Society President’s Column 3 President’s Column This last month is a rare ways…some successfully, month on month has con- this column own an Apple month in the life of a Presi- some not so successfully. tinued to grow. product, if not several. I am dent … only one event; yet That evening, I was in the inclined to go further and it was an event which I was company of some very ex- The Forum gives COLPs and say that you used your very proud to host. perienced people and shar- COFAs the opportunity to Apple product today…in ing some of the challenges discuss issues that they face, fact I would even go as far as The Senior and Managing that we face gave me a anonymously if appropriate to say that at least a quarter Partner’s Dinner was held at sense of relief – a sense that and; a chance to find out of you used an Apple prod- the offices of Deloitte, to I wasn’t the only one who best practice methods to uct no more than 30 min- whom I am very grateful for constantly felt the everyday help them comply with their utes before picking up the the fine dining and drinks pressures of management. It roles and responsibilities. Messenger. laid on. became clear that regard- less of whether the leader The Forum is conducted That is quite something For those that accepted my was the head of a national under “Chatham House” when you take a moment to invitation, Michael Shaw, firm or a small entity, the Rules and as members of think about Apple and their former Managing Partner of challenges were still the the group have become to products. I am sure that Cobbetts was attending to same. That is why it was so familiarise themselves with some of you will have stud- give his take on specific interesting and easy to re- each other as well as the ob- ied Steve Jobs and it is solely questions from the audi- late to Michael; as he spoke ligations upon them, the de- down to this one man why used an analogy of a car. All Apple product? And lots of ence. The thoughts and of his times at Cobbetts be- bates have become more Apple is so successful today. cars do the same thing; they people have more than one comments from Michael fore retirement last Septem- practical and informative. get you from A to B. Yet lots (my household has five!) Yet generated lively debate but ber. Where there is a demand, a Jobs believed that compet- of people buy premium cars the prices are still expensive with “Chatham House”Rules It was truly a unique speaker will be arranged to ing with Dell, Compaq and like BMWs and Audis. Why? and Apple will not negotiate applying, I’m sorry to say evening for those that were give a short talk to cover any Gateway was a race to the Because of the feel it gives on price because they be- that no more can be said. able to attend and from the particular aspect of impor- bottom. They were only in- the owner…it’s emotional lieve in their product and feedback I received; it was tance. terested in selling cheap and has more value to that the value it offers. What I can say is from my ex- both a stimulating and en- computers and essentially, person. perience as a Managing joyable. If your COLP or COFA is look- those competitors had the What Apple has done very Partner, the position can be ing for some support, then I same product.
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