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Closure Of 136 Law Firms Nationwide:
Comment from Birmingham Law Society

20 January 2014

Birmingham Law Society deeply regrets the fact that so many firms have been forced to close their doors by reason of their not being able to obtain professional indemnity (PI) insurance cover as required by the Solicitors Regulation Authority (SRA).

The majority of these firms have been closing down and winding up their practices in an orderly fashion over the last 4-6 weeks. These will have largely been proactive decisions to close, based on financial difficulties.

The effects of these closures on the solicitors, their assistants, staff and families, and the inconvenience for their respective clients is, however, extremely saddening.

It is very important that the following issues should be noted:

1. Solicitors cannot practice without compulsory Insurance cover, as required by the Solicitors Regulation Authority.

2. Failure to obtain insurance cover does not indicate any criminal action on the part of any partner or member of staff in any of the firms that the SRA have announced are forced to close.

3. Each firm has closed because it has not been able to obtain insurance cover for instance:

(a) Where the insurer has declined to provide cover
(b) The insurer has offered cover but upon terms or at a premium that the affected firm could not satisfy.
(c) Partners of the firm were unable to afford to pay for Insurance cover.

Firms authorised by the SRA to deliver legal services must have insurance – it is a public protection measure.

As will be noted from the list of the firms produced by the SRA, four small firms in the Birmingham area have been forced to close. At the time of going to press none of the partners of those affected firms have approached Birmingham Law Society for assistance or guidance. Birmingham Law Society remains committed to assist those firms under pressure in whatever manner Birmingham Law Society is able to assist. 

Sad news - Ralph Cardinal formerly of Glaisyers passed away
6 January 2014

 It is with sadness that the death is announced of Ralph Cardinal.

Ralph Cardinal formerly of Wood Amphlet Horden & Newey, Wood Amphlet Wild & Co and Reece Davies Wood Wild was a much respected solicitor until the company was taken over by Glaisyers where he was a consultant.

Mr Cardinal passed away peacefully following a short illness. His family have requested a private cremation, to be followed by a memorial service which will take place at:

St Peters Church
Maney Hill Road
Sutton Coldfield
West Midlands
B72 1JJ

at
1pm

on
Thursday 23rd January 2014

13 January, 2014

Last week 90 barristers took to the streets of Birmingham to protest about cuts to legal aid and the impact on their profession.

James Turner, chair of the criminal law committee at Birmingham Law Society, takes a look at how those cuts will impact on defence solicitors and the public.

The Government has published proposals to radically cut funding for criminal legal aid. These follow several years of chipping away at the already overstretched legal aid budget.

The cuts threaten the closure of hundreds of firms of solicitors nationwide. In turn, solicitors and barristers face bankruptcy and their staff redundancy.

For the public, the cuts will result in a reduction in the scope and quality of the service lawyers can provide.

It is deeply worrying that the Government concentrates on the cost, not the value of the service provided. The criminal defence lawyers affected are tasked with representing some of the most vulnerable people in our society. When justice is not done it results in higher costs for tax payers, resulting, for example, in expensive appeal proceedings and payments of compensation. Perhaps more importantly, it results in the human cost to those affected by wrongful convictions including the defendants and their families, and society as a whole for failing in the duty to administer a fair justice system.

Everyone arrested and detained by the police is entitled to free and independent legal advice. Legal aid is also provided to fund advice and representation before the Magistrates’ and Crown Courts. Not everyone accused of a criminal offence is guilty. You could be forgiven for thinking that you don’t need these lawyers, that is until you or a member of your family do. Thousands of people every year depend on these lawyers to guide them through the maze of complicated criminal proceedings, without which help they would have to attempt to defend themselves.

Imagine what it’s like as a solicitor, being called at three o’clock in the morning to leave your home to advise a person who has been arrested by the police.

You would probably expect that solicitor to be paid some sort of bonus for working outside normal office hours? You might expect them to receive a high hourly rate of pay, or time off in lieu? You may be surprised to learn that the firm employing that lawyer earns a fixed fee for the attendance. Under the latest proposals that fee will be cut to around £200, including 20 per cent VAT. That is irrespective of the number of hours spent in attendance. It is a flat fee, ignoring the complexity of the case and the particular vulnerabilities of the client. It includes the solicitor’s time spent travelling to and from the police station and any costs she/he incurs to do so. There is no time off or respite for the solicitor, who then faces a full day at work the following day. 

Obviously the firm of solicitors has overheads costs back at the office to cover. So, the present market rate of payment to the solicitor attending is around £75 before tax. Would your doctor make a home visit for such a fee? Could you hire a plumber to fix a broken boiler so cheaply? Bear in mind that the attendance at the police station is likely to take several hours for anything more than the most simple of cases.

The present cuts are affecting every area of the criminal justice system, not just defence lawyers.

In April the present Probation Service National Trusts will be replaced with a new National Probation Service focussing on the most serious offenders. Much of the remaining offender management will be hived off to private companies. One only has to consider the mess made of the outsourcing of interpreters and curfew monitoring to have grave reservations about that step.

Meanwhile, the Crown Prosecution Service has reduced the numbers of experienced lawyers employed in a wave of voluntary redundancies. More worrying still is the proposal to cut the funding of Drug Intervention Program teams. Those teams work with defendants who have tested positive for use of serious addictive drugs. Their work is vital in helping to reduce drug dependency and the acquisitive crime often committed by defendants addicted to heroin and cocaine. Cuts which undermine efforts to rehabilitate offenders are damaging to communities in the long run.

A robust criminal justice system is the backbone of any civilised society. To impose cuts which threaten the viability of those committed to representing defendants undermines that system. If the proposed cuts are brought in we will no longer be able to say with pride that we boast the finest justice system in the world.

Lord Macdonald, the former director of public prosecutions, recently gave his views on justice secretary Christopher Grayling’s proposals: “I fear that Mr Grayling is in danger of destroying something that he doesn’t fully understand which is a criminal system which is as good as any in the world, which is fair and which supports people who don’t have money as well as people who do.”

It is a sentiment echoed by those of us practicing in criminal law.

 10 January, 2014

Birmingham Law Society hosts networking evening

Birmingham Law Society invited its members to rub shoulders at its champagne and networking event on 4 December 2013.

More than 100 people from the region’s legal sector attended the event held at the Pitcher & Piano in Brindleyplace.

The evening provided a welcome opportunity for lawyers to meet with colleagues past and present ahead of the Society’s annual Legal Awards at the ICC on 20 March.

The event was sponsored by Badenoch & Clark, Expert Investigations, Forresters, Lloyds Bank and Wesleyan for Lawyers.

Birmingham Post Legal Column
6 January 2014

 

BY MARTIN ALLSOPP

As I reflect on the year gone by I have come to understand more of the difficulties of the presidential role representing the profession across the city.

There are many firms, particularly those specialising in property and corporate work, for whom 2013 was not as difficult as anticipated back in January. But for many small firms, particularly those specialising in criminal work or those dependent on legal aid, 2013 was a truly dreadful year.

The recession has certainly caused problems but just as the British people fare when under duress, so has the legal profession continued to meet its challenges head on.

Spiralling overheads, professional indemnity insurance premiums, the cost of practicing certificates and competition for the provision of legal services, not to mention the aforesaid withdrawal or reduction of legal aid for many types of previously state-funded work have driven a number of firms to the wall and, as I write this article, it is estimated that more than 100 firms countrywide could face potential closure from January 14 for failure to obtain compulsory insurance cover.

Those firms undertaking crime, family law and personal injury advice face the most serious challenges for 2014 and it is anticipated that a number of small-medium sized firms specialising in these areas of work may be forced to close.

Indeed, the problems for the profession as a whole have caused pundits to estimate that up to 20 per cent of firms may close in the next two years and that a startling proportion of up to 50 per cent will have either closed or merged within the next five years. These are frightening statistics which are bound to have an impact on the way legal services will be delivered to the public. But for the moment, just like that famous British bulldog, the profession will continue to battle.