The Legal Services Act - a great opportunity, but not for us
Given the pressure to avoid being crushed by the firms above or ousted by the firms below, it is in many ways surprising that the rising 25 aren't paying more heed to the Legal Services Act (LSA) and the potential for change it could bring. To date, a limited few have expressed interest in making fundamental changes to their business, including taking advantage of outside investment permitted under the Act. While undoubtedly all firms are watchful of the LSA's impact, most are unwilling to be the sacrificial lamb that tries it first.
February 10, 2011 at 04:40 AM
3 minute read
Given the pressure to avoid being crushed by the firms above or ousted by the firms below, it is in many ways surprising that the rising 25 aren't paying more heed to the Legal Services Act (LSA) and the potential for change it could bring.
To date, a limited few have expressed interest in making fundamental changes to their business, including taking advantage of outside investment permitted under the Act. While undoubtedly all firms are watchful of the LSA's impact, most are unwilling to be the sacrificial lamb that tries it first.
"We have done a bit of work on the Legal Services Act internally to see whether we are interested in it, in particular the investment side. The answer is no. There would be too much of a culture shift and the rewards don't outweigh the upheaval," says Speechly Bircham managing partner Michael Lingens.
Although opening the door to outside investors in particular leaves most firms cold, firms such as Weightmans and Pannone – the main firms within the 51-75 bracket to operate volume practices – are well placed to capitalise on provisions in the Act allowing other non-legal entities to break into the arena (so-called Tesco law).
Weightmans, in common with firms such as Beachcroft, Russell Jones & Walker and Shoosmiths, has set up subsidiary businesses separate from its core practices. The firm currently operates a personal injury claims business known as Converge as well as an employment law arm called HR Rely.
Weightmans managing partner Patrick Gaul comments: "I have been to umpteen talks on alternative business structures and never thought, 'this applies to us'. We are conscious our market is being invaded by people with different structures – like Capita. We stroked our chins and talked about it but decided it was not for us. The nearest we have done is to set up Converge and HR Rely – they are very much part of Weightmans, but under a different banner and marketed differently. They are a pointer to the future."
But where the Act has clearly had an impact is in making firms more corporate-minded. Of the 25 firms, a number including Dickinson Dees, Farrer & Co, Cobbetts and Morgan Cole have already adopted legal disciplinary partnerships, bringing non-lawyer financial directors, human resources managers and IT directors into their partnerships. A further swathe of firms, including Bircham Dyson Bell, TLT, Russell Jones & Walker and Speechly Bircham are considering similar moves.
While Cobbetts and Russell Jones have expressed some enthusiasm for opportunities in the age of Tesco law, generally, firms of this size have been conservative regarding innovations to their model. RSG Consulting founder Reena SenGupta, who has overseen five years of research for the FT Innovative Lawyers Report, notes that firms like Mishcon de Reya, TLT and Blake Lapthorn have experimented with new client tools and outsourcing. But the breed as a whole has plenty of room to embrace innovation.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllSome Elite Law Firms Are Growing Equity Partner Ranks Faster Than Others
4 minute readKPMG's Bid To Practice Law in US On Hold As Arizona Court Exercises Caution
Trending Stories
- 1Legal Restrictions Governing Artificial Intelligence in the Workplace
- 2Failure to Adequately Inform Patients
- 3'FTX' One Year Later: The Impact on Examiner Practice in Bankruptcy Courts
- 4Gen AI Legal Contract Startup Ivo Announces $16 Million Series A Funding Round
- 5DOJ's Flawed Thinking in Challenging HPE-Juniper Merger
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250