In a market becoming used to eye-catching ventures designed to utilise the Legal Services Act (LSA), this week saw the formal launch of arguably the most intriguing one yet – but also the hardest to assess: the DLA Piper-backed Riverview Law.

The self-styled 'market-disrupting service delivery model' targeted at small and medium-sized businesses will work through two arms, Riverview Solicitors and Riverview Chambers, owned by parent company LawVest. The key aim is to target small business clients through fixed fees (see below).

Unveiling the venture, LawVest chief executive Karl Chapman (pictured) said: "Riverview [is] applying common-sense business principles to a market protected from real competition for too long. Some law firms have said to us that it won't work because it's impossible to deliver comprehensive fixed pricing. Our response is simple: 'Maybe you can't deliver fixed pricing, but we can.'"

The venture looks set to pitch Riverview into the fiercely competitive market to provide low-cost legal and compliance advice to small businesses, pitting it against established non-solicitor players such as Croner and Citation.

But while the fixed-fee model and potential benefits of working alongside DLA Piper have been widely supported, reactions to the launch have been mixed in relation to how its chambers arm will function.

LawVest declined to elaborate on how the financial arrangements would work with the 43 external barristers, who remain self-employed, and members of their existing chambers. Chapman comments: "We will agree a fixed price for each piece of work.

"Effectively, we are offering three models, one of which is complex litigation – this will clearly be agreed on a case-by-case basis. Whether part of that fee is also fed back to the chambers is a matter between the barrister and the chambers."

Monckton Chambers head Paul Lasok QC says: "I would suspect that the venture would be attractive only to barristers who felt that they were not getting work – or enough work of the right sort – from their own chambers.

"In that respect, the venture seems worthwhile from a barrister's perspective as a way of reaching clients that your own set is not getting to."

Brick Court Chambers co-head Jonathan Hirst QC strikes a similar note: "The most successful QCs will be very cautious before going down this route, particularly because it is in association with other solicitors firms, and there is a danger that you would end up cutting yourself out from working for other firms that may feel they are giving work to a competitor. There will be some people dipping their toes in the water, but for those currently in big commercial sets, you will not see much take-up."

Commenting on his move to sign up to the venture, 5 Paper Buildings Jonathan Caplan QC says: "We have to embrace new ways of offering and delivering legal services which will be attractive to corporate and high net worth clients.

"What many of them want is quick and direct access to senior counsel, with the prospect of litigation support, at an attractive price. Riverview is backed by LawVest with a very attractive marketing budget and high level IT, which few, if any, sets of chambers could match."

Such doubts aside, with DLA backing the initiative, it remains one of the key LSA-related ventures to watch.

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Riverview Law – the model

Riverview Law will operate through two primary arms, Riverview Solicitors and Riverview Chambers, respectively headed by senior partner Andrew Reeves and chief executive Chris Baylis, a barrister.

The company will offer fixed-price legal advice on a range of matters including contracts law, data protection, employment, finance, insurance, intellectual property, IT and real estate.
Fixed prices of £2,400 annually will be offered to companies with up to five employees; £3,960 for companies with between six and 24 staff; and £5,988 for firms with 25-50 employees. An analysis of the legal needs of large businesses covering up to 1,000 staff will be undertaken before setting a fixed price.

The annual fees will cover all work up to the point of litigation proceedings being issued, at which point a fixed-price assessment will be made. A substantial number of areas of commercial practice are outside the terms of the fixed-price deals.

Much of the advice will be provided online to help save costs, with Riverview expected to invest in marketing and sales staff to develop business. The company, which opened for business on 20 February, has hired a team of its own solicitors and barristers and is currently looking to fill a further 20 legal roles.

Riverview Law acts as the central portal of the business, directing clients to its solicitor or chambers arms, which will be respectively regulated by the Solicitors Regulation Authority (SRA) and the Bar Standards Board. Riverview Chambers will offer access to 43 external barristers, including 12 silks, drawn from sets including: Outer Temple; 5 Paper Buildings; Temple Garden; 39 Essex Street; 1 Hare Court; 3 Pump Court; and 11 South Square. All barristers will remain tenants at their existing sets, with the Riverview Chambers membership acting like a door tenancy. However, they have all agreed to take on work on a fixed-fee basis.

Though parent company LawVest has applied for an alternative business structure licence from the SRA to allow it to make non-legal acquisitions in future and to evolve its business, its current model allows it to function without using reforms ushered in through the Legal Services Act. DLA Piper, which owns a minority stake in LawVest, is expected to refer some of its smaller clients to Riverview Law, though there are no direct financial incentives built to support this beyond the share ownership.