External ownership and the forked tongue of ethics

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Nine US general counsel have come to the conclusion, reported in Legal Futures, that there is no need for external ownership of law firms and “that the inevitable chipping away at the profession’s professionalism ultimately will do a disservice not just to the business clients we serve, but to all clients who seek the trusted and confidential advice of counsel”.

I would not presume to disagree with their judgement about their own clients. But I would seriously beg to differ with the general sentiment implicit in the conclusion that ‘non-lawyer’ (I still hate that expression) ownership will necessarily erode professionalism, undermine lawyer-client relationships, compromise confidentiality, and encourage unethical, profit-maximising behaviour. Continue reading →

Challenges for the Legal Education and Training Review

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If we are to make the most of the opportunity presented by the Legal Education and Training Review, we need to be clear about the background against which it is conducting its work.  We also need to acknowledge the nature of some of the fundamental issues which must be addressed if the review is to be effective and command respect for its conclusions and recommendations.

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The mirage of ownership

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This year has started with a flurry of activity and announcements that give the lie to any notion that ABSs will be a damp squib and of no consequence, or that external capital will not be interested in law firms. So far, so good. What I want to explore here is whether external capital should be interested (at least without deep and meaningful enquiry into its target).

In founder-led firms, ownership has real meaning and value. The founders are responsible for developing clients, running the business, and making sure work is performed at a profit. These businesses usually respect the role that everyone plays, and they present an exciting, challenging, and motivating environment. The connection between effort, investment and return is often close and evident.

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