High street solicitors fear annihilation by ‘Tesco law’ giants

Published 29th Jan 2010

Hundreds of small independent solicitors across Scotland could be forced out of business after four of the biggest law firms in the country voted through reforms that will enable supermarkets and banks to provide cut-price legal advice on services such as house purchases and small claims.

Yesterday, opponents of the reforms, including the Scottish Law Agents Society, which represents independent firms, and the Faculty of Procurators of Dumfriesshire, expressed anger at the scope of the new measures, which they said would introduce a “Tesco Law,” and change the face of the high street.

The society called for protection for smaller solicitors, and said its members were unaware of the significance of the vote at the time.

The reforms, known as Alternative Business Structures (ABS), are due to be introduced this year under the Legal Services (Scotland) Bill. As well as allowing supermarkets to compete, they will give large legal firms the right to take on areas such as accountancy and financial services, giving them the ability to expand their businesses across Europe.

However, its opponents are incensed that a vote in 2008, made by less than a tenth of Scotland’s solicitors, has resulted in the most fundamental legal reform since the Law Society was founded in 1949.

The votes were cast at a meeting of the Law Society of Scotland, attended by fewer than 100 solicitors. They were bolstered by 801 proxy votes cast by solicitors from the four big practices, including such famous names as Dundas and Wilson, Shepherd and Wedderburn, and McGrigors, against only 132 votes. ABS was also approved by 49 to 18 on a show of hands in the meeting hall. Under the legislation, supermarkets and banks would have the power to force down fees for relatively simple and profitable work, such as conveyancing and accident claims.

Mike Dailly of the Govan Law Centre accused the bigger practices of “railroading” the changes through the Law Society. “This was the senior partners in the big firms who wanted to protect their vested interest. The rest of us were asleep. There are thousands of solicitors in Scotland — the difficulty has been in conveying to the profession how significant a change this is.”

Critics fear that the vote will threaten the independence of solicitors and inhibit the constitutional right of the consumer to access justice.

Under the proposals, which are likely to be enacted this year, legal firms would be able to raise capital from outside investors and expand their professional services into areas such as accountancy and financial consultancy. In a second radical change, inspired by earlier measures in England and Wales, businesses such as banks or supermarkets could offer a full range of solicitors’ services.

Opponents say the changes will see “Tesco law” swamp the market, cherry-picking the easiest, most profitable work, leaving only difficult, costly cases for smaller practices to pick up. The Scottish Law Agents Society yesterday said it had mooted a special general meeting to debate a motion calling a halt to the momentum of ABS, and for the work of the solicitor to receive statutory protection. The move was backed by the Faculty of Procurators of Dumfriesshire A Scottish government spokesman said that its Bill had been drawn up after extensive consultation and debate with the legal profession.

Alan Campbell, managing partner at Dundas & Wilson, said: “We offered ourselves as a collection point to submit proxy votes on behalf of our lawyers, who were encouraged to vote according to their preference. As a firm, however, we support the Law Society’s recommendation for reform.”

Source: ' Times '

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