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Why Allowing Alternative Business Structures Could Help Articling Students

Recently the Toronto Star published an article on abusive workplaces for articling students. Although the broad range of abuse was not covered, it has been noted before by Dean Adam Dodek that the abuse ranges from unpaid or underpaid work, termination without cause, harassment, and the absence of proper supervision or feedback. In response, Dean Dodek called on the Law Societies to investigate the abuse of articling students. He suggested that qualitative and quantitative research be done.

I would add that in addition to research, Law Societies should allow Alternative Business Structures. I suspect that part of the reason . . . [more]

Posted in: Practice of Law

Alternative Business Structures’ “Charity Step” to Ending the General Practitioner

(This is a short version of the FULL ARTICLE posted on the SSRN (pdf.). Articles cited herein without stated authors are those of the author of this article—Ken Chasse.)

The alternative business structures (ABS investors owning law firms)[1] debate is a very live one in Ontario, and will be throughout Canada, depending upon what the Law Society of Upper Canada (LSUC) at Toronto’s Osgoode Hall decides. ABSs could bring about the end of the general practitioner throughout Canada. If they are to be given an exception to the “unauthorized practice of law” (UPL) offence, so . . . [more]

Posted in: Practice of Law

Interview With Knights CEO David Beech: Alternative Business Structures Across the Pond

Recently, author Nelson had the pleasure of interviewing David Beech, the CEO of the professional services firm Knights in the UK. David has led the business, originally a law firm, since 2011. His vision for Knights is to become the leading regional professional services business in the UK.

The interview took place on the Legal Talk Network podcast (The Digital Edge: Lawyers and Technology) with co-host Jim Calloway, available at http://legaltalknetwork.com/podcasts/digital-edge/2017/01/will-alternative-business-structures-u-k-law-firms-cross-pond/.

By way of introducing David, he qualified as a corporate lawyer in 1990 and in the late 90’s turned to law firm management until 2004 when . . . [more]

Posted in: Legal Technology

Alternative Business Structures Proposals or Solving the Unaffordable Legal Services Problem

Alternative business structures proposals (ABS proposals), the basis of which is to allow commercial investors to own law firms, have no capacity to solve the problem of unaffordable legal services (“the problem”). Their other two major features are to automate routine legal services, and to enable related non-legal services to be provided with legal services. But the cause of the problem is the high cost of legal advice services. They cannot be automated (pdf). Therefore there is nothing in the analytical literature that states that they can solve the problem. But the published arguments used to promote ABS proposals imply . . . [more]

Posted in: Practice of Law

Legal Advice Services Cannot Be Automated by Alternative Business Structures

The fact that legal advice services cannot be automated is of critical importance in determining whether the legal profession should accept proposals for “alternative business structures” (ABS’s). They are being promoted by a Committee of the Law Society of Upper Canada (LSUC) as a means of lowering the cost of legal services.[i] The “unaffordable legal services problem” afflicts both kinds of legal services: (1) legal advice services; and, (2) routine legal services that don’t require legal advice. ABS proposals have three parts: (1) law firms can be invested in (owned—up to 49% or 100%) by non-lawyer people and entities; . . . [more]

Posted in: Practice of Law, Practice of Law: Future of Practice

Law Society of Upper Canada’s Alternative Business Structures Discussion Paper Posted – Comments Wanted

The Law Society’s Alternative Business Structures Working Group has now posted its Alternative Business Structures Discussion Paper on the Law Society’s dedicated web page at www.lsuc.on.ca/ABS/

This Discussion Paper was released on September 24, 2014, to seek input from lawyers, paralegals, stakeholders and the public about Alternative Business Structures (ABS). The Law Society’s ABS Working Group has been reviewing extensive research on the topic and communicating about it with key representatives of the legal professions and other experts since 2012. The discussion paper provides context and background to help everyone understand ABS and describes a series of considerations and ethical . . . [more]

Posted in: Announcements

Alternative Business Structures and Access to Justice … for Whom?

The Canadian legal profession is currently engaged in a much-needed debate about the future of legal services in general and whether to allow the use of so-called alternative business structures (ABSs) more particularly. Thankfully, the issue of access to justice is figuring prominently in the general debate, as evidenced by the recently released CBA Legal Futures report and the ongoing work of the Action Committee on Access to Justice. Beyond that, the potential for ABSs to improve access to justice is being put forward as a key reason for allowing them, as can be seen in Slaw columns of . . . [more]

Posted in: Justice Issues, Practice of Law, Practice of Law: Future of Practice

LSUC’s Professional Regulation Committee Reports on Alternative Business Structures

The Professional Regulation Committee, in the form of the Alternative Business Structures Working Group, of the Law Society of Upper Canada has just submitted a Report to Convocation on the subject of alternative business structures. In all, though I’ve not had time to fully review the report, it’s quite positive about new business structures and recommends that Convocation explore various models and the rules necessary to implement and control them. This from the executive summary:

Conclusion and Recommendation: The Working Group concluded that there are negative consequences inherent in current regulatory limitations on the delivery of legal services in

. . . [more]
Posted in: Practice of Law: Future of Practice

Utopia, Dystopia and Alternative Business Structures

I’ve spent a lot of time over recent months thinking about alternative business structures and how to think about regulatory liberalization.

Except in very limited circumstances[1], only lawyers[2] can have an ownership interest in a legal practice whether organized as a partnership, a limited partnership or a professional corporation. As a practical matter, only legal and strictly ancillary services can be offered to clients by a legal practice.

Individuals and small businesses are overwhelmingly served by lawyers in sole practice or in small firms. Lawyers sell their time to clients. Time is measured in billable hours. The . . . [more]

Posted in: Legal Ethics

Alternative Business Structures and the Non-Lawyer Shareholder: A Twitterchat

Currently Law Society Rules do not allow for non-lawyer ownership. While lawyers working for the government can have an attorney general who isn’t a lawyer, and individual lawyers are free to work ‘in house’ for corporations whose shareholders are not lawyers; when it comes to operating a law firm in Canada, lawyers have to be in control.

The UK and Australia allow for different legal business structures, more specifically they allow for non-licensee ownership and surprisingly with little repercussions. Advocates for liberalizing business structures say that this will lead to affordable legal services. There are a few examples of . . . [more]

Posted in: Practice of Law: Future of Practice

Systemic Racism, Clients, and the Law Societies

Systemic racism is a reality in Canada. At many junctures in life, a person’s access to opportunities and fair treatment will be affected by their race, skin colour, or indigineity. The legal profession, in order to do its essential work in our society, must recognize and confront systemic racism.

So far, most formal efforts to do so have focused on racism’s effect on lawyers, law students, and others who work in the law. (See for example the action plans from the law societies of BC and Ontario, as well as Alberta’s “My Experience” project). These are worthy . . . [more]

Posted in: Legal Ethics

A Charter Right to Advise — Even Without a License?

A new American case, Upsolve v. James, suggests that freedom of expression might protect the right of non-lawyers to offer legal advice.

In both Canada and the USA, lawyers have a near-monopoly on legal advice. If anyone tells someone else how the law would apply to their circumstances, the first person is probably deemed to be “practicing law.” That is something that only lawyers are allowed to do.

There are a few exceptions. In Ontario, for example, (i) licensed paralegals acting within their scope of practice, (ii) people giving occasional advice to friends or family, and (iii) employees of some . . . [more]

Posted in: Legal Ethics