Tag Results

The traditional law firm partnership structure is still dominant in the profession but the arrival of alternative business structures has disrupted the status quo and may eventually become the norm in high-volume legal services, according to research.

A lender has lost its appeal against a High Court ruling that said a solicitor was not liable for its loss in a £2.5m mortgage fraud perpetrated by her former partner because she was not aware of the misrepresentations he made.

It has now been 12 months since the formal introduction of alternative business structures (ABSs) by the Legal Services Act 2007. Prior to the reform being introduced, speculation about the effects such radical changes would have was rife. In particular, those pessimistic about the changes lamented the undermining of the legal profession via the introduction of so-called ‘Tesco Law’, combined with the ringing of the death knell for the high street firm as we currently know it.

Is partnership an “inefficient and unattractive” structure that should be ditched to survive in the new legal marketplace, or is it a viable current model with much to offer lawyers wanting flexible governance and discretion? Both sides were put at a conference this week.

Partnership law expert Peter Garry outlines the significant problems solicitors are storing up by forming LLPs without a written members’ agreement. He explains that many solicitors practising within LLPs are needlessly exposing themselves to potential litigation and considerable financial loss.