This edition of our Lawyers' Liabilities newsletter comes at a period of palpable change. Since Labour's victory in the UK General Election on 4 July 2024, we have already witnessed material shifts in policy that will impact the environment in which lawyers operate; a renewed focus on house building, relaxing planning laws and reviewing greenbelt policies, with promises to prioritise building on brown field and "grey belt land"; the incoming Energy Secretary signalling a ban on new licences for oil exploration in the North Sea whilst giving the go-ahead for Britain's largest solar farm on green land. These are just a few examples of the Government looking to move quickly and decisively as it aims to meet manifesto promises, particularly around economic growth, whilst at the same time reconciling that growth (and tax revenues) with its stated ESG objectives, and particularly those related to achieving carbon transition pledges.
The implications for the UK legal profession are obvious – opportunities for those in at least renewables, planning and house building as well as in the energy space, as energy companies look to reorder their investment plans, whilst funding transition. Tax and employment law reform will inevitably follow soon. Again, this will have significant implications for the UK legal profession, and potentially the increase in growth of regulation for the UK legal sector. And then we have the inevitable uncertainties associated with the change in administration – an example being the Litigation Funding Agreements (Enforceability) Bill, which has for now at least been abandoned.
Further afield, the geopolitical and geoeconomic situation seems only to be becoming even more volatile. This extends to continued polarisation in Europe and the US and ongoing trading and political tensions between "East & West". UK law firms have been remarkably successful in internationalising their business over the last 20 years. Overseas-derived revenue now accounts for over half of the total revenue generated by the top 50 UK law firms. In a world where global supply chains, money laundering, sanctions and modern slavery and habitat challenges are increasingly under the spotlight, one can only see a greater demand on the part of corporates and institutions for the highest quality legal advice to enable them to plot a course through the myriad risks.
In summary, whether one looks at the domestic or international stage, opportunities for the UK legal profession abound, but so do the risks, including both reputational and regulatory. Our DACB lawyers' liability experts will be addressing these risks at their conference on 26 November 2024.
Regulatory
The In-House Solicitor and The Regulator - The Same Principles Apply?
In March 2023, the Solicitors Regulation Authority (SRA) conducted a thematic review covering more than 34,500 in-house solicitors working in England and Wales, receiving responses from more than 1,200. The review highlighted the role that in-house solicitors play, not only in the leadership of the varied organisations who employ them, but also in guiding and advising such organisations to try to ensure that they behave "legally, fairly and ethically".
General
Litigation Funding Impacted by UK General Election
The Litigation Funding Agreements (Enforceability) Bill fell in the wake of the General Election on 4 July 2024. The Bill had passed its first and second reading in the House of Lords and was at the Committee stage when the election was announced. If passed, the Bill would have restored the pre-PACCAR position for litigation funders; allowing funders to once again take a percentage of damages awarded to funded claimants as their return on investment.
Recent Limitation Decisions – s32 and 14A Limitation Act 1980
This case concerned a PPI policy arranged for Mrs Potter as part of a regulated loan in 2006, for which Canada Square received an undisclosed commission of over 95% of the premium. In 2018 – several years outside of the normal six-year time limit for bringing a claim – Mrs Potter issued proceedings after being advised by solicitors that her payments were likely to have included substantial commission. Canada Square sought to argue that the claim was time-barred.
Fiduciary Duties and Professional Conduct
This case concerned a claim brought by the Kings against their former legal team relating to the conduct of underlying litigation. The underlying proceedings – which had ended disastrously for the Kings – concerned a claim against external investors in their family business. As a result of inconsistencies in the Kings' oral evidence, their legal team advised them to discontinue the proceedings mid-trial, which they did.
Wasted Costs on the Rise
It is common knowledge that a winning party can (ordinarily) recover their costs from the losing party of litigation. It is less well known that wasted costs can also be sought against lawyers who have acted for that losing party.
Commencement of a Retainer
This is an update on our 24 November 2022 article regarding the commencement of a law firm's retainer, following the recent Court of Appeal decision in Carol Miller v Irwin Mitchell LLP [2024] EWCA Civ 53.
Online Platforms – Litigators Beware
Litigators should take note of the High Court judgment in Williams v Williams [2024] EWHC 733 (Fam) in which the Court refused to set aside a final order which had been applied for in error using an online portal.
Embracing Artificial Intelligence: The Future of Legal Practice
The integration of AI into the legal profession is transforming how legal services are delivered, with improved efficiency and new capabilities that were previously unimaginable. Lawyers will need to embrace AI to remain relevant and competitive in an increasingly tech-driven industry. Lawyers with strong technical IT skills will be needed to manage the changes required to make AI a part of day-to-day legal practice.Read more
