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16 August 2007
Issue: 7286 / Categories: Legal News , Profession , Competition
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OFT targets defiant defence solicitors

News

Criminal lawyers who quit the Court Duty Solicitor Scheme (CDSS) in protest at government plans to change fee structures, could have breached competition laws, the Office of Fair Trading (OFT) says.

Following a complaint from the Legal Services Commission (LSC), the OFT has written to lawyers who signalled their intent to resign from the CDSS, saying the decision to drop the work must be taken unilaterally and not after discussion with other law firms.

The OFT letter hints that the Law Society might also be hauled over the coals for breaching the competition rules if it is found to have encouraged lawyers to quit.

It says: “An instruction or recommendation of a professional body to its members not to engage in economic activity in order to ensure that its members are paid above a certain price can fall under the Chapter 1 prohibition.”

The letter continues: “We thought it important to write to express our concern at the suggestion that meetings had taken place amongst defence solicitors in order to respond collectively to rates and calling for non-participation…To avoid the danger that the profession or any section of it might be seen to have collectively boycotted such work, it will be important to ensure that any decisions about participation… are taken by law firms acting individually rather than in concert with one another or on the advice or instruction of any association of the lawyers concerned.”

Andrew Keogh, a partner at Tuckers Solicitors, says: “This illustrates just how desperate the LSC is to keep its now discredited reform programme on track. The LSC has betrayed the profession by delivering price cuts without volume and should not be surprised that the market is reacting in this way.”
Earlier this year, criminal lawyers across the country staged a two-day strike over the proposed reforms, which will introduce competitive tendering and a new payment scheme which, according to Criminal Law Solicitors’ Association (CLSA), represents a 10% pay cut overall. This, says the CLSA, is on top of the fact that rates of pay have been frozen for 12 years, while costs have risen by 50% over the same period.

An OFT spokesperson says: “The OFT appreciates that decisions whether to participate in the scheme may have been taken on a unilateral basis and the letters were therefore intended simply to highlight the type of behaviour that may be contrary to Chapter I of the Competition Act 1998. The OFT has not opened an investigation and does not propose to take any further action at this point in time.”
 

Issue: 7286 / Categories: Legal News , Profession , Competition
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MOVERS & SHAKERS

Laytons ETL—Maximilian Kraitt

Laytons ETL—Maximilian Kraitt

Commercial firm strengthens real estate disputes team with associate hire

Switalskis—three appointments

Switalskis—three appointments

Firm appoints three directors to board

Browne Jacobson—seven promotions

Browne Jacobson—seven promotions

Six promoted to partner and one to legal director across UK and Ireland offices

NEWS

From blockbuster judgments to procedural shake-ups, the courts are busy reshaping litigation practice. Writing in NLJ this week, Professor Dominic Regan of City Law School hails the Court of Appeal's 'exquisite judgment’ in Mazur restoring the role of supervised non-qualified staff, and highlights a ‘mammoth’ damages ruling likened to War and Peace, alongside guidance on medical reporting fees, where a pragmatic 25% uplift was imposed

Momentum is building behind proposals to restrict children’s access to social media—but the legal and practical challenges are formidable. In NLJ this week, Nick Smallwood of Mills & Reeve examines global moves, including Australia’s under-16 ban and the UK's consultation
Reforms designed to rebalance landlord-tenant relations may instead penalise leaseholders themselves. In this week's NLJ, Mike Somekh of The Freehold Collective warns that the Leasehold and Freehold Reform Act 2024 risks creating an ‘underclass’ of resident-controlled freehold companies
Timing is everything—and the Court of Appeal has delivered clarity on when proceedings are ‘brought’. In his latest 'Civil way' column for NLJ, Stephen Gold explains that a claim is issued for limitation purposes when the claim form is delivered to the court, even if fees are underpaid
The traditional ‘single, intensive day’ of financial dispute resolution (FDR) may be due for a rethink. Writing in NLJ this week, Rachel Frost-Smith and Lauren Guiler of Birketts propose a ‘split FDR’ model, separating judicial evaluation from negotiation
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