One for Litigators: Dispute Resolution, Family, PI, Immigration (JR), Civil Lit - anyone who creates Trial Bundles and Trial Bundle Indexes. We are always looking out for ideas and software that might help our clients.

From experience, I know what a pain they are to create. You spend hours on this. Then at trial 1 page is wrong or missing and the judge shreds your costs for the trial bundle. To add insult to injury - it's not really legal work. It's got more to do with being a publisher!

We've come across some great software that allows you to create them very easily, a lot of it by drag and drop. You decide the section structure and pagination style. There's a one-off charge of £45, but you can then go back to the bundle and change it at no extra expense. The time saving for you is massive. The charge could even be made a disbursement should you want.  When it's finished you click a button and it creates your Index! All soft copy - so someone else can print it out at their expense. With over 50 courts now stating that they will accept soft copy Trial Bundles, we expect that this method will become the norm. It will certainly save masses of time and cost. As our clients will know, we're always looking out for things that will help them: improve profit and manage risk.

If interested give us a shout and we can introduce you so you may make your own assessment. 07887 524507 or [email protected]

To furlough or not to furlough - that is the question! I am not an economist of an accountant but like many business owners I am having to grapple with extraordinary decisions at this time. I'll share my thoughts if you join in and share yours in the comments!

Like many small business owners, I take a small income and then take dividends when net income and other business needs allow. There is no specific assistance for this sector of the business community from the government. One could argue that this is the most dynamic sector of our economy – from which the giants of the future will grow. One is faced with the stark options: plough on or put this business in hibernation - which would allow the directors to carry out their statutory duties only and their staff to receive 80% of their salary from the government.

Here is a link to the government’s ‘Coronavirus Job Retention Scheme’: https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme So the terminology I’ve used is not quite correct, but it seems to be what’s out there. In fact the government is trying to stop businesses from putting staff onto furlough (unpaid leave), but rather to keep them on as employees, receiving 80% of their pay from the government under this scheme. However, if you are to benefit from the scheme the employee cannot work: ‘To be eligible for the subsidy, when on furlough, an employee can not undertake work for or on behalf of the organisation. This includes providing services or generating revenue.’

The trouble with the 2nd option is that you still carry certain business overheads but now have decided against generating any income. Staff may be able to survive, but the owners (who take all the risk) will receive 80% of their small salary, so even from a personal viewpoint the maths does not add up, let alone from a business standpoint. Another issue to bear in mind is that your customers may still be out there wanting you to do things and willing to pay. For lawyers, areas that will continue or even increase are: employment law advice, family law advice, wills, estate planning, LPAs, probate, litigation, personal injury and other claims, insolvency and bankruptcy, business rescue and restructuring, commercial law, corporate law. I am not comfortable ethically or commercially with the idea of putting a firm in mothballs ‘until this is all over’ as some have talked about. How long will that be? Initially people thought 3-4 weeks. Then 3 months. Now the Chief Medical Office is talking about 6 months or more. During that time your competitors are taking tough decisions to adapt to the new environment. I’ve had consulting sessions (remote of course) with a number of law firms to work through their plans and look at ways to adapt their ways of working and look at new strategies to enable them to survive and indeed come out of this stronger and more profitable. In little over a week I’ve learned of 4 of our client firms who are actually expanding. No surprise that they are all operating on cloud-based case management systems. Although this current crisis has been inconvenient – they already have the machinery in place to work remotely as one unified team and so can concentrate on hunting clients – perhaps the clients of those firms who have gone into furlough… For those not yet on a cloud-based system I would suggest the time to act is now.

The alternative to hibernation is to adapt and survive. Isn’t that what nature and business and people have always done when there is change? The world has changed. It will not go back to how it was. There is a ‘New Norm’ for the next 3-6 or more months. There will be a ‘New Norm’ when we eventually come out of this. I am sure it will have accelerated trends that were already happening: more flexible and remote working, giving clients access to advisers through remote means such as audio and video conferencing, signing documents digitally, work acquisition through remote means (even if they are your own existing clients they will contact you remotely rather than physically face to face), remote team meetings and collaborative working through TEAMs, zoom and other software platforms – and an increased movement to working on cloud-based systems.

Do you find option 2 the option more appealing? If so, feel free to contact me to talk through your plans. In your deliberations, please take advice from your accountant.

I’d welcome anyone else’s thoughts. We’re all trying to work this one out and only hindsight will tell what was the right course.

A protocol has just been released agreed between 11 insurers and 11 law firms to try to prevent game playing around deadlines, limitation dates etc during the Coronavirus crisis. Here is a link to the report in Litigation Futures: https://www.legalfutures.co.uk/litigation-dispute-resolution

Organisations can pledge their commitment to the protocol and see who has signed up on the ABI’s website.

In these times where we are supposed to be working remotely – how to you get documents signed? If you are used to posting documents out for signature – should you be making your clients walk/drive out to the post box?

Even without the coronavirus there was a strong argument for using digital signatures to make life easier for your clients, to speed up the process, improve conversion rates, improve efficiency and profitability. Now, the alternative is almost as bleak as: not being able to convert work or bring it to a conclusion = no income!

Last autumn the Law Commission concluded that there was no legal barrier to digital signatures being good signatures in law. Earlier in March this year the Law chancellor confirmed this – even for wills and deeds. https://www.lawgazette.co.uk/law/electronically-signed-deeds-are-legal-lord-chancellor-confirms/5103306.article

In October 2019 the Law Society issued guidance for digital signatures: https://www.lawsociety.org.uk/support-services/advice/articles/signing-and-exchanging-documents/

The Legal Aid Authority has, amongst other guidance for coping with the coronavirus crisis, stated that it will accept digital signatures in place of wet signatures: https://www.gov.uk/guidance/coronavirus-covid-19-legal-aid-agency-contingency-response#history

Several categories of particular importance come to mind:

1. Client Care Letters, CFAs, Retainers and other internal documents you need clients to sign – whilst in some circumstances you can operate on terms of trading, in others it is not possible, or you may not want to run the risk.
2. Wills & LPAs – sadly this is likely to be a growth area for the next few months. People will be faced with their own mortality. You can’t go out to visit people to take instructions and get them to sign – especially the elderly – for risk of infecting them. However, it may be urgent for them to get these documents completed (and you might need the money as other revenue streams may be constrained!). You will need to be careful about checking capacity and understanding. You will need to consider insuring against heightened risk, getting indemnities from the beneficiaries etc. However, a solution has to be found. Witnessing the signatures is also an issue.
3. Property – this is an area where I fear there will be a significant slow-down. We do not want any other problems adding to that. The Lord Chancellor has stated that a digital signature is a good legal signature, even for a deed. However, deeds for the transfer of land will not be registrable until the Land Registry issues a notice saying they will accept them. Over to the Land Registry to sort this out ASAP please. There is a potential issue over fraud. They need to square this circle quickly and find a solution.

Other areas are affected, but these spring to mind with particular urgency.

We believe that we have come across a solution which easily allows you to arrange for the electronic signature and does not require you to first of all buy a case management system. It also claims to have a solution for the witnessing of signatures. Contact us if you would like to learn more.

These are challenging times. As business leaders we have a duty to the safety of our families and the community - and also to maintain our business so there is work and income for them. Do not panic. We are all going through the change curve at the moment:

If you want to survive and indeed grow you will need to adapt. That starts with thinking positively. How can you adapt? Where are the opportunities. There is a massive change going on - that will create opportunities. Perhaps things you've thought about but not done... I've been talking to clients on how they can adapt - working through strategies for managing staff and indeed harnessing their potential to help. The same goes for your clients. Contact me if you would like to book in a session. LEAP users - I know there are several things you can use your system for to help. Others - lets explore.

It certainly will have an effect but what it will be no-one knows. Here are my thoughts for what they’re worth. I’d welcome other people’s opinions. This is obviously a fluid situation.

By Practice Area

Conveyancing – likely to take a hit – is moving house unnecessary travel? I wouldn’t be surprised if this will be a bit like the financial crisis in 2007, although, hopefully shorter.

Civil Litigation – courts likely to shut, already hearing on in-person hearings being adjourned. If they do, then cases will gum up in the system, as will cashflow from concluded cases – unless they settle out of court.

Mediation & other forms of ADR – face to face will stop – on-line will increase, especially as the courts will not be operating or be slower.

Criminal – crims are likely to keep ‘working’ – but courts likely to slow down - Jury trails are to stop from April onwards, don’t know if will affect cashflow. Not sure how much social distancing can be done in a police cell. Let’s hope the LAA will continue to process your payment claims with their normal speed and accuracy!

Family – likely to slow for now and then be very busy once we are allowed to move about again.

Immigration – likely to move on-line. Those firms that rely on face-to-face work are likely to suffer more

Commercial Property – pretty much the same as for domestic conveyancing.

Employment – likely to be very busy for employment lawyers – with people being made redundant or changed working arrangements.

Commercial – likely to be a spike as companies seek assistance with their documents, but then falling away as commercial activity is subdued.

Insolvency – likely to increase but be impacted by the inability to shift the main asset if that is a building.

Corporate – likely to be a lot to start off with as businesses seek assistance, and then some ongoing as those which are in better shape see opportunities

Private Client – likely to see a significant increase at all levels, although completion of probate might be held back by the slow down of the property market.

Suggested Immediate Action

1. Try as best as you can to identify the impact on the likely model of what you think might happen. Identify the cases likely to be stuck and the areas that are likely to slow down or get busy. Put in place plans A, B & C. Analyse the likely impact on cashflow (It’s lack of cash that kills most businesses). We can help to provide additional resource – is needed. Please contact us.
2. Look to how you will get new work in these changed times. Those relying on digital means are best equipped – although competition is likely to intensify. If you are relying on footfall etc then look at other methods. Again, we may be able to help. Please contact us.
3. Move as much as you can on-line. By now most firms will have put in place home working. This may be a sysmic shift in our working patters. I suspect that after this is over a lot of businesses will continue with a lot more homeworking than was the case before. Look to move onto the cloud – there are case management systems out there that are on true cloud. Video conferencing and conference calling are now available as options. Electronic signing of documents by parties has recently been approved by the Lord Chancellor as good signature – even for deeds. If you would like assistance with any of this we can help, either suggesting technological solutions or specialist support.

Changing ways of working is always hard. Inertia is the strongest force in nature. ‘We’ve always done it this way’. People fear change and so put it off.

I am naturally a shy person (my wife laughs at that comment, but it is true). However, I’ve learned in life to face my fears. They are normally less bad than I feared. Self-analysing, I can see the tendency to avoid change. So, I have taught myself to embrace change by looking at the opportunity. Weighing up the pros & cons and then getting on with it.

You can put the move to change into 3 categories:

1. People who adopt change because they pro-actively look for opportunities and embrace change
2. Being forced to change through regulatory pressure (usually more planned but some coercion)
3. Distress Purchase – you can put current moves caused by the coronavirus into this camp

Remote working: the technology is there but the thinking can lag behind.

You will note that a lot of the Cons are actually barriers to ‘How to do it’ rather than objections in principle.

In a ‘Distress Purchase’ situation, you need to work through these issues quickly with a plan. I encouraged remote working when I took over running my department of 60 litigators. It aligned them better with the hours our clients wanted to contact them. It allowed my staff the ability to save commute time. It produced higher productivity. We weren’t on the cloud but used citrix as a virtual platform. I could always manage them by the reports and phone calls. I would now have better technology available to manage them.

How to do it?

• Decide on policies of how people should work
• Look at the barriers and how to address them - other firms have managed
• Seek advice to speed your progress
• Explain the strategy and plans to your staff so there is good understanding
• Seek their ideas – they may have some good suggestions, if handled well it will increase their engagement
• Decide how you will measure performance – reports etc (and tell your staff!)
• Decide how you will maintain cohesiveness (conference calls etc)
• Decide how you will manage phones & post
• Do you need to print?

Some Practical suggestions

• If you are cloud based it will really help you
• If you are server based then you can use platforms such as citrix to host your server and for you to remote in. Good IT support can be essential here. If you do not have this we can recommend in some of our trusted partners.
• Phones – again there are ways of managing this remotely. See the point above re IT assistance
• Conference calling – we have come across a good free conference calling software that we use. This could be used for morning firm meetings, for example.
• Computers can be moved and set up at home, if needs be. Laptops are no problem to move.
• Scanning – you can take a picture on your phone and then email it and save the attachment.
• Delegate someone to go into the office once a day and pick up any post & scan it to the appropriate people.

Feel free to contact us to help you work through these and other issues.

Looking forward

I was recently visiting a village near where I live. Increasingly villages where there is good internet are finding buildings are being turned into small office units. It struck me that a revolution is quietly going on: small office-based businesses are moving back into the rural villages as people are freed from the need to set up in a town or city. Why not have a nice environment where you work and less of a commute? Then that encourages other businesses that support them – the café in the village etc. It’s certainly something I will be raising when advising someone thinking of setting up a new law firm.

If you are struggling with the move to remote working for your business, or just want to talk through the strategy then feel free to contact us.

These rules came into effect as mandatory on 6th December 2018. They affect you if you are regulated by the SRA and carry out work in the following practice areas:

Services for the public: 

• Domestic Conveyancing
• Probate
• Motoring Offences
• Employment Tribunal Work
• Immigration

Services for Business:

• Debt Recovery up to £100,000
• Employment Tribunal Work
• Licensing

We have a Support Package to help you: https://hunningsconsultancy.co.uk/?page_id=3249

Here is a link to the rules and guidance on the SRA website: https://www.sra.org.uk/solicitors/guidance/ethics-guidance/transparency-in-price-and-service/

I was working with a law firm a little while ago, helping it through some changes in it’s practice. The managing partner said to me “You know, were really just a collection of sole practitioners”. That summed up beautifully one of the business models have I come across many times when working with firms. I explore 2 business models below.

Collection of Sole Practitioners

So, what did my client mean by this phrase? I think it was as much attitude as size. The attitude would be one where the clients belong to the solicitor (partner). The connection is personal. They either do the work or they direct and delegate to their team – which might be a secretary, team of secretaries, paralegals or suchlike. Each partner operates independently of the others and brings to the partnership the fruits of their labour. In this model the business is the sum of the parts that each brings.

Pros:

• Easy to bolt on a new service line, new partner
• Simplicity of the model
• Direct accountability to the ‘owner’ of that area
• Well suited to a start-up
• More flexible – can scale back more easily

Cons:

• Easy for the ‘partner’ to leave with his/her service line
• Can lead to everything being measured by the fees generated by each partner
• The business can be less stable
• Can lead to factions and infighting
• Can prevent cross-selling
• The business seldom adds up to more than the sum of the parts

 The Integrated Business

In this model the interests of the business are placed above those of the individual owners. All effort should be aimed at driving value into the organisation. This takes more effort and is not natural to many people working in the professional services sector. The risk is that everything can become less personal – which is not good when the business is focused on providing a personalised service to clients. However, that can be avoided with good management. If the business has invested in its processes, it can better withstand the departure of one of the owners or staff. The business can be more than the sum of the parts. This model is seen more commonly in other areas of our economy but can also work in the professional services sector.

Pros:

• Is more resilient
• Can give a better return on investment as it better facilitates scaling of the business
• Harvests better cross-selling and cross-area operational benefits
• Better supports a shared goal and so can better harness staff potential
• Succession may be easier
• The business can build up genuine goodwill
• Facilitates hiring experts in running particular aspects of the business

Cons:

• Involves more investment (thought as well as money)
• Difficult if the business is very small
• The needs of the business overrule the preferences of the partners
• May be difficult to change behaviours of those used to a more traditional approach
• Difficult to scale back if you lose critical mass

These are just a few thoughts. What will be appropriate will depend on the circumstances in each case. A typical consultant’s comment! There are other business models and ways of doing things. I’ve only looked at 2. Seeing the variety is part of what I enjoy.

We’d be very interested to learn people’s views and hear of other pros and cons and people’s experience.

From 6^th April 2020 capital gains tax on the disposal of residential land is payable within 30 days of completion. Here’s a link to HMRC advice: https://www.gov.uk/government/news/get-ready-for-changes-to-capital-gains-tax-payment-for-uk-property-sales