precarious professionalism 17 sep 14 to law society
DESCRIPTION
Why is the legal professions's position precarious: its claims to be competent, ethical, leaders in their field, and good regulators are all weakened. Globalisation, markets, technology, innovation and professional inertia or complacency all pose threats.TRANSCRIPT
![Page 1: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/1.jpg)
Precarious Professionalis
mpresentation to the Law Society and invited
guests 17/09/13
Richard Moorheadhttp://lawyerwatch.wordpress.com
![Page 2: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/2.jpg)
• What is professionalism?• How is it precarious?• In particular, is there a (growing?) problem with
ethics?• What it might mean for firms, TLS, regulators?
![Page 3: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/3.jpg)
Defining professionalism
![Page 4: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/4.jpg)
Professions, “are devoted to the service of the public, above and beyond material incentives.” Larson
![Page 5: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/5.jpg)
“the use of discipline knowledge and skill for the public good.” Freidson
![Page 6: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/6.jpg)
that raising up implies, “a duty to appraise what they do in the light of the large good, duty which licenses them to be more than passive servants of the state, of capital, of the firm, the client, or even of the immediate general public.”
![Page 7: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/7.jpg)
QualityEthicality
State of the Art-ness
Regulators
![Page 8: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/8.jpg)
You may feel…
![Page 9: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/9.jpg)
Designing ethical indicators for legal
services
(Moorhead et al, 2012)
![Page 10: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/10.jpg)
Precariousness 1. We are (more) competent
![Page 11: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/11.jpg)
Meritocracy in Diversity
![Page 12: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/12.jpg)
Non-solicitors vs Solicitors
Solicitors Non-Solicitors
-20
0
20
40
60
80
100
Very good or better Poor or worse
Getting a Result
0% 2% 4% 6% 8% 10%
12%
Solicitors Non-Solicitors
Good ir better Poor or worse
-30-20-10
01020304050
Solicitors Non-Solicitors
![Page 13: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/13.jpg)
3 more studies…
Specialist LA SW Contracts
Solicitors -30%
NFPs -14%
Generalists awareness of legal issues when they decided to advise
Solicitors -68%
NFPs -74%
Wills
Solicitors -22%
Will writers -21%
![Page 14: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/14.jpg)
![Page 15: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/15.jpg)
Prosecutors
HM Crown Prosecution Service Inspectorate (2009), Thematic review of quality of prosecution advocacy and case presentation
33%
![Page 16: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/16.jpg)
Gulati and Scott
"Most of what we mark up and send round, we don't understand at all."
![Page 17: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/17.jpg)
Precariousness 2. We are state of the art
![Page 18: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/18.jpg)
Where it the cutting edge knowledge in dispute resolution?
![Page 19: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/19.jpg)
The legal model of expertise
![Page 20: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/20.jpg)
![Page 21: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/21.jpg)
21
6 variables and an algorithm
![Page 22: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/22.jpg)
22
![Page 23: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/23.jpg)
![Page 24: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/24.jpg)
Design – Decide –Operate – Evaluate -
Educate
![Page 25: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/25.jpg)
Precariousness 3. We are (more) ethical
![Page 26: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/26.jpg)
35% trust lawyers, 30% do not
Nurse
s
Docto
rs
Teach
ers
Engin
eers
Lawye
rs
Accou
ntan
ts
Civil s
erva
nts
Build
ers
Estat
e Age
nts
Banke
rs
Jour
nalis
ts
Politi
cian
s
-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
TrustDon’t trust
![Page 27: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/27.jpg)
Guilt by association…?
![Page 28: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/28.jpg)
![Page 29: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/29.jpg)
21% think lawyers act in the best interests of their client
Docto
rs
Nurse
s
Teach
ers
Engin
eers
Lawye
rs
Accou
ntan
ts
Civil s
erva
nts
Build
ers
Banke
rs
Estat
e Age
nts
Jour
nalis
ts
Politi
cian
s0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Act in the best interest of consumers
Act in the best interest of consumers
![Page 30: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/30.jpg)
20% think lawyers act ethically
Docto
rs
Nurse
s
Teach
ers
Engin
eers
Lawye
rs
Accou
ntan
ts
Civil s
erva
nts
Build
ers
Banke
rs
Estat
e Age
nts
Jour
nalis
ts
Politi
cian
s0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Act ethically
Act ethically
![Page 31: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/31.jpg)
A capacity for sophistry…
![Page 32: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/32.jpg)
32
A general self regard?• there is a fundamental quality
inherent in this profession of integrity, ethics, and ideals and we are all very client service-oriented. We put at the forefront the needs of our clients.
• James Schiro, then CEO PWC
![Page 33: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/33.jpg)
• “We are professionals that follow our code of ethics and practice by the highest moral standards. We would never be influenced by our own personal financial well-being.”
• Gary Shamis, American Institute of Certified Public Accountants
![Page 34: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/34.jpg)
34
But I’m a professionalMaryam Kouchaki
• M professional = 3,767vs.
M control = 2,22541% professionals overestimated
• 6% employees
• Professionalism and Moral Behavior: Does a Professional Self-Conception Make One More Unethical?
![Page 35: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/35.jpg)
Professional PrinciplesYou must:• uphold the rule of law and the
proper administration of justice;• act with integrity;• not allow your independence to be
compromised;• act in the best interests of each
client
![Page 36: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/36.jpg)
Where two or more Principles come
into conflict • the one which takes precedence is
the one which best serves the public interest in the particular circumstances, especially the public interest in the proper administration of justice.
![Page 37: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/37.jpg)
Culture• Reaching the top• PEP and other
indicators• Hourly rates• Business focus• 'client first was
bred into me'.
![Page 38: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/38.jpg)
Does money affect the way we think?
![Page 39: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/39.jpg)
The money prime
![Page 40: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/40.jpg)
Framing… why might this be important?
• ‘‘This research project is being conducted to advance the ideals and aspirations pursued by applied social science.''
• ‘‘This research project is being conducted with strict adherence to the standards and obligations required of applied social science.'‘
![Page 41: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/41.jpg)
How commercial lawyers see their role
• “always make sure that the client …understand[s] the law. I think they also need to understand what the law is trying to achieve, so that if there is a grey area they know the correct way to interpret it.”
![Page 42: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/42.jpg)
Grey Discomfort
“Ill-advised activity by some senior managers…” and
“the demands of management to do certain things, which …hover on the edge of illegality.”
![Page 43: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/43.jpg)
Managed dissonance…“[O]k, you’re not really being asked to make it happen but you’re being asked to kind of... brainstorm these ideas which you feel deeply uncomfortable about, but which you kind of have to go along with because the top management has kind of given this undertaking to do everything it can to help….”
![Page 44: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/44.jpg)
What kind of unlawfulness is okay?
“non-criminal” activity “sort of on the edge of commercial practice”
…. When you’re advising a best course of action which isn’t criminal, it’s just commercial, they can choose to ignore you, and you’re an employee.”
![Page 45: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/45.jpg)
Public, client or firm interest?
“I would say that the firm that I work for is primarily focused on its own commercial interests and I think it would argue that it’s by placing importance on the other two that that is going to be best achieved.”
![Page 46: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/46.jpg)
Overbilling a client
“... well I know what they will do [laughs] …is keep their mouth shut, and not look like an idiot... because …they don’t want to lose the firm money and look like people who want to give it away. … you do that at some risk to yourself…”
![Page 47: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/47.jpg)
Ethical infrastructure?
I don’t think I’ve ever come across any support or encouragement on [the ethics] front. …it’s assumed that you’ve …gone through your ethics training …and you are meant to know it all. Nothing has ever, really ever, been said to me …from the partners or in terms of training that in any way encourages it or supports it.
![Page 48: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/48.jpg)
![Page 49: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/49.jpg)
Where were the lawyers?
• Lehman needed that Opinion to argue for an accounting approach which reduced their leverage
• Linklaters advised that Repo Transactions were ‘true sales’ (they were at English Law)
• There were other tests Lehman needed to apply
• Lawyer’s advice used by Lehman’s to give impression the tests had been passed. When only one had been
• Did/should Linklaters’ understand the consequences and do anything about it?
• Kershaw and Moorhead (2013) Consequential Responsibility for Client Wrongs: Lehman Brothers and the Regulation of the Legal Profession
![Page 50: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/50.jpg)
Nightjack• J hacks email,
establishes who Nightjack is
• Meets AB (in-house lawyer)
• J establishes ID via legitimate means
• DC Horton seeks Injunction
• Affidavit implies, or states, J began search process legitimately
• Leveson, SDT and HC
![Page 51: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/51.jpg)
![Page 52: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/52.jpg)
Rupert Murdoch @ Leveson
• I think the senior executives were all informed, and I -- were all misinformed and shielded from anything that was going on there, and I do blame one or two people for that, who perhaps I shouldn't name, because for all I know they may be arrested yet, but there's no question in my mind that maybe even the editor, but certainly beyond that someone took charge of a cover-up, which we were victim to....
52
![Page 53: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/53.jpg)
Some other cases with questions
![Page 54: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/54.jpg)
It’s okay, it’s not about our ethics…
![Page 55: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/55.jpg)
Precariousness 4. Best regulators
![Page 56: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/56.jpg)
Ideology or evidence?• lay membership of the approved
regulators;• separating the representative and
regulatory functions of the approved regulators;
• opening up the market to new business structures and/or greater flexibility
• the handling of consumer complaints. • consumer panels
![Page 57: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/57.jpg)
Regulatory TechniquesEntry Education and training Fit and proper person testsCOLP/COFAsSystems and internal processes Consumer information CPD
![Page 58: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/58.jpg)
Regulatory TechniquesInsurance Specialisation Panels Quality marksCodes/outcomes/rules Risk profiling, monitoring and supervision In-house complaints procedures
![Page 59: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/59.jpg)
Regulatory Approaches
Legal Ombudsman Compensation/costs reductionInvestigation Informal resolution Censure / Fine / Suspension / Strike Off
![Page 60: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/60.jpg)
Regulatory competition
And its perils
![Page 61: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/61.jpg)
So what should be done…?
![Page 62: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/62.jpg)
• Invest in innovation, research and development
• More rules/guidance?• A fitness to own test for in-house departments?• A fitness to run test for partners??• Principle-based regulation + enforcement
• A proper debate about the rule of law and administration of justice principles
• Ethical infrastructures and cultures• Education and training?
![Page 63: Precarious professionalism 17 Sep 14 to Law Society](https://reader037.vdocuments.us/reader037/viewer/2022110119/556102bbd8b42a424d8b56fb/html5/thumbnails/63.jpg)
Precarious Professionalis
mRichard Moorhead
http://lawyerwatch.wordpress.com@richardmoorhead