01 Mar 2010
LG successfully defends the Office for Legal Complaints in challenge by the Law Society
International business law firm Lawrence Graham LLP ("LG") successfully defended the Office for Legal Complaints ("OLC") against a High Court challenge by the Law Society to the new Legal Ombudsman scheme.
The OLC is in the process of establishing an Ombudsman scheme which will operate from its new premises in Birmingham and will begin accepting complaints from consumers later this year.
The Law Society launched proceedings against the Secretary of State for Justice, Jack Straw, and the OLC contending that liability for its 350 complaints handling employees and their redundancy payments should transfer under the TUPE Regulations to the OLC when the new Legal Ombudsman becomes fully operational.
After a three day trial and hearing evidence from the chief executives of both the Law Society and the OLC among others, the High Court judge, Mr Justice Akenhead, concluded that the TUPE Regulations will not apply to transfer any Law Society employees to OLC and that, in the circumstances, the Government's policy on staff transfers in the public sector is not relevant.
Employment partner, Helga Breen, led the LG team supported by dispute resolution partner, James Curle, Peter Holliday and others.
Helga said: "We are delighted by this outcome which paves the way for the creation of a new Legal Ombudsman service which is truly independent from all the legal professions. This decision gives legal effect to the recommendations of Sir David Clementi for much needed reform of the legal services market in order both to restore consumer confidence and to ensure the speedy and fair resolution of complaints against legal providers, especially solicitors."
The impetus for change came from the Clementi Review into the legal profession in 2005 which concluded that, in the light of grave concerns about the Law Society's extremely poor record of handling complaints against solicitors (and to a much lesser extent other front line regulators such as the Bar Council), a new complaints handling body should be established, OLC, which is completely independent of the legal profession. The recommendations of Clementi were enshrined in the Legal Services Act 2007 which also provides for the liberalisation of the legal services market through alternative business structures.
Christopher Jeans QC and Holly Stout of 11 Kings' Bench Walk acted on behalf of the Office for Legal Complaints, OLC (the second defendant).
Notes to editors:
- LG's Employment team advise on contracts, discrimination, employment aspects of corporate restructurings, recruitment and termination. The team also provides representation in Tribunals and conducts High Court litigation
- Helga Breen has a long track record advising on the creation of bodies in the public sector (such as the FSA, Ofcom, Natural England, the Equality and Human Rights Commission, and others) and has been advising on the establishment of the Legal Services Board, the new super-regulator for the legal professions as well as the Legal Services Ombudsman
- The OLC was established in 2008 under the Legal Services Act 2007 as a new and independent body to deal with complaints by consumers against the legal profession-solicitors, barristers and others- and will become fully operational by the end of this year
- The Legal Ombudsman is being established by the Office for Legal Complaints as a key step in the implementation of the Legal Services Act 2007
- Please see the following link to visit the OCL website: http://www.officeforlegalcomplaints.org.uk/