Jonathan Goldsmith
Friday, 5 March 2010

This is a good week in which to speak about another group of people – apart from non-domiciled peers of the realm – who are currently having problems with taxes in different parts of Europe. Lawyers have their tax problems, too.

First, there is VAT. For a long time, French lawyers have been pushing for a reduced rate of VAT for legal services, on the grounds that the tax impedes access to justice. The Council of Bars and Law Societies of Europe has taken up the matter with the European Commission in the past, but without success. It may surprise you to know that not all lawyers in Europe are in any case subject to VAT. In Belgium and Greece, there is no VAT payable on legal services. Soon it will be Belgium alone, since one of the measures introduced by the Greek government in response to its current severe economic crisis is to levy VAT on legal services. Belgium negotiated an opt-out for lawyers from a long-ago VAT directive. And there are, of course, different rates applicable to legal services in the various member states, depending on the national VAT rate.

Interestingly, there is now a case (C-492/08) before the European Court of Justice on the intersection between VAT and access to justice. The case is brought by the commission against France, because France levies a reduced VAT rate of 5.5% in relation to services rendered by lawyers in the context of partial or full legal aid. France says that such a reduction guarantees access to justice, but the commission says, among other things, the following: first, access to justice is not an argument which relates to VAT but rather to the amount of legal aid which the government chooses to grant; and second, the social nature of lawyers’ activities is not sufficient for them to fall within the those social categories which benefit from VAT reductions.

Unfortunately for France and for those who support its arguments, the advocate general has just published his opinion, and it supports the commission and not France. He rejects the argument that a lower rate of VAT would aid access to justice. On the contrary, he says, a higher rate would enable the French government to collect additional resources that could be made available for legal aid. Second, he does not support the argument that lawyers can be ‘organisations recognised as being devoted to social well-being’, which the VAT directive requires for a reduced rate in this category. He argues that, in order to qualify, the organisation must do such work as its main activity and on a fairly permanent basis, whereas lawyers are able to provide a range of other services which clearly would not fall within the category.

The long analysis of ‘social well-being’ and lawyers’ activities makes interesting reading, particularly for legal aid lawyers – but, unfortunately, at present only for those who can follow an eclectic selection of EU official languages other than English, because the opinion is not yet translated into English. For instance, at one point he says a legal aid lawyer’s work is not different to the usual assistance given to any client, but just complements it – in other words, it gives a ‘social coloration’ (to translate the phrase literally) to the lawyer’s traditional function, and therefore does not qualify it for reduction under this part of the directive. The court usually follows the advocate general’s opinion.

In Serbia, they have other tax problems. The Serbian government – presumably to maximise tax collection – is considering introducing legislation which would require everyone, including lawyers, to collect fees through what is called a fiscal cash register: in other words, a cash register just like that in a supermarket. The legal profession is opposed to such a move on a variety of grounds, including confidentiality and the fact that the legislation as originally drafted would give the tax authorities the power to close down a law firm that did not comply. The government in the Former Yugoslav Republic of Macedonia (FYROM) is considering using the same methods against its lawyers, too. The CCBE has pointed out EU norms to the Serbian government.

So, tax problems are the flavour of the month all round, it seems.

Jonathan Goldsmith
Monday, 1 March 2010

The reference to judicial architecture in the title is not to the buildings in which judges sit and decide cases – although if that is your interest, there is a European group for people who share your hobby. There is a European group to cater for nearly every taste.

Instead, the phrase ‘judicial architecture’ is a piece of Euro-speak, meaning the structure of the court system. (Once you start talking in Euro-speak, you forget the proper words in your own language.) I shall be describing how a simple idea, contained in a simple sentence in a treaty - article 6 (2) of the Treaty of the European Union, as amended by the Lisbon Treaty – can cause a series of tricky problems, which are now absorbing some politicians in Brussels.

The treaty article in question provides for the EU to sign up to the European Convention for the Protection of Human Rights and Fundamental Freedoms (ECHR). You probably thought that that had happened years ago, but the Lisbon Treaty has just given the EU legal personality, allowing it to undertake exercises like this. Here are some of the complicated consequences.

The ECHR is the creation of the Council of Europe, a body different to the EU and with more members (47), including Russia. All the individual member states of the EU are already members of the Council of Europe, and subject to the ECHR. The EU will not join the Council of Europe as a member, but will join the member states in being subject to the ECHR.

The enforcement of the ECHR takes place through the European Court of Human Rights in Strasbourg. It is the normal practice for each member state of the Council of Europe to appoint a judge to the court. But how does the EU appoint such a judge? There is no procedure for it, unlike in the member states where the appointment of judges is an everyday occurrence. And judges to the Strasbourg court are appointed by the bodies of the Council of Europe – where the EU itself will not be a member. In a current opinion being discussed in the European Parliament, the EU will appoint three judge-candidates, and participate only in those Council of Europe bodies which oversee the work of the court, including the election of judges.

Then there is the relationship between the highest court in the EU, the European Court of Justice in Luxembourg, and the European Court of Human Rights. Which governs? The same parliamentary opinion thinks that there should be no formal preliminary ruling procedure nor the creation of a body or panel to make decisions when one of the two courts intends to rule on the ECHR in a way different to that already adopted by the other court; there is an existing dialogue between the courts, and that should merely be strengthened. But there will nevertheless be two high-level courts, operating under different systems, pronouncing on the same convention (because the Luxembourg court will interpret the EU’s Charter of Fundamental Rights, which has rights equivalent to the ECHR and which should be interpreted in accordance with the ECHR). I hope that you are following all this …

The Strasbourg court is already over-burdened with casework, to the extent that the system functions at a scandalous snail’s pace. Although the recent introduction of Protocol 14 – after a long delay caused by Russia’s delay in ratifying it – should ease the burden, the question is whether there will now be a rush of cases against the EU based on EU directives. It has been suggested that the EU's directive on working time, and the rights of EU citizens living in other member states, could give rise to cases. Adding a whole new sector of law to an already staggering court is not a recipe for efficiency.

Given these problems, you might wonder why the institutions are going ahead with the initiative. The parliament report lists a number of advantages: it sends a strong signal of solidarity between the EU and wider Europe, and gives credibility to the EU when calling on its neighbours to adhere to the ECHR; it will give citizens of the EU the same protection against actions of the EU as we have against those of the member states, which is all the more important given that substantial powers have been moving towards the EU in recent years; and accession will lead to more harmonious development of the case-law on human rights between the Luxembourg and Strasbourg courts.

Council of Europe officials expect the negotiations with the EU to last into 2011. That will give you enough time to familiarise yourself with the bewildering array of institutional relationships that will form this new court structure. I think I might set up a special group for those with a weakness for discussing this particular meaning of ‘judicial architecture’.

Jonathan Goldsmith is the secretary general of the Council of Bars and Law Societies of Europe, which represents around a million European lawyers through its member bars and law societies

Jonathan Goldsmith
Friday, 19 February 2010

Here is a topic to raise the blood pressure of every patriotic UK citizen. Whereas on the continent, benign democratic societies flourish with a population which carries ID cards, somehow it is thought that darkness will descend on the UK if ID cards are ever introduced.

The likely next government (Conservative) thinks they are a very bad idea, and even the limited ID measures introduced under Labour will doubtless then be scrapped. There are two of us in the office in Brussels who come from the British Isles, and we both agree that ID cards – which we have to carry here in Belgium - make life a lot easier.

Many continental bars issue ID cards to their lawyers. A growing number issue cards to their members with national bar details on one side and our CCBE details on the other. As the electronic age advances, the question arises as to whether such cards provide a solution for proving lawyers’ identity in cross-border transactions, through the electronic chip embedded in them. Some feel – particularly from the UK – that a card is not necessary, and a log-in and password will suffice. The discussion is becoming more urgent, because the European Commission is taking large-scale initiatives to resolve the question of cross-border e-identity.

The general story starts with the STORK project (if you really want to know, the name comes from the following letters: Secure idenTity acrOss boRders linKed). Their marketing brochure even uses a lawyer as an example: ‘A Portuguese university student is transferring for one year to an Austrian University; a Swedish lawyer settles and launches his business in Spain. Is there any way for them to change their addresses and interact with the public services of their host countries without losing time and energy? … STORK will facilitate this situation by enabling businesses and citizens to securely use their national electronic identities and receive services from public administrations while living or travelling in any member state.’

As a recent STORK report points out, there is a Government Gateway in the UK which individual government departments and local authorities can choose to use, but ‘none of the centrally issued citizen documents enable eID for the citizen. Passports and driving licenses do not currently have means of being read electronically over the internet… The predominant token is a user ID and password.’ STORK is at pains to point out that it does not wish to mandate any particular system which all member states must adopt: ‘The plan is to align and link systems without having to replace existing ones … enabling citizens to prove their identity and use national electronic identity systems (passwords, ID cards, PIN codes and others), not just in their home country.’

The issue has just become more relevant because the European Commission is launching a new, large project specifically aimed at establishing connections between national e-identity systems in the justice sector. This will cover not just lawyers, but also judges, notaries, prosecutors and other actors. Again, the aim is not to insist that member states install particular structures, but to ensure that users of national structures can use them also across EU borders. Some member states – for instance, Portugal, Austria and Spain – have advanced systems for e-justice, and this new project aims to open them up to cross-border use.

There is one more development to add to the mix. The Spanish Bar is leading an EU-funded initiative called PenalNet with four other EU bars (France, Hungary, Italy and Romania) to provide secure communications between criminal lawyers. This is seen as a prototype for a secure communication system between lawyers in Europe in general. They are using the CCBE card, and the standards that we have previously approved, to provide ‘the certainty that a lawyer is actually dealing with another authenticated colleague, and that the latter is the only [one] entitled to access the content received. Likewise, the system guarantees that the information exchanged cannot be modified or rejected.’

I have a question. It is notable that the UK, although sometimes participating in these initiatives, is not leading any of them. Is this because of our fear of ID cards, and of our broader fears of centralised systems and databases (since, for instance, they can be abused)? We all use credit cards – are ID cards really such a qualitative leap? And we have seen this week in the Dubai assassination case that existing UK passports can be used for nefarious purposes. The carousel of secure cross-border transactions through e-identity authentication is moving faster, and we have to jump on at some stage. What is holding us back?

Jonathan Goldsmith is the secretary general of the Council of Bars and Law Societies of Europe, which represents around a million European lawyers through its member bars and law societies

Jonathan Goldsmith
Friday, 12 February 2010

A year ago, the Chinese human rights lawyer, Gao Zhisheng, disappeared. Efforts to find out what has happened to him have been brushed off by the Chinese authorities: ‘Honestly speaking, I don’t know where he is. China has 1.3 billion people and I can’t know all of their whereabouts.’

His brother was told last year that he had simply disappeared on a walk. Even though he was named as one of China’s top 10 lawyers by the Ministry of Justice in 2001 for his work defending victims of medical malpractice and farmers whose land had been seized for redevelopment, he fell foul of the government when he began to defend Falun Gong practitioners. After a previous detention in 2006, Gao was allowed to return home after publicly confessing to a number of transgressions. Once out of custody, however, Gao recanted his confession and described the abuse he said he had suffered. He also said his torturers told him he would be killed if he spoke publicly about the matter. Now, after Chinese security agents visited his home at midnight a year ago, he has just disappeared.

The Council of Bars and Law Societies of Europe (CCBE), like the Law Society, writes letters of intervention to foreign governments, when lawyers are harassed or physically attacked in the course of their work, and we have sent three letters over the years in relation to Gao Zhisheng. An analysis of the letters we have sent over the last three years shows that the most letters (nine) have been sent to China, with Iran next (five). A further 19 countries have been sent one or two letters (only Mexico of those 19 has been sent three.)

The CCBE also awards an annual human rights prize to lawyers who have performed outstandingly in the service of human rights. In 2008, we awarded it to another Chinese human rights lawyer, Li Heping, who was subsequently prevented by the Chinese authorities from travelling to Europe to collect it. He has bravely faced harassment and severe obstacles in his work, and has indeed worked with Gao Zhisheng on some cases.

Lest it be thought that Chinese lawyers are the only ones who suffer such horrible problems, I should state that last year we awarded the prize posthumously to a Russian lawyer, Stanislav Markelov. He defended Anna Politkovskaya, the Russian journalist shot down in Moscow in 2006 while she was investigating atrocities committed during the Chechen wars by the Russian military, and several Chechen nationals tortured during those wars. The CCBE had sent a letter on Markelov’s behalf on 21 January 2009 to president Dmitri Medvedev, when we received information that Markelov had been assassinated by a bullet through his head on 19 January 2009 in the centre of Moscow on his return from a press conference. Markelov was in the process of appealing the decision by the court of Dimiitrovgrad to consider the early release of the Russian colonel Budanov, who was sentenced to 10 years in prison in 2003 for the abduction and murder of a Chechen girl, and who was released on 15 January 2009, just a few days before the assassination.

We are not a human rights organisation. We receive requests to help in a wide variety of circumstances, often heartbreaking. Since we do not have the resources to do much, we restrict ourselves, by and large, to writing letters to governments on behalf of lawyers alone, and delivering our annual human rights award to a lawyer or lawyer’s organisation. Other bars – for instance, the Law Society – undertake similar activities.

The lawyers who suffer are our professional colleagues, performing their duties in impossibly difficult circumstances. Over the last three years, we have sent over 40 letters, sometimes in relation to multiple individuals, only rarely in relation to the same person like Gao Zhisheng. That is about one lawyer a month who is being harassed, persecuted or assassinated in the course of his or her work around the world. I have mentioned before that we should not be too complacent in the UK. Although it is of course extremely rare, solicitors in the UK, in Northern Ireland, have also been assassinated in the past as a result of their professional duties.

I end as I began: where is Gao Zhisheng? All lawyers, in a spirit of solidarity for one of their own colleagues, should be asking the same question. Where is he? Where is he?

Jonathan Goldsmith is the secretary general of the Council of Bars and Law Societies of Europe, which represents around a million European lawyers through its member bars and law societies

Jonathan Goldsmith
Friday, 5 February 2010

I don't want to start an argument about climate change. I am not competent to answer points about whether it is man-made or indeed whether it is happening at all. But there are nevertheless challenges and opportunities for lawyers in developing a greener environment. This piece is based on the assumption that climate change is occurring and that we can carry out actions which will mitigate it. The question is: what can lawyers specifically do to help in such circumstances?

In the UK, there is the Legal Sector Alliance, which describes itself as 'an inclusive movement of law firms and organisations committed to working collaboratively to take action on climate change by reducing their carbon footprint and adopting environmentally sustainable practices'. There is also Leapfrog, a business-led not-for-profit organisation, founded by a Travers Smith partner, that 'channels pro bono services from top businesses into activities that deliver carbon reductions', with members drawn from all professions. However, my aim here is to bring you news and good ideas from beyond our shores.

The American Bar Association has set up a Climate Change, Sustainable Development, and Ecosystems Committee, which has brought together interesting developments taking place in various state bars of the US. I shall give two examples.

The California Bar has developed a voluntary Eco-Pledge programme, and offers a logo for those who endorse the pledge. Under the Eco-Pledge commitment, subscribers agree to 'take as many of the specific steps and actions set out in the (bar's environmental practices) guidelines as the member, firm, or department may determine in good faith taking into account its individual circumstances'. The guidelines cover education; eliminating disposables; reuse of equipment and supplies; reduced paper, toxic chemicals, water and energy use; procuring environmentally sustainable products and service providers; recycling; commuter incentives, green meetings, and participating in other green practices programmes. Given limited resources, the bar does not verify the commitments or otherwise offer certification, but relies on self-certification. The state's Environmental Law Section continues to promote the tool through training.

The Massachusetts Bar has an annual recognition programme that this year honoured three firms for their environmental practices, based on an evaluation of written submissions on their energy, waste, transportation and green buildings programmes. A review committee identifies the winners based on their own judgment, without special pre-existing criteria.

The European accountants' body has entered the field of climate change. It recently released a policy paper which recognises that there is new work for accountants in areas such as 'environmental management accounting, carbon emission protocols, social accounting, work life balance indicators, full cost accounting and other measuring of environmental and social impacts… Arguably more sustainability relevant disclosures will and should appear in financial statements. Putting a cost on carbon and reflecting the financial implications of climate change, including related business opportunities provides such a challenge'. The Council of Bars and Law Societies of Europe has been looking at the wider field of corporate social responsibility (not specifically climate change), and at its last committee meeting on the subject concluded that lawyers should become involved from the beginning, for instance in standard setting.

Lawyers need to become aware not only of green challenges to their own working practices, but of the policy and business opportunities for them to become involved in setting the standards for the greening of our communities, the country as a whole, and the wider world. Whatever your views on climate change, it is better if lawyers are involved in the development of policies and practices which might affect us all.

Jonathan Goldsmith is the secretary general of the Council of Bars and Law Societies of Europe, which represents around a million European lawyers through its member bars and law societies

Jonathan Goldsmith
Friday, 29 January 2010

There has been no bigger topic during the last week than the consequences of the Iraq war on the image of the legal profession. We have witnessed a succession of lawyers giving evidence to the Chilcot inquiry, and we have been presented with different models, as follows:

Elizabeth Wilmshurst, former deputy legal adviser to the Foreign Office: she resigned when her and her colleagues’ advice was not followed, and when the government pursued a course which she believed was unlawful – she was applauded by the public when she left the room;

Sir Michael Wood, former legal adviser to the Foreign Office: he maintained his advice that the war was unlawful in the face of hostility from his minister; he did not resign when the government went to war, saying (among other things) that questions of conscience are very individual questions and it would have been more disruptive for the legal advisers in the Foreign Office if there had been a host of resignations;

Lord Goldsmith, former attorney general: initially believed that the war was unlawful, but this was not welcome advice; changed his mind, following a trip to the US, to the effect that there was a reasonable case for going to war on legal grounds; on being pressed to give a simple ‘yes’ or ‘no’, refined that to the effect that the war was lawful;

Jack Straw, qualified as a lawyer, former foreign secretary, now secretary of state for justice: was reported to have said that he had often been told at the Home Office that things were unlawful but he had gone ahead anyway and won in the courts; wrote on a note from Sir Michael which said that the war was unlawful: ‘I note your advice but I do not accept it’ (although, as Wilmshurst pointed out, he is not an international lawyer).

There could not be more critical questions facing lawyers than the issue of whether to go to war or not. It is not only in hindsight that it was clear that there would be thousands of deaths, which is not the usual result of a lawyer giving the green light to a client. The war would have gone ahead regardless of what UK lawyers said – but without UK involvement, since presumably the UK would not have committed support and troops if the government had concluded that the war was unlawful. Around a million ordinary people marched against the war on just these kinds of grounds.

The models of lawyer behaviour presented by the principals this week will presumably reverberate in the public mind for a long time. It is good that there have been alternatives from which to choose. (I say nothing about the evidence of the other lawyer involved, Tony Blair.)

Regardless of the model of lawyer on show, the question of the meaning of legal advice has itself been presented in various models, too. We were told, for instance, that all the lawyers in the Foreign Office were of one mind that the war was unlawful. Yet the attorney general, who initially shared their view, came back from America with the view that there was a reasonable case to be made for the other side, which a few days later had hardened into the opinion that the war was lawful. Of course, there are often two or more sides to a legal argument, but will the public conclude that the law is something solid and protective, or a flexible instrument to allow, say, the most powerful to get their way?

I do not envy the participants in this decision, who were required to give advice in just the kind of circumstances which calls on the lawyer’s deepest core principles. I do not know how I would have behaved (and I fear the worst about myself). But I imagine that the legal profession will have to live with the consequences, in terms of the image of lawyers and the image of what legal advice means, for a long time.

Jonathan Goldsmith is the secretary general of the Council of Bars and Law Societies of Europe, which represents around a million European lawyers through its member bars and law societies

Jonathan Goldsmith
Friday, 22 January 2010

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The phrase ‘European contract law’ often sets alarm bells ringing in common law circles. Those bells will have begun shrieking in the relevant brains after the hearing before the parliament of the new EU commissioner for justice, Viviane Reding. In relation to her priorities in the new job, she submitted the following in her written answers – indeed it was the first priority she mentioned:

‘As regards civil and commercial justice, I want to help put contractual relations in our internal market, notably in business-to-consumer relations, on a more secure and coherent footing to facilitate cross-border transactions. I therefore intend to work on the three first building blocks of a coherent European contract law, namely standard terms and conditions, consumer rights and common principles of contract law, with the purpose of paving the way for one day developing a European Civil Code (which could take the form either of a voluntary tool to improve coherence, or of an optional 28th contract law regime or of a more ambitious project).’

I don’t think that anyone needs worry much about a voluntary tool to improve coherence or an optional 28th contract law regime (which means it is an option beyond the current 27 different contract regimes in the 27 member states). But talk of a more ambitious project for a European Civil Code usually brings UK politicians and lawyers out in a flutter. Here is the former Lord Chancellor, Lord Falconer, addressing a conference in 2005 about the subject:

‘… blanket harmonisation across the EU of contract law, or any other sphere of law, will not work. A single law imposed across the whole of the EU, whether by regulation or directive, is not an efficient and effective way to resolve problems in civil law and justice.’

He was quite straightforward about the reasons for this – more money for English lawyers and the UK – or as he put it a little more elegantly:

‘… the English law of contract is the international law of choice over a wide range of areas, particularly in finance, shipping, and insurance. It contributes significantly to the earnings of the UK and thereby promotes the prosperity of the EU…Make no mistake, any weakening of the suitability and attractiveness of the common law of England as the most popular law for the conduct of commercial business throughout the world would be disastrous and would be seized upon by rival jurisdictions such as New York and Geneva. The EU would be the poorer as a result.’

The main achievement to date in the development of European contract law has been a draft Common Frame of Reference (CFR). The CFR is a long-term project that aims at providing European legislators with a ‘toolbox’ or handbook to be used for the revision of existing – and the preparation of new – legislation in the area of contract law. This toolbox is intended to contain fundamental principles of contract law, definitions of key concepts and model provisions. Among the working group drawing up the CFR is Professor Hugh Beale of Warwick University, a former law commissioner, who is doubtless aware of the ‘alarm-bell’ common law views of the exercise.

The preparatory work for the CFR has already served as a starting point for a consultation on EU consumer law, undertaken by the European Commission in February 2007. The response to this by the Council of Bars and Law Societies, plus our other work in this area, can be found here.

There are European lawyers who support further developments in European contract law, even to the extent of the introduction of a European Civil Code. Their motivation is best put by the commission itself: ‘The exchange of goods and services is governed by contract law. Problems in relation to using, agreeing, interpreting and applying contracts in cross-border transactions may therefore affect the smooth functioning of the internal market.’

I predict that, if commissioner Reding proves as good as her word in pushing this item of her agenda vigorously forward, we are in for tempestuous debates ahead.

Jonathan Goldsmith is the secretary general of the Council of Bars and Law Societies of Europe, which represents around a million European lawyers through its member bars and law societies

Jonathan Goldsmith
Friday, 15 January 2010

Here is one of the big issues facing the EU: how do you successfully communicate laws and policies to more than 500 million citizens in 23 official languages?

I shall take as my example alternative dispute resolution (ADR). It is particularly topical this week given the recommendations on the subject by Lord Justice Jackson’s civil litigation costs review. The EU undertakes a huge amount of work in ADR, probably nearly all unknown to most solicitors. This is true of so much of Europe’s work, and represents the great disjuncture between the institutions and the citizens they are trying to serve. (In this particular example, the matter is not helped by the fact that ADR is bundled along with other so-called consumer affairs in the directorate that deals with health. It is therefore difficult to find for the average citizen, who could be forgiven for thinking that ADR would be dealt with along with justice matters.) I was interested to see that Lord Justice Jackson finds that even UK schemes appear to be not well known to UK judges and lawyers, and recommends a serious campaign and authoritative handbook on ADR.

My attention was drawn to a very interesting report published recently by the European Commission on the use of ADR in the EU. Only aficionados will read all 500 pages, but there is fascinating data along the way: Germany is the country with the most ADR schemes (247), followed by Italy (129) and Spain (76). The UK comes fourth with 43. However, the data on the number of schemes need to be properly interpreted, because some countries, for instance Germany, have decentralised their schemes, whereas the Netherlands has 44 different consumer schemes gathered up into one body. It appears that the UK’s Financial Ombudsman Scheme is by far the largest ADR scheme in the EU, with more than 100,000 cases dealt with on average per year.

The vast majority of the ADR procedures are free of charge for the consumer, or of moderate costs below €50, and are mostly decided within 90 days. The number of cases in the EU has increased over recent years: from about 410,000 in 2006, to 473,000 in 2007, to an estimated 530,000 in 2008.

The European Commission has published two sets of recommendations in relation to ADR: one in 1998 for those schemes where a third party proposes or imposes a decision to resolve the dispute (such as arbitration), and one in 2001 for those schemes which involve consensual settlement procedures where the third party facilitates the resolution of a consumer dispute by bringing the parties together and assisting them in reaching a solution by common consent (such as mediation). The commission has also supported the development of a code for mediators.

So keen is the commission on ADR that it has set up, together with the member states, a network of European Consumer Centres (ECC-Net) as a tool to have better informed and educated consumers, and to help them get the appropriate redress in case of a violation of their rights as consumers in cross-border transactions. They advertise themselves as being able to solve questions like ‘who can you turn to if you have a problem with a product you bought in another European country?’ The member organisation for the UK is the UK European Consumer Centre, run by the Trading Standards Institute.

Maybe you knew all this already, but I didn’t. Our tax pounds are going on a series of very worthwhile schemes to help citizens. But almost no one knows about them. I come back to the question I raised at the start: how do you successfully communicate laws and policies to more than 500 million citizens in 23 official languages? In particular, how do you do so through the haze of a political discourse where the EU is being blamed and ridiculed on a daily basis? Of course, the EU could do a million times better in selling itself, and journalists could occasionally change the lens through which they view the EU from ‘there go the lunatics again’ to ‘this is rather interesting and worthwhile’. But I believe that it is our governments (and I am referring to all of them, not just the UK’s) that are not serving us well. They are contributing a gigantic amount of our money and energy to promote many good things at EU level, including access to justice. But because they want to distance themselves from the EU to serve their own immediate interests, they are effectively wasting the money, because they see no advantage in boldly advertising EU initiatives which may help us.

My plea is that when the government considers and implements Lord Justice Jackson’s proposals, they at least include the EU’s ADR initiatives in any future proposals for a serious information campaign and authoritative handbook as recommended by him.

Jonathan Goldsmith is the secretary general of the Council of Bars and Law Societies of Europe, which represents more than 700,000 European lawyers through its member bars and law societies

Jonathan Goldsmith
Friday, 8 January 2010

I am still in prophetic mode for the New Year and new decade. Two big drivers in the coming year, and for some time to come, will be the recession and new technology. Here are some developments touching on one or the other or both, as reported in various outlets in the US. Can it be long before they become as big here?

‘Unbundling of legal services’ is much discussed in the US, to the extent that it made it into the New York Times on New Year’s Day in a long article by the chief justices of two US states calling for more of it. Unbundling is a practice where a lawyer signs on for only part of a case in order to save the client costs. It makes sense in a time when clients have less money, and where so much knowledge is available instantly on the internet. What is interesting is that top judges have called for it in a public and vigorous fashion. The American Bar Association already has a model rule which permits limited scope representation ‘if the limitation is reasonable under the circumstances and the client gives informed consent’. There are clearly ethical and insurance consequences which will have to be considered. The judges also call for more ‘self-help Web sites, online assistance programs and court self-help centers’.

‘Cloud computing’ is a way of cutting IT costs substantively. Instead of having your own server and own tailored IT system, you hire it all at a much-reduced price. Do you have your own electricity generator? No, you link into the grid. Well, cloud computing is the equivalent of using someone else’s IT grid for all your IT needs. You don’t own the physical infrastructure, and you pay only for what you use. It goes via the internet, and ‘cloud’ is a poetic way of saying that all your computer needs are stored out there somewhere in the ether. The case for it for law firms is that it saves a good deal of money and IT hassle. The case against is that, particularly for lawyers, the storage of confidential data outside of your own control will raise ethical issues. Some have pointed out that there are significant security problems, too. It is not a minority activity, either, since the following already use cloud computing: Gmail, Twitter and Facebook, and among the customers of Amazon’s cloud computing services are the New York Times and Pfizer. (Speaking of Twitter, you may be interested to read how large US law firms are using it, in an article which also gives detailed guidance to law firms thinking of going down the Twitter route.)

‘Virtual law firms’ appear to be on the rise. Why have an office with high rent when computers allow you to link to co-workers and clients, and work from wherever you want? Obviously, this notion has been around for some time – think home-working – but environmental concerns, the recession and continuing IT developments are now giving a further push towards making the whole firm virtual. It particularly helps lawyers starting up their own firm. Regulators will have to examine whether current codes and disciplinary systems can adequately deal with this new model.

‘Professional networking’ is also on the rise. The legal services category of LinkedIn saw a 400% rise in 2009. Martindale-Hubbell’s Connected is the next most popular. I am not a member of a social networking site, but have noticed how so many more things – meetings, parties, photos – are notified on Facebook only. I am excluded (but by my own decision). What effect will professional networking sites have on legal practice?

I have mentioned environmental concerns only once, but clearly the wish and need to be green will be another powerful force in the future. It is worth noting how much of what I have outlined here tends towards the eco-friendly. It also represents a move away from what is firmly fixed, to a model which allows more mobility and more pick-and-mix by clients and firms: that is the real trend.

We have been obsessed recently with the impact of alternative business structures, but we usually mean by that phrase only ownership by non-lawyers. The recession, technology and green concerns are also pushing us towards other alternative structures, which might make us more profitable in 2010.

Jonathan Goldsmith is the secretary general of the Council of Bars and Law Societies of Europe, which represents more than 700,000 European lawyers through its member bars and law societies

Jonathan Goldsmith
Friday, 18 December 2009

It is that time of the year when newspapers and magazines run retrospectives on the year that has passed – in 2009, even on the decade that has passed – and give prophecies for the future.

It has not been a good year overall for lawyers. Even though the recession has affected the legal profession in different ways around Europe, including in the UK, nevertheless a profession such as ours, which depends on the property market and which has specialists in business and finance, has suffered badly. Regardless of the economic outlook, the letters pages of the Gazette bear witness to the low morale of solicitors faced with current change and uncertainty.

Let us not dwell on the past then, but look to the future. At European level, there will be a number of important developments in 2010. Here are three of them.

There will be an oral hearing at last in the Akzo Nobel case on 9 February 2010, and so presumably a decision in 2010. The case will decide whether the existing European case law, which does not grant legal professional privilege to in-house counsel, should be overturned. The Law Society has expressed a strong interest in the outcome: it has twice applied to join the case at its appeal stage, and twice been turned down. There is also strong interest abroad in the outcome. The Council of Bars and Law Societies of Europe (CCBE) is a party and will be represented at the oral hearing.

The delayed European e-Justice portal, due to have been launched this month, will now be launched in the middle of 2010 (precise date not yet known). The e-Justice initiative will be the embryo for many future initiatives, such as increased video-conferencing in cross-border cases; cross-border access for legal professionals to registries such as company, insolvency or land registries; and the development of directories to allow citizens - and lawyers, too - to find lawyers and notaries in other EU member states. There will also be a huge amount of information on the law of other member states on the portal: for instance, the CCBE is now working on a European Commission funded project on fact-sheets on the rights of criminal defendants in all member states, which, although aimed at the citizen, will also allow lawyers to have access to basic information on criminal procedures in EU states in all official languages.

There is one topic which I regret that I have not covered in my blog this year, which was big last year and will be big in 2010: outsourcing of legal services. This week, the Bombay High Court finally ruled on a case which has been running for around 15 years, on whether foreign law firms (including Ashurst) are permitted to practise in India under the permissions granted to them years ago by the Reserve Bank of India. The court said that the practice of all law by foreign law firms in India is illegal. This leads to the most bizarre of outcomes, whereby the practice of English or American law by Indian lawyers in India is legal – and profits India by an estimated $80m per year through legal outsourcing – but the practice of English or American law by English or American law firms in India is illegal. How can that be right? I see huge pressure being put on the Indian government by the UK and US in the year to come. The CCBE is itself grappling with the rights and wrongs of outsourcing, and hopes in due course to come up with guidance at European level.

The end of the year is a time for wishes. The American Bar Association is currently undertaking work on Ethics 20/20, looking at developments ‘that will allow lawyers to better serve their clients, the courts and the public now and well into the future’. Their brief covers developments both in the US, for instance in the way that IT impacts on the law, and around the world, including our own alternative business structures. They are essentially trying to work out where we will be in 10 years’ time. There are individuals in the UK, like Professor Richard Susskind, who attempt to gaze into the future, so as to guide us in the present, but there should be more of an institutional effort. So, my wish for 2010 is that the Law Society sets up the equivalent of a 20/20 committee.

Seasons’ greetings to all of you, and I ask forgiveness from those with grievances from items I have written about this year.

Jonathan Goldsmith is the secretary general of the Council of Bars and Law Societies of Europe, which represents more than 700,000 European lawyers through its member bars and law societies