Diary news plus insights, commentary and appointments from the legal world

3 January 2025

Editorial contact: fennell.edward@yahoo.com

SHORT THOUGHT FOR THE WEEK Steady job?

According to reports in the press this morning Gen Z has moved away from the footloose and fancy free tendencies of its predecessors and would prefer to settle down in a cosy long term relationship with an employer.  No more brief encounters but a solid commitment to ‘love , honour and respect’ an employer in exchange for a guaranteed job for life in what looks like an increasingly choppy employment market.

As far as the legal business is concerned this appears to be another return to the past. Back in the day the expectation was that the place where you trained was the place you remained, rising in due course to the upper echelon and then a comfortable retirement. It was the rapid expansion of the law at the end of the last century which led to the endless churn of top talent. Loyalty to the firm went out of the window.

If it now starts to come back then the impact on the recruitment industry could be considerable. HR departments will also be under less pressure. As jobs die out thanks to AI and economic crisis, job stability will be valued.

But how long before everything starts to feel just a little bit stale?

The LegalDiarist

In this edition

+ LEGAL DIARY OF THE WEEK

Christmas Aftermath: A Bleak Midwinter

Researching human rights and the law through the Anthony Lester fellowships – Apply NOW!

Honouring Activism for Women Lawyers

ARAG Drives Change with DAS Integration

+ CONTRIBUTED ARTICLES OF THE WEEK

DIVORCE DAY: REALITY OR MYTH? by James Grigg

PARALEGALS – THE UNDER-APPRECIATED POWER WITHIN THE LEGAL SECTOR by Amanda Hamilton

+ LEGAL COMMENT OF THE WEEK

Fraud at the law firm Axiom Ince – Philip Barden, Devonshires

Resolving the ‘bungled’ divorces -Katie McCann, Lowry Legal

+ APPOINTMENTS OF THE WEEK

SHOOSMITHS

LEGAL DIARY OF THE WEEK

Christmas Aftermath: A Bleak Midwinter

The opening days of the New Year are a quiet period for the legal world but at least they can always rely on a surge in family break-ups to perk things up.

So anyone who watched the family law TV drama mini series The Split:Barcelona over the holidays will not have been surprised by the zeal with which the trio of lawyers threw themselves into the surprise divorce of their Spanish hosts while counselling – as it happens, unsuccessfully – the next generation on the importance of a pre-nup.

Admittedly that was under a Mediterranean sun but a Winter solstice can have the same effect.

“Christmas can be a very stressful time for families who are already having difficulties in their relationship,” said Beth Evans, Head of Family Law at WSP Solicitors. “The festive period magnifies these problems by spending more time together at home without the usual everyday distractions. Then there could be the added pressures such as the financial strain of Christmas or the need to be with wider family. Typically, couples wait for the new year before getting in touch to avoid upsetting the children or wider family during a time of celebration however, we see the strain on families growing year on year, especially with the continuing cost of living crisis, which is leading to more couples getting in touch earlier than January. We then see these enquiries climb and spike around Divorce Day and well into January.”  

Among High Net Worth families there also seems to be a growing level of complexity in divorces. “We’re also seeing more complex cases come through involving high net worth couples with large estates and multiple assets, and company owners seeking to safeguard their business during a divorce. A business is an asset to be disclosed and potentially taken into account, with all others, when considering a financial settlement on divorce.” 

That sounds like the plot for the next series of The Split.

Researching human rights and the law through the Anthony Lester fellowships – Apply NOW!

There are just over two weeks left for applications to be submitted for this year’s Anthony Lester Fellowships. Now in their second year the Fellowships are designed to support lawyers or law students who wish to undertake practical fieldwork in human rights and the rule of law outside of their country of residence. As the organisers explain, “These fellowships enable lawyers and law students early in their careers to work on a project that helps effect practical change and are designed for those who may not otherwise have this opportunity.”

Named after the distinguished human rights lawyer Anthony Lester and supported by his family as well as the Gatsby Charitable Foundation and the Open Society Foundation, the aim of the Fellowships is to back research which has the potential to make a tangible impact in the promotion of the rule of law/human rights. They are are open to early-career lawyers or law students and there are no geographical restrictions. And financially they are attractive offering a stipend of $25,000 for a project lasting at least three months. 

Designed to widen horizons the projects only restrictions are that they should be ‘in a country different from the applicant’s own, should be a different experience for them, and should come at a time in applicant’s career where it may make a real difference to career trajectory.’

Clearly this could be a career-changing opportunity for the two well-qualified applicants who make the grade. But applications must be received by January 20^th so there is no time to waste.  Email inquiries to lesterfellowships@bard.edu

Honouring Activism for Women Lawyers

Alongside the usual crew of high profile lawyers from top firms who have added titles or letters to their name thanks to New Year’s honours list there was also Dana Denis-Smith, now with an OBE, the founder of The First 100 Years and Next 100 Years campaigns who has been recognised for her services to women in law.

Dana-Smith had a remarkable career before embarking on her activism for women lawyers having being born in the shadow of the Communist regime in Romania. Thanks to a scholarship with Reuters news agency she was able to study history at the London School of Economics before making the sound decision to switch to law and securing a traineeship with Linklaters.

Motherhood then promoted the new ambition to set up Obelisk Support which has now developed into is a multi-award-winning company with a network of more than 2,000 highly skilled and experienced legal professionals, including many part-time working mums whose lives no longer suit the long, inflexible hours that some firms still demand.

“I just felt that it was not only unfair but a huge waste of talent,” said Denis-Smith. “These women were highly educated and intelligent and had enjoyed hugely impressive careers, yet it was like they were being penalised for choosing to start a family.  It also struck me that, despite so much time having passed since women were allowed to practice law, there was still so much more that needed to be done to achieve equality.”

The First 100 years and the Next 100 Years were, then, complementary to her business ambitions and can now be regarded as the country’s principal vehicles for remembering and promoting further women in the law. “To be recognised for the difference I have made, by the country that I have called home for more than half my life now, means the world to me,” says Dana-Smith.

ARAG Drives Change with DAS Integration

Consolidation is the watchword for the legal expenses insurance business as the news hits that the DAS UK brand has now been completely integrated into ARAG one year after it was acquired. This means that ARAG now has both its own insurance company, ARAG Legal Expenses Insurance Company Limited and a law firm, ARAG Law Limited.

It was back in January 2024 that the initial acquisition was completed thereby creating what was regarded as the leading legal expenses and assistance company in the UK – and also, moreover, part of the largest legal expenses insurer in the world.

Reflecting on this development CEO Tony Buss said, “This is a huge milestone for ARAG, as we’ve taken a further step in bringing together two of the most respected legal expenses insurance providers in the UK market. The opportunities created by having an insurance company and our own law firm are enormous for ARAG but will also create significant benefits for our business partners and value for our policyholders.”

Buss went on to say that the disappearance of the DAS brand from the UK market after 50 years marked the end of an era. However the two businesses shared a common vision and many values. “There’s still work to do, rolling out the next generation of legal expenses and assistance products to all our customers,” he said. “This step in ARAG’s journey marks a very positive start to a new era for everyone involved.”

CONTRIBUTED ARTICLES OF THE WEEK

DIVORCE DAY: REALITY OR MYTH? by James Grigg

As the festive season draws to a close, the concept of ‘divorce day’ once again emerges. Is there any truth to the notion that the overwhelming frills and festivities of Christmas and New Year build up to a recognisable day of couples opting for divorce?

The Office for National Statistics (“ONS”) reports that divorce rates are falling, with a 29.5% decrease in 2022 compared to 2021 – the lowest number of divorces since 1971. However, this could be the result of couples remaining in marriages, whether happy or not, or the rise of cohabiting couples choosing not to enter legal unions.

Societal attitudes are also changing, with over half of children in England and Wales now being born to unmarried parents, leading to a surge in demand for cohabitation agreements to help these couples manage finances, property, and child-related matters. Separately, the ONS reports a downward trend in marriages over a 30-year period from 1992 to 2022.

Law firms may see a rise in divorce enquiries following the festive break, but this is not necessarily due to sudden divorce decisions. The added stresses, increased tensions and financial burden during this period can put extra pressure on faltering relationships, and correlates with a surge in domestic violence reports. However, any increase likely reflects a backlog of enquiries that accumulated while offices were closed – and the data does not indicate a spike justifying a ‘January divorce day’.

In the Family Courts, 26.1% of matrimonial proceedings occur in the first three months of the year. The reality often is that new enquiries notably increase from February onwards. This is likely to be attributed to when people settle into their usual routine, children are back at school and Christmas has well and truly been and gone for another year. However, it is often not that simple.

A critical consideration for many parents is whether remaining in an unhappy marriage benefits their children. While divorce can have a short-term impact, a carefully handled separation can minimise long-term emotional harm. In fact, exposing children to a dysfunctional relationship can be more detrimental than demonstrating healthy communication during a relationship breakdown.

Parents often strategically time potential divorces, waiting for what they consider opportune moments – such as after exam seasons or when children have left home. This becomes increasingly complex with financial considerations like potential school fee challenges, especially with upcoming VAT on private education.

James Grigg is a Partner and Head of Family Law at HCR Law

PARALEGALS – THE UNDER-APPRECIATED POWER WITHIN THE LEGAL SECTOR by Amanda Hamilton

Once upon a time, paralegals were the Bob Cratchits of the legal sector – undervalued and unappreciated. But things have changed. While there are still paralegals exchanging their cheap labour—performing menial jobs such as filing or general administration—for law firm experience as part of a plan to become a solicitor, many others are choosing to become professional paralegal practitioners, eschewing ambitions of qualifying as a solicitor. Instead, they focus on one or two areas of law and offer specialist services to solicitors, in-house legal departments, or directly to the public.

Paralegals can use their skills and knowledge to deal with a whole range of cases, and by doing so, they can help a practice grow by releasing more senior members of staff to deal with the areas that are more complicated and probably more lucrative. Paralegals can do the work that firms simply can’t charge high fees for and would therefore turn down.

Many large firms, local authorities, fashion houses, Premiership Football Clubs, police forces, giant construction projects, the defence sector (and many more) already employ paralegals in-house. They find this cost-effective, productive and efficient.

In addition to the benefits a paralegal can offer solicitors and law firms, paralegals can contribute to the legal sector and society generally.

Since legal funding for consumers has virtually been eradicated, save for the most urgent types of cases, consumers who are not able to pay solicitors’ or barristers’ fees are struggling to get help with their legal problems. A Licensed Paralegal Practitioner can offer access to justice at a reasonable cost. For example: a solicitor may charge anywhere between £150 to £600 per hour for their services depending on what type of case it is and where the solicitor is located. Whereas a paralegal will charge £30 – £80 per hour for their services depending on what is required.

So, if a client cannot afford the solicitor’s fees, referring them to an appropriate paralegal can be a win-win for all concerned. Perhaps the bulk of the work can be undertaken by the paralegal with only certain activities requiring the solicitor.

Paralegals help to break down the perceived barriers to accessing legal help. In this way they open doors and help to build trust, they show a commitment to fairness and equality of access, and help consumers develop an understanding of how proper, expert legal help can be invaluable in so many circumstances.

Amanda Hamilton is the Patron of the National Association of Licensed Paralegals (NALP), a non-profit membership body and the only paralegal body that is recognised as an awarding body

LEGAL COMMENT OF THE WEEK

TOPIC: Fraud at the law firm Axiom Ince

COMMENT BY: Philip Barden, partner at Devonshires, who acts for the remaining Axiom directors

“It is important for people to understand that the remaining 12 Axiom directors are completely innocent and knew nothing about any misconduct or fraud that was happening at the firm. They spent six weeks working around the clock to mitigate the impact of the fraud on clients and staff, and through their efforts clients were rehoused and more than 1,100 jobs were saved.”

TOPIC: The bungled 79 divorces which had been approved incorrectly after an online system failed to detect that they were submitted exactly a year after marriage when the law only allows divorces from a year and a day.

COMMENT BY: Katie McCann , founder and CEO of Lowry Legal

“At last common sense has prevailed in this case. The High Court has found that all of the couples caught up in this scandal, where their divorces were granted one day before the prescribed time frame because of a computer error, will be granted a reprieve.

“The court had to consider whether those divorces were held to be null and void. This would have been catastrophic. The people affected could have subsequently remarried and that would make those new marriages void causing harm to innocent third parties, as well as difficulties around financial remedy orders and the status of children born to another relationship.

“Thankfully the court has found that these divorces are ‘voidable’ not ‘void’. If no one contests this before the end of January then this whole saga will be over and the divorces will finally stand. If one or more of the couples do contest it then their cases will be looked at and the rest will be declared as valid divorces.

“I wonder whether there will be any compensation payable for those couples who have had to endure this?”

APPOINTMENTS OF THE WEEK

SHOOSMITHS

At a time when very little else is moving in the legal world Shoosmiths has pulled off a coup by bringing across from US firm Locke Lord a six-person intellectual property (IP) team led by partners Dominic Farnsworth and Leigh Smith.

With a sound track-record acting for some of the world’s most prestigious brands the new arrivals are likely to extend the Shoosmiths’ client base substantially especially in the fields of technology, financial services and consumer brands.

The background to both the key partners is impressive. Farnsworth was head of European IP and chair of the IP International Group at Locke Lord but before this he had more than two decades at Lewis Silkin, where he headed the IP Group and the cross-departmental Sports Business Group. Notably he was responsible for setting up the firm’s IP portfolio management offering.

Meanwhile Smith’s diverse practice included eight years at Clifford Chance and five years at McDermott Will and Emery. His experience focused on global trade mark portfolio management, handling disputes before the registry and the English courts, and advising on licensing and endorsement agreements.

Robin Webb, Head of Shoosmiths’ Commercial Groups, commented, “We are thrilled to welcome Dominic and Leigh and the team to enrich our IP practice and the wider Commercial group by boosting bench strength and adding specialist expertise. Dominic has a strong track record of building top-tier IP practices, and Leigh has an impressive pedigree. I’m excited to work together to make a real impact on the market.”

We hope that you have found this edition of the LEGAL DIARY interesting (and even useful). If so, please circulate it to colleagues.

In any case, please continue sending your diary-type stories, legal comment and insights plus latest appointments to fennell.edward@yahoo.com

And best wishes for the year ahead!