Technology and Outsourcing – a Change in the Legal Market?

In Blueprint for Change, William Henderson states that the future is bleak for law graduates in the United States because the job market is increasingly uncertain. He writes, “our current legal education is likely to enhance the human capital of our students, but in the emerging economic environment, the benefits of that education are insufficient to pay back its cost […]. The issue is whether the education we offer is able to adapt to the rapidly changing legal industry.”

According to Henderson, the current market is unable to sustain the large numbers of law graduates, and while law schools are having some difficulty filling seats, which ultimately leads to difficulty in finding professional employment for their graduates, they continue to offer attractive financing packages to perspective students, which increases enrollment (and ultimately increases the debt load of graduating students). Additionally, while law schools train students via traditional education models, companies that offer legal products and services (but are not classified as law firms) are becoming increasingly attractive alternatives to hiring lawyers. This in turn decreases the demand for lawyers and leaves many law graduates with an inability to find work in private practice. As Henderson states, “by removing the lawyer from the value chain, cost goes down, quality goes up, and service delivery time becomes faster.”

While Henderson’s research is based on American law schools, I believe that in an era where the legal profession is changing to accommodate self-represented litigants and the entry of ‘do-it-yourself’ products on the legal market, this research adds an extra layer of understanding when it comes to envisioning our futures as lawyers. As my colleague Salman outlined in his blog post “Surviving the Technological Threat,” we have been hearing from our speakers and professors throughout the semester that our current method of practicing law is in danger of changing significantly with respect to new technologies and new methods of outsourcing legal work.

Henderson suggests deviating from the traditional structure and tailoring legal education to fit labour market outcomes, but this does not seem entirely practical for Canadian law schools. While the Canadian legal market is increasingly saturated, we have yet to experience the demise of traditional legal education as Henderson sees it, likely because we have far fewer law schools than the US, and despite our tentative adherence to Maclean’s yearly rankings, our country has yet to implement a tier-based system. As Salman also points out, it is unlikely that the introduction of new technologies will change the legal landscape as a whole. Rather, these technologies will likely assist lawyers to provide more efficient legal services, particularly if lawyers are free to concentrate on more complex legal issues that are outside the scope of these products and technologies.

 

 

 

 

 

 

 

The Future Of The Legal Education: Specialization Or Degradation Of The J.D.

As the legal field continues to expand, general practitioners are expected to know more in their respective fields to better assist their clients. A lawyer is expected to enhance their knowledge by keeping up with the evolution of the legal sector. Harry Arthurs recognizes the dangers that future lawyers may face in The Future of Legal Education: Three Visions and a Prediction.

He suggests a possible option where “The bar may one day recognize not just one class of members, but many. Members of each class would have different educational credentials…that general practitioners will one day be licensed to appear as advocates in certain tribunals and the lower courts, and to do routine real estate transactions, simple incorporations and uncontested divorces—but not undertake appellate litigation, patent applications or tax planning”.

He further elaborates “They might offer a skills-based one-year degree for paralegals, a stripped-down tow-year ‘basic’ degree for general practitioners, an enhanced four year degree for specialist practitioners, and conversion courses for those who want to upgrade their credentials”.

On the one hand, I can see this as a form of specialization in a specific area for law students. Those that know what area of law they want to practice can choose to study that, right from the beginning while avoiding all the unnecessary courses that they will never use for their chosen area of practice.

However, on the other hand I see this as undermining the value of legal education and hence a J.D. By creating this separation in the legal education, many of the basic competencies will be omitted from one’s legal education. On a basic level many of the different fields of law interact with each other, and competencies in all these areas are crucial for a practitioner to come up with the best solution for their clients.

There is obviously a wealth of knowledge available in studying law. In my opinion, due to the enhanced level of education required to sufficiently practice in each specific area of law, I think in the future, a LLM in the chosen area of practice will be mandatory after a JD, in order to obtain an articling position in the desired field.

With each area of law expanding everyday, I think it would be ridiculous to cut down on the legal education. The only way to keep up with the evolving nature of the legal sector is to increase the education required, and thus satisfying the necessary requirements of becoming a competent practitioner. Of course, this is just my view.  What do you think are some ways our legal education will evolve to better accommodate us in being competent in our areas of practice for the future?

 

 

Embracing Change, Innovation and Technology

Recent socioeconomic trends have significantly accelerated the pace of need for change for the legal industry and the law firm business model.  One of the big themes that our firm’s well credited visitors have pointed out is technology.

In the past, the legal sector enjoyed great comfort in the linear nature of progression. Students attended law school for 3 years, then articled, then became associates, then made partner and went down the path of success until retirement, but that seems to have changed now.  There was an understanding between the law firms and their clients that good work costs money, and there was no surprise that billing rates were expected to rise, but that’s no longer the case either. One common indicator that projects the future of this industry is the emergence of technology, and firms which adapt to the changes are ahead of the game and will be industry leaders.

We’re a profession that I would suggest in the last 100 years has not done anything differently than how it has always done, and we are the only industry that is proud of that fact. The legal industry by definition looks to the past for finding ways of the future and that in my opinion needs to change. The comfort that comes with predictability and precedent is perhaps the main factor in postponing the realization of need for change for the industry as a whole.

For us as a profession not to embrace change and innovation, we are setting ourselves up for failure.

Access to Justice in Canada: Students with high hopes to help the low-income

“[Canada is] increasingly failing in our responsibility to provide a justice system that [is] accessible, responsive and citizenship focused.”

The above was a statement by our Chief Justice Beverley McLachlin of the Supreme Court of Canada, about the inability for Canada’s families to obtain affordable legal counsel. The Chief Justice has also stated that “legal-aid funding and coverage is not available for most people and problems, and the cost of legal services and length of proceedings is steadily increasing”, and that “statistics show that people who get legal assistance in dealing with their legal problems are much more likely to achieve better results than those who do not.”

As Canadians, the majority of us believe access to justice is a fundamental right. Contrary to this belief, Canada is witnessing a gap between the fundamental right and the stark reality that the wealthy the are the ones that can afford a lawyer’s legal services. With specific reference to British Columbia, cuts to BC Legal Aid have taken a toll on access to justice, especially for those with low-incomes. A list of cuts from 2005-2010 can be found here.

In 2013 the Canadian Bar Association released the ‘Reaching Equal Justice Report’. The report states that there is a need for more federal funding for civil legal aid. It says that the Canadian Bar Association will reach its goal for Canadians living at and below the poverty line to be eligible for full coverage of essential public legal services by 2020. Additionally, the report puts forth that all law schools in Canada will have a student legal clinic to help low-income people by 2020. The Canadian Bar Association advises that all 31 targets mentioned in the report are expected to be completed by 2030. A video about the proposed legal aid system can be watched here.

It is important to note that change does not fall solely on governments or the bar association. As the report says, law schools and other stakeholders must be involved. It is obvious that “tinkering” or making a few changes here and there will not be enough. The report states that “the civil justice system is too badly broken for a quick fix. People fall between the cracks at an unacceptable cost. Injustice is too deeply woven into the system’s very structure for piecemeal reforms to make much of a dent.”

It is obvious that now is the time to use the resources we have, like our Canadian law students, to help improve Canada’s access to justice for low-income people. With 18 law schools in Canada teaching common law, these numbers have the potential to create a significant positive difference. If that is not motivation enough, pro bono work by law students helps not only those who find themselves facing a legal conundrum, but also the law students involved. The students typically receive training to be more understanding, companionate, and patient, and in turn become more competent lawyers to enter the work force.

From what I could find, only one Canadian law school (Osgoode Hall Law School at York University) has what they call a public interest graduation requirement. If pro bono work by law students is part of the answer, why are we not making full use of this potential resource? Is it lack of resources, lack of incentive, or lack of an enforced requirement?

In correspondence with TRU Law’s Professor Dhand (who is currently the Project Leader on a Law Foundation Large Project Grant for a poverty law clinic), she informed me that the school is implementing the Community Legal Advice Clinic in 2016. The Community Legal Advice Clinic will assist low-income earners in the Kamloops and Interior region with legal problems – initially in the area of residential tenancy law and housing issues – with direct client services. The clinic will run approximately two to three days a week and can be found at the Centre for Seniors Information in Kamloops, BC. Additionally, Professor Dhand advises that TRU Law has the Legal Information Service, located on campus, where she supervises and mentors 60 student volunteers each year, who provide legal information, resources, and public legal education workshops in all areas of law. Lastly, Professor Dhand also teaches TRU Law’s Community Lawyering course where students receive instruction about the substantive and procedural aspects of community lawyering such as client interviewing, strategic litigation, legal research, and ethical issues.

It is clear that TRU Law is taking steps towards improving the ability for low-income British Colombians to access justice, well before the Canadian Bar Association’s goal of 2020. Are there additional steps that TRU Law and other law schools can take to facilitate access to justice for the low-income? Should TRU Law’s Community Lawyering class be a required course for students?

The Practice-Ready Lawyer

Harry W. Arthurs, renowned Canadian labour lawyer and law professor, spoke to the University of Alberta Faculty of Law about the future of law schools and legal education in Canada in his address titled “The Future of Legal Education: Three Visions and a Prediction.”

Arthurs begins by outlining differing views of the core function of law school, namely the production of “practice-ready lawyers”, of “tomorrow’s lawyers”, and of being a leader in the “creation and transformation of legal knowledge, legal practice, and the legal system.”

From this address there are several points I would like to comment on. First, Arthurs strongly critiques the view that law schools should be producing “practice-ready” lawyers, assuming that “practice-ready” equates to omni-competent. As the legal field is highly specialized and stratified, Arthurs suggests that no law student will ever be “practice-ready” upon graduation from law school. While I agree with the assessment that no law student (or lawyer for that matter) will ever possess all of the substantive knowledge to be competent in every legal field, I disagree that is what is necessary to be ready for practice. While an understanding of general legal principles and substantive law are required competencies  in one’s practice, they are attainable when one possesses the appropriate skills listed in Chapter 3 of the Code of Professional Conduct for BC (i.e. legal research, analysis, application of the law to the relevant facts, writing and drafting, problem solving, etc.). It is my opinion that the possession of these skills and competencies is what makes one “ready” for practice. In addition, I believe that law school is exactly the place where we should be taught these skills.

Arthurs goes on to argue that skills-based training is not enough to prepare students for legal practice, and a “preparation for practice” based curriculum is far inferior to one that emphasizes “thinking skills, theory and inter-disciplinarity”. While intellectual ability is certainly a coveted attribute, it must be applied practically to accomplish anything. Even Arthurs agrees that lawyers must “think like human beings” to avoid harming “themselves, their clients, the reputation of the bar and the effectiveness of the legal system.” Lawyers need to be relevant, relatable, and able to apply their intellectual training practically. It is my opinion that including some form of skills-based training in law schools helps accomplish that.

Finally, I would like to address Arthurs’ proposals regarding changes to the structure of law school. He proposes a model in which general practitioners can obtain a “stripped-down two-year ‘basic’ degree”, and “higher level lawyers” would take a four year enhanced degree. Arthurs’ argues that this would save time and money for general practitioners while fitting the diverse needs of students wishing to practice in more specialized fields. While this restructuring surely has its benefits, I suggest that it might have adverse affects on “access to justice”, an increasing problem. Creating a hierarchy of lawyers may decrease costs to individuals with basic legal problems, but may simultaneously increase the divide between litigants who can afford high-level lawyers. In other words, this hierarchy has potential to further the gap between those who can afford specialized legal services and those that cannot.

In addition, I wonder as to how these changes might impact the servicing of small, rural communities. These communities are already underserved, and those that do set up practice in these areas are typically general practitioners. Why would we make it harder on them to serve their communities by limiting their scope of practice? Canadians are already abandoning legal problems that they cannot afford to address; wouldn’t these changes only exacerbate this problem for rural individuals that would typically only engage with general practitioners?

Arthurs is certainly correct to say there are many changes in store for Canada’s legal paradigm. Subsequent changes to the way we educate future lawyers will certainly be more necessary than ever if lawyers are to remain relevant in society. More than anything, I believe Arthurs is correct to suggest law schools must prepare their students “to think like lawyers, to contextualize and critically evaluate their legal experiences, to adapt to change and, especially, to learn how to learn”. A law student with that education must certainly be “practice-ready”.

A Road Trip Without a Map

As I write this, Labour Day weekend is winding down. The last long weekend of summer goes well with thinking about road trips. And I’m about to set off on one, metaphorically speaking – perhaps the riskiest and most rewarding kind, a road trip with no map. I don’t know where we’re going to end up or how we’re going to get there.

This metaphorical road trip is TRU Faculty of Law’s brand new course, Lawyering in the 21st Century. I am attempting to choreograph a course that is not exactly like anything that has been done in a Canadian law school before, although it is inspired by some innovative courses created by others – for example, Mitch Kowalski’s Law 2025. One distinctive aspect of this course is that I am encouraging students to think hard about the connection between the challenges that the established business model for law firms is facing and the access to justice crisis. How can it be that there are too many lawyers and not enough lawyers, both at once? Another unique design feature (at least, I think it is) is that the class is set up as a fictional law firm, in which all the students are partners. L21C is something we will create together.

So, fortunately for me, I am not alone on this unpredictable trip. I have collaborators and partners: the students, of course, and also the wonderful, brilliant people who have generously (and very enthusiastically!) agreed to share some of their valuable time and brainpower as guest speakers. This trip will probably be a bit chaotic, and it’s bound to have some unexpected twists and turns, but one thing I’m sure will happen is that we will learn a lot from one another.

It’s been quite challenging thinking up what to write about for this inaugural blog post. It is not really adequate, or interesting, to say I don’t know what’s going to happen next, even if it is honest!

I have found my thoughts keep returning to my experience as a new lawyer, many years ago, which started me thinking about the same questions I am still grappling with today in this course. So I decided to write about that, and here it is.

In 2004, I started as an associate at a big international law firm based in New York. I should say right from the start that in that job I had the privilege of working with some of the most brilliant and creative people I’ve ever known, and I learned a tremendous amount from them and from the experience, which is like nothing else on earth. But there were some things about it that were really bad, especially at the beginning.

When I started at the firm, many associates in their first couple of years of practice were being assigned to mind-bogglingly enormous projects of responding to SEC enforcement requests (the SEC is the US Securities and Exchange Commission, the agency that regulates and polices the capital markets). This involved reviewing e-mails – clients’ internal emails that the SEC had demanded to look at, for potential evidence of self-dealing or messing with the rules – before handing them over. We needed to check whether they were protected by solicitor-client privilege. We needed to check whether there was anything significant or problematic in them that we needed to know more about as the client’s lawyers, or that might affect the client’s strategy in dealing with the Commission. The e-mails were in the millions. A lawyer had to look at Every. Single. One.

What this translated to in real life was rooms full of sad junior associates in conference rooms staring at computer terminals while they (and by they I mean we) clicked on e-mails and organized them in different folders. Meanwhile, slightly more senior and equally sad associates managed the many moving parts of these massive, unwieldy operations.

What made us all unhappy about this was not just the long hours and pressure to work fast, but how mindless it was. A moderately intelligent high-school student could easily have done it. It is dispiriting, after many years of sophisticated higher education, to do nothing but work that doesn’t require that education. It’s also an extraordinary waste of talent and potential.

The mindlessness of the work was connected to another problem. The firm was charging clients for this at work the hourly rate of a first- or second-year associate, multiplied by a conference room full of associates, multiplied by months and months of very long days. That arrangement was highly profitable for the firm (since essentially the only cost to the firm was the fixed cost of our salaries). From the clients’ point of view, though, I think it would not be unfair to describe it as a rip-off. They were paying the rates of people with years of top-tier professional education for a job that a diligent teenager could have done. The clients were highly sophisticated international businesses. I think at least some of them must have noticed.

At the time, I thought this was an unsustainable business practice that was bound to change before long. And indeed it did. Within a couple of years, big document production projects like that were being done mainly by contract attorneys, rather than the firm’s own expensive permanent associates. That cut the cost to the clients and mitigated the problem of junior associates leaving in droves because they were miserable and weren’t getting any real professional experience.

But that was only an incremental change. The fundamentals of the business model were the same, with some tweaking of the dollar amounts. The firm hires a lawyer who costs X, puts that lawyer to work on a highly labour-intensive process, and charges the lawyer’s time to the client at an hourly rate of X plus a lot. The profits (X plus a lot, minus X, times loads and loads of hours) go to the partners.

Do you notice anything strange about this? What other businesses determine the price they charge for something by taking what it costs them to make the product and adding a markup? What happens to a business like that if a competitor offers the same thing at a cheaper price? What incentive does the firm have to make this process better, faster and/or cheaper? A computer could probably do what we were doing – very probably now, quite possibly even back then – faster, about as accurately (maybe more accurately), and at a much lower cost. But for a law firm to adopt the technology that could do that would be economically self-destructive.

I love the law and I love the legal profession. When I talk about things that aren’t working well in the legal industry I don’t mean to denigrate the smart, honourable and often very idealistic people who are part of it. This post is not a set-up for a lawyer joke. Also, it’s important to remember that all human institutions are imperfect, and none of them do everything they’re designed to do really well all the time.

And yet. The legal profession seems to be facing a critical moment in its sense of identity and purpose of which my e-discovery experience a decade ago was merely a symptom.

What really strikes me now about that situation is that it didn’t work for anyone. It was unfair to clients. It was soul-destroying for associates (and then for the contract attorneys). It wasn’t even working for the partners. Yes, they made profits from it, but I think they saw how different this was from the traditional way young associates used to come up and learn the craft of being a lawyer from their seniors, and they were uncomfortable about it.

Above all, the whole situation undermined the ideal of the lawyer as a learned professional providing carefully tailored expert counsel and representation. This reality was a lot more like working in a factory, or being plugged into the Matrix.

To paraphrase Lincoln, you can’t displease all the people all the time. At least, you can’t do that and expect to go on the same way for very long.

Later I learned that I wasn’t the only person to have noticed that something wasn’t working. There is extensive literature on (for want of a better umbrella term) disruptive innovation in the law. There are many brilliant people coming up with new models and using developments in technology to unlock new possibilities.

I have to acknowledge that some of the ideas out there about the future of our profession are a bit discouraging. Richard Susskind, in his brilliant book The End of Lawyers, speculated that one day lawyers could go the way of the old medieval guilds, like tallow chandlers. He could perhaps have added the obsolete legal para-professionals of the past, like scriveners. Maybe years from now future generations might have to ask museum tour guides and historians to explain what lawyers were.

But nobody knows the future. Lawyers might be in for a better future than the tallow chandlers and the scriveners. In fact, we may be on the verge of a very exciting time, when creative new ideas and new technologies could solve some of the problems that for years have undermined our profession’s effectiveness in living up to our ideals of public service, justice and equality.

We are probably looking at a future that’s a complex mixture of both – endings and losses entangled with opportunities and rich rewards.

Setting off into this unpredictable future is – like a road trip without a map – scary, but also exciting. What I hope this course will achieve is to equip the students, my partners, with some kind of road map for their futures. They may be maps with some empty bits marked with nothing but “here be dragons.” But it’s a start. And while I hope to create an environment that enables my student-partners to chart their course, the maps will be their own work, created by themselves, because no one else can do that.

On Labour Day weekend a few years ago, when I lived in Nova Scotia, I set off with a friend and a posse of dogs on an afternoon day trip to the beach – and then, spontaneously, that turned into an unplanned weekend-long road trip around the province. We had no idea what we were going or how we would get there. We did have GPS, though!  I suppose these days there’s no longer any such thing as a literal road trip without a map!

That was one of the best trips of my life. I hope this one turns out to be just as good.

Away we go!