Learning Ecosystems

It is high time to reform the rules that govern the practice of law — from legalservicestoday.com by Ralph Baxter

Excerpt:

Current regulations create a closed system
The current regulatory model has created a closed legal services system. It limits who can participate in legal services in two fundamental ways.

First, only those who undergo the time and expense of law school and become licensed as “lawyers” are permitted to deliver legal services. It is a crime for anyone to do work that falls within the deliberately vague definition of “the practice of law” unless they have a lawyer license.

Second, only lawyers are permitted to participate in the financial rewards of a law firm. Investment by others is forbidden, as is sharing profits within a law firm with personnel who are not lawyers.

The consequences of these limitations are clear and profound. The first limitation causes the cost of legal service to be much higher than it otherwise would be; it also causes the law firm workforce to have less diverse backgrounds (as other businesses have) resulting in less creativity and agility.

The second limitation limits the capital law firms can raise, which, in turn, makes it harder for them to invest in new processes and technologies. The most successful firms in this closed system command high enough fees that they can generate their own capital. The majority of firms, however, would benefit from greater access to capital. This is particularly acute for firms which serve individuals and small businesses; in these practices the economic stakes of matters are relatively small, warranting lower fees, making the need for outside capital even greater.

Also see:

• To increase access to justice, regulatory innovation should be considered, ABA House says — from abajournal.com by Matt Reynolds
• How a new program connects Utahns to lower-cost legal advice — from deseret.com by Annie Knox
  Utah becomes 2nd state to create more affordable alternative to attorneys
• ABA passes access to justice measure after opposition fades — from news.bloomberglaw.com by Sam Skolnick