LeO and Law Society Standards: Independently Working

Despite the obligation on solicitors to direct all clients to the Legal Ombudsman should they wish to complain, this new organisation appears already to have closed its complaints service to many businesses.

The change

On 6 October 2010, the new Legal Ombudsman (LeO) opened its doors in Birmingham, thereby ending the reign of the much-maligned Legal Complaints Service (LCS) and continuing the move away from self-regulation of the legal profession, towards greater independence. On its first day it received a staggering 497 complaints, so it would appear as if its profile is already higher than its predecessor and this is perhaps a sign of things to come. As part of the regulatory overhaul, the LeO has abandoned the legally-principled standard of inadequate professional service in considering complaints. Instead, it will now take what it describes as a 'common-sense approach', considering complaints "by reference to what is, in the opinion of the ombudsman making the determination, fair and reasonable in all the circumstances of the case". It is also a free service and has the ability to award up to £30,000 in compensation. So far, so good. However, where things arguably start to go wrong is that the LeO is designed solely and exclusively for consumers, by which it means individuals, "very small businesses", charities and trusts (as is made clear in the standard complaint form to be found on the LeO's website). So where does that leave larger businesses with grievances? And where does the definition of "very small business" (and, with it, the remit of the LeO) stop? Of course, many larger businesses would not want to use the LeO to resolve their disputes with a solicitor, but does that mean that they should be denied that option? These questions are already causing some difficulty among firms of solicitors with mixed client bases, compounded by the Law Society's practice note on client care, which (at...