Citation: Campbell, Elaine and Boothby, Carol (2016) University law clinics as alternative business
structures: more questions than answers? The Law Teacher, 50 (1). pp. 132-137. ISSN
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Citation: Campbell, Elaine and Boothby, Carol (2016) University law clinics as alternative business
structures: more questions than answers? The Law Teacher, 50 (1). pp. 132-137. ISSN 0306-9400
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, University Law Clinics as Alternative Business Structures: More Questions than Answers?
Elaine Campbell and Carol Boothby
When the Legal Services Act 2007 came into force1, it was heralded as ushering in “important
opportunities for solicitors to team up with non-lawyers and to attract capital for their businesses in
a carefully regulated environment”.2 The focus was on greater competition and choice for clients3 by
encouraging new entrants to the market.
The Act paved the way for a new type of legal entity, the Alternative Business Structure (ABS). As an
ABS, firms could have external ownership and investment and offer multiple services the clients
from within the same practice. Fairly swiftly, the press decided to call this “Tesco Law”4; the rise of
the one-stop shop where you could purchase your groceries and stop off for divorce advice.
Law School Clinics
At first glance, you would be forgiven for thinking that university law clinics - a stalwart of the UK pro
bono scene for decades - have nothing to do with this brave new world. Surely, it’s just a question of
making sure our students know about changes to the legal market?
However, when ABS’ were first introduced we were acutely aware that the ramifications for law
school clinics were serious. Careful reading of the Act showed that “special bodies” (e.g. not for
profits) with non-lawyer owners and/or managers providing reserved legal activities5 needed to be
licensed as an ABS. It also said that, given this radical change, a transitional or “grace” period would
be put in place. Special bodies could continue to provide reserved activities without needing to be
licensed during that grace period. This raised the following three questions:
(1) Did law school clinics undertaking reserved work fall into the category of ‘special bodies’?
(2) If so, did this mean that they needed to be licensed as ABS’?
(3) When would the grace period end?
Meeting the regulators
The Legal Services Board issued a Consultation Paper on the regulation of special bodies in summer
2012.6 Northumbria was the only law school to respond to that Consultation Paper. In that
1
On 30th October 2007: http://www.legislation.gov.uk/ukpga/2007/29/contents.
2
Solicitors Regulatory Authority, “Legal Services Act: New forms of practice and regulation”, 8 February 2010,
available at http://www.sra.org.uk/sra/legal-services-act.page (accessed 8 October 2015).
3
Now rebranded as ‘consumers’.
4
This still continues. See e.g. Marion Dakers, “‘Tesco Law’ rules relaxed to encourage more one-stop law
shops”, The Telegraph, 26 October 2014, available at
http://www.telegraph.co.uk/finance/newsbysector/supportservices/11187121/Tesco-Law-rules-relaxed-to-
encourage-more-one-stop-law-shops.html (accessed 23 October 2015).
5
Reserved legal activities include the exercise of a right of audience, the conduct of litigation, reserved
instrument activities, probate activities, notarial activities and the administration of oaths, as defined in
Schedule 2 to the Legal Service Act 2007. For further discussion on this point, please see the section below.
6
Legal Services Board, “Regulation of special bodies/non-commercial bodies:
Consultation paper on the regulation of special bodies/non-commercial bodies that provide reserved legal
activities” (Legal Services Board), available at
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