Scots in-house lawyers face EU courts ban

SCOTLAND’S in-house lawyers face being banned from appearing in front of the European Union’s courts after a ruling declared their cases would be “inadmissible”.

Cameron Ritchie, the president of the Law Society of Scotland, has written to Kenneth Clarke, the Lord Chancellor, and other senior politicians north and south of the Border calling for the UK government to intervene.

His demands have received support from a host of business groups, including the CBI, the Scottish Council for Development & Industry (SCDI) and Scottish Financial Enterprise (SFE).

In what the society describes as a “serious development”, the General Court of the European Union rejected a case brought by a Polish communications agency, solely on the basis that it was using its own in-house lawyers to present the action.

Solicitors working in-house for companies and public sector bodies, instead of in private practice for themselves, represent about 23 per cent of the profession in Scotland.

The ruling could affect all in-house lawyers across the continent and so the Law Society of Scotland has enlisted the help of its sister bodies in England and Wales and Northern Ireland to fight against the decision.

As well as writing to Clarke, the society has also contacted Scottish justice secretary Kenny MacAskill, Scottish secretary Michael Moore, Lord Advocate Frank Mulholland, Advocate General Lord Wallace and Attorney General Dominic Grieve.

Ritchie said: “This development is deeply concerning and seems to stem from a misunderstanding of the in-house role. The society is urging the UK government to intervene in the case to ensure businesses continue to benefit from the value in-house counsel can bring and that a two-tier profession is not accidentally created”.

Janet Hood, convener of the society’s in-house lawyers’ group, added: “We are concerned at any decision that, without looking at regulatory standards, seeks to differentiate groups of lawyers all of whom appear, on the face of the current framework, to have rights of audience in the European courts”.

The EU row will be a hot topic for debate at the Law Society of Scotland’s in-house lawyers conference in Edinburgh on 28 October.

Figures released by the society to coincide with the event show that the number of lawyers employed directly by companies has risen from 400 in 2007 to 750 last year.

Those working for public bodies jumped from 1,550 to 1,750.

It is common for lawyers to spend periods of their careers working directly for businesses before switching back to private practice with a law firm, or vice-versa.

A Ministry of Justice spokesperson said: “We will consider the issue and respond to any letters on the matter in due course.”