Black Immigrant Daily News
Yesterday, Parts 1 and 2 of the Legal Services Act, 2020 (the “Act”) were discussed by Loop in an explanatory video and article. These parts of the Act came into force on October 14, 2022, according to a government press release.
As readers will recall, those parts covered definitions to be used under the Act and the procedure for the establishment of the Cayman Islands Legal Services Council (the “Council”).
In this second part of the explainer, sections 99 and 101 of the Act will be discussed, which the government press release also said will come into force on October 14, 2022.
Section 99
In relation to section 99, this allows the Cabinet to make regulations covering access to the legal profession and training and development of attorneys-at-law.
According to the Act, the Cabinet can make these regulations after consultation with the Cayman Islands Legal Services Council which, as was mentioned yesterday, is expected to include political appointees.
In addition to the concerns raised regarding the Council comprising political appointees, its general structure is expected to cause controversial issues in connection with the mixing of the powers of the court, legislature and cabinet in one place (i.e., on the Council). This may ultimately lead to questions about possible conflicts of interest in the operation of the Council.
Before moving too far off topic, however, let’s dive in and examine the types of regulations that one can expect see the Cabinet consider and pass under section 99.
In this case, the source of the guidance for what one may expect in the 2022 regulations is the content of the 2019 consultation draft regulations.
In connection with this, the 2019 consultation draft covered the type of firm that the regulations would apply to, the requirement for such firms to have a scholarship programme in place, how scholarship recipients could win contracts to train with a law firm and what happens after their training is complete and they are finally admitted by the courts to practice Cayman Islands law.
Type of firm
According to the 2019 consultation draft, the proposed Cabinet regulations were contemplated to apply only to a law firm that had over fifteen attorneys-at-law that hold practising certificates.
The 2022 regulations are expected to take a similar shape in this regard as smaller firms may have challenges with satisfying the regulations due to the size and resources of smaller firms.
Scholarship programme
The 2019 consultation draft required a law firm to establish and maintain a scholarship programme and provide a scholarship to at least one Caymanian at all times.
Again, one would not expect this to change for the 2022 regulations, unless firms wish to be generous and commit to scholarships for at least 3 or 4 Caymanians at all times.
Training contracts (or “articles”)
In relation to training contracts or articles of clerkship that a scholarship student may win at a law firm after he or she has completed his or her law studies, the 2019 consultation draft generally says that the relevant law firm will first look at its list of scholarship students that it already sponsors. The law firm would then interview the persons on that list for a chance to complete a period of articles or training with the law firm that will ultimately lead to the person qualifying as a lawyer. However, the ability to win this prestigious seat may be dependent on how well the student does at university (i.e., the achievement of first class honours, etc.).
If the 2019 consultation draft is followed, it may also mean that any student who was not on the law firm’s scholarship programme, but who has a degree, may be left out of the race for a training contract.
Unfortunately, the manner of the preparation of the 2019 consultation draft does not offer much certainty in terms of a sponsored scholarship student being allowed to complete his or post law degree training with the very firm that gave him or her a scholarship to do the law degree.
One might therefore expect that the 2022 regulations to provide more certainty for law school graduates in that they will all be offered training contracts upon completion of their degrees, after having been sponsored by the relevant law firm.
Life after being called to the bar
If one follows the text of the 2019 consultation draft, one will see that, once a law student completes his or degree and training for 18 months with a law firm, that person will be offered an interview for an associate position i.e., a full-time job with the relevant law firm.
Again, the manner of the preparation of the 2019 consultation draft does not offer much certainty in terms of a trainee getting a full-time job at the very firm that he or she completed his or her training or articles of clerkship with.
As an improvement, one might expect that the 2022 regulations to provide more certainty for trainees or articled clerks so that, once they finish their training under the guidance of a law firm partner, they will all be offered jobs as associates in the law firm. Otherwise, there will be little or no job certainty for these persons.
Involvement in business development
If the wording of the 2019 consultation draft remains in the 2022 regulations in the case of business development, the implication is that Caymanian lawyers will only be eligible to participate in the law firm’s business development activities after they have been with the law firm for a minimum number of years.
Such a regulation could be challenging if it appears in the same format in the 2022 regulations because it may mean that a Caymanian attorney working for a competing law firm for 10 years and then transferring to a new firm would not be allowed to participate in the new law firm’s business development activities until he or she has been with the new law firm for a minimum number of years.
An alternative approach to this is for partners to analyse each Caymanian attorney based on their abilities and contributions in terms of billable hours and other factors to determine inclusion in the firm’s business development activities.
Becoming a partner
Again, using the 2019 consultation draft as a guide of what to expect in the 2022 regulations, after a period of at least ten years, a Caymanian lawyer would be expected to be in a position to apply for a position as a partner in the law firm.
This is not expected to change in the 2022 regulations as it is “industry standard” for an attorney to reach the ten year mark before being considered for partner (note that this is a post that can never be guaranteed to anyone as it is based on a high level of performance, including billable hours, winning clients and being likable by other partners in the law firm).
One adjustment for the 2022 regulations, however, is that mention should be made that Caymanians may be eligible for equity partner roles as well as salaried partner roles (again, neither can be guaranteed and are based on various competencies).
Number of associates and partners
If the goal is to have as many Caymanians as associates and partners in the law firms, then the “ratio” approach mentioned in the 2019 consultation draft might be applied in the 2022 regulations.
That “ratio” approach stated in the 2019 consultation draft was that “a law firm that has a Business Staffing Plan shall maintain a minimum the number of articled clerks in accordance with the Business Staffing Plan submitted by the law firm to the Business Staffing Plan Board.”
Something similar could appear in the 2022 regulations in relation to associates and partners i.e., a suitable ratio of Caymanian associates to non-Caymanian associates and Caymanian partners to non-Caymanian partners in relevant law firms. Whatever that ratio is would be what is considered reasonable by all stakeholders.
Section 101
After significantly fleshing out possibilities for regulations that Cabinet could make under section 99 of the Act, one can now examine what savings and transitional provisions might be included in the 2022 regulations.
For illustration purposes only, such provisions may include the following:
Allowing any period of recognised training entered into under old regulations (i.e., before the 2022 regulations came into force) to continue as if recognized under the new 2022 regulationsPermitting any approval, authorisation or recognition granted under previous regulations to continue as if granted under the 2022 regulationsAllowing persons who work outside Cayman and who are advising on Cayman Islands law, but who do not have Cayman legal practice certificates, to continue to do so for a period after the 2022 regulations are passed
The reason for these types of provisions is to allow certain parties time to comply with new regulations in the event that the regulations were passed so quickly that the parties didn’t have sufficient time to comply. They also allow a smooth transition from any old regulations to the new regulations.
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