Future development

What's coming up in 2012

As we enter a new year, the following are just a few of the key legal events to watch out for over the next twelve months:

Supreme Court to rule on application of legal professional privilege to non-lawyers:

On 6 November 2012, the Supreme Court is due to hear Prudential's appeal against the Court of Appeal's decision in R (Prudential plc and another) v Special Commissioner of Income Tax and others¹.

As you will recall, the appeal is against the Court of Appeal's decision that legal professional privilege does not extend to any professional other than a lawyer. This decision will of course be of great interest to accountancy professionals, who have been pushing for the extension of privilege to cover the legal advice which they may provide.

Implementation of Lord Justice Jackson's proposals on costs:

Many of Lord Justice Jackson's proposals may come into force as soon as October 2012 (either through the Legal Aid, Sentencing and Punishment of Offenders Bill 2010-2011 or through subordinate legislation). Among the proposals which could well be implemented later this year are:

• a stricter regime for non compliance with court orders;
• the prohibition of the recoverability of success fees and After the Event (ATE) insurance premiums;
• the introduction of damages-based agreements (otherwise known as contingency fees) for contentious business; and
• the regulation of success fees by introducing a cap of 25% of damages in personal injury cases.

Yet more litigation involving Russian oligarchs:

As well as the anticipated judgment in the much-publicised litigation between Berezovsky and Abramovich, 2012 will also see further disputes involving Russian oligarchs. Berezovsky will be in action again, this time asserting a beneficial ownership in funds worth between US$2bn and US$3bn held by Badri Patarkatsishvili (formerly Georgia's richest man) and by Russian oligarch Vasily Anisimov.

Another claim will see Michael Cherney take on Russian billionaire Oleg Deripaska, who owns the Russian aluminium company, Rusal. Cherney alleges that 20% of the shares in Rusal are held by Deripaska on his behalf.

Supreme Court to decide whether compulsory retirement at 65 can be legitimate:

In 2010, the Court of Appeal upheld an earlier finding of the Employment Appeal Tribunal that a policy that partners in a firm of solicitors were obliged to retire at the age of 65 was a proportionate means of achieving the legitimate aims of managing the workforce². The case is of importance to partnerships and how they can retire partners. The importance of the case is highlighted by the intervention of the government in support of the firm of solicitors, and the Equalities and Human Rights Commission in support of the appellant partner.

Regulatory change:

And, of course, there is the prospect of a revised regulatory regime following the recent FRC consultation - to say nothing of the appointment of a new AADB Executive Counsel following Cameron Scott’s departure at the end of last year.

1) [2010] EWCA Civ 1094
2) Seldon v Clarkson Wright & Jakes [2010] EWCA Civ 899