10 July 2009

A Changing Profession - Legal Equality by 2015?

By Ron Pol of Team Factors Ltd published in The Business of Law 2009 by Thomson Reuters

(Additional data supplied by Ron Pol and from the NZ Census of Women's Participation 2008 as well as the NZ Law Society Annual Report 2007).

The legal profession is perhaps a late-comer to change, even as many of its members forge ahead. Although no-one today would object to women lawyers, it seems that the status quo will always have its staunch defenders, even in the face of an inevitable change to reflect the modern practice of law.

For example, although New Zealand was a world leader in women's suffrage - strongly supported and encouraged by individual (male) lawyers with a clear vision for the future - the established profession remained a bastion of opposition to change within its own ranks even as society evolved around it. On gender equality, notwithstanding the foresight of many lawyers, the legal profession was, and in other respects today remains, marooned in the backwaters of the past.

Status quo

The difficulties of nineteenth century women being recognised by the established profession bear startling similarities to the profession's twenty first century leaders carefully shepherding through the so called 'reform' of the Lawyers and Conveyancers Act 2008. In many respects, both seemed designed to preserve the status quo and to resist change in the face of inevitable progress.

Throughout the 1880s and 1890s New Zealand refused to allow women to practise law even though the 1881 census showed that women represented a quarter of the people working in professional occupations. By comparison, in that same year, women had been admitted to the Bars of 14 American states. Gill Gatfield's 1996 book Without Prejudice: Women in the Law records a remarkable path of resistance to change, resulting in 'reform' legislation that, in relation to women, simply preserved the 'tradition' and status quo, in which only men could be admitted as barristers and solicitors in New Zealand.

'Person' does not include 'Woman'

In 1881, backbench MP Sir George Grey, a former colonial governor and declared liberal, introduced the Law Practitioners Bill as a means of 'throwing open' the New Zealand legal profession. Grey's objective was reportedly not that more people would practise law but instead, that by developing a less regulated model and liberalising entry requirements, a pool of talent might be created to help advance New Zealand's interests in many fields.

For the established profession, in which entry requirements suited to the privileged classes were described as "integral to the status, and hence the wealth, of the profession", Grey's Bill signalled disaster. The profession was particularly sensitive to competition, consistently blocking any inroads into lawyers' conveyancing monopoly.

Although the prospect of women lawyers was seemingly an unintended consequence of Grey's Bill, this soon became a focus point of discussions within the law societies and Parliament. The Bill provided that 'every person' over 21 years of good character who passed the requisite examinations would be entitled to be admitted as barristers and solicitors. A lawyer and the MP for Otago, William Downie Stewart remarked in Parliament that 'person' might include 'women'. This was clearly too much for the profession, prompting urgent meetings of the Auckland, Wellington, Canterbury and Otago District Law Societies, and a deputation to Parliament with an important 'clarification'.

Although strenuously opposed by some parliamentarians, the ensuing parliamentary debate favoured the views of the legal profession and narrowly resulted in the introduction of the word "male" before "person".

Although the status quo was preserved, Gatfield notes that Frederick Whitaker, also a lawyer and son of the Attorney-General, sounded a warning:

Considering the number of motions and bills they had on the Order Paper to give voting power to women, it was an important question also whether they should not, as in America and other places, admit women to practise at the Bar.

In part due to hard economic times, the spectre of competition suppressed discussion of equality even as the women's suffrage movement was gaining ground. It was another fifteen years before women were at last legally allowed to practise law in New Zealand, from 1896.

Not the Rule, but the Exception

Even as change occurred at the end of the nineteenth century, the Minister of Education William Walker noted: 'It was absurd to say that a large number of women must be lawyers... That was not likely to occur. It would not be the rule, but the exception, that women would become lawyers'.

Women were indeed to be the exception, for a very long time. Even in 1936, forty years after women were allowed to practice law, there were only 7 women lawyers, representing less than half of one percent of the 1717 practising certificates issued that year.

In 1977, however, as the proportion of women lawyers approached 5%, the New Zealand Law Society annual reports began to record the number of practicing certificates issued to women. Since 1977, the number of practicing certificates issued to women has rapidly and steadily increased, from 10% in 1982, to 20% in 1989, 30% in 1997 and 40% in 2006, as illustrated in Fig 1.

Fig1copy.JPG

A Changing Profession

Lawyer numbers, both male and female, have grown rapidly, particularly since the 1970s, yet the overall numbers alone can sometimes obscure the changing shape of the legal profession itself.

Examining growth rates in terms of the proportion of lawyers engaged in each of the different ways in which lawyers practise law helps reveal how the fabric of the legal profession has inexorably changed and continues to evolve.

Three Ways of Practising Law

New Zealand's 10,523 lawyers, based on the number of practicing certificates issued in 2007, work in three quite distinct ways. Two thirds of lawyers work in private practice, as partners or employees in law firms - ranging from sole practitioners and specialist firms to the mega-firms with hundreds of lawyers. These lawyers are available to the public.

Almost a seventh of the profession practise as barristers, namely lawyers who deliver specialist advisory and advocacy services. Barristers are not generally available directly to the public except through the instruction of other lawyers, whether in private practice or in-house.

The last group of lawyers are in-house counsel, currently nearly a fifth of the legal profession. Employed by or contracted to corporate, government and other agencies, these lawyers typically provide legal advice only to their employer organisation. They also manage the provision of legal services to their organisations by external lawyers, ie law firms and barristers.

Overall, between 1998 and 2007, the number of practising certificates overall has grown by 32%. However, this masks widely different rates for the three different types of law practised, as shown in Fig 2.

Fig2.jpg

Fastest growth in-house

The number of lawyers joining the in-house profession has grown fastest, at 93% growth over 10 years compared with 32% growth in total practicing certificates issued generally), or 9% compounding. To put this in context, as lawyer numbers overall continued to expand, Fig 3 illustrates the growth of this group of lawyers as a proportion of the legal profession. From 13% of the profession in 1998, 10 years later in-house counsel represent over 19% of New Zealand's legal profession; in-house counsel represents nearly 50% more of the profession than they did only a decade before.

Fig3.JPG

This rise is even more remarkable given that, as a result of systemic under-reporting, the strong growth of the in-house profession likely under-represents the true number of in-house counsel.

This is because, before the Lawyers and Conveyancers Act 2008 came into force in August 2008, unlike other members of the legal profession, in-house counsel did not always need practicing certificates. As a result, some corporate and government organisations paid for practicing certificates for only some members of their legal departments.

Where the Women Are

Overall, women make up 42% of lawyers in NZ. At only 36% women, however, barristers have the lowest proportion of women of any of the three main branches of the legal profession, dragging down the overall average. Private practice is about 40% women. In-house counsel is the type of law practice estimted to have the highest proportion of women, at around 55%. This may reflect the perception that there is better work flexibility to be achieved in-house, certainly for public sector employers where the proportion of women at senior levels can range between a third and a half of all senior staff. By comparison, scarcely 20% of principals in private practice in NZ are women, and this number is even lower in the largest 25 firms.

Where the Women Will Be

Although the rate of growth in the practising certificates held by women appears to have slowed in recent years, a simple linear extrapolation based on the thirty years to 2007 suggests that women might represent 50% of the profession by about 2013.

Extrapolating instead from 1997, with the more gradual growth of the last few decade, there is a delay in the number of women lawyers reaching equality of a further two years, to 2015, as shown in Fig 4.

Fig4.JPG

Other areas of the law are forecast to take considerably longer to reach equality. Based on present growth rates it might be nearly a further decade - 2023 - before gender equality is matched in the ranks of New Zealand barristers. And similar linear extrapolation of the growth of women principals since 1993 suggests that women's path to equality of numbers at this senior level may not occur before 2050, another 40 years!

Thus, nearly 120 years after the legal profession's leadership finally agreed that 'person' might include 'women' there is clearly still some way to travel.

Slow Progress, then as now

Although today's leaders may have described as 'reform' such changes as have occurred, nineteenth century leaders simply said 'no' to change. The result, however, is much the same: resistance to change, and slow progress. As with the eventual acceptance of women lawyers, perhaps only after the inevitable liberalisation of the profession finally occurs (for example, with a less equivocal and express focus on the consumer, and with law firms eventually able to access business capital and ideas, as in every other industry and like their colleagues overseas) will the established profession recognise that change to 'traditions' more accurately to reflect modern society and a progressive profession will actually bring more benefits to consumers, and to lawyers themselves, than the usual fears accompanying any change.

Acknowledgement

Ron Pol, Director of professional services firm Team Factors Ltd, helps organisational clients maximise their value of legal services and helps professional services firms transition from client focus to a more powerful client perspective.

With a background in law and economics, Ron is past President of NZ's representative association for in-house counsel, former General Counsel for public and private sector organisations, and has worked in legal roles in London, New Zealand and Asia. With over 150 articles in legal and business publications globally, Ron is often invited for thought leadership on maximising effectiveness of the legal function, client-lawyer relations, and the future of the legal profession.

Contact:
Tel: +64 4 562 8444
ronald.pol@teamfactors.com
PO Box 41-036
Wellington 5047
New Zealand
www.teamfactors.com

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