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The NewLaw wars

The NewLaw sector is in the midst of an identity crisis. Practitioners in this space should be kind to one another and focus on one’s own race, writes Emma Heuston.

user iconEmma Heuston 05 November 2020 NewLaw
Emma Heuston
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NewLaw has changed. It is not enough to label a firm “virtual” or online” and offer flexible work arrangements to be characterised as “NewLaw” anymore. As an ever-evolving and growing community, particularly in the face of the pandemic changing the way we work, NewLaw is in the midst of an identity crisis and this has had ripple effects for the positioning of some NewLaw firms.

The term “NewLaw, first coined by Eric Chin back in 2013, originally described a business model used to deliver legal services that are different – either seconded, outsourced or fixed-fee legal services. But now it now seems to be used to describe anything not in the traditional legal practice realm and we are currently seeing a lot of movement in this sector.

Among this jostling and transformation in the NewLaw landscape I have observed some rumblings in the media (both traditional media and social media) differentiating categories of firms within NewLaw. The label “NewLaw” is no longer enough as firms scramble to reposition themselves. Firms are being hived off into a firm’s intent on growth and scaling up versus so-called lifestyle NewLaw firms, typically run as a boutique micro or small NewLaw firm for work/life balance.

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But all this does is create division and disharmony in a sector that needs kindness this year more than ever. I write this article as the founder and director of a lifestyle firm. And let me say I am proudly a pro-lifestyle firm, but the fact that I created my business to create more freedom, money and work-life balance in my life does not preclude The Remote Expert from business growth and innovation. In fact, in the pursuit of work-life balance I am more likely to be innovative so I can work less but achieve more.

In her 2019 article, “Towards the Uberisation of Legal Practice”, Margaret Thornton, Emerita Professor of Law, ANU College of Law, looked at NewLaw as it relates to happiness, work patterns (like flexible work) and gendered effects. Ms Thornton identified NewLaw firms as businesses that are “able to respond to perceived gaps in the market in an agile way”. However, she went on to caution that both women and junior lawyers were in danger of being exploited under the NewLaw system and the “Uberisation” of legal services. She warned that women faced exploitation because the inherent flexibility in NewLaw could create a feminist enclave that created part-time work around caring responsibilities. As to junior or less experienced lawyers, she cautioned that the decentralised NewLaw system favours more senior lawyers who are autonomous, in so doing disadvantaging their junior counterparts.

In fact, Ms Thornton makes the interesting point in her article that, “while senior women were able to establish their own firms, authoritative positions in the larger NewLaw firms remained dominated by men” (page 57, Ms Thornton). Given that women operate many of these so-called lifestyle NewLaw firms, indeed perhaps even the firms Ms Thornton was referring to in her article, it seems Ms Thornton was on to something. I am of the view that to drive a wedge between bigger NewLaw and lifestyle NewLaw is a gendered issue that is emerging and an issue on which we must keep a watchful eye on.

Collaboration over competition

That issue aside, I ask this question of you: “what can be gained by comparison and competition within the NewLaw sector?” A variety of different legal services businesses in different niches can only benefit clients and drive innovation in the sector.

There are organisations out there such as The Club run by Clarissa Rayward (aka The Happy Family Lawyer) and the Automio Savvy Lawyers group that allow lawyers in smaller boutique firms (some may be considered lifestyle firms) to collaborate together and cross-refer. Collectively, these groups are stronger together and are a powerful combined force as we move into this post-pandemic decade.

The future

If 2020 has shown us anything, it has shown us that the future is a mystery. What is clear is that now, more than ever, innovation and being agile are key benefits. As is the ability to connect with our colleagues and really ensure we are checking in on each other.

NewLaw or traditional Law or somewhere in-between – it doesn’t matter. Let’s be kind to one another and focus on our own race.

Emma Heuston is the founder and director of The Remote Expert.

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