Page 1 Hispanic Ontario Lawyers Association March 23, 2012 VIA E-Mail: [email protected] Ms. Sophia Sperdakos, Policy Counsel Policy Secretariat Law Society of Upper Canada 130 Queen St. West Toronto, ON M5H 2N6 Re: Proposed Changes to the Articling Requirement: Implications For Equality-seeking Groups. Introduction to “HOLA” The Hispanic Ontario Lawyers Association (“HOLA”) appreciates this opportunity to comment on the Law Society of Upper Canada’s consultation report dated December 9, 2011 (the “Consultation Report”) regarding potential changes to the articling requirement. HOLA is a not-for-profit organization comprised of Hispanic lawyers and law students seeking to form a stronger network. Our objectives include to increase the number of Hispanics lawyers; to advance the standing of Hispanic lawyers in the community; and to promote cooperation and continuous professional development among Hispanic lawyers. Articling Placement Shortage Everyone seems to agree: some form of transitional training is essential but the articling requirement should not be an unfair barrier to licensing. In this regard, the Law Society is concerned that it cannot demonstrate, through objective measures — systemic assessments or benchmarks — that articling is accomplishing its goals, and so the articling requirement is harder to justify in the face of placement shortages. HOLA does not think that the appropriate response, to these circumstances, is to establish an alternative to the articling requirement (nor, of course, to abolish articling). HOLA is in favour of both Option 1 and 2. Prospective law students should be advised that a law degree does not guarantee a licence, among other reasons because an articling position is not guaranteed, with data to explain the degree of risk.1 Further, HOLA 1 step. The Consultation Report notes (at p. 12) that the Law Society of Scotland has taken this Page 2 welcomes the introduction of reasonable (not burdensome) Quality Assurance Improvements. We believe that the results would prove that the articling experience plays a valuable function and is an essential component of responsible entry.2 In addition to Options 1 and 2, HOLA recommends that all necessary temporary measures be taken (including a reasonable levy on the profession to partially subsidize articling placements) to eliminate the current placement shortage. Current unplaced candidates should not be left out in the cold. They are already past the academic system, after having invested 3+ years and significant sums of money. The current placement shortage must be confronted and eliminated.3 HOLA does not recommend creating a systemic and permanent alternative to articling. Solving the current placement shortages by allowing law schools to provide both the LL.B. and “transitional training” just hides the problem (namely, too many articling candidates for the remunerative work out there) and compounds it year after year. The current shortage should be treated as a (hopefully) temporary problem for which temporary solutions are appropriate. No doubt, this requires a dialogue with Ontario’s law schools. That conversation must take place. It is naive to think that many students incur significant debt to specialize in pro bono work. It is not in the public interest that there be “too many lawyers”. Society needs lawyers to be competent, experienced and vibrant, not only for the personal representation they provide but also because most social and economic activity happens in the shadow of the law. Indeed, it is the underprivileged who need the protective shadow of the law most. Lawyers taking a test case, for instance, but also even those bringing a run-of-the-mill Charter motion, serve society at large and not just their clients. Without vibrant, competent and experienced lawyers, the law casts no shadow. As an example, Charter rights are tested in police investigation rooms every day. When the system works as intended, “proper police procedure” is followed even when a lawyer is not watching. The reality is that, at least to some extent, and certainly after a long enough period of time, Charter rights are only as strong as the likelihood that a lawyer will recommend (and bring) that motion, instead of a guilty plea, all things considered. Indeed, the process of particular persons’ Charter rights being tested — and being either 2 The fear that the administrative burden that quality controls would impose on articling firms/principals would decrease demand for articling students can be addressed through subsidization of placements. 3 Those who would enter law school after the Law Society provides the warning recommended at Option 1 must be prepared for a different reception. Page 3 burnished or dulled, both outside and inside courtrooms, every day — results in, i.e., becomes, the Charter we all live under. Therefore, what is in the public interest is that Legal Aid be appropriately funded, not that there be always increasingly larger crops of new lawyers willing to take a certificate. The alternative to “killing all the lawyers” is to have “too many” lawyers. Continuing the criminal law example: to make it so that they must attend four different courthouses a day, not two or three, just to keep the lights on. Keeping the Shortage in Perspective Temporary measures are appropriate because the current system is not broken. The shortage is not insurmountable. Approximately 100 individuals actively seeking articles from the 2010 Licensing Process remained unplaced as at June, 2011.4 The practising bar can create these positions through partial subsidization. Indeed, quite likely, creating PLTCs would require more stakeholder time and money. A 9% Grown Gap, Part of Which Is To Be Expected The Consultation Report notes that whereas the size of the practising bar has increased by 33% over the last ten years, the number of articling positions has increased by 24% (Appendix 1). This 9% growth gap is not a “crisis”. At least some gap is to be expected during times when membership increases very quickly, because no percentage of new members can be anyone’s articling principal immediately. New lawyers must achieve a certain level of seniority before being able to be articling principals themselves. The Causes of the Shortage5 Articling shortages have been caused by factors that could be termed “extrinsic”, both to the practising legal market and to the fundamental issues of whether traditional articles are 4 By June, 2011, the total number of unplaced candidates from the 2010 Licensing Process had decreased from 214 of 1767 (12.1%) to 174 of 1748 (9.95%). Moreover, out of those 174 candidates, only 91 were actively seeking articles; 63 were not; and the status of 20 was unknown (page 7 of Appendix 5). Although some of those 63 individuals were perhaps discouraged by the market, and probably at least some of the 20 whose status was unknown were actively seeking articles, the fact remains that positions must be found for approximately 100 individuals. Therefore, a truer placement rate is 94.7%; a “90%”, or so, placement rate includes those not actively looking. 5 Solving a problem constructively means not assigning blame or pointing fingers. It is also true that finding the best solution to a problem requires identifying its causes. Page 4 both effective and fair. The National Committee on Accreditation (NCA) is receiving more applications from foreign-trained lawyers, resulting in more articling candidates. Over the last ten years, NCA accredited articling candidates have increased by 374%. And, over the last ten years, Ontario law schools have increased enrolment by 15%. According to the Consultation Report, “In the 2007/08 licensing year there were 93 international candidates registered [in the NCA process, looking for and ready to take an articling position]. In the 2010/11 licensing year there were 272 international candidates registered” (page 10). That is an increase of 179 articling candidates (not cumulative) in three years. In addition, all six Ontario law schools have increased enrolment over the last ten years (and there is now a seventh law school). The six law schools together have increased enrolment by 178 spots, again, not cumulative (page 10). Assuming that the NCA class of 2007 was the same size as the NCA class of 2001, which is probably not the case, in the last ten years, increases in NCA accreditations and Ontario law school enrolment have meant an additional 357 articling candidates (perhaps to be expected from now on, every year). Notably, it seems the market has been absorbing most of these additional candidates throughout this period. It is becoming clearer that the market cannot continue doing so. However, it cannot be suggested that practising lawyers are maliciously declining to hire all these additional candidates every year. Concentration in Large Urban Centres and Mid- to Large Firms The Consultation Report sets out a concern that, as the majority of placements are in Metropolitan Toronto and in mid- to large firms, graduates are not getting the opportunity to observe and be mentored by lawyers practising in diverse geographic locations, in sole and small firm settings, or with principals from equality-seeking groups who often practise in such settings. Connected to this is the “greying of the bar” concern. In HOLA’s view, de-emphasizing traditional articles reduces such valuable opportunities. PLTCs will not increase them. Perhaps the hope is that PLTCs will provide the best of both worlds, given the PLTCs’ “law setting placement” requirement. But how beneficial the law setting placement is, depends, in part, on the length of the placement; and the longer it is, the longer the law graduate is being forced to work for free (indeed, to pay to work for free). More on this is said further below. The Consultation Report indicates that 71% of articling placements are in medium to large law firms, 10% of which are in firms of 5-10 lawyers (page 5 of Appendix 4). Unfortunately, historical figures are not provided, but the Consultation Report does state that, “The Page 5 relatively small percentage of placements in the north and overall in firms of one to ten lawyers is not a new or short term situation“ (underline added) (page 10). 65% of placements are in Metropolitan Toronto, which seems high. But 3,279 out of 8,209 law firms (or just a shade under 40%) are in this area (page 7 of Appendix 4). Is it the articling requirement that drives candidates to Metropolitan Toronto? Do not a great number of candidates already live in the area? Could it not be the higher salaries they can expect to earn, not just during articles but for the rest of their professional career? Could it not be any number of things? How many graduates would go straight from law school to new parts of the province, if they were “freed” from the articling requirement? Actions speak louder than words. The actions of first-year lawyers every year who are not hired back at the end of articles, but have their licence to look for a job or set up shop anywhere in the province, yet stay, should be considered. In any event, ultimately, the concern with the concentration of articling positions in mid- to large firms in Metropolitan Toronto is overdone, if not misguided. "Transitional training" should be relevant to the professional experience the articling student is likely to have immediately after being called to bar, not five or ten years later. Moreover, getting to article at a large(r) firm provides exposure to practice management systems, best-in-class software and well thought-out and developed procedures that a sole practitioner may not have had a need to develop, purchase or set out in writing. Articling at a large firm may provide exposure to many substantive practice areas and many ways of “doing business” or “dealing with clients” — not all of which need be perfect to be educational. It provides many more opportunities (many more concrete environments and contexts) in which to ask two fundamental questions: “Is this who I want to be(come), and is this what I want to be doing, in [ten, fifteen, twenty] years?” Finally, articling at a large firm provides access to a large network of lawyers and articling student colleagues to draw on during articling and beyond. In short, although the Consultation Report may have identified the five goals of articling (in any setting or in the abstract), the usual benefits of articling as we know it are more numerous. PLTC providers may teach the right skills — but perhaps not as well. A simulated environment cannot replace exposure to practice. All the classes and speeches on professional civility, for example, are just an introduction to a concept or an ideal when tested by another lawyer in a charged situation for the first time, and probably not as effective at making a lasting impact as watching a principal keep his or her composure. Similarly, the expectations that a paying client has and the expectations that a paying principal has, cannot be faked. A paid PLTC provider says that homework is due; everyone knows that people’s lives will not change if the homework is not done very well or on time. Students are better off getting the honest, and sometimes tough, feedback of one lawyer or a group of lawyers who have real clients with real expectations, as well as Page 6 their own real expectations in trying to run a real business, than three times as many lawyers or professors pretending that it is not them who are being paid by the student and that the student is their client. Perhaps more importantly, PLTCs will not hire graduates and take them through the first years – the most difficult and risky (for themselves and their clients). The Consultation Report notes that, “medium and large firms continue to hire back a significant percentage of their articling students” (page 10). According to page 9 at Appendix 4 to the Consultation Report, 42.9% of articled students in the June, 2010 call were hired back as first-year associates at the firm they articled. An additional 12.7% were employed elsewhere. The numbers for the June, 2009 call were similar: 44.3% and 13.3%. The numbers for the June, 2008 call were even better: 49.4% and 16.3%, meaning that 65.7% of that year’s call did not (have to) hang up their shingle (unless they really wanted to). And of course those who did, or had to, had the benefit of working for 10 months for an experienced lawyer. The PLTC "without-pay placement" is not a substitute. An important relationship is not built in three weeks.6 Realistically, a PLTC will not provide the extensive networks that a traditional articling experience very often provides.7 Law School Grades The Consultation Report notes that “the group of unplaced individuals includes those with good law school grades” (page iii; see Appendix 6). Presumably, the suggestion is that the market may not be merit-based; favouritism and discrimination could be at play. We simply know too little on this. We do not know, from the Consultation Report, if the students in question (those “with good law school grades”) feel they have been discriminated against or even if they are among those who looked for an articling position, and if so, what they did. All we have are grades. Discrimination cannot be just assumed. Moreover, although law school grades can be important, we know, intuitively, that professional success is not determined by grades alone. We should not make drastic changes because eight people with great marks and another 23 people with good marks could not find an articling position after one year (even assuming they were all seeking one; see below). HOLA believes that it is better to have a very special process for those 6 The Consultation Report notes that, in Victoria, Australia, the Leo Cussen Institute’s professional placement lasts three weeks (pp. 25-26). It is not clear whether the Law Society envisions that the placement in an Ontario PLTC could be as short as 3 weeks. 7 Of course, not all articling experiences right now are excellent. But what most candidates are receiving cannot be easily duplicated. And even small Quality Assurance Improvements should bring many ineffective placements up to standard. Page 7 with a very special case to make. The “Minority” 4-5% Gap Members of equality-seeking groups are over-represented in the “unplaced” candidates group by 4% (page 11 and p. 2 of Appendix 5), or perhaps by 5% if one compares not to the overall rate but to the Non-self-identified group’s rate. This 4-5% gap includes doublecounting, as some candidates self-identified more than one equality-seeking group (page 5 of Appendix 5). By June, 2011 the placement rate for Non-self identified candidates had increased to 92.37%; for Self-identified Aboriginal candidates it was higher at 93.33%; for Self-identified candidates with Disabilities, it was still very high at 90.70%; Self-identified Francophone candidates had the lowest rate, at 75.27%; for Self-identified Gay/Lesbian/Bisexual/ Transgendered candidates, it was 86.36%; and for Self-identified candidates from Racialized Communities, it was 85.15%. As at twelve months earlier (July, 2010), the placement rate for Self-identified Francophone candidates was just 59.55% (page 6 and page 7, para. 11, at Appendix 5). It is not for HOLA to comment specifically on the legitimate questions that these low placement figures raise for Francophone articling candidates and lawyers (and others interested in equality and fairness). Still, at many law firms, government and public service offices, corporate in-house legal departments, administrative tribunals and courthouses, speaking French is undoubtedly an advantage. The University of Ottawa’s recent enrolment increases could be a factor leading to these low placement rates for Self-identified Francophone candidates. Notably, of the 78 out of 104 unplaced graduates who went to an Ontario law school (referred to at Appendix 6 to the Consultation Report), just over half attended the University of Ottawa (40 of the 78).8 In this regard, correlation does not imply causation. We would have to know more about people's experiences to say more than this. As already mentioned, a process could be and should be established, if one does not exist already, for people to make a case that the reason they cannot find an articling principal is that they are being discriminated against. As Self-identified Francophone’s placement rate of 75% lowers the overall rate for equalityseeking groups, the University of Ottawa’s enrolment increases alone may account for much, if not all, of the small 4-5% gap. Insufficient Evidence in Consultation Report that Discrimination Causes Shortages HOLA does not see sufficient evidence in the Consultation Report that discrimination 8 The other 27 [sic – 26?] attended other Canadian law schools. Page 8 explains the shortages, nor the variations in the placement rates. HOLA does not dismiss the possibility that isolated instances of discrimination arise and thereby possibly become a contributing factor. Ultimately, HOLA has concluded that, in this instance and given the information available, the profession needs a practical solution to a “shortage problem” and not a solution to a “discrimination problem”. Canadian lawyers are at the forefront in the protection of human rights, not just in Canada but all over the world. Canadian lawyers have a keen sense of fairness and justice. Of course, HOLA does not dismiss the possibility of discrimination and negative experiences. Sadly, there are bad apples, still. But the probability that discrimination is the major factor in unsuccessful articling candidacies decreases with the number of job applications and job interviews the candidates send out and participate in, respectively. This is because there are many good apples for every bad one. Moreover, practising lawyers are not a monolith. They are 8,200+ law firm businesses (as at May 2009) competing against each other for the best legal talent they can afford. Lawyers do not leave the best affordable talent to the competition and deliberately hire the less qualified/promising. The “market” is not proven to be arbitrary or irrelevant to merit. Indeed, the legal profession in Ontario, inclusive of the articling requirement, is as much merit-based as any other system and probably more than most. The fact that eight people with great grades — assuming they were all looking for an articling position in Ontario; but indeed perhaps some had better opportunities — does not prove that articling is an unfair barrier. Taking double-counting and the Ottawa U. increases into consideration, the need for patronizing "action" disappears. Minorities do not need to be "saved" from the articling requirement — at least not any more than non-minorities. HOLA’s Concerns with Option 4 At first blush, Option 4 sells well because nothing is lost; the PLTC is an add-on. Option 4 provides a choice of either articling or taking a PLTC. Traditional articles would continue for those who are able to find a placement and prefer same. Those who cannot, and those who think a PLTC would provide better transitional training, can elect to take a PLTC. What’s not to like about choice? But Option 4 is dangerous. Two parallel roads are unlikely to survive for long. Adopting Option 4 would mean, eventually, the end of articles (Option 5).9 We have heard that the 9 Notably, logic dictates that if the benefits of articling are so much in doubt, the Law Society should prefer Option 5. Page 9 experience in Australia supports this.10 HOLA does not recommend Option 5 and it is clear to us that the vast majority of the profession does not want articling abolished. The risk that Option 4 will create a two-tiered system — the “stigma” concern — is real. It will be difficult to avoid. The difference between being paid for your services and paying to be trained is difficult to ignore. Much of the bar and the public will make assumptions, no matter how PLTCs are structured nor how much their benefits are touted. It is known (or assumed) that, after a certain point in time, some unplaced candidates express a willingness to article for 10 months for little pay (this being better than being unemployed and in limbo). Yet still, they cannot find a lawyer to take them on. Allowing candidates to pay for a course, instead, could be seen as paying your way into the profession. This harms the reputation of the people involved and the profession as a whole. The “stigma” concern is heightened by arguments that because members of equalityseeking groups are “over-represented” in the unplaced group, fairness requires that alternatives be created for them. This is disempowering. Moreover, it may result in “backlash”. If it is the case that a large percentage of unplaced graduates are from minority groups, it follows that students attending PLTCs will be from minority groups, creating “second-class” lawyers and reinforcing negative stereotypes. Members of equality-seeking groups must join the rest of the bar as equal partners in seeking the most practical solution to the articling shortage. The reality, and the message that the regulator should send on a constant basis (unless the evidence does not warrant it), for the benefit of the profession and the public, is one of equal competence. Adding to the “stigma” problem is that the Law Society would not deliver PLTCs.11 Getting into law school is known to be difficult; getting out is known to not be. Grades are bellcurved and there is very little incentive to fail a student. Indeed, getting an articling position (that pays well) is a great part of the incentive to study in law school. There will be even less incentive to fail a graduate paying a final $10,000 for a PLTC. (The “stigma” problem will be most acute for graduates who, for convenience or familiarity, take a PLTC at the law school that granted him or her the LL.B./J.D.) 10 We do not know if the trend in Australia was driven by student choice or by law firms no longer seeing a reason or obligation to pay for graduates’ training. 11 Again, logic would dictate that the Law Society deliver the PLTCs. Only this would put the regulator (and not the “market” or, alternatively, PLTC providers) in control. Notably, the Law Society only relatively recently abolished the extended skills and professional responsibility program for all law graduates. Page 10 Maintaining Articling Protects the Public The evidence that the shortages have been created by recent and extrinsic forces is persuasive. The demand for articling students from practising members of the Ontario bar has kept pace with the growth in the pool of potential articling principals. Neither the Law Society, nor practicing members of the bar as a whole, have failed the public. Making that point should not put self-regulation at risk. As already seen, the market plays an important role in protecting the public. It would not be in the interest of the public that the size of the Ontario bar be determined by law schools in Ontario, Australia, the U.K., and elsewhere, limited only by the willingness and financial ability of some to study abroad. There is no shortage of people who would like to join the legal profession in Ontario. The six (and now seven) Ontario law schools collectively reject many thousands of enrolment applications every year. If a systemic alternative to articling is established, law schools in Ontario and elsewhere will feel less restrained to keep enrolment at reasonable levels, as their graduates will be able to pay for a PLTC and start practising. Similarly, even more students who cannot get into an Ontario or Canadian law school will travel abroad and return, if finding articles in Ontario were not a concern. Articling Should Not Be Characterized as a Barrier A 2008 consultation of the profession concluded (as per a Report to Convocation dated September 25, 2008) that, according to the profession, “Articling should not be characterized as a barrier, but rather as a core component of the licensing process” (underline added; Appendix 7 to Consultation Report, p. 2). All of the current pressures on articling shortages were either present or in the horizon in 2008. Pressures Present or in the Horizon in 2008 In 2008's “Articling Requirement and Projected Increase in Candidates for Licensing”,12 the Law Society stated that: (1) it expected to see a 4% increase in articling candidates every year, mostly as a result of increased international candidates; (2) the University of Ottawa was expected to increase enrolment by 60 spots; (3) the proposed law school at Lakehead University was referred to, as was the proposed law school at Wilfrid Laurier University; (4) the potential for future proposals for law schools at Laurentian University and Nippissing University was acknowledged; (5) it was expected that Canadian-born students would continue to return, and in increasing numbers, from Bond University in Australia (where “at least” 25 of the 175 annual graduates already were Canadian-born students, mostly from 12 See pp. 2-3 at http://www.lsuc.on.ca/media/licensing_appendix_7.pdf Page 11 Ontario, intent on returning); (6) it noted that, “Other universities in Australia are now indicating an interest in attracting Canadian candidates ...” (7) further, “A variety of international law schools are now also catering to Canadian born candidates who are unable to find law school placements in Canada. Schools such as Leicester and Wolverhampton in the U.K., and potential new law schools in New South Wales and other common law jurisdictions are opportunities for these potential candidates, and most will seek to return to Canada upon completion of their law degree”; and finally (8): In the 2010/2011 licensing year, the Law Society might expect some issues around the double cohort (the first group that went from grade 12 to university, skipping grade 13/OAC - the final year for OAC was 2003 the 2003/04 academic year no longer had OAC). There could potentially be a larger group coming through the system either because Canadian law schools have accommodated increases to support this cohort or because the candidates obtained their degree internationally. Even if the law schools only increased their class sizes by a very small 5% (on average this would only add perhaps 10 to 20 new students per class which would not be too difficult for them to balance), there could be an additional 100 or more students in 2010 and every year following. Temporary Solutions While Maintaining the Articling Requirement The Law Society should adopt one or more of the “other” ideas (not classified as an “Option”) in the Consultation Report, while maintaining the articling requirement, including: “forgiving certain fees for articling students who take jobs outside the larger centres to encourage them to leave the larger metropolitan centres” (page 14); permitting articling students to provide all the legal services a lawyer is, with some exceptions, while the articling principal remains responsible and accountable for ensuring that the student is competent and prepared – a move made recently by the Law Society of British Columbia (page 15, fn 21); and “the establishment of a body made up of lawyers and articling students to provide legal representation to underserviced communities across the province and specialized clinic and other legal services for various equality-seeking groups” (page 15). According to the Consultation Report, “To be financially viable [the last suggestion] would likely entail a levy on the profession. If it were intended to develop sufficient jobs to substantially address the shortage issue (200 might be estimated) and $45,000 were used as the annual salary, this could require approximately $9,000,000 or $250 per lawyer licensee a year for salaries alone” (page 16). Page 12 A partial subsidy is workable; and the establishment of a single body or corporation is not necessary. The Law Society could create any number of forms of financial incentives for lawyers to take on articling students, such as a stipend for small firm lawyers who take on articling students or waiving LSUC fees for principals taking on articling students. A more significant subsidy could be, for instance, paying the candidate’s first three months’ salary. HOLA believes that the profession would easily accept a $100 levy.13 Particular geographic and practice areas could be targeted for the subsidy. Legal Aid Ontario and the Law Foundation of Ontario should be pursued as additional sources of funding support. Lack of Quality Assurance Systems The Consultation Report notes the lack of Quality Assurance systems regarding articling. The absence of “measurement tools” is no reason to dismiss the anecdotal evidence of members of the bar who consider their articling experience valuable and who believe it should be maintained. If “measurement tools” are necessary, the answer is to get them, not to assume traditional articles are ineffective or discriminatory. Notably, if Quality Assurance systems are necessary, the Law Society must undertake the administrative burden said to count against Option 2, in any event. The administrative burden is not avoided, but merely shifted from paying articling principals to paid PLTC providers; it remains with the Law Society either way. After all, if PLTCs are introduced and continued, it should be because PLTCs are demonstrably more effective at training graduates than traditional articles and because PLTCs are demonstrably more fair. This, in turn, requires that at least a representative sample of traditional articling placements be assessed, in order to set the benchmark. Indeed, since PLTCs would have a law setting placement requirement, it is difficult to see what there is to fear about Option 2. The assumption appears to be, if there is one, that law firms taking PLTC students for a very short period of time will fill out all the necessary questionnaires and participate in all the necessary debriefings if they get almost any student for free, but many will balk at paying the graduate of their choice a fair wage. The Cost of the PLTC is a Further Burden On Law Students Respectfully, the Consultation Report fails to give enough attention to the financial burden PLTCs would impose on graduates — a burden disproportionately felt by low income 13 Any suggestion that some lawyers would find a $100 levy oppressive and may not survive it would be difficult to understand. What evidently those lawyers could not survive is additional competition for files that leave little to no profit. Continuing to increase call sizes will not help those lawyers at all. Nevertheless, to address this concern, the subsidy program could permit the levy to be waived/rebated under certain conditions. Page 13 individuals and their families, to the point where some may not pursue legal studies at all.14 Perhaps the issue receives little attention because, even for a low income person, it is better to take the PLTC than to be in limbo, and it is only an additional option — i.e., the low income person is free to continue looking for a job. In HOLA’s view, this ignores that introducing PLTCs may lead law firms to not want to hire graduates as articling students. Under both Options 3 and 4 (i.e., as long as a parallel system is established), law firms of all sizes would be free to prefer graduates with a PLTC, assuming the graduate is better trained. At the same time, even strong law students/job candidates could seek a PLTC as a further competitive advantage, particularly if the PLTC is made available during the law school years. The question that has not been asked is whether a process whereby all or a majority of graduates pay for a PLTC is better than the current process because 12% of the 2010 licensing group last year (some of whom were not seeking a position) could not find a paying placement by last March. This may not happen immediately upon adopting Option 3 or 4, but that could be the end result in just a few years. Witness Australia. Under Option 4, law firms of all sizes are to choose between paying articling students for 10 months or having (more) PLTC students for free (for a shorter period). Many firms may choose not to pay, and that means fewer hires, which means more graduates having to take the PLTC. A foreseeable consequence of creating PLTCs, then, is that many graduates of low financial means, who would have found a paying job, will not. The notion that even more debt-ridden students will choose to practice public interest law outside large urban centres is faulty. For Option 4 to be in any way acceptable, it would have to come with substantial subsidies and funding programs to address these cost concerns. If the practising bar will be levied, let it be to create the articling positions that it knows and believes in, not to create PLTCs; let it be to pay students, not to pay PLTC providers. Increasingly, Graduates may have No Real Choice re: PLTC and Hanging Up Shingle Traditional articles provide an established and predictable system for “assess[ing] the next generation of lawyers ... [and] hire[s]” (page 6) with few strings attached. Within reason, no law firm has to be concerned about being sued for telling an articling student that there will not be an associate position at the end of the road. Hiring an associate is a bigger step, psychologically. 14 The Consultation Report acknowledges that it is unlikely that the PLTC would cost less than $7,600 (page 26) and that may be a not-for-profit-basis estimate. Page 14 An unintended result of Options 3 and 4 could be that not all of the would-be principals/firms will hire (as many) graduates, forcing many graduates to immediately hang up their shingle. Even if most of them survive (thanks to the PLTC under their belt), what has happened is that many were deprived of the opportunity of having been “seen” by an established lawyer who was willing to be an articling principal and, perhaps subsequently, supportive employer and mentor. In a system where articles are not a requirement, the tradition of being an articling principal as a way of mentoring and perhaps growing in size — with few strings and expectations — will, slowly, if not immediately, erode. The result will be lawyers without the benefit of years of experience from past generations. The public will suffer even if most new lawyers hack their way through. The Law Society acknowledges that newly-licensed lawyers in sole and small firm practice are at “higher risks for complaints and negligence claims” (page 21). We do not know what the result will be of waves of law graduates practising for the first time without the benefit of articling as we know it. We can expect increased costs to investigate and address complaints and to defend lawsuits. These costs will shared by the bar as a whole. The idea of subsidizing articling opportunities, instead, therefore, makes perfect sense for the profession and the public. Conclusion Options 3, 4 and 5 involve drastic changes to historical requirements for responsible entry. The potential for negative unintended consequences is significant. The profession must keep things in perspective: over the last ten years, the practising bar has grown by 33%, and notwithstanding that a good part those new members cannot be articling principals, yet, the bar has increased articling placements by 24%. Extrinsic pressures and even a double cohort year (causing the unplaced rate to jump, as was predicted in 2008, from 7.7% to 12.1% last year)15 are at play. In the absence of evidence that practising members of the bar are maliciously declining to hire these additional candidates, the fact that the market failed to absorb them all is simply evidence that the market reached the right size.16 HOLA believes that the Law Society should: 15 16 Consultation Report, page 10. Of course, it is not suggested that, for instance, everyone looking for an articling placement as at March, 2012 attended the University of Ottawa or was an NCA accredited candidate. Rather, the point is that increased interest in entering the profession does nothing to create the client files that put articling candidates to work. Page 15 - provide the warning at Option 1; develop and administer the Quality Assurance Improvements at Option 2; and adopt all the temporary measures necessary to eliminate the current articling shortage while maintaining the articling requirement. This includes a reasonable levy for two or three years. After that, the situation can be reassessed. HOLA is especially concerned that Option 4 will create to two-tiered system and perhaps eventually result in the end to many articling positions. This does not serve members of equality-seeking groups, who are, we can be proud to say: apparently competing quite well for placements. Hopefully, this message will not be lost in the justifications for change. HOLA will continue to pursue its valuable objectives. We have established a bursary for a Spanish-speaking student at Osgoode Hall Law School; fostered numerous formal and informal mentoring relationships; delivered networking events and programs; acted as referral sources to one another for potential clients and job candidates, including articling candidates; and we look forward to doing many more things. Fulfilling HOLA's objectives does not require us to ask the Law Society to just allow everyone to pay for a course. Such a request would not be warranted on the evidence (and the need to combat unfairness). And ultimately, the move strikes us as counterproductive to the short- and long-term interests of all equality-seeking groups. Thank you for the opportunity to comment on such an important issue and for the extension granted to file these submissions. Yours truly, Guillermo Schible Victoria Romero Joseph Carpio Claudia Falquez-Warkentin Jessica Gonzalez Directors, on behalf of the Hispanic Ontario Lawyers Association
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