Changing the model: Legal Plus aims at the 'missing middle' legal clients

 

Changing the model: Legal Plus aims at the 'missing middle' legal clients 

Geoff Adlam - Wed, 4 Nov 2020 

This article was first published by Capital Letter. For more information, please go to www.capitalletter.co.nz.

• legal services • access to justice • social enterprise • 

Legal Plus A new not-for-profit Taranaki law firm is focusing on what founder Caroline Silk calls “the missing middle” – people who don’t walk through the door of a legal services provider because of their view of its accessibility and affordability. 

The new direction Legal Plus is taking in legal services provision is shown by its website, which invites clients to pay what they can afford. “Most New Zealanders cannot actually afford the commercial rates lawyers charge, or they don’t meet the eligibility threshold for legal aid. We are focusing on a whole person and a well-being approach to what we do, and offering really flexible services,” says Silk. 

She says Legal Plus funds the legal services it provides through the smoothing of fees and provision of low cost services, as well as running “an exceptionally lean model”. 

“We look to find practical early resolution to problems people have. Sometimes this is as simple as explaining some correspondence and helping someone find the right answer through an agency such as MSD or IRD. We also work to refer people to the services they need. 

Early and appropriate resolution of legal problems is key.” 

Pay what you can afford 

To meet the needs and expectations of its clients, Silk says Legal Plus has a base rate or set fee, “then we ask people to pay what they can afford of that”. The nominal hourly rates are $150 plus GST for private clients and $250 plus GST for commercial clients. “We are in reality doing work for about $45 per hour when you smooth out those that can pay from those who cannot pay much or afford a koha only. We are gearing up to be able to offer legal aid services – that is taking a bit of time.” 

Silk says business is mainly coming through mobile phone calls and walk-ins: “at this stage it’s mostly referrals”. She says the most common areas of work for businesses are employment and workplace investigations. “For individuals it is a real mix at this stage of employment, family and other civil work – estate claims mainly. The defence work is building slowly. Family law at this stage is the biggest area of inquiry, closely followed by employment.

” The close community connection Legal Plus is firmly anchored in the Taranaki community. Its office at 19 Robe Street, New Plymouth came together with input of advice, goods and labour from businesses and community groups and individuals. Silk says the offices are set up like a home so they are less intimidating. 

A pre-establishment survey in New Plymouth showed that the majority of respondents knew someone who had not accessed the legal system in the last three years because of cost – and 100 per cent said they would be more likely to use legal services if they were affordable. 

Admitted as a lawyer in December 1999, Silk is currently President of the Taranaki branch of the New Zealand Law Society. She left Auld Brewer Mazengarb & McEwan earlier this year after 10 years as a partner to set up Legal Plus. She specialises in employment and mediation, and spent six years from 2003 to 2009 inhouse with the Employers and Manufacturers Association (Central). 

Asked what prompted her move, she says she was tired of working the commercial model and had been looking to work in a way which helps fix the justice gap and the missing middle for some time. “Some of the stories we hear are awful and people need support at what is one of the most stressful times in their lives. 

We also have a strong link between health and legal issues. Most people with a significant legal issue will also have health issues or vice versa. We are looking to build the research on this and the total economics of resolving legal issues early.” 

The Legal Plus focus for individuals is on providing sound, affordable legal services that look after the whole person and are friendly and approachable – “accessible in every sense of the word”, says Silk. 

The value for business clients comes from supporting a local social enterprise. The new model in action After a few months in business, Silk says the Legal Plus model is going really well, and they have received lots of referrals and support locally. 

“Our commercial clients love the lower rates and the social enterprise aspect of what we do. It’s refreshing to work this way and to work with clients in a meaningful way.” Other differences from the traditional law firm model come with a work environment which offers lifestyle, flexibility and freedom from the need to bill six-minute units for six-plus hours a day. 

Silk also says there are no competitors. “We are not competing for work. We have a number of firms who refer directly to us because they either cannot take on the work or it’s work they don’t do. We are not seeking to replace legal aid or community law.”

This article was first published by Capital Letter. For more information, please go to www.capitalletter.co.nz.