Call for investigation as Jersey lawyers are accused of ‘cartel’-style behaviour
Lawyers’ fees in Jersey are too high and “exhibit all the characteristics of a cartel”, according to one States Member, who wants an investigation.
St Helier deputy Michael Higgins asked Jersey’s economic development minister Alan Maclean during a session of the States of Jersey on 12 October if he would refer the issue of lawyers’ fees to the Jersey Competition Regulatory Authority (JCRA).
“Will the minister refer to the [JCRA] the question of lawyers’ fees in Jersey, which are not only exceptionally high but exhibit all the characteristics of a cartel; and if he will not refer the question, why will the minister not do so?” asked Higgins.
The question came after The Lawyer published research on Channel Islands lawyers’ hourly rates by costs lawyer Jim Diamond (The Lawyer, 4 October).
Maclean has since stated that he will not ask the JCRA to investigate, adding that lawyers’ fees are only high because of the complex and specialist nature of the work. But Higgins has said he is dissatisfied with this response and is considering putting the matter to the Economic Affairs Scrutiny Panel, which Higgins chairs.
He is also considering bringing a proposition to amend the law to bring in protection with regard to the way costs are taxed.
Higgins’ concerns are directed primarily at high street firms, but he also has issues with the larger commercial firms.
“Jersey’s an international finance centre,” said Higgins. “If fees are uncompetitive they could price themselves out of the market, which isn’t good for the economy.”
According to Diamond’s research, a partner at a top-tier Jersey firm charges between £400 and £475 an hour.
Readers' comments (6)
Sameer | 25-Oct-2010 12:13 pm
"Jersey’s an international finance centre" (?) ...yeah right. Other than cows and expensive estates what else have they got compared to Singapore or Hong Kong?
Unsuitable or offensive? Report this comment
Anonymous | 27-Oct-2010 12:49 pm
@ Sameer
errrr... a STEP International Finance Centre of the Year Award...?
A top division ranking in the IMF's list of internation finance centres...?
Unsuitable or offensive? Report this comment
Sameer Whaley | 1-Nov-2010 4:43 pm
@Anonymous: STEP has its roots in Jersey, no wonder it gave Jersey Financial Center Award. As for IMF, you need to double check the rankings again to see the large gap between Singapore and Jersey.
Unsuitable or offensive? Report this comment
Anonymous | 2-Nov-2010 3:10 am
Seems pretty cheap in comparison to Magic Circle rates in London - not sure what all the fuss is about...
Unsuitable or offensive? Report this comment
Anonymous | 3-Nov-2010 4:56 pm
@ Sameer: As I understood it (and as you wrote it), you were originally questioning whether Jersey was an IFC at all, hence my response.
For what it’s worth, Jersey also features highly in the Global Financial Centres Index, and is well-placed in The Banker magazine’s IFC rankings. Jersey very obviously is an IFC, whatever your redundant view of cows and expensive estates might be (is Singapore any less an IFC because it has pink dolphins?).
If your comment was a sneer at significance in the global markets, notwithstanding what might be said to counter that view, given that Singapore and Hong Kong respectively have populations 55 and 78 times as big as Jersey’s, it’s a rather daft comparison don’t you think?
Unsuitable or offensive? Report this comment
Anonymous | 8-Dec-2010 12:37 pm
The fact that Diamond has to give a range of salaries just for partners and just for the top-tier firms, surely indicates that there is no cartel!
Unsuitable or offensive? Report this comment