First Law

OFT asked to investigate judges over legal tendering 'boycott'

Legal week - Thursday 12th October 2006

Complaint will accuse three former chairs of the Family Bar Association of breaching Competition Act

The Office of Fair Trading (OFT) is to be pressed to investigate three UK judges over alleged cartel behaviour relating to a collective boycott of a legal tendering exercise.

The OFT is being asked to launch a formal investigation into whether the trio, in their previous roles as chairs of the Family Law Bar Association, breached the Competition Act by advising barristers to boycott a tender exercise initiated by legal procurement company First Law.

The complaint, which will be made by the end of this month, relates to an attempt in 2003 by First Law to negotiate set fees for barristers to advise on childcare work on behalf of a consortium of 13 Greater Manchester councils.

However, the Family Law Bar Association (FLBA) argued the rates were too low and, in a letter to First Law, said: "The scheme in its present form is unacceptable to us. The Family Bar has agreed that any chambers that conducts discussions with you will not agree the terms proposed but will relay the information passed by you to us for further consideration."

The three signatories to the letter — the then chairman Andrew McFarlane QC and regional chairs Ernest Ryder QC and Margaret De Haas QC — are now judges in the family law courts.

Shortly after the letter was sent, the Bar Council’s chairman at the time, Matthias Kelly QC, sent a follow-up letter making it clear that it was for individual barristers to decide whether they were prepared to work for such fees.

In December 2005, First Law director Anthony Armitage asked the OFT to look into the matter prompting the regulator to issue the FLBA with a warning letter that was copied to Bar Council chairman Stephen Hockman QC.

In May this year First Law wrote to Hockman asking for £100,000 compensation for the losses suffered as a result of what it claims was a collective boycott.

Hockman replied in June denying the existence of a collective boycott and saying Kelly had made it clear it was up to each individual barrister to make a decision.

In a statement to Legal Week, the Bar Council said that the OFT did not intend to commence an investigation in 2005 and that "nothing has happened since then to justify reopening this matter".

Author: Ed Thornton