As 2024 comes to an end, it is important to reflect on the year that went by and look forward to the challenges faced by legal professionals for the upcoming year. Here are a few that come to mind:
Don’t be fooled by new technology: Legal professionals, both new and old, are being inundated with solicitations for new legal technologies and legal management software to make their lives easier. This will lead to constant changes and jumping from legal software to legal software and expense as a cost-saving exercise until the original purpose of the software is gone. It does not matter if it is Clio, Cosmolex, Leap, PC law, Unity Accounting, etc. If the technology does not allow you the time or data to generate more business, then it is not worth the time or energy. Pick a software and stick with it.
Same goes for artificial intelligence: As I’ve written before, artificial intelligence (AI) is a useful tool to help with low-cost administrative tasks. However, it cannot replace lawyers. Use artificial intelligence as nothing more than legal software to save time to generate more business. Spending more time than necessary on utilizing AI will provide for more challenges in the coming year; the very challenges it is meaning to solve. If a lawyer is providing true value to clients, they can never be replaced.
The end potential of remote work: By now, most firms are settling into a hybrid schedule or back-to-the-office format, and courts and litigation processes are starting to force people back in person. While some firms continue to attempt to work completely remotely, client and court expectations suggest that this remote holiday is over and in-person is back in 2025. Expect challenges with commutes and employee pushback.
Rise of real estate law: The past several years have seen a large dip in real estate law given the rising interest rates. Now that the interest rates are continuing to fall, and five-year terms are coming due from the one per cent rates of 2020, expect to see a rise in real estate purchases and sales and refinances. However, expect also to see defaults, powers of sale and failed closings for failed refinancing efforts. Warn clients beforehand and stock up on personnel to address the upcoming swing.
Continued court backlog: Despite the earnest attempt to appoint more and more judges, courts continue to be backlogged which will challenge moving litigation forward. Continue to encourage client settlements and write arbitration clauses in business agreements to move things along so as not to get bogged down in the civil process.
LSO Connects: The Law Society of Ontario rolled out its LSO Connects software over the summer (see above my point about new technologies) and LAWPRO (Lawyers’ Professional Indemnity Company) is still finishing its website revamp as well. Expect many more challenges and technical difficulties as all parties work out the kinks in the rollout of this new software and website. Click around and be patient with LSO staff; I expect they feel just as lost.
Employment law changes: For the first time in years, the Ontario Superior Court has published a judgment finally acknowledging that a termination clause in an employment contract was enforceable (see Bertsch v. Datastealth Inc., 2024 ONSC 5593 — a decision not publicly available at this time). As employment lawyers over the province effectively copy the enforceable language in the contract in that case right from the decision and insert it into their respective clients’ updated employment contracts, lawyers for employees may have challenges arguing with opposing counsel and judges around this decision to justify significant termination pay that we have been used to seeing.
Tax changes: In the past year, we have already seen significant changes in tax regulations confusing lawyers, accountants and clients alike in terms of how they should deal with succession planning for businesses and families. Expect this to continue given the changes to the political climate in the United States and the upcoming election year in Canada. It would be advisable for lawyers to keep tabs on legislative and regulatory changes and advise clients accordingly.
Finally, as a legal professional it is also important to look ahead and despite the challenges, find opportunities for growth and use this time of year to ask the broad career questions. Are you finding ways to expand your firm? Have you checked in with your largest clients and most impactful employees? What makes your practice more valuable to clients than the next one? (Quick tip: the answer should not be “lowest price.”) Have you increased your expertise in a certain specialty or increased your knowledge base generally? Take time with yourself to ask these questions and set goals for next year so you can become a better and more valuable lawyer to your clients and more importantly, to grow personally.
Happy new year!
This article was originally published by Law360 Canada, part of LexisNexis Canada Inc.
