table of contents - larciereditionslarcier.larciergroup.com/resource/extra... · 2015. 10. 22. ·...

Table of Contents

Acknowledgments ........................................................................................ 7

List of Abbreviations .................................................................................. 9

Abstract ............................................................................................................... 11

Introduction ...................................................................................................... 13

Scope and Purposes of the Book ........................................................ 13

Structure of the Book .............................................................................. 16

Part I Background .................................................................................................... 21

Chapter ILegal Process Outsourcing: An Overview ............................... 23

Introduction .................................................................................................. 24

I. Outsourcing to India ........................................................................ 26

A. India’s Tryst with Outsourcing ................................................... 26

B. The Birth of Legal Process Outsourcing .................................. 28

II. Types of Legal works outsourced to India ............................ 31

A. Electronic Discovery ...................................................................... 32

B. Document Review ......................................................................... 32

C. Contract Review and Management ......................................... 33

D. Legal Research ............................................................................... 33

E. Document Drafting ..................................................................... 33

F. Intellectual Property Support .................................................... 34

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PROMOCULTURE - LARCIER

340 The Outsourcing of Legal Services to India: Trends, Challenges and Potential

G. Paralegal Services .......................................................................... 34

III. Pros and Cons of Legal Outsourcing ....................................... 35

A. Benefits Associated with Legal Outsourcing to India ......... 35

B. Challenges Associated with Legal Outsourcing .................... 37

1. Cost of supervision ................................................................... 37

2. Quality issue .............................................................................. 38

3. Loss of critical skills .................................................................. 38

4. Data security issues and client confidentiality ...................... 39

5. Cultural Differences .................................................................. 39

6. Public perception of outsourcing ........................................... 40

IV. Models of Legal Process Outsourcing ..................................... 40

A. Third- Party LPO Vendor............................................................... 40

B. Captive or In- House Model for Corporations ....................... 41

C. Captive Law Firm Model ............................................................ 42

V. The use of legal outsourcing by Corporations vs. Law Firms ....................................................................................... 43

VI. Changing position of In- House Lawyers – The U.S. Experience ..................................................................... 46

Conclusion ...................................................................................................... 50

Chapter IIOffshore Outsourcing and Unemployment in the United States .............................................................................. 53

Introduction .................................................................................................. 54

I. Background of Offshore Outsourcing ..................................... 58

A. LPO and Unemployment in the Legal Sector ........................ 58

B. Offshore Outsourcing – Shifting Nature of Comparative Advantage ........................................................ 61

C. Offshore Outsourcing – From Manufacturing to the Service Sector .................................................................... 63



341Table of Contents

II. Theories Related to Offshore Outsourcing and Unemployment ......................................................................... 66

A. General Economic Theory ........................................................... 66

B. Bastiat’s Broken Window Fallacy .............................................. 71

III. Anti- Offshoring Legislations ........................................................ 74

A. Continuing Efforts to Prevent Offshoring to Low Cost Destinations ............................................................ 74

B. The Constitutionality of Anti- Outsourcing State Legislations .......................................................................... 78

IV. Temporary Visa for Highly- Skilled Workers ......................... 83

A. Reduction in Quota on Temporary “H- 1B” And “L- 1” Visas ............................................................... 83

B. Application of the General Agreement of Trade in Services (GATS) to H1- B Visa and L- 1 Visa ........................ 86

Conclusion ...................................................................................................... 89

Chapter IIILiberalization of the Indian Legal Service Sector ............. 93

Introduction .................................................................................................. 94

I. Unshackling of Indian Economy Post 1991 ........................... 95

II. Mounting Pressures from the Developed Economies on India to Remove Its Legal Barriers ..................................... 97

III. Early Entry on Indian Soil by Foreign Law Firms ............... 99

IV. Regulatory Measures Inhibiting Foreign Lawyers to Practice in India .......................................................................... 101

A. Bar Council of India ...................................................................... 102

B. The Indian Advocates Act, 1961 ............................................... 108

V. Pros and Cons of Liberalization of Legal Services to India ..... 112

A. Benefits of Allowing Foreign Law Firms to operate in India ... 112

1. Domestic Indian Lawyers and Law Graduates ...................... 112

2. Domestic Legal Industry and Clients ...................................... 113




3. Foreign Direct Investment in Legal Sector ............................ 115

4. Advisory Services on Domestic Law ........................................ 115

5. Keeping LPO Business Secure .................................................. 116

B. Drawbacks of Opening up Foreign Law Firms in India...... 116

1. Limited Influence ....................................................................... 116

2. Loss Of Competitiveness ........................................................... 116

3. Domestic Restrictions ................................................................ 117

4. Foreign Law Firms Might Dissociate with Indian Law Firms after Establishing Their Base ...................................... 117

5. Protection Barrier Against Foreign Law Firms Not Working Anyway .............................................................. 118

VI. A.K. Balaji Case – Final Blow to Foreign Law Firms? ..... 118

VII. Various Forms of Affiliations with Indian Law Firms: Circumventing Indian Law? ...................................................... 121

VIII. Is India Under An Obligation to Liberalize its Legal Sector Under the General Agreement on Trade in Services (GATS)? ........................................................................ 123

A. Overview of GATS in Legal Services ........................................ 123

B. India’s Position on GATS and Legal Services ......................... 124

C. Effectiveness of GATS in Liberalizing Trade in Legal Services ............................................................................ 126

Conclusion ...................................................................................................... 130




Part II Legal challenges ........................................................................................ 135

Chapter IVThe Ethics of Legal Outsourcing to India and the Legal Malpractice Liability Issues ............................. 137

Introduction .................................................................................................. 138

I. A Brief Overview of Codified Legal Ethics in the United States ........................................................................... 140

II. Ethical Issues Pertaining to Legal Outsourcing ................... 144

A. Conflicts of interest ...................................................................... 144

B. Supervision ...................................................................................... 148

C. Disclosure to Client ....................................................................... 151

D. Ethics of Hourly Billing and Fee Sharing Arrangement ..... 153

1. Hourly Billing System ............................................................... 154

a) Background of the Hourly Bill System ............................ 154

b) Drawbacks of the Hourly Billing System ........................ 156

c) Hourly Billing Continues to Rule the Billing System ..... 158

2. Fee Sharing Arrangement ....................................................... 159

III. Legal Malpractice .............................................................................. 162

A. Legal Ethics Rules and the Legal Malpractice Liability in the United States – An Overview ........................ 163

B. Expert Testimony Using Legal Ethics In Case Of Malpractice Litigation ............................................................ 164

C. Model Rules in Establishing Malpractice Liability ................ 166

1. Arguments against the Use of Model Rules in Establishing Malpractice Liability ...................................... 166

2. Arguments in Favor of the Use of Model Rules in Establishing Malpractice Liability ...................................... 171

D. Legal Outsourcing Related Malpractice Liability ................. 175




E. Liability of an Outsourcing Lawyer or Law Firm in Case of Legal Outsourcing..................................................... 176

1. Forming Limited Liability Partnerships – Escaping Vicarious Liability? .............................................. 178

2. Limiting the Scope of Representation under Model Rules in Offshore Outsourcing ............................................... 180

Conclusion ...................................................................................................... 183

Chapter VData Protection ........................................................................................ 185

Introduction .................................................................................................. 186

I. Overview of General Privacy Laws and Guidelines at the International and Domestic Level ................................ 189

A. International Human Rights Instruments and Guidelines on Data Privacy .............................................................................. 189

B. Development of Data Protection Law at National Level..... 190

C. Organization for Economic Co- operation and Development .......................................................................... 191

D. Convention for the Protection of Individuals with regard to Automatic Processing of Personal Data ............................................................................ 192

E. International Working Group on Data Protection in Telecommunications ................................................................ 193

F. Asia Pacific Economic Cooperation Privacy (APEC) Framework ...................................................................................... 193

G. Economic Community of West African States ...................... 194

II. Different Approaches to Data Protection Laws ................. 195

A. The United States .......................................................................... 195

1. Tort Privacy Laws ...................................................................... 195

2. Fair Credit Reporting Act, (FCRA), 1970 ............................... 196

3. United States Privacy Act, 1974 ............................................. 197

4. Financial Privacy Act, 1978 ...................................................... 198

5. Gramm- Leach- Bliley Act, 1999 ................................................ 198




B. United Kingdom ............................................................................ 199

C. European Union Data Protection Law .................................... 201

III. Principles of US- EU Safe Harbor ................................................ 205

A. Background of Principles of US- EU Safe Harbor .................. 205

B. Enforcement of the Safe Harbor Principles ........................... 207

C. Criticism of the US – E.U. Safe Harbor Principles................. 209

IV. Alternative Solutions – Transfers to Third Countries ....... 211

A. European Commission Standard Contract Clauses (SCC) ... 211

B. Binding Corporate Rules (BCRs) ................................................ 215

V. Data Protection Law in India ...................................................... 216

A. Overview .......................................................................................... 216

B. Concept of Privacy in India ........................................................ 218

C. Outsourcing Related Indian Data Protection Laws ............. 220

1. The Information Technology Act, 2000 ................................ 220

2. The Information Technology (Amendment) Act, 2008 ...... 221

3. Information Technology (Reasonable Security Practices and Procedures and Sensitive Personal Data or Information) Rules 2011 ..................................................... 223

4. Right to Privacy Bill, 2011 ....................................................... 226

5. Indian Contract Act, 1872 ....................................................... 226

D. Security Mechanisms Adopted by Indian Outsourcing Provider to Ensure Data Protection ......................................... 227

Conclusion ...................................................................................................... 228




Part III Non- Lawyers in the delivery of legal services ............... 231

Chapter VIMultidisciplinary Practices ................................................................. 233

Introduction .................................................................................................. 234

I. The Lawyer’s Professional Autonomy – The United States ............................................................................ 237

II. Multidisciplinary Practices (MDPs) in the United States .... 240

A. The Growth of the ‘Big Five’ Accounting Firms ................... 240

B. ABA’s Stand on Multidisciplinary Practices ............................ 243

C. Challenges Associated with MDPs ............................................ 247

D. Benefits of MDPs ........................................................................... 254

III. Multidisciplinary Practices in the United Kingdom .......... 256

IV. Multidisciplinary Practices in Australia (New South Wales) ........................................................................... 260

Conclusion ...................................................................................................... 263

Chapter VIIImproving Access to Justice through Paralegals and LPO Professionals.......................................................................... 265

Introduction .................................................................................................. 266

I. Access to Justice ................................................................................. 268

A. Legal Aid .......................................................................................... 270

B. Mandatory Pro Bono Service – Moral Choice or Legally Enforceable Duty ....................................................... 272

1. Justifications in Favor of Mandatory Pro Bono Service ..... 275

2. Mandatory Pro Bono Service is Not the Answer to the Problem of the Access to Justice ............................... 277

C. Class Action Suits ........................................................................... 279




II. Non- Lawyers in the Business of the Delivery of Legal Services – A Viable Alternative for the Access to Justice Problem? .......................................................................... 281

A. Unbundling of Legal Services, LPO and Access to Justice .... 283

B. The Use of Paralegals and LPO Professionals in Alleviating Access to Justice .................................................. 289

Conclusion ...................................................................................................... 294

General Conclusion ...................................................................................... 297

Bibliography ..................................................................................................... 301

I. Books ....................................................................................................... 301

II. Articles .................................................................................................... 307

III. Reports ................................................................................................... 329

IV. News Coverage ................................................................................... 331

V. Cases ........................................................................................................ 335

A. Indian Cases .................................................................................... 335

B. American Cases .............................................................................. 336


table of contents - larciereditionslarcier.larciergroup.com/resource/extra... · 2015. 10. 22. ·...

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