The right moves

There has been much said about the anticipated counter-cyclical boom in litigation, yet so far, it’s only been talk. While there’s been a minor uptick in High Court litigation recently, the tsunami hasn’t yet transpired. Meanwhile, the number of arbitration cases has increased significantly year on year, although admittedly from a considerably lower level.

In 2007 – the last year for which International Financial Services London (IFSL) has complete data – there were over 10,000 referrals, appointments or cases submitted to the UK’s various dispute resolution organisations. The London Court of International Arbitration (LCIA) reported 137 cases, a minor rise from the 2006 figure of 133. But by November 2008, there had been a major upsurge to 158 new referrals.

Arbitration cases can run for several years and generate millions in revenue for the firms involved. A former arbitration partner reports that even two years ago, firms would estimate fees for an International Centre for Settlement of Investment Disputes (ICSID) arbitration as being between $5m and $8m. Unsurprisingly then, firms in London have been looking to expand their arbitration practices for several years.

Big names have been thin on the ground, though, meaning that one key hire can transform a firm’s contentious offering. A notable example is Olswang, where the recruitment of Richard Bamforth, who joined the firm in 2005 after ten years at White & Case, is recognised by rival partners as having ‘put the firm on the map’.

Other practices in the ascendant lately include Skadden, Arps, Slate, Meagher & Flom’s London team, headed by Paul Mitchard QC and Karyl Nairn. ‘She’s a good leader of a team,’ one envious peer says of Nairn. The firm recently strengthened its impressive offering further, announcing the significant addition of David Kavanagh from O’Melveny & Myers in March. Kavanagh had not been at O’Melveny for long, having joined from Watson, Farley & Williams in 2007 following its abortive merger talks with Chadbourne & Parke. Nevertheless, he’s made a name for himself acting for Telenor in Europe’s largest telecoms arbitration, relating to an investment worth over €2bn.

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