While Herbert Smith Freehills became embroiled in a very public court battle over a team defection to White & Case in Australia earlier this year, Simmons & Simmons has quietly amended its partnership deed following a group exit to Allen & Overy (A&O) in 2016.
In the space of four months from last summer, Simmons lost four intellectual property (IP) partners to A&O, including highly-regarded patent specialist Marjan Noor in June, followed by London IP head Marc Döring in August, and Mark Heaney and David Stone in September.
The firm reacted by trying to rush through three amendments to its partnership deed. While Simmons refused to discuss the intricacies of the provisions, it confirmed the partnership voted against it.
Following further consultation, Simmons’ management brought a narrower proposal relating to team moves back in front of the partnership conference in Lisbon last October. This time, it was voted through.
Under the new provisions, partners are prohibited from taking a team with them for a set period after leaving the firm. However, the amendments also include a provision allowing the senior partner to negotiate a payment from the new firm in exchange for any team moves.
Simmons senior partner Colin Passmore said: ‘Yes we have had a review, including a debate with partners around our covenants and what happens when partners leave, in terms of their obligations. Making sure covenants are fit for purpose in a modern world where teams are sought after is important and it makes business common sense.’
georgiana.tudor@legalease.co.uk