Legal Business

News in brief – February 2016

CASES AGAINST LAW FIRMS DOWN

Figures collated by RPC suggest the post-financial crisis wave of professional negligence claims against law firms has passed. High Court cases against firms were down 47% last year. While the number of cases spiked by 192% to 418 for the year 2013-14, the number of actions against solicitors for the 12 months to 30 June 2015 is lower at 221.

 

MACFARLANES REAPPOINTS SENIOR LEADERSHIP

Demonstrating its confidence in the existing leadership, the partnership at Macfarlanes has reappointed Charles Martin and Julian Howard to the roles of senior partner and managing partner respectively. Although the existing terms were not due to expire until May 2017, they were both handed extra three-year terms before Christmas, to run until May 2020.

 

DAC SUFFERS £4M IT HIT

DAC Beachcroft has taken a £4.39m hit on a failed IT project as it tried to change its case management system internally. The firm’s LLP accounts for 2014/15, posted in January, show it wrote off £1.5m as an exceptional expense after giving up on the IT project. The year before the firm had written off £2.89m in costs associated with the project, for a total of £4.39m.

 

CMA TO PROBE LEGAL INDUSTRY

The Competition and Markets Authority (CMA) has launched an investigation into the legal services market over concerns about the affordability and standards of legal services. In January the body said it would focus on small businesses and private individuals as clients in a review that excludes major corporates and criminal law.

 

MAB TO CLOSE AFTER DENTONS TAKEOVER
Matthew Arnold & Baldwin (MAB) will close its doors following an exodus of lawyers, including the loss of a 75-strong banking and finance litigation team, which defected to Dentons, and the firm’s remaining 30 lawyers signed a deal in January to join Veale Wasbrough Vizards (VWV). VWV is expected to sign a lease for new premises in Watford, where MAB had been based.

BARRATT RESHUFFLES IN-HOUSE TEAM
Property firm Barratt Developments has rejigged its legal team following the retirement of general counsel (GC) Tom Keevil, promoting his deputy Nick Mullen to succeed him as legal head. Keevil had stepped down from the FTSE 100 company’s top legal role after five years in December, having served as both GC and company secretary.

REED SMITH OFFICES FACE JOB CUTS
Reed Smith is to make 45 lawyers from its US, European and Middle Eastern offices redundant as it makes what it said are the ‘necessary adjustments to remain competitive’. The cuts affect 4% of its total 1,205 lawyer headcount across
the three regions.

KWM TO HOLD ELECTIONS AS BOSS STEPS DOWN
King & Wood Mallesons (KWM) is to hold managing partner elections for its European practice after William Boss resigned from the role in January, less than a year into the post. Boss, who steps down at the end of April, said he was leaving to concentrate on the firm’s real estate practice full time.