Page 602 – Legal Business

Continue reading “In defence of big – the maths are favouring two + two”

In defence of big – the maths are favouring two + two

How many times do you hear lawyers roll out the line about mergers having to be two-plus-two-makes-five? True in many regards. Getting bigger doesn’t make you better or necessarily solve structural and strategic issues and mergers are hard to pull off effectively.

But when it comes down to it, this truism has become pretty misleading in Law Firm Land 2013.

Because scale does indeed matter in law, all things being equal. Bigger firms have the economies of scale – and these advantages are only getting more important given the continual shift towards smaller and more process-driven panels.

Continue reading “Don’t push your luck with partnership”

Don’t push your luck with partnership

Do law firms take partnership for granted? They really shouldn’t as the model has served them so well. Just consider the case. Partnership aligns management and ownership. This has helped large law firms to avoid the patchy governance and rewards-for-mediocrity seen at public companies over the last 20 years and drives partners to a pure form of performance pay. It is inherently long-term and as such has a strong record in promoting independence and ethical standards. And given that law isn’t a capital-intensive trade – at least once you cross the Rubicon of international expansion – partnership is workable (if not ideal) from a financing point of view.

Partner retirement policies withstand latest challenge but pressure remains for law firms to cross the tees

Expectations that law firms would come under mounting pressure to avoid compulsory retirement of partners have been once again upset as the final chapter in a much-watched legal battle over age discrimination concluded this week.

The Employment Tribunal (ET) made a final rejection of a claim by solicitor Leslie Seldon against his former law firm Clarkson Wright & Jakes (CWJ) that he suffered age discrimination in being required to retire at the age of 65. Continue reading “Partner retirement policies withstand latest challenge but pressure remains for law firms to cross the tees”

Redundancy watch – expansive DWF puts 80 jobs at risk as gloomy job news continues

The steady stream of job cuts seen through May continued this week with the rapidly-assembled national player DWF confirming it has put around 80 roles at risk in a review of the business. The move comes only two months after a previous consultation put 99 jobs under threat following DWF’s recent run of five acquisitions culminated earlier this year in taking on 419 staff from the collapsing Cobbetts. Continue reading “Redundancy watch – expansive DWF puts 80 jobs at risk as gloomy job news continues”

Continue reading “DISSENT: When the BlackBerrys light up: why firms neglect their culture”

DISSENT: When the BlackBerrys light up: why firms neglect their culture

Former SJ Berwin head David Harrel argues that law firms delude themselves when it comes to their own values

The banking crisis and the revelations about mis-selling and Libor fixing, and the failures in the NHS, have highlighted the issues surrounding corporate and organisational culture. It is perhaps not surprising that the newly-formed Financial Conduct Authority has made business culture a particular area of focus. What is perhaps more surprising is that culture was not a central focus before.

Strategic review: Eversheds introduces new sector focus as practice heads replaced

Eversheds has shaken up its sector focus as part of a series of measures introduced by management to adapt to changing client demand and the increased globalisation of legal services.

Following a three-year strategy review unveiled by chief executive Bryan Hughes in July last year, the top 10 UK firm is focusing heavily on increased integration and branding between its international offices and has this month created four new global sectors. Continue reading “Strategic review: Eversheds introduces new sector focus as practice heads replaced”

Reports season 2013 – Addleshaws sees income slide but holds profits steady

Addleshaw Goddard today (31 May) became one of the first major UK law firms to announce its 2012/13 financial results, confirming that revenue has dipped by 2% to £167m against its previous financial year. The top 25 UK law firm saw profits per equity (PEP) partner edge up 2% to £457,000.

Despite the generally subdued outlook and weak demand in the UK market the performance will be viewed as disappointing for Addleshaws, which has struggled to achieve sustained growth over the last five years. Continue reading “Reports season 2013 – Addleshaws sees income slide but holds profits steady”

Continue reading “Bluechips continue to grow legal teams as buyside lawyers shift from external counsel”

Bluechips continue to grow legal teams as buyside lawyers shift from external counsel

Bluechips continue to grow legal teams as buyside lawyers shift from external counsel

In-house departments are expanding rapidly and overshadowing private practice growth as corporates plan to further bolster their internal legal capability.

Both recent statistics and developments on the ground indicate that corporates are increasingly addressing issues such as regulatory and compliance pressures, as well as budgetary restraints, by expanding their internal capabilities.

Continue reading “Travers Smith suffers defeat for pregnancy dismissal”

Travers Smith suffers defeat for pregnancy dismissal

Top 50 City firm Travers Smith has suffered the rare public reverse of losing a high-profile discrimination case after a tribunal found the firm denied a former trainee a place in the firm because she became pregnant.

The Central London Employment Tribunal found that Travers ‘contrived to prevent Katie Tantum from being offered a post as a newly-qualified solicitor because of her pregnancy’, according to a statement by Tantum’s solicitors, Leigh Day.

30 May 2013

The ABS dilemma – join them sure, but shouldn’t you be beating them?

Amid all the hype surrounding alternative business structures (ABS) one story that emerged last month stood out – the aggressively-marketed Riverview Law’s eye-catching alliance with 48-partner practice DMH Stallard.

In an ABS market heavily focused on the high street and volume insurance work, the deal stands out for aiming to provide something different to corporate buyers of legal services.

The firms, which are in discussions about the impending launch of new fixed-fee products, will offer their respective clients each other’s services on a permanent basis, following a four-month trial.

Continue reading “The ABS dilemma – join them sure, but shouldn’t you be beating them?”

30 May 2013

Guest post: Quality in law – endlessly invoked yet never defined

Here’s a question that’s been bothering me of late – what, exactly, is a quality legal service? You’ll have noticed that this phrase has become so common that it no longer requires an adjective (unless it’s poor quality). Many seem to think that if you say often enough that you provide one, it must be true.

It has come to the fore with the debate over criminal legal aid. First there is the Quality Assurance Scheme for Advocates (QASA). This elides ‘quality’ with competence. ‘The aim of QASA,’ says the application to the Legal Services Board for approval of the scheme, ‘is to assess and assure the competence of all advocates conducting criminal advocacy in courts in England and Wales.’

Continue reading “Guest post: Quality in law – endlessly invoked yet never defined”

Continue reading “Feeling the squeeze – the pressure is on as procurement hits law”

Feeling the squeeze – the pressure is on as procurement hits law

With non-legal procurement teams becoming more and more part of the bluechip panel process, are firms delivering the best value for money?

`The client is the enemy,’ says one veteran corporate partner at a Magic Circle firm, privately expressing a common frustration over how the traditional relationship between external counsel and in-house legal teams has been battered by the latter’s post-downturn quest for value.

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Few are chosen – is partnership still worth the contest?

Partnership prospects continue to decline in a gloomy economy, while UK law firms are increasingly promoting abroad or associates hired from other firms. Legal Business investigates whether the odds of making partner make it still worth the contest

When a trainee joins a firm, aspirations are high and the road to success is inviting. The route is mapped out from the start – train at the firm, become an associate, rise up the ranks to the ultimate goal – partnership. Sounds perfect.

Continue reading “Few are chosen – is partnership still worth the contest?”

Continue reading “Pretenders to the throne – the regional players with national ambition”

Pretenders to the throne – the regional players with national ambition

While national leaders have lavished attention on their international and City practices in recent years, a handful of mid-market regional players have made a dramatic attempt to seize chunks of their ill-defended domestic empires. Legal Business looks at five of the most likely challengers

Let’s be plain – these law firms had been written off. Regionally-driven, stuck in back-waters and unglamorous, commoditised areas of law such as insurance and employment – there was a sizeable band of firms left behind by the emerging national and international forces of DLA Piper and Eversheds and with little apparent chance of bettering their fortunes.

Deal Watch: Nabarro and Ashurst act on sale of LSE HQ as King & Spalding secures repeat European M&A for GSK

Ashurst and Nabarro‘s real estate teams have secured a role on the sale of another landmark London building, while King & Spalding has furthered its transatlantic ambitions by closing a sizeable European M&A pharma deal.

In the £225m sale of 10 Paternoster Square, home of the London Stock Exchange (LSE), Nabarro advised the seller, Tokyo-headquartered Mitsubishi Estate Company (MEC), led by rated real estate partner Deborah Parry. Continue reading “Deal Watch: Nabarro and Ashurst act on sale of LSE HQ as King & Spalding secures repeat European M&A for GSK”

Continue reading “Protect and serve – Europe moves to keep IP plugged into the digital age”

Protect and serve – Europe moves to keep IP plugged into the digital age

With copyright and trade mark law reform top of the agenda in Europe, Legal Business talks to IP lawyers about the implications of a groundbreaking copyright case and the EC’s proposed changes to the European trade mark system.

`It always used to be that copyright cases were literally about copying – that’s hardly an issue any more,’ reflects Taylor Wessing’s Mark Owen, who joined the firm as a partner from Harbottle & Lewis in early April. He is talking about the long-running landmark copyright case NLA v PRCA (Meltwater), which the UK Supreme Court referred to the Court of Justice of the European Union (CJEU) on 17 April.

Continue reading “Outward Bound – Portugal lawyers turn to global opportunities”

Outward Bound – Portugal lawyers turn to global opportunities

Portugal continues to navigate a deep recession, aided by its legal profession. But while the sale of state assets is providing some relief, firms are looking to their international practices to provide a bailout of their own.

The normally sedate setting of the Ritz Hotel in Lisbon became the focal point of Portugal’s malaise in April. A flash mob of angry protestors gathered outside the hotel urging the Portuguese government to `screw the troika’ in response to the severe austerity plans tabled to meet the demands of Portugal’s 2011 €78bn bailout by the International Monetary Fund, European Central Bank and the European Commission.

30 May 2013

Smoke, mirrors and grease – government signals review of controversial Bribery Act

It was the most controversial piece of legislation aimed at corporates to emerge in the last decade and, in a slow news week at least, the Bribery Act is still generating headlines amid signals that the government is flirting with watering down the anti-corruption law.

A report in the Financial Times indicates that a review of the act is likely to be announced in July following recommendations from the so-called ‘Star Chamber’ – a government working party hunting the Snark that is cutting red tape. Continue reading “Smoke, mirrors and grease – government signals review of controversial Bribery Act”