Dissent: Why the in-house triumph over law firms may prove short-lived

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Scott Gibson and Kristi Edwards argue that GCs have secured a short-term advantage over their external advisers at the risk of undermining their own position

In the decade prior to the collapse of Lehman Brothers, an excess of work masked the corrosive effect to law firms from competition with increasingly sophisticated and growing in-house legal departments (C&I teams). Post-Lehman, the economic downturn has exposed significant structural challenges to overstaffed law firms, which have been ruthlessly exploited by C&I to decisively shift the balance of power in favour of clients.

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Barclays goes external to replace group GC Mark Harding

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In a surprise announcement, Barclays has today (30 August) revealed that Bob Hoyt has taken over from Mark Harding as group general counsel (GC), following the announcement in February that Harding is to retire.

The decision to appoint an external candidate to one of the most high-profile legal roles in banking ends months of speculation following Harding’s decision to retire at the start of the year, with many calling a two-horse race between deputy general counsel Michael Shaw and global GC for corporate and investment banking Judith Shepherd. Continue reading “Barclays goes external to replace group GC Mark Harding”

BAE international: defence giant rolls out UK cab rank model to Asia and ME

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With the UK’s investment in defence broadly flat British defence giant BAE Systems is looking increasingly to the international markets for growth and its legal team is morphing with it.

This month, BAE’s 250-strong legal team, which counts the company’s 100,000-plus employees as its clients, rolled out its UK cab rank model – under which a pool of lawyers is available on a first-come-first-served basis – to Asia and the Middle East. Continue reading “BAE international: defence giant rolls out UK cab rank model to Asia and ME”

Against the grain: Kent CC’s legal arm introduces trainee programme as it unveils 20% rise in profits

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As private practice firms including Allen & Overy downsize their trainee intakes the successful legal arm of Kent County Council has introduced its first trainee programme as it also unveils a significant increase in profitability.

As of September, Kent Legal Services (KLS) will take on five trainees as it moves to grow its business. The legal arm, which is unique among in-house departments for generating income as a result of offering its services to external county councils, yesterday announced a rise in 2012/13 profits of 20% from £2m to £2.4m and a 9% increase in turnover from £11m to £12m. This represents an improvement on last year’s performance, when profit increased by 18% to £2m while turnover was up 10% to £11m. Continue reading “Against the grain: Kent CC’s legal arm introduces trainee programme as it unveils 20% rise in profits”

In-house Round-up: Swiss Re GC to DAC, Co-op’s Gulliford to Pannone, FACT appoints first GC and Auction.com takes on senior legal team

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If it had seemed that the flow of UK hires between private practice and in-house was very much one-sided in the corporates’ favour a recent run of high profile moves has gone some way to evening out the score.

Co-operative Legal Services (CLS) co-founder Jonathan Gulliford has joined Pannone Affinity as a consultant as part of an ongoing growth drive at the Manchester firm’s white label legal arm. Continue reading “In-house Round-up: Swiss Re GC to DAC, Co-op’s Gulliford to Pannone, FACT appoints first GC and Auction.com takes on senior legal team”

Pioneering Lawyers On Demand business secures high profile ex FT general counsel to plot growth

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Former Financial Times general counsel Tim Bratton is set to join the Berwin Leighton Paisner-backed Lawyers on Demand (LOD) in September as practice development director. Jonathan Brenner (pictured), co-founder of LOD, told Legal Business he was ‘delighted’ to get the high profile Bratton on board.

Bratton joins in a newly-created role to help drive the growth of the legal service provider with in-house teams and law firms.

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Making connections – how in-house counsel swap ideas (and business cards)

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Legal Business assesses the options for senior in-house counsel looking to swap ideas (and business cards) with their peers

Buy-side lawyers are a continual target for a whole host of networking and marketing ‘opportunities’ that may – or more often may not – be useful. As private practice law firms look for ways to deepen their client relationship in a market where that relationship is increasingly de-personalised, others have clocked on to the fact that, to get close to private practice, you need to pull strings among their clients.

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The Client: David McLeish – Playtech

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The former BLP partner on taking the GC seat at a fast-growing online gaming firm

When David McLeish left Berwin Leighton Paisner (BLP) to become general counsel (GC) of the world’s largest publicly-traded gaming software company, he figured it would present a new challenge. The FTSE 250-listed Playtech has certainly not disappointed. A fast-paced Israeli company with a pronounced work ethic, acquisitive mind-set and cash burning a hole in its pockets, the company is also operating in jurisdictions around the world where the licensing rules surrounding gambling are far from black and white.

McLeish left BLP in May 2012 to join Playtech, a client of four years, which was about to list on the main market of the London Stock Exchange. Describing his specialism at BLP as ‘corporate, gaming, hotels and leisure’, he says ‘the opportunity to become the GC of a FTSE 250 company was too good to turn down’. Like many private practice lawyers who have worked for a client for many years, he was also attracted to the idea of seeing deals through to the end and being part of a business.

Two months after his arrival, then AIM-listed Playtech – which provides branded software for online casinos, poker rooms, bingo games and sports betting for the likes of bet365, William Hill and Ladbrokes – floated with a market capitalisation of around £1bn. That figure is now £2bn and the company’s revenue has risen from €111.5m in 2008 to €317.6m in 2012.

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BT moves to extend its use of legal outsourcing in the UK

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BT has begun an extensive legal process outsourcing (LPO) tender for its work in India and the US and is expecting to introduce a new provider for UK work as the telecoms giant moves to outsource over 30% of its UK global services legal work.

The move comes as the FTSE 100 company’s alternative business structure (ABS) arm, BT Law, has won three new contracts and looks to be used as a platform to turn the legal department from a cost to a profit centre, including potentially offering employment law advice.

BT general counsel (GC) Dan Fitz and new director of compliance Gareth Tipton say they are midway through the tender with providers including incumbent UnitedLex – which already takes on 30% of the global services division’s legal work in the UK. The process will take up to three months to complete.

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Global 100: The client view

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FTSE 100 general counsel (GC) say global firms have finally listened to their concerns on costs and that, if anything, the scales need to be tipped in favour of strengthening their relationship once more.

A year ago it was far from uncommon to hear the GCs of large international companies say that, while they battled to stay within a shrinking budget, their trusted advisers showed a surprising detachment from economic reality and a lack of empathy with their clients’ financial situation. Continue reading “Global 100: The client view”