This is a summary of the first two articles I had from The Lawyer. I have bolded the bits that I think are most interesting/helpful
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1. Law firms after the financial crisis and the future of law firms
- After cutbacks during the financial crisis (2009/10), law firms started expanding in 2011.
- Norton Rose began a series of mergers, whilst Allen & Overy boosted its international presence.
- National firms like Eversheds and Pinsent Masons also transformed their practices through internationalisation.
- Many of these firms had a strong leader who was re-elected for the same position.
- In the 2000s, this was also true of firms like DLA Piper and K&L Gates who changed from national firms into some of the largest global firms in the world.
- Before its merger, Dentons was also a struggling UK firm. After a series of huge mergers, Dentons has turned into the world's largest law firm by headcount and one of the largest by revenue.
- During the crash, many law firms with traditional corporate and finance practices suffered. They would go on to restructure, diversify, build regional outfits and merge to retain a competitive advantage.
- Whilst M&A and corporate work continues to do well, they aren't as dominant anymore. Investigations and litigation drive profitability for many firms.
- American firms entered the market and with their dominance in the US, they have gained significant market share in London including good people and well-paying clients.
- Top US firms simply have no need to merge with a top UK firm, they are doing well in both ponds.
- Consolidation in the market will be driven by decline as much as growth.
- This won't go away, top US firms will provide a big challenge to the magic circle. They remain established institutions but they are faced with the problems the same problems that the silver circle had after the financial crisis, when they were competing with the magic circle.
2. The world of international litigation
- London is still dominant when it comes to international litigation and arbitration.
- Since the 1960s when London developed its international finance sector, the London courts have been involved in some of the most complex and biggest litigation in the world. Banks such as HSBC, Lloyds, Barclays and RBS are based here, which means litigation related to the complex financial products have stayed here.
- This can be traced to the prevalence of English common law, the reputation and expertise of a fair judiciary, the large number of lawyers, the ability to recover costs and the investment in the commercial court system.
- After the financial crisis, when many industries in the UK were cutting down, the Commercial Court was exceptionally busy with high profile disputes including the largest private litigation battle with Boris Berezovsky suing Roman Abramovich.
- According to The Lawyer, 80% of the claims issued in the Commercial Court in 2013 had at least one international party. Almost half involved parties outside England and Wales.
- More cases are being handled by London law firms and international firms continue to enter London.
- But Singapore, Hong Kong and Dubai are growing competitors to the legal market.
- More are also choosing New York law for contracts and New York courts have advantages.
- Some speculate that sanctions on Russia has caused many Russians to turn to international disputes centres outide London.
- Global litigation is growing due to an increase in world trade.
In 2015, the biggest litigation firms included:
A number of UK firms have developed their litigation practices in recent years. Freshfields has been rising, whereas Linklaters only entered The Lawyer's Litigation Top 50 in 2015. Allen & Overy had the biggest rise across all the Top 50 firms. For US firms, Latham has also been investing in litigation and grew 22%. Clyde & Co one of the highest numbers of lawyers generating litigation income, but DLA Piper tops the table with the most lawyers.
