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BLP-Kramer Levin alliance breaks down

Author: Caroline Grimshaw

Published: 01/10/2007 15:11

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Berwin Leighton Paisner (BLP) has downgraded its formal alliance with New York ally Kramer Levin after a five-year relationship.

The top 20 firm had operated an exclusive referral relationship with Kramer Levin, including mentioning the New York office on its letterhead to clients. The alliance was announced almost exactly five years ago, on 30 September, 2002.

However earlier this year, by mutual agreement, the firms agreed that the status of the relationship was of a non-exclusive ‘preferred firm’, of which BLP has around 100 globally.

A BLP spokesman said: “We still have a very good relationship with Kramer Levin, but in addition to working with them we have done work in other places and areas where they do not have offices or expertise.”

Howard Morris, chief executive of Denton Wilde Sapte, said: “Most investment flows from west to east and we have always done well as a result of not having a sole US referral partner.”

A senior partner at a rival firm commented: “If the relationship was not generating the referral business desired, that is a good business reason for scrapping it – the US market needs untold numbers of lawyers in the UK market and there is no point in tying yourself into a relationship unless it reaps a lot of referrals.”

Another head of a rival firm added: “I suspect BLP is looking to move up the food chain in the US and probably wants to associate with a firm that generates more sophisticated work.”

BLP has been reviewing its international referral relationships and now operates with a select number of preferred firms – around two in each country – across mainland Europe’s key legal markets.

The firm had a non-exclusive ‘best friends’ relationship with Beiten Burkhardt in Germany, but regards it as a preferred firm now that it has other referral relationships in the region. The firm had secured the relationship in early 2005.

Elsewhere, the firm’s exclusive alliance with Italy’s Santa Maria ended in 2005, after Santa Maria terminated its relationship with Kramer Levin in favour of Miami-based Greenberg Traurig.

BLP is also known to have links with Lefevre Pelletier & Associes and DePardieu Brocas Maffei & Associes in France.

One visitor to Legal Week’s Wiki wrote: “Kramer Levin – the US ally – never refers anything to us and neither does Beiten [Burkhardt] in Germany.”

Editors' blog: US alliance exposed BLP’s image problem

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