Leading City firms in talks to bring in teams of contract lawyers

Author: Claire Ruckin

29 Oct 2009 | 01:08

Firms in talks to use contract pool; A&O mulls using alumni

Several leading City firms are considering using contract lawyers as part of a venture by a new business to create a vetted pool of temporary lawyers to support major practices.

Firms including Freshfields Bruckhaus Deringer, Travers Smith and a number of US firms in London are interested in bringing in contract lawyers for individual pieces of work - a model rarely used in the UK but well-established in the US.

Recruiter John Cullen has held conversations with the firms above, as well as a number of firms in the top 50, about the new service 'itsmylaw', which will formally launch in the new year.

He has pulled together a pool of some 25 lawyers, including former general counsel and partners as well as more junior lawyers, who can be hired by for particular deals or cases.

The unusal venture echoes the established US practice of regularly using contract lawyers on specific mandates. The move has also been compared to a virtual law firm, though the focus is on supplying private practice not clients.

The pracrice of using contract lawyers has never taken off in the UK but City partners suggest there is more interest in the idea now as a result of current tough market conditions.

Travers managing partner Chris Carroll (pictured) said: "We have become very busy and stretched but are cautious about going back into the recruitment market unless and until we feel the uptick has real legs. As such the ‘itsmylaw' concept presents interesting possibilities for plugging the hole."

Freshfields London managing partner Tim Jones said: "We are looking at alternative ways to deliver some routine legal tasks, as well as the outsourcing of document reviews, and are actively working with clients to test tailored solutions that deliver an effective and cost-efficient service."

Cullen added: "Firms are anxious to avoid increasing fixed costs and if there is an option involving high caliber individuals on a one-off cost, it is a sensible alternative."

In a related move, Allen & Overy is considering creating a central pool of alumni which it would be able to draft in to assist on its work for specific projects. It has already been using alumni to help with work such as producing first drafts of banking documents on an ad hoc basis but is considering formalising and extending the process.

The interest in flexible legal staffing comes against a backdrop of client pressure to increase efficiency.

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COMMENTS (TOTAL 12 COMMENTS)

It's about time. It's a mystery why UK law firms haven't used floating pools of lawyers properly before. It's hardly like there's a shortage of good lawyers who would like to work on that basis.

About time -29 Oct 2009 | 12:21

No job security, no holiday entitlement, no sick pay, while equity partners continue to coin in the profit. Genius.

Old cynic -29 Oct 2009 | 16:16

Temps are more trouble than they're worth. Most of them are only temps because they can't get a proper job, usually due to objectionable personality issues.

Associate -29 Oct 2009 | 16:36

Well they've had contract lawyering in the US on a major scale since the '70s and that seems to work.

Anonymous -29 Oct 2009 | 16:50

"Temps are more trouble than they're worth. Most of them are only temps because they can't get a proper job, usually due to objectionable personality issues."

...what an ignorant comment. Temps have been tremendous help to my team. All my team have valued their contributions hugely.

MC Patner -30 Oct 2009 | 00:43

Leading Firms and contract lawyers

This is nothing so new. As a former legal director for a pharma company, I have my own practice specialising in pharmaceutical and healthcare law but have for the last seven years been brought in as a consultant to a leading national firm when they have a pharma-related deal. They can better provide specialised services for their clients and I share the fees without having to go out and find the clients. I can also refer my clients to them for advice in areas that I do not work (such as litigation) and get a referral fee. We have to be able to trust each other not to poach clients, so a good working relationship is essential. It works well and I can see no problems with the London firms embracing the model.

Gill Bowness -30 Oct 2009 | 08:25

Contract Lawyers

Associate 16:36 - "Most of them are only temps because they can't get a proper job, usually due to objectionable personality issues."

That brought a wry smile to my face.

I've been a contract locum for years.

Do I care ?

Nope.

I've enjoyed most of it.

Avoided stultifying office politics as well.

Old Geezer -30 Oct 2009 | 13:27

Consultant lawyers

I was very interested to read about the use of consultant lawyers. There is no question that this eases the pressure on firms and increases profitability/PEP.

CLD (www.consultantlawyers.co.uk) already has 85 consultants working for many of London's top firms in this way. Consultants are ex-City partners and ex-City heads of department.

William Robins -30 Oct 2009 | 14:54

Hats off to John Cullen for getting some great free publicity for his 'new' venture (which, er, isn't... other people have been doing this in a different guise for ages and even the blog on the itsmylaw website goes back to Feb 07...). Let's hope he's backing up this puff-piece with some paid-for advertising...

Come on Legal Week, we expect better of you than this...

RichardB -30 Oct 2009 | 15:59

We didn't hear about this from Cullen, we initially were told about it by one of the law firms themselves. And ItsMyLaw is not a Legal Week advertiser. Whether this particular venture is successful or not is secondary to the piece - the issue is that a number of firms are sizing up this model.

Legal Week -30 Oct 2009 | 16:57

Very ignorant

I echo the comment made about the ignorant assumption that contract lawyers are only so because they can't find a full-time position. When is this industry going to wake up to the fact that not every lawyer wants to have three marriages, two heart bypasses and end up dead of over-work and over-stress?

Gary Mitchell -31 Oct 2009 | 19:55

Private Practice slow to wake up

Many of the clients of law firms have been using temp resources for years, and as has been pointed out, the US has a very mature temp market.
The public sector runs on temporary lawyers because of the abysmal permanent salaries.
Once again private practice lags behind - this is nothing new, but I'd be interested in the business development guru who first sold this in on a large scale to the traditional profession (years before Mr Cullen by the sound of it).

Ex-lawyer recruiter -02 Nov 2009 | 09:49

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