Oxley & Coward's managing partner and highly-rated IT head John Yates and three other equity partners are leaving the firm to form a radical new tech legal venture called v-lex.
The move is a major blow to the nine-partner Rotherham-based firm, which, despite its small size, had developed a national reputation as IT specialists.
The other partners who are leaving are Rosemary Downes, Deryck Houghton and Tim Twomey. All are IT-focused, although Downes was in the commercial department and Twomey did litigation work. Six other Oxley & Coward fee earners are also leaving for v-lex.
The split was not amicable. Covenants prevent v-lex from taking any of its existing clients or setting up office within seven miles of Rotherham. With that effectively precluding Sheffield and Barnsley, Yates' team start work on 1 June in Worksop, north Nottinghamshire.
V-lex is being established as a limited company, rather than a partnership. "It will make it easier to attract non-lawyers," Yates said.
The company will focus on IT areas where commerce and law often overlap, particularly outsourcing and mergers and acquisitions.
Another key part of the plan is setting up The Alliance: a network of experienced IT lawyers who will be able to use the v-lex brand on a self-employed basis.
Yates said v-lex already has three lawyers signed up and expects to have a network of 50 freelancers within five years. Recruitment will come mainly from the corporate IT field.
"It is a business model that allows for flexibility in servicing the peaks and troughs of the industry," Yates said.
Commenting on the reasons for his departure, he said: "It was more cultural than anything else. We had become two different firms under one name, with different clients, charge-out rates and styles. I have no doubt that Oxleys will continue, but it will probably not do IT."
Oxleys was unable to comment as Legal Week went to press, but it is understood the firm will continue under head of private client Henry Everatt, who has taken over as managing partner.