Orrick Herrington & Sutcliffe's long-awaited French launch could be delayed until January 2003 following the breakdown of discussions with the Paris office's parent firm, Watson Farley & Williams.

In January this year, Orricks announced it was to take over the whole of Watson Farley's highly rated Paris operation, but discussions broke down in April, leading the seven-partner team to resign, but continue to work for the London-based firm.

Legal Week has learned that months of wrangling over the office and Watson Farley's plans to relaunch its French practice have now complicated the move, which Orricks was counting on as a major step in its bid to build a European law practice.

Discussions have continued all this year, with the City firm holding French finance partner David Syed and the other partners to a notice period ending in January 2003.

It is understood that disagreements about the retention of the Paris office's client base, which includes Vivendi Universal and Renault, and the resolution of the partners' finances are at the root of the problem.

Watson Farley managing partner Michael Greville told Legal Week: "There is no deal at the moment and we expect some of the Paris lawyers to stay [with us]."

Efforts to resolve the Orricks move have now been left up to Syed and Watson Farley's London office.
Commenting on the Paris launch, Orricks international head Mike Bacon said: "This has turned into an exercise of patience [but] this has not damaged the development of Orricks in Europe."

Bacon added that if a deal could be struck by the French team with Watson Farley, the defecting partners would sub-let space in the Paris office, where they are already based, as soon as possible.

Orricks has already taken a floor in the same building as Watson Farley's Paris office in preparation for the move.