DLA settles fee dispute and launches Middle East pro bono venture

DLA Piper has resolved payment issues with a significant Middle East client, recouping an outstanding seven-figure sum.

The international law firm worked out a payment plan with the Dubai-based company earlier this year and is understood to have been paid all of the outstanding fees in full over the summer.

The firm is still working with the client, which Legal Week reported in April owed DLA Piper the money for fees run up between January and September 2008. At that time, one former DLA Piper lawyer claimed the problem was enough to affect local profit distributions. However, the firm denied that distributions were affected.

News of the fee repayment comes as DLA moves to expand a lawyer secondment program launched in its Abu Dhabi office during the financial downturn.

The initiative combines cost-saving efforts with pro bono work, with the firm offering Middle East associates a six-month sabbatical at reduced pay. Those taking a sabbatical receive around 25% of standard pay, but those taking a sabbatical with a pro bono organisation will receive between 25% and 50% of pay as well as having their rent paid by the firm.

Launched in May this year by office managing partner Stephen Webb, the program has seen two Abu Dhabi-based associates sent to the war-torn East Timor for a three-month and a six-month placement respectively. DLA Piper now hopes to continue the program on a firm-wide basis.

Webb said: "Work levels in the UAE dropped significantly earlier this year and the project came about as we looked for different ways to respond to the cost-cutting pressure. The success of the project means we want to expand it to the rest of the firm to see if it can be continued on a permanent basis."

As a result of the financial crisis, DLA Piper's Middle East practice has completed two redundancy consultations earlier this year, mainly affecting Dubai. In addition, the firm placed a significant number of associates on client secondments.