Managed Legal Service arm targets new client after Thames deal

Berwin Leighton Paisner (BLP) is in early-stage talks with Yorkshire Water over a possible deal with its Managed Legal Service (MLS) arm, as it emerges the firm also held discussions with Buckinghamshire County Council this summer.

A potential Yorkshire Water deal could see the firm enter into a similar agreement to the one struck with Thames Water in 2010; however, other avenues being discussed include BLP taking responsibility for parts of the legal function rather than the entire team.

The Thames Water deal, the first and only MLS agreement BLP has signed to date, saw the bulk of the water company's in-house legal team transfer over to the City law firm in a contract worth £5m a year for five years.

Yorkshire Water's legal team, headed by Stuart McFarlane, is made up of 12 lawyers. Discussions with Buckinghamshire County Council, which has a legal team of 55 including around 40 qualified lawyers, ended in July this year after it was decided an MLS deal would not fit with its setup.

The news comes after BLP came close to securing a second MLS client at the end of 2010 with IT company Colt; however, the deal fell through at the last minute with the work subsequently handed to Greenberg Traurig Maher.

BLP is currently drawing up a business plan for its MLS arm, following the hire of former Fujitsu director Andrew MacNaughton as chief executive for the division in March this year.

The business plan will be presented to partners in the coming months, with the possibility of taking external investment for the outsourced legal services supplier among the options under consideration.

For more, see BLP draws up bold plans for Managed Legal Service division after CEO hire.