How can junior litigators triumph in a post-Brexit world?
Brexit may be bad news for transactional lawyers but the same is not true of litigators, here some practice heads offer advice to up and coming litigation stars
June 29, 2016 at 12:00 AM
4 minute read
Following last week's Brexit vote the business world has plunged into levels of uncertainty not seen since the global financial crisis. Back then, while M&A deal volumes slumped and transactional practices struggled, dispute resolution teams enjoyed a resurgence.
For senior litigation associates, the crisis provided a solid grounding in high-stakes litigation that allowed them to cut their teeth and make their mark.
Most lawyers are currently warning that markets are too uncertain post-Brexit vote to predict how the coming years will play out.
But while no nation may have ever left the EU before, litigation heads are well aware of how uncertainty is likely to affect the new generation of up-and-coming partners.
Stephen Sly, co-global chair of DLA Piper's litigation and regulatory group, says that the uncertainty could prove damaging to London's reputation as a venue for litigation.
He comments: "The perception of London as a destination for not only quality but neutrality and an internationalist mind-set within the international community may change, which may have implications for London as a chosen seat for the resolution of international disputes. That would impact on junior talent as there may be less work years from now."
"How do we try to mitigate that risk? By continuing to up our game as quality practitioners, to demonstrate to anyone we deal with that England and Wales (and London in particular) is a forum with a broad-ranging international legal community that offers some of the best lawyers in the world."
Baker & McKenzie's London disputes head, John Leadley, believes the UK legal market will remain attractive to international clients.
He says: "Our clients are going to continue to see the UK as an attractive environment to undertake disputes. Brexit will not cause the judiciary to lose its independence or commercial mindedness. Companies are attracted and we won't lose that."
Given litigation is a counter-cyclical practice the faltering markets could lead to an uptick of activity in the coming months.
Leadley confirms that Bakers has already seen a surge of clients getting in touch.
He says: "We are already seeing a material increase in our advisory work across all sectors, as clients want to fully understand the implications of all of this. It's an opportunity."
Allen & Overy head of litigation in London, Karen Seward, adds that there may also be work advising on constitutional issues.
She says: "Litigators may possibly be advising in relation to constitutional issues, for example if the Government passes emergency legislation that is not compliant with treaty obligations."
Meanwhile both Sly and Taylor Wessing's disputes and investigations head Shane Gleghorn recommend litigators stick close to their clients at the moment.
Sly says: "Disputes lawyers need to dive deeper into their knowledge of the relevant regulatory regime in which their clients are operating. We all know there will be substantial changes required to primary and secondary legislation and it's our job to be on top of all that to help our clients navigate through such a volume of changes."
Gleghorn adds: "It is likely that the current period of uncertainty will translate into a worsening economic outlook which, in turn, will generate litigious and restructuring issues that are experienced in conditions similar to that of a recession. That type of counter-cyclical litigation often springs out of crisis, so litigators will be keeping close to their clients to ensure they are first off the mark to advise them if that type of contentious work arises."
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