Deutsche Bank to refuse to pay for trainees and NQ lawyers after panel overhaul
Bank's panel firms to miss out on fees for junior lawyers as US fee practice crosses Atlantic
March 21, 2017 at 09:53 AM
3 minute read
Deutsche Bank is to stop paying panel law firms for work carried out by newly qualified (NQ) lawyers and trainees, Legal Week can reveal.
The decision, which will apply to firms appointed as a result of Deutsche's current panel review, represents a first major move by a bank on this side of the Atlantic not to pay for junior lawyers, a practice known to be more commonplace in the US.
Deutsche is nearing the end of its global panel review, which is carried out every two years, with a host of firms set to be reappointed to the roster, including Latham & Watkins, White & Case and Hogan Lovells.
The new payment plans – set out in the terms of the tender process, according to partners at panel firms – have upset some of those pitching for the roster.
One partner told Legal Week: "It has annoyed a lot of people. The process was more aggressive."
Such demands, although rare in the UK market, are more prevalent in the US, with a 2011 survey by the Association of Corporate Counsel for The Wall Street Journal finding that more than 20% of 366 in-house legal teams had at some point refused to pay for the work of first or second-year lawyers.
Another partner added: "This is something I have seen for the first time this year. I think it is fair enough for trainees, but for NQs it seems very unfair – they are proper solicitors, so why should they not be paid? I have heard about this at other banks; usually in the US, but never in Europe."
Deutsche's review is being led by Rose Battaglia, the bank's New York-based global COO for legal and compliance, on behalf of co-general counsel Simon Dodds and Christof von Dryander, who have held the joint role since January 2016.
Legal Week reported earlier this month that Latham, White & Case and Hogan Lovells are set to be reappointed to Deutsche's line-up, alongside a raft of firms named on the panel two years ago, including Freshfields Bruckhaus Deringer, Linklaters, Allen & Overy, Slaughter and May, Simmons & Simmons, Ashurst and Clifford Chance.
Other US firms likely to maintain spots include Mayer Brown and Cleary Gottlieb Steen & Hamilton. The last review in 2015, which was led by former general counsel Richard Walker, was dubbed 'Project Eagle'.
Deutsche Bank declined to comment.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View All
Can Labour's New Budget Steady the Ship? Big Moves On UK Tax Reform and Fiscal Stability
5 minute read
Greenberg Takes 7-Lawyer Project- and Structured-Finance Team From Dentons in Warsaw
3 minute read
Trending Stories
- 1Call for Nominations: TLI's Pennsylvania Legal Awards 2025
- 2Florida-Based Law Firms Start to Lag, As New York Takes a Bigger Piece of Deals
- 3Supreme Court Drops Facebook's Appeal in Securities Case as 'Improvidently Granted'
- 4Newsmakers: Scott Bailey Joins Jones Day’s Corporate Practice in Dallas
- 5The Swinging Pendulum of Title IX Politics
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250
