Conflict concerns or a planned refocus? Mayer Brown London exits prompt strategy questions
Former partner cites 'horrendous' conflicts as firm aims to refocus on high end insurance work after string of partner departures
January 19, 2018 at 08:49 AM
4 minute read
The London office of US firm Mayer Brown has seen no fewer than eight partners leave for other firms in recent months. With six of those that quit sitting within the firm's insurance practice – a four-partner team left for Kennedys and two partners this week joined Clyde & Co – the impact on the office is clear.
Less clear, though, are the reasons behind the exits. So why the defections?
One former Mayer Brown insurance partner cites "horrendous" conflict issues as a long-term problem at the firm and a driving factor in his own exit.
"There were horrendous conflict problems," he says. "We could act adversely to virtually no banks and that had been the case for a number of years."
A partner at an insurance-focused firm agrees that this can be a recurring issue at full-service firms. He says: "All insurance departments in full-service firms are feeling the squeeze regarding conflicts. If you're aiming at the higher-end insurance work, then that will more likely end up with a conflict with a bank or financial institution."
A Clydes partner adds: "It's difficult for firms which don't have insurance as their focus, as you're more likely to end up with conflict issues. While insurers' rates are historically a bit lower, the pipeline of work is usually stable and gives you a lot of business. These days you don't get the bigger work if you're not doing the other stuff."
Mayer Brown London senior partner Sally Davies (pictured above), who is eight months into her first term in the role, insists that the firm has made a deliberate plan to refocus on high-end work and maintains that the exits, which include former London insurance head David Chadwick, will not hurt the practice in the long term.
She says: "Six partners leaving a practice is a change, but we'll continue to have a really solid core insurance practice. Our strategy has developed to focus on the high end of the market. We're also aiming to win more off-panel work.
"Our finance and insurance practices in London and around the world have collaborated successfully for decades and the conflicts we face are no different from any other law firm of our size."
The latest limited liability partnership (LLP) accounts for the firm's London office, filed today (19 January) at Companies House, reveal turnover increased by 6% during 2016-17 from £105m to £111m. Operating profit increased by 25% from £36m to £45m, while profit per equity partner also rose 25% to £527,000.
However, the LLP's highest paid member received £1.2m – a drop of 19% from the previous year's equivalent figure of £1.5m.
William Glassey, who has replaced Chadwick as London insurance head after his move to Kennedys, acknowledges that one "niche" practice – political risk and trade credit – will go as a result of the partner departures, but stresses that the firm would reinvest in that practice if clients wanted.
The London insurance practice also has more than 20 associates, and Davies maintains that relationships with key clients such as QBE and AIG will not be affected by the partner losses.
Of the exiting insurance partners – who include Ingrid Hobbs, Andrew Westlake and Andrew McGahey alongside Chadwick at Kennedys and Mandip Sagoo and Angus Duncan to Clydes – it is understood that only two were in the equity at Mayer Brown. And the firm maintains that only one associate is likely to follow the partners to their new firms, in addition to senior associate Tim McCaw, who is joining Kennedys as a partner.
Glassey argues that the senior exits therefore free up opportunities for junior lawyers.
"If some partners leave the pitch and the bulk of the associates stay, you're immediately left with a much better leveraged group. This gives associates and other partners the chance to step into relationships they didn't have," he explains.
However, some of those leaving in recent years argue that they were unable to promote and build teams to the size and seniority they wanted to.
One says: "Any idea that any deadwood is being cleared and there will be opportunity for others is total cobblers."
Within the firm, however, it is clear that Davies has support from her partners. One concludes: "Sally's been a really good force; very collaborative and visible. People at all different levels in the office have responded well to that. It was time for some renewed energy."
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
© 2025 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 AllKPMG's Bid To Practice Law in US On Hold As Arizona Court Exercises Caution
Law Firms 'Struggling' With Partner Pay Segmentation, as Top Rainmakers Bring In More Revenue
5 minute readTrending Stories
- 1Trump's DOJ Files Lawsuit Seeking to Block $14B Tech Merger
- 2'No Retributive Actions,' Kash Patel Pledges if Confirmed to FBI
- 3Justice Department Sues to Block $14 Billion Juniper Buyout by Hewlett Packard Enterprise
- 4A Texas Lawyer Just Rose to the Trump Administration
- 5Hogan Lovells Hires White & Case Corporate and Finance Team in Italy
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
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