Government Mandates for Law Firms Plummet as In-House Bench Strengthens
New research suggests that despite larger in-house teams, preparing for Brexit will still require external advice.
May 14, 2019 at 03:00 AM
3 minute read
The U.K. Government cut its spending on law firms and barristers by 10% last year as the number of its in-house lawyers increased, according to new research.
Findings by Thomson Reuters suggest law firms have been feeling the impact of a government efficiency drive when it comes to legal spending, with a growing bench of in-house lawyers set tasks previously done by external advisers.
The research shows that the government spent £196.4m on external legal advice for the year to 31 March, 2018, according to an analysis of spending by 37 departments out of 47. In 2016-17, the legal spend figure was £217.2m.
Thomson Reuters' director of public sector, academic and Bar, Desmond Brady, said in a statement: "The focus on developing its in-house legal services has enabled the government to successfully manage down its spending on external law firms and barristers.
"However, external legal advisers continue to add value when required. At any one time, the government is involved in a wide range of legal engagements and this isn't going to change, which maintains the need for external advisers."
Brady added, meanwhile, that the impact of Brexit may encourage the government to continue to look to law firms for expertise on legislative matters in areas such as product standards, immigration and agriculture.
"The huge additional workload that Brexit represents will likely test the resilience of the Government Legal Department's (GLD) consolidated model – it will, no doubt, be running at full capacity.
"The legal profession expects Brexit will result in an increase in work for external law firms. We'd expect to see the same picture for government lawyers."
One City trade partner agreed that sorting through the legislative impact of Brexit could prove to be too much for the GLD to handle without additional help.
They said: "The absence of any sort of political decision means that a department that would be stretched with one scenario will likely be overwhelmed by three potential scenarios."
Meanwhile, the largest public sector legal consortium in the U.K. has surpassed its 150-member milestone in offering an affordable framework of legal services from seven law firms, which includes Weightmans and Freeths.
EM LawShare, which was set up in 2006, said today that the consortium has saved the public purse in excess of £20 million by helping public sector and local government organisations source affordable legal advice.
EM LawShare chair Jayne Francis-Ward said in a statement: "The rate of members joining is a clear indication of the importance of consortiums such as this, saving significant public expenditure.
"As budgets are squeezed at local level, we expect demand to rise further. This growth will allow our seven legal partners access to a regular pipeline of work in return for providing more financially viable legal support to our members."
The other five law firms to be covered by the consortium are: Anthony Collins Solicitors, Bevan Brittan, Browne Jacobson, Geldards, and Sharpe Pritchard.
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 AllNew Frontiers: Gaillard Banifatemi Shelbaya Launches in Cairo and Abu Dhabi
4 minute readTravers Gives Holiday Bonus, Ropes & Gray Reduces Time Off Allowance
1 minute readJapan’s Mori Hamada Joins Funder LCM for $150M Credit Suisse Bonds Claim
Trending Stories
- 1Gibson Dunn Sued By Crypto Client After Lateral Hire Causes Conflict of Interest
- 2Trump's Solicitor General Expected to 'Flip' Prelogar's Positions at Supreme Court
- 3Pharmacy Lawyers See Promise in NY Regulator's Curbs on PBM Industry
- 4Outgoing USPTO Director Kathi Vidal: ‘We All Want the Country to Be in a Better Place’
- 5Supreme Court Will Review Constitutionality Of FCC's Universal Service Fund
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