denotes premium content | Oct 16 2008 Managing Partner archive
Volume 10 Issue 3
THE BATTLE between British consumers and their banks took a further twist at the end of June.
Faced with more than 200 cases from bank customers angry at what they consider to be ‘unlawful’ overdraft charges in a single day, Judge Simon Grenfell told Leeds Mercantile Court he wanted to identify “a few test cases” to highlight the main issues.
County courts across the country have been struggling to cope with a deluge of litigation concerning bank overdraft charges. In this instance, however, the banks paid to settle the majority of cases by the afternoon and the few remaining were deemed unsuitable as a test case. Judge Grenfell pointed to a lack of “any particular mood to make a definitive ruling on matters of fact and law” in the case.
Consumers certainly seem in the mood for action though. Tens of thousands of people have started proceedings since the Office of Fair Trading (OFT) first announced a probe into the area in 2006. Official findings, including any imposed cap, are now due by the end of 2007.
The UK's overdraft cases also appear to be coinciding with an emerging class-action culture in Europe generally. Most commonly associated with the US legal system, this is a course still rarely pursued in the UK. However, the OFT recently issued a consultation on possible changes to foster a more litigious climate in the UK, encouraging private enforcement in competition-law cases. The European Commission has been calling for similar action in cases such as cartel price fixing.
Moreover, some law firms are already preparing to respond to any growing demand. In May, for example, US-based Cohen Milstein Hausfeld and Toll became the first major American class-action firm to open a permanent European headquarters – choosing London as its base. European managing partner is Rob Murray – former head of competition at DLA Piper. He is joined by Vincent Smith, a former director of competition at the OFT no less, and the project's potential is clear to both men. Murray says it is “the most exciting project” he could be involved in: the formation of “a solid business model” for this kind of legal work on an international scale. As in the US, however, Cohen Milstein will not defend businesses, and indeed sees a certain 'social justice' aspect to representing individuals' interests. Some will naturally be cynical, but name partner Michael Hausfeld has worked on cases involving victims of the Holocaust and South Africa’s apartheid era. Meanwhile, the major challenge for the firm is the financial risk – finding those cases that will actually lead to wins.
It is still very early days for Cohen Milstein's European plans. Smith says growth will be “organic and conservative”. However, Murray’s former firm DLA Piper is another to show interest in the area, currently playing a key part in the first class-action style case passing through the courts, advising defendant JJB Sports against the charge of price collusion with other companies over replica football kits. Head of competition for Europe, the Middle East and Africa, Mike Pullen, is also examining the structure of the practice in anticipation of similar private and class-actions in the future.
Regular readers of Managing Partner may have noticed the magazine has taken on a rather more international flavour in recent months. As this continues – including regular contributions from US and international firms – it will be interesting to see whether class-action litigation really does catch on in Europe.
Richard Brent
Editor
Features
Case study: Leading and learning
CMS Cameron McKenna is making a conscious effort to raise people management as a priority, putting retention of employees on a par with commitment to client excellence. Leadership training and ongoing education for assistants have been two areas explored.
Partner monitoring in practice
Under increasing pressure to perform and produce high fees, a few partners may be inclined to push the boundaries of acceptable behaviour. The risks in a partnership are many, but how can lawyers realistically supervise their peers?
Opinion: The King is dead; long live the King!
So your managing partner is retiring and a successor seamlessly takes over. You wish!
Opinion: Firm results
Email is a proven marketing channel. A third of the UK businesses that measure its effectiveness report a return on investment of at least five times. How can your law firm harness its power?
Opinion: Ch-Ch-Ch-Changes (turn and face the strain)
The trepidation with which David Bowie’s lyrics approach the topic of change is mirrored by the behaviours of management teams in professional firms everywhere.
Q&A: Video magic
When US firm Torys LLP asked its clients how they preferred to receive information on legal issues they opted for a face-to-face approach. For that reason, the firm decided to film short, snappy video podcasts featuring its lawyers. Kate Clifton spoke with Stuart Wood, director of marketing and business development, to find out more about the project.
Splashing the cash
As competition heats up, where should marketing place those hard-won funds?
Client continuity
The culture of the UK’s smaller law firms can clearly be different to rapidly-expanding international practices. Clients may have a more personal relationship with partners; perhaps even coming to depend on them. Planning for those partners leaving can therefore be a sensitive subject.
Building good behaviour
One of the managing partner’s chief tasks as law-firm leader is persuading other partners to follow proper procedures. Embedding a positive risk-management culture across professionals and support staff will reduce the cost of client-service delivery and improve profits.
Leading lights
The Solicitors’ Code of Conduct 2007 came into force on 1 July, defining new minimum requirements for those with supervisory responsibilities in law firms. Directors, meanwhile, are required to demonstrate the effectiveness of their management systems. With the Legal Services Bill also heralding new legal business structures, having the right leaders in place is more important than ever.
Sustaining the green momentum
Many law firms have produced environmental policies and initiatives in the past year, but tackling climate change requires more than just jumping on the bandwagon.
Case study: Global counsel – the ultimate sinecure?
Appointment to Linklaters’ role of global Counsel demands a strong business case, but also provides privileges for those with the ambition and potential for partnership.
Profile: LG
Several law firms have had something of a makeover of late, ditching everything from their fusty old buildings to their cumbersome names. Lawrence Graham, or rather LG as it now prefers to be known, has done both.
