A&OS, PPI, social media no no, Law firm on the telly, Sackers smackeroonies, and more...

The almighty A&O Shearman: can you feel the ground shake?

Do you recall the first time you watched Stephen Spielberg’s seminal modern Hollywood classic, Jurassic Park, which was released in 1993 and (along with 1991's summer blockbuster, James Cameron’s Terminator II) heralded the arrival of the CGI era in cinema? I bet that, like me, one of the scenes indelibly lodged in your memory is the cup of water on the car dashboard, its surface suddenly rippled by the impact tremors of the approaching Tyrannosaurus off-screen. “Where’s the goat?!”

The way those characters felt in that broken-down car as the ground quaked with the huge beast’s every footstep? The terror that surged through them, unable to escape as the T-Rex casually bit its way through the now-useless electric fence separating the Cretacious period’s apex predator from the hapless humans? The sheer panic that gripped them when the nightmarish creature nimbly stepped out onto the road, eyeballed the fragile vehicles in its path and emitted an almighty, ear-splitting roar? That’s a little bit how I imagine the rest of the Magic Circle firms felt last Friday when it was announced that the A&O Shearman merger had been voted through by an overwhelming majority: there’s a new transatlantic legal behemoth worth around $3.5 billion in combined revenue on the loose – and it’s hungry!

Okay, I might be getting a bit carried away and straying into B-movie territory here. But there is something pretty flipping awesome and awe-inspiring about the emergence of this unprecedented superfirm. For starters, it’s going to turn the City on its head and leave the other Magic Circle firms scrambling to find answers to the challenges thrown at them by the very existence of A&O Shearman.

What challenges are those, I hear you ask? In essence, what it really boils down to is a case of being heavily outgunned, not to say outclassed. The new entity that will be A&O Shearman – the tie-up won’t actually be fully finalised until around May next year – will immediately sit at the top of the Magic Circle leaderboard by some distance in terms of total transatlantic headcount, giving it unrivalled strength in breadth and depth for this market. And I can’t help thinking that the prestige effect that comes with being best in show will help A&O take even more cream off the top, in terms of both legal talent and client accounts.

So how do the rest of the Magic Circle and the other big City firms respond? It may well end up being a case of imitation being the sincerest form of flattery, and I wouldn’t be at all surprised if we see merger talk abound in 2024 and beyond. This will become all the more essential in the face of worsening market conditions: staff and support-function costs are currently rising faster than fee income, according to PwC’s latest Annual Law Firms Survey , with the number of billable hours on a downward trend, not least as a result of slowing M&A activity, the lifeblood of many a City firm.

The fact that the top UK firms surveyed by PwC cited rivalry from US peers as one of the greatest competitive threats they face makes it all the clearer why we are bound to see more transatlantic mergers in the near future: if you can’t beat them, join with them. To return to the Jurassic Park theme and bastardise a quote from that brilliant movie: like life itself, a good law firm finds a way .

Think twice, post once – and beware the law of unintended consequences

Sometimes, global events seem to demand an instant response, and woe betide you if it isn’t a good one. The murder of George Floyd in Minneapolis two years ago was one such instance:? companies came under tremendous pressure to make a public statement of solidarity with the Black Lives Matter movement and were told in no uncertain terms by outraged consumers that “silence is violence”.

Terrible as it was, at least George Floyd’s killing at the hands of a serving police officer was morally unambiguous in its gut-wrenching awfulness. The same cannot be said for the seemingly intractable situation of the current Israel-Hamas war, where we are witnessing such terrible suffering among both Israelis and Palestinians. Depending on their own religious affiliation and their policital-cum-cultural background, it is a deeply polarising subject for many, many people. Even as I compose these words, I’m acutely aware that it is very easy indeed to write the wrong thing in somebody’s opinion.

And that’s exactly what Dentons’ social media team managed to do when it issued a post on LinkedIn two days after Hamas’ attack on Israeli civilians, in which more than 1,400 people died:?

“We are shocked and saddened at the horrific atrocities taking place against innocent civilians, including murder and kidnappings of women and children, in Israel. Our global community stands with those affected and wishes for peace in the region and throughout the world.”

An accurate summation of the facts as they stand for some, a terribly one-sided and emotive post for others, with no mention of the suffering experienced by the Palestinian people in the aftermath as Israel began its retaliation. And so the criticism came pouring into the comments section below the post, forcing Dentons to delete and replace its statement, this time with comments disabled:

“As our global news continues to be dominated by enormously sad and troubling events in the Middle East, we continue to decry the loss of all civilian life—Israelis, Palestinians and others—and wish for peace in the region. We are focused on supporting our colleagues and clients, particularly those living and working across the Middle East region where we have operated for 50+ years.”

It’s ostensibly the same sentiment as in the final sentence of the original post – solidarity with those who are suffering in the conflict – but it can no longer be interpreted as conferring sympathy to any particular side in the war. It’s a seemingly small but very important difference in the messaging.

When contacted by Law.com International for comment on the deletion of the original post, Dentons stated:?

“We did not intend our original post to be used as a platform for incendiary discourse at a time when the safety and security of our colleagues is our priority. Accordingly, we took the post down out of an abundance of caution. We remain shocked and deeply saddened by the tragic events and loss of innocent life in the Middle East, including Israelis, Palestinians and all civilians regardless of nationality. We hope and pray for a peaceful resolution to this crisis.”

Dentons’ experience provides an object lesson in the need to tread very carefully indeed when commenting on highly sensitive and contentious political situations. As a friend’s grandma – a lady never in short supply of an aphorism – used to say to him, “measure twice, cut once”. Or in this case, think twice, post once. And delete if necessary.

Just when you thought it was hasta la vista baby, PPI is back?

Remember those disconcerting ads for the August 2019 PPI claims deadline, featuring a 3D animation of Arnie’s head atop a weird tank-type thing, like a deleted scene from some weird Total Recall/Terminator mashup? Thanks to recent rulings by the Supreme Court, it turns out that the deadlines for PPI (payment protection insurance) claims to be lodged have now been extended.?

We’ve all experienced cold (and hoax) calling practices in some capacity, often involving the mis-selling of PPI or something to that effect – and often occurring just as I’m sitting down to dinner at the end of a long day, making them all the more annoying.?

Well, banks are now in trouble, as they’ve already had to pay back ￡38 million so far due to these very calls, and the amount they have to fork out in payouts is now only going to skyrocket as a result of these rulings and the considerable amount of PPI that has been mis-sold.?

It’s estimated that the total remuneration people will be receiving in the form of refunds will total just shy of ￡20 billion, which is not too shabby. At the front of the firing line, as stated by The Times , is the Royal Bank of Scotland (RBS), whose attempt to dispute the Supreme Court’s six-year ruling failed miserably. In fact, the decision emerged after the Supreme Court exposed two mis-selling claims against RBS totalling ￡3,000. Out of small acorns grow mighty compensation claims. Ouch.?

Banks have been exposed for selling PPI attached to loans and credit cards, in order to ‘protect’ people if they couldn’t make payments; however, these schemes have now been uncovered, as it was revealed that lurking behind this fa?ade of ‘protection’ were money-making schemes for the advisors involved in a bid to make commissions.?

With the aid of the Supreme Court ruling, which could cost banks even more money, the scope of customers able to make refund claims is broad. The Court’s decision means that people who were denied a refund, got only a partial refund, or missed the 2019 deadline to make claims might now be able to get their money back. That is, if they can sufficiently prove that they have a qualifying credit agreement with the bank with a PPI attached, issued within the last six years.

Now I don’t know about you, but that sounds to me like it could be a mighty amount of paperwork. Especially as the predicted ￡18 million liability was estimated by law firm Harcus Parker before the Supreme Court judgment extended the claims period. Even bigger ouch.?

Bad management has prompted one in three UK workers to quit their job

The quality of its management is a crucial factor in any business’s success. As a manager, you can leverage control over employees’ experiences at work and inspire the difference between negative and positive attitudes of your workforce. It is therefore understandable that bad management practice can lead to higher turnover rates and employee dissatisfaction.?

I, for one, found some statistics revealed this week very insightful and thought they’d be worth sharing with my network. Insights from an article by the Guardian this week – which is itself based on a survey of 2,018 people conducted by the Chartered Management Institute (CMI) – show that 28% of employees cited a bad relationship with their manager as a reason for leaving their jobs. The importance of supporting and checking in with your employees has therefore never been more apparent, especially as we are all still recovering from the repercussions of the pandemic in 2020-2021.?

One of the aspects of this article I found most surprising was the revelation, from a YouGov survey of 4,500 people, that 82% of new managers had essentially fallen into their role, with no formal management or leadership training. Is this something that needs to be more widely accessible for managers under pressure in fast-paced environments? Should there be more on-the-job training available? Has the shift to remote work meant manager-employee relationships, as well as managerial training, have been compromised? It would be interesting to hear your insights, especially considering the magnitude of this percentage.?

Twelve percent of respondents stated harassment and bullying as a reason for leaving a workplace. If this is something you would like to feel more informed about, and wish to be part of a brilliant campaign to raise awareness of and combat bullying in the workplace, then please get involved with Wright Hassall ’s End Workplace Bullying Day on 25 October.?

Interestingly, the CMI survey mentioned above shows that one third of the respondents considered leaving their jobs in the next 12 months, which begs the question as to how turnover rates have skyrocketed and what managers can do to prevent their workforce from feeling unmotivated and disengaged. Figures from the Chartered Institute of Personnel and Development (CIPD) show that the average UK turnover rate in 2023 is 35% (26.9% of whom move to a different employer within a year), due to factors including manager effectiveness and wellbeing and stress concerns.?

But why are managers performing so poorly in 2023?

In the age of AI, you’d think anything would be possible. The simplicity of typing ‘how can I become a better manager?’ into ChatGPT almost seems silly. But how can firms and organisations help this new wave of managers to ensure they are not only performing at their best, but are also encouraging and supportive of those team members underneath their leadership? Do new measures need to be put into place? Looking at the figures, it may be worth talking with your colleagues, whether you’re a manager yourself or are part of a team and feel things need to change, don’t be afraid to speak out and check in.

Definitely some food for thought for this week.

Big BOTHER – would you push your firm under the spotlight??

The new legal docuseries ‘The Firm’ follows the formidable legal tycoon Aamer Anwar as he and his law firm Aamer Anwar & Co. navigate their day-to-day lives in the office, but with a twist – every move they make and conversation they have is being recorded.

Glorified as a Scottish, less glossy version of Suits, the series unpacks plenty of emotional trauma for Aamer, as well as some raw, real-life cases such as the death of Sheku Bayoh (who died in police custody in 2015) and challenging injustice cases with devotion and rigour.

However, this BBC News Centre article depicts how Aamer was less than fond of being the centre of attention and how, at times, being followed by a camera team got “under his skin”. The article includes unusually pithy comments under the ‘interview’ questions, which begs the questions as to whether these are Aamer’s own impassioned opinions about general assumptions around television series, or whether these have been heightened for dramatic effect.

Is essentially granting an exposé on the inner runnings of your firm a good business move? Or is the risk more heavily weighted?

One thing is clear – Aamer cares about people, causes and justice. But will his abilities to bring about the latter be compromised by his newly-revived fame and media attention? Taking part in a docuseries like ‘The Firm’ will certainly bring advantages and perils for both Aamer and his firm. In this case, the docuseries acts as a powerful marketing tool for Aamer, as it will increase widespread visibility and awareness of not only his firm, but its services, missions and ongoing cases, like the Sheku Bayoh case, the “biggest public enquiry in British history”.?

Broadcasting your firm’s endeavours may generate potential client interest, essentially serving as a call to action for those who may require the legal services the firm offers. Furthermore, philanthropic movements can reflect the firm in a positive light to the public. So, as far as marketing strategies are concerned, signing up for an interrogative docuseries is a strong choice.?

Having said this, there are clear drawbacks to Aamer’s decision to sign up to a docuseries, not least privacy and ethical concerns. Aamer and his team could struggle with public perception of the inner workings of the firm, any media scrutiny that may come with this and the lack of control the law firm has over editing rights.?

Nevertheless, ‘The Firm’ is definitely a must-watch for any Managing Partner or Director to become clued up on the goings-on at a successful law firm. Something to reflect upon though: do you think the pros outweigh the cons on this one, and is it truly worth seeking the spotlight? Could YOU do it? Would YOU do it?

Nice work if you’re a pensions lawyer

The first firm outside of the UK top 100 to offer a newly-qualified salary of ￡100,000 at an attractively low 1,400 hour billable target has been revealed.

Pensions specialist firm Sackers offered the best salary-to-chargeable hours deal in 2020, with newly-qualified pay of ￡85,000 and target billable hours of 1,400. Sackers then saw a salary increase to ￡88,000 in 2022 and they’ve maintained this billable target three years on, but upped the salary to ￡106,000.?

The 20.4% change places Sackers at the top of the ranking of salary increases among the Independents, as junior lawyers are now earning ￡75.70 an hour.?

On behalf of Sackers and quoted by an article in The Lawyer , a spokesperson stated: “We believe that as a firm we offer a highly competitive salary, a chargeable hours target that enables our lawyers to have a good work-life balance, a fantastic client list and a rich diet of high quality, interesting work”.

Those are the kinds of alluring working conditions that might tempt many a non-pensions lawyer to reconsider their chosen specialism…

Burning through the bonus: five ridiculously fun ways to squander your money if you work at Quinn Emanuel

Associates at Quinn Emanuel Urquhart & Sullivan’s London firm are about to experience a whole new meaning to the phrase ‘Christmas came early’ (two months early, in fact). Revealed in this article from the Lawyer , as the middle of the financial year approaches, so does a magnificent bonus for the US firm’s London-based junior lawyers, of up to $32,908. Translated to GBP (at present), that is ￡27,091 – almost the average annual salary in the UK. And what’s more is that lawyers at Quinn Emanuel will still be eligible for the firm’s standard year-end bonus pay-out. Ka-ching!

So, I thought it would be fun to come up with five (possibly barbaric) things you could get, or do, with $32,908. Here we go:

1. You could book 22 hours of service (at a mere ￡1,200 an hour - bargain!) with London’s most expensive divorce lawyer , Ayesha Vardag. Let’s hope refreshments are included for that price.

1. Sweet tooth? You could buy eight jars of premium manuka honey from Harrods . That’s extended family Christmas presents sorted in just one click!

1. Snorkel with sharks 193 times, if you dare.?

1. Adopting a ferret is ￡50 a pop, so if you’re feeling charitable, you could adopt 541 ferrets.

1. For all the thrill-seekers, you can ride the UK’s tallest roller coaster 540 times, which is 213 feet tall. That would be an impressive feat to survive.?

Are you part of the 93% club??

This week, TBD’s PR assistant @Cara Walters attended the pilot event for the State School Roadshow, launched by the 93% club, an exclusively non-exclusive group of state-educated individuals seeking to dismantle existing class inequality through the power of community. By bringing together those who share the same infectious desire for change and equal opportunity, the members of the 93% club have built an admirable empire - which is still very much growing!

Take a look at her blog post here for more insight into the club and the event – absolutely worth a read.

In other news

LinkedIn a hotbed of Chinese industrial espionage

MI5 has revealed that an estimated 20,000 Britons have been approached by Chinese state agents on LinkedIn with the aim of trying to steal industrial or technical secrets.

Ken McCallum, the head of the security service, said that these attempts at industrial espionage are occurring at “real scale”, with approximately 10,000 UK businesses at risk.

Read the full story here .

Totally bogus – the fight against fake company listings

Research conducted by University College London has found that 55% of all international Ponzi schemes use businesses officially registered in the UK as limited companies, with a registration number provided by Companies House.

Lawyers and accountants are now campaigning for a change in rules that would see Companies House become a regulator rather than just a register, and thus have a responsibility to perform due-diligence checks on its own listings, which contains a plethora of bogus companies.

You can read more here .

Second female justice joins UK Supreme Court

It’s been a good month for female representation in the top echelons of the legal profession this month. Following the swearing-in of the first ever Lady Chief Justice earlier this month, we now have two women judges sitting on the bench of the Supreme Court.

Lady Justice Simler has a strong record as the judiciary’s diversity champion, and is only the fifth woman judge ever to be appointed to the UK’s highest court.

See this article here for more details.

Dates for your diary

• 25 October – HLN10? Legal Networking – Hexagon Legal Network is not just another networking group: they connect people, make an impact on you, your future and your business – and all that while having fun. In-person event at Everyman Broadgate, London

• 25 October – Legal Voices for the Future – Legal Voices for the Future is a collaborative knowledge-sharing forum established by young practitioners from different fields of law. Their October knowledge session is on “Exemplary Damages and the Environment” and is the first to be member-led. In-person event at the University of Law, Moorgate, London

• 25 October – PM Forum: How to use analytics to optimise your digital marketing – Delivered by yours truly together with the brilliant Chloe Christine , this workshop will look at the key concepts and techniques that will enable attendees to monitor, analyse and improve their websites, content and digital channel activity. Online event.

• 31 October – How to comply with Money Laundering Regulations and LSAG Guidance – A discussion on the Money Laundering Regulations obligations on Client Due Diligence compliance, with insights and practical advice on navigating on LSAG AML Guidance and best practice. Online event.

I hope you've enjoyed this week's edition.

Thanks,

Si Marshall