Shaping the industry – the veterans’ view on what mattered in the last 25 years

Legal Business asked more than 20 legal heavyweights to name the defining moments that shaped the profession since the launch of Legal Business.

Wim Dejonghe, managing partner, Allen & Overy

On globalisation in law:

‘Domestic firms going global – this has been the main event of the last 25 years. That started in the mid-1990s and there has been no way back. Baker & McKenzie was a pioneer of the globalisation trend. It has done extremely well in its market. Two firms that have come from a regional base and developed well include DLA Piper – coming from [the English regions] is impressive – and Latham & Watkins from LA. Given their position 25 years ago and where they are now, these three firms come to mind.’

Tony Angel, co-chair, DLA Piper

On influential leaders:

‘Bob Dell is an outstanding leader… so is David Morley… Nigel Knowles took the second best firm in Leeds and created the largest firm in the world.’

On defining events:

‘Big Bang transformed the City. There’s no question that it completely changed our environment and catapulted London in the context of globalisation, financial and legal services. Twenty years later, obviously the global financial crisis has been a strong influential event. It’s changed so much – the fact that the crisis has completely changed the dynamic from decades before – it was a seller’s market rather than a buyer’s. Clients have much more control now. Governments are now trying to balance the growth of globalisation with increased regulation too.’

Charlie Jacobs, partner, Linklaters

On globalisation:

‘The success of British law firms was made through international expansion as the world globalised. Linklaters was a six-office £100m revenue law firm 25 years ago. Today we are a 29-office, £1.2bn global partnership. All of this at a time when the British investment banking landscape was changing, as many institutions were being acquired by US competitors. Many UK companies were also being taken over by foreign bidders.

‘But the growth and internationalisation of the British legal profession, along with the export of English law, has been a great success story over this period. Linklaters and many of the old London peer group internationalised in a variety of ways to better serve clients. If we had just sat on our hands in the UK and not internationalised, things would look very different today and these global powerhouses would not have been created. But the vision of our management did not let that happen.’

Laura Empson, professor in the management of professional service firms, Cass Business School

Standout leaders:

‘Allen & Overy (A&O) signalled itself as the most innovative of the major firms and [senior partner] David Morley has been a part of this. When it comes to diversity, Morley was way ahead and stuck his head out [with the 2011 launch of the social diversity scheme PRIME] and not with the wholehearted support from many of his colleagues, which is one of the things I respect him for.

‘[Former Clifford Chance senior partner] Stuart Popham did a lot to raise the visibility of the legal profession in government circles – at the time a lot of people took the piss out of him for hobnobbing with Gordon Brown – but actually he was one of the first to understand the importance of developing those high-level political contacts.’

On UK law:

‘We have one of the great British success stories – the elite global law firm was created in this country and has been thriving.’

On the media:

‘In terms of something that went wrong I lay a lot at the door of the legal press who, by publishing league tables, really turned the spotlight on competition between firms and created this very strong focus on profits per partner, which changed the nature of the legal profession. In the process, a lot of what made the legal profession a really good place to work has been lost.’

Mark Vickers, partner, Ashurst

The emergence of US firms:

‘US firms have huge influence in the London market now and have a significant market share. They are at the top of the financing food chain for US-led financing. They have been at the epicentre of the enhanced mobility of partners, a trend which itself was started in earnest by the arrival of the US firms.’

Sir Anthony Salz, executive vice-chairman of Rothschild and director of N M Rothschild & Sons

Changes in the industry:

‘The key issues were more mobility; more erosion of lockstep; more competition from US law firms. I remember having a conversation with Sullivan & Cromwell years ago and at that time they wouldn’t have dreamt of coming to the UK.’

Nicholas Cheffings, chair, Hogan Lovells

Influential individuals:

‘I’d cite [current Supreme Court president] David Neuberger. The speed of his elevation, his reformist attitude, his openness to change, his connection with society, people, the profession, the culture in which he was operating was refreshingly different.

‘Also Lesley MacDonagh. I’m not saying it because of the Lovells connection, she was the first female managing partner of a major UK law firm. She made it acceptable and not an issue.’

Peter Martyr, chief executive, Norton Rose Fulbright

Most influential figures:

‘Two key individuals stand out: Sir Max Williams, as the architect of the Clifford Chance merger, which changed the game of the legal industry at the time, and Sir Nigel Knowles for creating DLA Piper from such modest beginnings.’

Key trend to come:

‘Undoubtedly, the increasing drive for efficiency that will be influenced by technology.’

Charles Martin, senior partner, Macfarlanes

Defining events:

‘The financial crisis catalysed so many changes. It had a major impact on the legal market for all time, so in that respect I would pick the whole cast from Too Big To Fail.’

Influential figures:

‘David Morley from Allen & Overy, obviously Nigel Knowles, obviously Marty Lipton [at Wachtell Lipton], Rodgin Cohen at Sullivan & Cromwell, Anthony Salz at Freshfields … that era stands out for me.’

Key mergers:

‘The most important landmarks in globalisation were probably Clifford Chance’s mergers. DLA’s US merger should be on this list… too early to say whether you would cite Norton Rose Fulbright yet, but it will probably be important… I would include King & Wood Mallesons, even at this stage.’

Sir Nigel Knowles, co-chief executive, DLA Piper

On English law and the City:

‘English law has been an unbelievable export. The English legal profession has supported the City and has helped build the reputation of the City and is quite outstanding in all it has achieved. We have never quite received the credit we deserve, not to mention all the taxes we’ve paid.’

Bob Dell, outgoing chair and managing partner, Latham & Watkins

Outstanding individuals:

‘Joe Flom [at Skadden, Arps, Slate, Meagher & Flom]. Skadden was initially a restructuring firm and then moved into hostile M&A, but he really had the vision to diversify the firm. I’d also highlight Rodgin Cohen at Sullivan & Cromwell. He was undoubtedly the most influential lawyer throughout the financial crisis and beyond. He was also chairing the firm – to me this is the whole package of skillset, personality, dominance and juggling all he did and influencing the banking world. He is a giant in his field but still was very focused on the team-oriented culture. That does not always happen.’

Transparency:

‘Twenty years ago client relationships were impenetrable. If you were a law firm that thought you were better than another law firm that was doing work for IBM, for example, you still had no chance. This development has benefited our firm quite significantly because if we are able to get into certain client relationships, even for just one engagement, we can expand that relationship.’

Lord Gold, David Gold & Associates

A changing profession:

‘The profession is poorer – there’s less fun than there was before. The regulations, in so far as London litigation is concerned, which I’m sure are there for a good purpose, have taken away the fun. For example, coming to court when a document was suddenly produced for the first time. As outrageous as that was, it was fun and had some of the element of surprise.’

The future:

‘Are disputes getting so large that they can’t be litigated? Money covers so many things and everything comes down to the financial elements. The amount it costs to take cases to court these days can be phenomenal. When Lord Woolf brought in his reforms, he thought litigation would become simpler and cheaper. But the opposite has happened.’

Christopher Pugh, head of dispute resolution, Freshfields Bruckhaus Deringer

Looking back:

‘I looked back to your first edition. I was struck by the leader. It suggested that 1989 was the year in which lawyers emerged as business advisers (following Big Bang and the arrival of US investment banks). Since then businesses have become ever more international and the role of the lawyer, and more recently, the litigator, has continued to change. Over the past five to ten years risk issues have come to the fore, regulatory issues have risen up the agenda of GCs and more GCs themselves are from a litigation background. Now the top disputes departments are able to handle litigation, arbitration and investigations across multiple sectors. And the top disputes lawyers are increasingly important in helping to protect businesses and to manage risk across a broad spectrum. That looks like being the case for at least the next ten years.’

Lord Woolf, Blackstone Chambers

Influential figures:

‘For the development of the law, I would say FA Mann at Herbert Smith. He was one of these very exceptional people who was one of the top teaching lawyers of commercial law. He was responsible for raising the level of commercial law in this country.

‘Lord Denning, because he exemplified the approach of taking the law forward by courageous decisions and made it more flexible and more equitable. Rupert Jackson for the reforms… he built on my reforms. He brought them up to date.’

On a changing profession:

‘The profession is in danger of losing the sense that it is a profession as well as a business. There is not enough emphasis on the standards of behaviour that are inherent in being a profession.’

On London:

‘London will preserve its status as an international disputes hub. The Government should realise the importance of it doing so and support it to a greater extent than it does now.’

Matthew Layton, managing partner, Clifford Chance

On English law:

‘In the context of the global market… what is apparent is the influence of English law as well as the increase of regulation. Those who have supported the development of the UK legal market have been right at the forefront of that success.’

Unsung heroes:

‘Considering next year’s anniversary of the Magna Carta, we often overlook the importance of the rule of law – particularly based on English law – as a key foundation stone for international business. The success of UK law firms and the UK business services market domestically and on the international stage and the impact we’ve had on London’s success as a major financial centre is sometimes underestimated.’

Laurence Rabinowitz QC, One Essex Court

Influential figures:

‘Sydney Kentridge, Jonathan Sumption and Lord Grabiner. They have set the standard for excellence at the commercial Bar. Sumption in particular has been instrumental in driving forward careful analysis of law in a way that has been very significant.’

The evolution of the Bar:

‘The commercial Bar is better – it has attracted some of the best people around, it’s more professional and better resourced. The whole business is more professional, clerks, litigators. From a wider point of view, including criminal and family, then it’s obviously worse because of legal aid. Work is drying up.’