“Pipe Alignment”; DLA Phillips Fox Senior Associates Flee as Merger Looms

On Friday we published an article profiling the changing face of national firm DLA Phillips Fox as it tries to “align” with its merger target DLA Piper.

We noted how a tireless non fee-earner of nearly 20-years experience was a reported casualty of the Pipe Alignment.

Following from that post, we received the following email from another anonymous DLA Phillips Fox spy:

Dear FirmSpy
The news just gets worse here at DLAPH as the up-and-coming talent jumps ship.  In 2010 we have lost at least 7 well regarded senior associates in the following fields: insurance; government; planning; corporate; and employment.  They have also lost some very talented senior juniors due, at least in part, to poor management and morale.  Maybe it’s the increased daily billing targets without any significant pay increase?  Or maybe it’s the appalling strike rate of internal promotions to partner.  They seem to have no problems promoting juniors (who arguably aren’t ready) to senior associate level in order to fill the gaps whilst still paying them at junior rates (less than $100k).  Despite the managment spin (and even that has died off a lot) there is a feeling of impending doom around the place at the moment as we edge toward the merger.

Less than $100,000 for Senior Associates? Ouch!

DLAPH lawyers aligning pipes yesterday

And as for SAs not being promoted to the partnership? Well, we would expect that if the rumoured January 2011 arrival of DLA Piper in Australia is true, we will probably never again hear of newly promoted DLA Phillips Fox partners. And if the firm loses its name in the merger, the firm will presumably also lose the right to boast on Wikipedia about its notable alumni:

  • Susan Crennan, Justice of the High Court of Australia (since 2005)
  • James P. Gorman, CEO of Morgan Stanley (effective 1 January 2010)
  • Diana Bryant, Chief Justice of the Family Court (since July 2004)
  • John Faulks, Deputy Chief justice of the Family Court (since July 2004)
  • John Pascoe, Chief federal magistrate (appointed 2004)
  • Chris Maxwell, President of the Court of Appeal in Victoria (appointed July 2005)
  • Sir Edward Woodward (judge), former Federal Court judge
  • Pamela Tate, Solicitor General, Victoria (appointed July 2003)
  • Graeme Samuel, ACCC Chairman (appointed in July 2003)
  • Bob Baxt, former ACCC Chairman
  • Lee Masel Chairman of the National Companies & Securities Commission (NCSC)
  • John Mant principal private secretary to Gough Whitlam
  • Ken Smithers, served as the first NSW state ombudsman (April 1975 – June 1981)
  • Bill Orme, the first privacy commissioner

For those wanting a history lesson in all things DLA Phillips Fox, the firm’s timeline as at 12 October 2010 reads:

  • 1864 PD Phillips established a practice in Melbourne.
  • 1884 Phillips Nicholson established in New Zealand.
  • 1885 Smithers Warren Davenport Mant established in Sydney.
  • 1888 Ross & McCarthy established in Adelaide.
  • 1920s Seymour Nulty established in Brisbane.
  • 1983 Lavan Solomon established in Perth.
  • 1985 Phillips Fox & Masel, (previously known as PD Phillips), Smithers Warren Davenport Mant and Lavan Solomon form an association and agree to practise as a federation under the name Phillips Fox.
  • 1990 Canberra office opens.
  • 1991 Seymour Nulty in Brisbane joins Phillips Fox.
  • 1992 Phillips Nicholson in New Zealand joins Phillips Fox, creating the first trans-Tasman law firm. Ross & McCarthy in Adelaide joins Phillips Fox.
  • 1993 Hanoi office opens and the firm is the first in the world to be granted a licence to practise in Vietnam.
  • Darvall McCutcheon merges with Phillips Fox in Melbourne. Darvall McCutcheon was itself the result of a merger in 1982 of Darvall & Hambleton and W B & O McCutcheon which had their origins in 1864 and 1888 respectively.
  • 1997 Ho Chi Minh City office opens in Vietnam.
  • 1999 Phillips Fox moves from being a federated group of offices to a fully integrated, corporately managed legal firm.
  • 2006 On November 20, Phillips Fox enters into an exclusive alliance with DLA Piper, one of the largest legal services organisations in the world, and becomes a member of the global DLA Piper Group under the name DLA Phillips Fox.

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