It's not been a great week for Linklaters. First the firm laid off six associates in its Lisbon office, then it found it could be on the hook for up to $55 million after the Court of Appeal held against it.
The decision to relieve the Portuguese associates of their jobs was made against all normal local practice. Despite the pisspoor economy, apparently none of the local firms has made any redundancies. Francisco Sá Carneiro, founding partner of Campos Ferreira Sá Carneiro & Associados, told The Lawyer that he considered the move “very courageous”. Hmmm.
RollOnFriday was unable to contact any of the Algarve Six to gather their thoughts on this display of bravery. Although given that their redundancy packages were rumoured to be a year’s salary, they may well have been slumming it on the golf course. A spokeswoman for Linklaters said that it was "not a decision we have taken lightly, but we believe it is necessary given the continuing challenging market conditions in Portugal and the anticipated slow economic recovery".
Back in the UK, the firm may now be facing a bill for up to $55 million. Telecoms company Levicom had instructed Linklaters to represent it in a dispute with a rival back in 2000. Levicom claimed that by following the firm's advice it found itself embroiled in an expensive arbitration, when it had really wanted a quick settlement. Last year the High Court ruled that Levicom hadn't suffered any loss, and awarded the company just a fiver in damages.
However Levicom was having none of it, and this week the Court of Appeal agreed. So unless the inevitable frantic calls to the firm’s insurers have sorted everything out, expect a non-optional whip-round at the next partners' conference.
A spokeswoman said it was inappropriate to comment other than to confirm that the Linklaters was seeking leave to appeal to the Supreme Court.
Tip Off ROF
The decision to relieve the Portuguese associates of their jobs was made against all normal local practice. Despite the pisspoor economy, apparently none of the local firms has made any redundancies. Francisco Sá Carneiro, founding partner of Campos Ferreira Sá Carneiro & Associados, told The Lawyer that he considered the move “very courageous”. Hmmm.
RollOnFriday was unable to contact any of the Algarve Six to gather their thoughts on this display of bravery. Although given that their redundancy packages were rumoured to be a year’s salary, they may well have been slumming it on the golf course. A spokeswoman for Linklaters said that it was "not a decision we have taken lightly, but we believe it is necessary given the continuing challenging market conditions in Portugal and the anticipated slow economic recovery".
 |
|
Back in the UK, the firm may now be facing a bill for up to $55 million. Telecoms company Levicom had instructed Linklaters to represent it in a dispute with a rival back in 2000. Levicom claimed that by following the firm's advice it found itself embroiled in an expensive arbitration, when it had really wanted a quick settlement. Last year the High Court ruled that Levicom hadn't suffered any loss, and awarded the company just a fiver in damages.
However Levicom was having none of it, and this week the Court of Appeal agreed. So unless the inevitable frantic calls to the firm’s insurers have sorted everything out, expect a non-optional whip-round at the next partners' conference.
A spokeswoman said it was inappropriate to comment other than to confirm that the Linklaters was seeking leave to appeal to the Supreme Court.