More Tyco Work for BigLaw UK Firm Under Unusual Billing Scheme
A major U.K.-based international law firm stands to get a six-figure bonus this year from a corporate client if it meets certain goals, including having women comprise at least 25 percent of its 2009 class of new partners.
Eversheds will also see a fatter paycheck if it reduces Tyco’s litigation by 15 percent and increases Tyco’s satisfaction with the firm by 35 percent, reports the Lawyer in an article about Tyco’s renewal of its first such annual contract with Eversheds.
As part of the firm’s innovative $10 million-plus representation, Eversheds is to be paid on a fixed-fee arrangement for handling an estimated 10,000 hours of corporate work and other standard matters (the firm gets a bonus if it takes less time than that). Eversheds is paid on a blended-fee arrangement for litigation work, with incentives and penalties added to the hourly rate depending on the result achieved, the legal publication reports.
“We’ve designed something that eliminates the zero-sum game and replaced it with a profitable partnership,” says Trevor Faure, the company’s general counsel for Europe, the Middle East and Africa.
Says David Gray, the chief executive of Eversheds, in a press release: “This partnership is truly precedent-setting in the sense that a single law firm has been entrusted by one client with such a comprehensive range of legal service needs, and in more than 30 jurisdictions. We are extremely proud to be that law firm.”
Eversheds is also winning other clients with similar arrangements, based on what it has developed with Tyco, the Lawyer reports in another article.
Additional coverage:
Law Gazette (2007): “Cozying up to clients”
Wired GC: “Tyco + Eversheds = Sea Change”
American Lawyer: “How Eversheds Became Tyco’s Firm of Choice in Europe”
