These are interesting times for the world of Law, with some firms charging record fees (see click) and others laying off associates. News arrived yesterday that Clifford Chance (CC) has laid off 20 associates in its litigation and dispute resolution group in New York and Washington DC, citing continued "sluggishness" in what must be a downer to the City giant’s US profile.

Meanwhile, Bircham Dyson Bell has also made three lawyers redundant one corporate and two real estate, while another is in redundancy talks (real estate).

Mark Kirsch, global leader of Clifford Chance’s litigation and dispute resolution group, told The American Lawyer

"The long-anticipated increase in overall US litigation activity has not yet appeared," the firm’s statement said. "The firm is taking action now in light of market conditions.” And the expected boom in litigation?. "The general tsunami has not hit yet," Kirsch added…

John Christian, the partner in charge of the London-based firm’s U.S. personnel committee, said the firm had made a difficult "business decision" to lay off the six associates in a practice group that worked exclusively for credit rating agency Standard & Poor’s. Apparently he declined to discuss the severance packages offered to the associates, but according to Above the Law "one of those terminated said they were offered three months’ salary with no bonus. Indeed, the associate said the timing of the layoffs seemed designed to deprive the targeted associates, all of whom were relatively senior, of their bonuses."

CC also explicitly said the layoffs were not performance-related.

CC has experienced a troubled history in the US in the wake of its turbulent 1999 takeover of New York firm Rogers & Wells, and having further difficulties launching in the Californian market in 2002. However, the firm was generally regarded to have shaken off such problems. However, Above the Law offered this insight: "Law firms are generally loath to engage inlayoffs because they hurt the firm image in the eyes of both lateral and law school candidates. Clifford Chance is still wrestling with the fallout from a leaked 2002 associates’ memo that described widespread misery at the firm."

Confusing times…

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