BLG’s threat of legal action steps up aviation row
Barlow Lyde & Gilbert (BLG) is set to launch a breach of fiduciary duty action against its departing aviation team after it decided to defect to rival Holman Fenwick Willan (HFW)
BLG, London offices
The eight-partner team, led by Giles Kavanagh, quit BLG in March (The Lawyer, 24 March). The shock move was widely believed to be one of the factors that led to BLG entering into merger talks with rival Clyde & Co.
A source close to BLG said of the decision to sue: “It’s hugely personal and very sensitive. It wasn’t an easy decision for the partners to make. It’s likely they’ll settle.”
It is understood that the aviation team had courted a number of opportunities at rival firms, including Kennedys, before HFW secured the appointment.
The decision to move, which is believed to have been taken by the whole team, was motivated by BLG’s takeover of Halliwells’ volume practice, which some in the firm perceived was taking BLG’s brand downmarket.
The team is being held to its notice period and is working in BLG’s offices.
The group’s clients include aviation suppliers Rolls-Royce and Boeing; domestic airlines British Midland International and Monarch; and foreign carriers Etihad Airways and Kingfisher Airlines.
It is understood that BLG wants a slice of the profits generated by the team when it moves to HFW, although the firm refused to comment on that matter.
The aviation partners could not be reached for comment.
Readers' comments (4)
Anonymous | 18-Jul-2011 12:17 pm
what purpose is this supposed to serve?
to deter others, perhaps?
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Anonymous | 18-Jul-2011 4:00 pm
Pour encourager les autres
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Anonymous | 18-Jul-2011 9:54 pm
BLG were once a class act but this demonstrates how far they have sunk. Instead of litigating ( I'd have a pretty good guess as to which firm is acting for them) they should ask themselves what causes a whole team to up sticks. BLG should then address those causes. Good luck to the aviation team. Don't know if they ever had reason to doubt their decision to leave but I'm sure they won't now.
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Village Person | 19-Jul-2011 10:04 am
It may be an insurance policy of sorts. I can't see the merged firm of Clydes/Barlows wanting a fight like that with HFW, especially as it concerns the same clients. The merger is not a done deal however; a number of BLG (and Clyde) partners are not keen and Clydes have made it clear there are certain BLG partners they don't want. If it doesn't get voted through, BLG will be completely dead in the water and probably needs to claw money from wherever it can. An ignominious end to a once very reputable firm.
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