A recent panel review by DaimlerChrysler UK (DCUK) has revealed that the City is not the automatic first choice of the top corporates.
Following a lengthy tender process, DCUK has rejected the City by sidelining Herbert Smith and Richards Butler, which historically advised the company on litigation and competition law matters, in favour of Pinsents and Shoosmiths.
Addleshaws and Howes Percival, which previously advised DCUK on product liability and real estate issues respectively, also lost out. The review was launched by DCUK general counsel Chrissi Evans due to her dissatisfaction with the quality of City firms advice. She attacked City firms for being too expensive and for not treating DCUK as an important enough client.
[City firms] have a high cost per hour and, because of their desire to do a perfect job, a small job became a very big job, said Evans. I didnt feel we were clocked as a very important client. I want our advisers to be as enthusiastic about our products as I am.
DCUKs annual legal spend is around 1m. Dorsey & Whitney will continue to advise DCUK on IP, which was beyond the scope of the review.
HerbertSmithand Richards Butler did not return calls for comment.