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Anthony Julius will resign from the equity of Mishcon de Reya in April to become a part-time consultant at the firm.
Julius, the firm's head of litigation and controversial de facto managing partner since 1992, will relinquish all management responsibilities, according to an internal memo circulated last week, and will work a minimum of three days a week at the firm for the next five years.
The Lawyer revealed in January that Julius was considering such a step to leave him free to take up a planned professorship of "law in literature" at University College London (UCL) where he lectures part time.
However, it is not yet clear whether UCL has agreed to establish the chair. When asked, the university's provost, Sir Derek Roberts, said: "I don't know, and if I did I wouldn't talk to you about it."
The Mishcons memo said: "It is Anthony's wish to develop his interest in writing and teaching whilst maintaining a substantial legal practice..."
It continued: "The partners believe it is in the best interests of the firm to assist Anthony in his endeavours (which bring their own benefit to the firm)."
The note hinted that Julius is also likely to step down shortly from his controversial chairmanship of the trustees of the Princess of Wales Memorial Fund. "He will remain for the time being interim chairman of the ...fund," it said.