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Terry has replaced previous co-heads Josanne Rickard, who was based in London, and Rolf Trittmann from Frankfurt.
The appointment comes after new senior partner Guy Morton took the helm earlier this month. He is now finalising his senior management team.
Morton said: “A great deal has been accomplished by the dispute resolution group and its strengths and market reputation provide a solid basis upon which to build in the years ahead.”
Morton, who beat Philip Richards and Graham Nicholson to the top job job last month, took over as senior partner alongside Frankfurt-based co-senior partner Konstantin Mettenheimer at the start of 2006.