Meet the Boss: Steven Philippsohn

The managing partner of PCB Litigationn is disappointed that the Jackson Report did not give greater scope for solicitors to operate on a contingency basis

Are you happy with the firm's financial performance over the last year?

2009 has proved to be a very successful year with turnover increasing by 40 per cent.  We were instructed on a number of very significant high profile cases that necessitated additional recruitment.

 
What is the outlook over the next year? Are you expecting to grow? Which areas are causing the greatest headaches? Is it too soon to talk about "green shoots"?
 
PCB is a boutique practice as we only deal with commercial litigation and international arbitration and within these areas we have a particular expertise in dealing with international asset recovery.

The recession has resulted in the exposure of previously submerged frauds and the lack of credit has meant that there is an increased pressure on victims (whether government, business or individual) to recover what has been stolen.

I expect this trend to continue and for PCB to continue to grow.  English Courts as well as Courts in many other jurisdictions offer effective solutions to victims of commercial fraud which enable them to identify and freeze stolen assets on a worldwide basis. 

Our expertise lies in knowing how and when to deploy them. I firmly believe this will leave PCB well-positioned next year and for a period of time afterwards.

Can law firms recapture the profit growth they have been used to in the past decade?

I believe they can but it will take some time.  As the economy recovers so will established markets and new markets will develop.

However, the key issues are providing value for money and affordability. In commercial dispute resolution terms, this will be driven in part by third party funding and the sharing of risk.

We already offer risk sharing in appropriate cases but I think it is disappointing that the Jackson Report did not give greater scope for operating on a contingency basis which would enable us to offer greater flexibility to clients.

Where do you see your firm in five to ten years? What are the biggest challenges you'll face?

Each year the quality and value of the cases on which we are instructed has grown. In a firm such as ours, I believe this is attributable to our track record in achieving results for clients in complex disputes.  I would expect this to continue and our objective is to consolidate our position as one of the pre-eminent firms dealing with international asset recovery.

One of the biggest challenges is to get the message across that there are effective steps victims of commercial fraud can take especially if they act quickly once they suspect something may be wrong.
The law is there to help them but it is important to take advice at an early stage to ensure that the investigation as to what happened is carried out lawfully and to preserve the integrity of the evidence without tipping off the fraudster. The Courts have wide powers to enable the necessary evidence to be quickly built to substantiate the fraud and trace stolen assets.

A further challenge is to try to co-ordinate the international response to fraud so that fraudsters can be effectively targeted in whichever country they chose to live or hide their assets.

Clients are getting increasingly impatient with paying high hourly rates for younger lawyers who may not add much and are seeking greater attention from partners. So how are law firms going to deliver value to their clients? Is hourly billing doomed?

This is a problem for law firms. There is a need for measuring performance within a firm but charging by an hourly rate does not necessarily equate to value for money. I believe there needs to be more communication with clients not only at the outset of any instruction but throughout its course to evaluate the objectives and value of the work to the client, a proportionate costing structure and to manage any variations that may occur because of changes in instructions and unforeseen difficulties.

The crux is delivering value for money and at PCB we offer a different model to most law firms. The complex nature of the disputes upon which PCB is instructed means that partners are heavily involved in all aspects of the case.The client is not passed from pillar to post.  Having analysed the case and the requirements, we then build and manage a bespoke team of experts for that case so as to maximise the client’s prospects of success as well as control the costs being incurred.  Our junior lawyers work closely with us on those aspects of the case where they are able to add value.  We provide budgets to our clients for each stage of any proceedings and in appropriate cases will risk share or cap costs.

On the whole, do you think law firms are well-managed? Would they be better run if they recruited more non-lawyers as executives?

I believe firms are generally well-run. I do not subscribe to the view that management would be improved by recruiting non-lawyers.  Clients want commercial, creative and strategic advice and if lawyers cannot run their own businesses on this basis, then I doubt how they are able to give that advice.

Is so-called "Tesco law" just talk or set to fundamentally change the legal market? What has your firm done to prepare for it?

In areas of law which can be commoditised, I believe the change will be dramatic.  Whilst this may lead to greater access in those areas, I am concerned that it may also lead to lower standards.

The cases upon which PCB is instructed are complex and international in nature.  They require detailed analysis of the facts and the relevant laws in several jurisdictions, the creation of an effective strategy and then its deployment.  They are not conducive to a model based upon “Tesco law”.

What's the hardest decision you've had to make as managing partner?

Setting up PCB in 1979, which left me no choice but to succeed. It has also been the most rewarding decision I have made. 

Which person outside the legal sector do you most admire?

My wife has been my constant companion and support through out my career whilst bringing up our 2 children. 

If you could hire one lawyer from a competitor who would it be and why?

There are many lawyers I admire but my preference is always to try to develop the next generation of lawyers within PCB who are capable of delivering results by creating and implementing effective solutions.

Are British lawyers overpaid?

No.  Pay invariably reflects market conditions and, whilst it’s an old adage, good advice is worth its weight in gold – even at its current value!