International arbitration practitioners seem to have developed a growing predilection for creating independent offshoots from larger, already established, firms. One of the key driving forces behind this trend is the desire for freedom from the inherent conflicts and bureaucracy that accompany big law firms.
A case example would be Yas Banifatemi, a renowned figure in the international arbitration sector, who found herself in a similar situation. Banifatemi, along with her colleagues, had managed to build what was regarded as a ‘firm within a firm’ while at Shearman & Sterling. As the law firm placed an emphasis on expanding its presence in the American energy sector, the arbitration team found increasing conflicts with matters concerning their clients.
However, it is also worth mentioning that as law firms scramble towards maximizing profitability and margins, big arbitration practices are seemingly being cast aside. This two-fold dynamic of attorneys seeking independence and freedom and firms focusing more aggressively on profits elsewhere illustrates this trend of arbitration ‘spin-offs’.
For a full understanding of why arbitration spinoffs are being labeled as ‘part push, part pull’ for big law, consider delving into the detailed coverage at Law.com.