A tumultuous year at the preeminent elite global firm reveals the challenges and conflicts that come with such a sprawling practice.
Lawyers don’t typically join Kirkland & Ellis to go around apologizing for their work. But last year, some of the firm’s attorneys did exactly that.
Sources speaking with 9fin described these conversations as a kind of apology tour: an attempt to mend reputational damage after Kirkland introduced a contentious clause in leveraged debt agreements that many felt struck at the heart of the legal profession.
The clause in question was a so-called law firm disqualification provision, inserted into deal documents for the private equity firm Francisco Partners. The language could be used to prevent lenders from retaining the counsel of their choice — something that many in the industry consider a sacred right.
“I am very offended,” a lawyer at a different firm said of the clause. “I think it is a terrible provision that potentially injects fear and concern and second-guessing into lawyers trying to do their jobs, and I advise every client from now until the end of time to push back on it.”
The consternation became so widespread that in an attempt to control the...
