Pallas Partners: paving the way with Purpose
In our latest blog we speak to trail-blazer and founder of Pallas Partners, Natasha Harrison. As well as triumphantly launching her new elite litigation firm last month, Natasha has been leading the way on innovation and change in the legal sector for years. As such, it was a real pleasure to speak to her about her new firm, plans for growth in the class actions space and the need for lateral thinking when it comes to funding.
Q. Welcome Natasha and congratulations on the new firm. What inspired you to set up on your own?
I saw a real gap in the market for a top end litigation only firm and a real opportunity to rethink how, as a new law firm starting from scratch, we can innovate, challenge and improve service delivery to our clients.
Unlike most law firms, we aren’t shackled by systems and bureaucracy that have been in place for decades. We can begin afresh and create a new type of firm fit for the 21st Century.
Q. Whilst lots of firms say they are embracing technology, there can still be a lot of resistance or lip-service, how have you tackled that?
We are a new firm with young lawyers and partners. We are not just open minded about innovation, we actively embrace it, including by partnering with tech companies. We want to challenge the status quo and drive change. We are investing heavily in tech to help us become more efficient, competitive and improve the client experience.
But its more than that - it’s about ensuring that you don’t bore the life out of junior associates or paralegals. We’ve got a lot to learn from the younger generation; they come at it from a different perspective and I’m listening to them closely as we build the technology infrastructure for the firm.
Q. A lot of your clients have come with you - why do you think that is?
We are slightly different from traditional litigation boutiques which act as conflict referral firms. We have built long-term relationships with clients - over ten to fifteen years - rather than just taking one off conflict engagements.
We’re also very careful about who we take on, whether that is hedge funds or banks, and we are selective about who we will and won’t act for.
Our track record with clients and institutional knowledge really adds credibility in the market and that means that from day one we started from a very strong base, hitting the ground running.
Q. In Pallas’ new philosophy, diversity - in all its forms - is a golden thread running through the firm’s culture. Why was this so important to you?
I’ve been a passionate advocate for diversity for years - and as you say, diversity in all its forms, not just gender. There isn’t just the moral obligation in that it's the right thing to do; in my view it also leads to more creative solutions for clients. By having people from diverse backgrounds, we have diversity of thought and steer away from group think. As our clients become more diverse, they make it a priority to see this reflected in their advisers. 'That's why we've pledged to reflect society in all its diversity in our firm by 2025.
Q. Is that why ESG is also a clear pillar in your philosophy?
Definitely, ESG in its entirety. ESG is not just about diversity, it's about giving back to the community and tackling issues that our generation face today. We have an opportunity to really redefine ESG by having it as a strategic part of our business plan from day one.
Looking at the younger lawyers coming up - yes, they want more than good work and good money. They want autonomy and flexibility and they also want to have an impact on society. I remember when I was a junior lawyer that I spent one afternoon a week doing pro-bono work. As large firms have pushed their billable targets higher and higher, that has become impossible to do. That’s why we have pledged to dedicate 5% of our resources to pro-bono and volunteering.
And of course, we can’t forget the environment. As well as pledging to be carbon neutral by 2025 the firm is working with clients to use the law to drive changes that support the environment. For example, we worked with ClientEarth to craft a litigation strategy that resulted in it purchasing shares in a company which it then used to block the building of a coal power plant in Poland. That’s the power of the law.
Q. A lot of commentators are suggesting that ESG will be the focus for dispute lawyers over the next few years, is this something that Pallas Partners is looking at?
Definitely. We’re already exploring the opportunities for ESG class actions against corporates who ‘greenwash’. We tend to act for institutional investors and more and more they are really looking into who and where they are investing. And if parties have mis-sold to those investors, they need to be held to account.
Q. Do you think the class action regime in the UK works at the moment?
If you look at competition claims, and the Competition Appeal Tribunal, that is working well.
However, with regards to extending the scope of opt-out claims, the Lloyd v Google judgement showed that the Courts are not keen to open the door too widely and create a US-style system here. That said, the area is evolving rapidly and it is an exciting time to be in this space. Lawyers are smarter about how they represent group clients, and there are new tools and technology that weren’t there 10 years ago which makes it easier and more efficient to bring these claims.
I think it's important for London to embrace an efficient and successful class action regime which extends beyond competition claims if it is to retain its position as the best place in the world for dispute resolution.
Q. Should London be worried about the growth of other European class action jurisdictions?
I think what the Netherlands has done is really smart. They have English speaking courts, innovative ways to structure claims and a fast system. However, I am not convinced any other European countries have made any meaningful progress. The Netherlands are the only ones that are getting it right.
Q. With several other litigation boutiques opening offices in the Netherlands, is that something you are looking at?
We’re watching the regime there closely. It's still nascent in its development and it will be interesting to see how it evolves. But jurisdictions like the Netherlands are one of the reasons why the Courts here can’t rest on their laurels and need to get smarter on the class action regime.
Q. Finally, we know that a lot of firms are using flexible fee-arrangements now, and that many class actions can’t get going without external funding. Alternative funding is another key tenet of Pallas’ philosophy - why is that?
I fundamentally think that the billable hour is an anachronism which drives the wrong behaviours. By paying lawyers to take more time to do their work, work drags on, it impacts the length of litigation, and costs clients more and more. I’ve seen lawyers on the other side do this time and time again.
This is why flexible fee arrangements are important. There isn’t a one size-fits all but you can have a menu for clients, whether that is by having skin in the game such as Damage Based Agreements, or through external funding. By using these different types of funding structures and taking a portfolio approach to cases, you also balance your risk. This allows us to be more creative in the cases we take on but also - and most importantly - it's about delivering added value to the client in the long term.