To Dodge Conflicts, Make Waivers Specific

Should law firms rethink their client engagement letters, and more specifically, the advance waiver clauses they include?

That’s the question emerging after a federal magistrate’s lengthy report recommending that Kirkland & Ellis LLP be disqualified from representing Teva Pharmaceutical Industries Ltd. in its attempt to acquire Mylan NV because of the work Kirkland had done for Mylan.

While the ruling is limited to the intricacies of the takeover battle, its repercussions could extend beyond the drugmakers. The issue is particularly fraught because of partners moving laterally and because of law firm consolidation as well as consolidation within industries.

“More firms ...