California to reject national bar exam to cut costs, Clare Locke wins round in fee fight with ex-partners, Perkins Coie opens in London, and more➡️

☀️ Good morning from The Legal File! Here is the rundown of today's top legal news:

✍California poised to reject national bar exam in an effort to cut costs

The State Bar of California’s board of trustees on May 16 or May 17 will consider a proposal to hire test prep company Kaplan North America to develop multiple-choice bar exam questions comparable to those that now appear on the Multistate Bar Exam, also called the MBE.

The Kaplan-designed questions would replace the day-long MBE starting with the February 2025 bar exam, under the proposal.

That change would save the state bar up to $4.2 million annually in bar administration costs. The ability for the state to administer the test fully or partially online would eliminate the costs of renting convention centers and other large spaces twice annually, according to a staff memo, outlining the proposal reviewed by Reuters.

“While the impetus of this proposal is budget-driven, applicants will also benefit from the change to a new administration approach,” reads the memo.

The California state bar’s proposal represents a rejection of the Next Gen exam, which aims to emphasize legal skills and rely less on the memorization of laws, and calls for the continuation of the current bar exam format, but with Kaplan-produced multiple-choice questions instead of the MBE.

Read more on how the California state bar is looking to develop its own bar exam.

💼💲Law firm Clare Locke wins round in fee fight with ex-partners

U.S. defamation law firm Clare Locke scored a win on May 14 in a fight with an ex-client and its own former lawyers, persuading a Virginia federal judge to uphold an arbitrator's decision to freeze any money obtained by ice cream machine technology start-up Kytch in lawsuits against McDonald's and others.

Clare Locke initially represented Kytch as it sued McDonald's and others for $900 million, alleging the fast food giant falsely told franchisees its device for improving the reliability of ice cream machines could cause worker injuries.

McDonald's has denied the allegations but agreed to a tentative settlement. A spokesperson for the company did not immediately respond to a request for comment.

Kytch is now represented by a group of former Clare Locke lawyers who broke off in August to form their own firm, Meier Watkins Phillips Pusch.

Clare Locke co-founder Libby Locke told Reuters in April that the lawyers had left in order to keep the eventual payout from the Kytch litigation for themselves. One of the new firm's co-founders, Daniel Watkins, denied Locke's account. Watkins could not immediately be reached for comment.

Find out more on how Clare Locke won against an ex-client and former lawyers.

🎡US law firm Perkins Coie banks on UK private equity with London launch

U.S. law firm Perkins Coie said on May 14 that it has opened a London outpost with a six-lawyer, technology-focused dealmaking team mainly from White & Case, marking the firm's first move into the European market.

Founded in Seattle, Perkins Coie is known for its tech clientele, including Alphabet Inc's Google, Amazon, and video game giant Activision Blizzard. The firm said it is looking to represent tech companies and their founders, mid-market private equity funds and family offices in London.

London has been a hotbed of deals-focused hires for U.S. firms. Last year, Paul, Weiss, Rifkind, Wharton & Garrison and Kirkland & Ellis each hired a string of private equity lawyers from each other. This year, White & Case and Davis Polk & Wardwell have been among firms hiring leading transactional lawyers in London.

Perkins Coie's new office will be led by Ian Bagshaw, who previously co-led the global private equity practice at White & Case. Another White & Case partner, Jan Andrusko, will lead the firm's European M&A practice. Andrusko led White & Case's Central & Eastern Europe technology, media & telecommunications practice, according to his former webpage on White & Case's website.

Read more on Perkins Coie's entry to London.

₿🪙 Column: FTX law firm Sullivan & Cromwell says crypto customers' lawsuit is 'innuendo masquerading as facts'

Sullivan & Cromwell asked a Florida federal judge on May 13 to dismiss a lawsuit by FTX customers who accuse the firm of helping the crypto exchange cheat them out of billions of dollars.

S&C argued that the customers’ claims are unsupported by specific allegations that Sullivan & Cromwell lawyers knew FTX CEO Sam Bankman-Fried and other FTX executives were illegally diverting customer money.

The firm also suggested that FTX customers should be grateful for S&C’s hard work in the FTX bankruptcy, which means almost all of them will be repaid in full, with interest.

Columnist Alison Frankel has the story.

👋 That's all for today, thank you for reading The Legal File, and have a great day!

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