Sullivan & Cromwell has lost one of its four Palo Alto-based partners, Michael Lacovara, who has quit the leading New York firm to go in-house at investment client Sandler O’Neill & Partners.

Lacovara, who joined Sullivans in 1989, will take up the role of general counsel at Sandler O’Neill from February 2004. He will succeed current legal head Kate Lawson, who is relinquishing her legal duties to work exclusively on investment banking.