Cleary Gottlieb Steen & Hamilton is to convert to a limited liability partnership (LLP), leaving only a handful of New York’s top firms yet to cap partners’ personal liabilities.

The conversion to LLP, which goes live on 1 January, 2005, provides cover for partner liability in the event of a ‘firm-busting’ negligence claim, a risk highlighted by the string of controversial corporate collapses in the US.