Legal Business

DWF takes legal action against the Insolvency Service after failed panel bid

legal-business-default

Top 25 LB 100 firm DWF is taking legal action against the government’s Insolvency Service (IS) after the national firm lost out on an appointment to its legal services panel.

The claim was issued after it emerged earlier this year that DWF had missed out on a contract for England and Wales to Scots firm Shepherd and Wedderburn.

A breakdown of the bidders’ scores was ‘inexplicable’ as it showed that DWF had scored better for Scotland than England and Wales, because, the judgment summarises: ‘Its insolvency team had direct knowledge and experience of working in England, but not in Scotland, and this contrasted with the position of Shepherd and Wedderburn, which, so far as DWF was aware, had no or very limited experience in respect of provision of contract services in England and Wales.’

The IS award decision notice provided details of the scores achieved during the tender process and showed that DWF had been awarded a total weighted score of 74%, leaving it one point behind Shepherd and Wedderburn and another bidder, Howes Percival, for England and Wales.

The panel process began last July, offering up to six contracts – four in England and Wales and two in Scotland – for a three-year period and valued between £32m to £50m. Shepherd and Wedderburn was also awarded one of the Scottish contracts.

DWF launched its legal battle against the IS in February, claiming the government body had breached its obligations to treat ‘economic operators’ equally and in a non-discriminatory way and act in a transparent way.

It further claimed the IS ‘committed manifest errors’ in its assessment and/or scoring of its tender.

The dispute became public on Tuesday (8 July) when the Court of Appeal granted DWF’s appeal against a decision by the Technology and Construction Court that the firm could not amend its particulars of claim.

Jacob J, handing down the appeal decision, said the issues are ‘not clear cut’ and a trial will be required to resolve the dispute, suggesting a date in early August or September, despite submissions for the Secretary of State that August is too soon. He said: ‘Competent lawyers could easily do the job in time. But there is not a great difference between the two dates anyway.’

Monckton Chambers’ Michael Bowsher QC, and 11KBW’s Akhlaq Choudhury and Joseph Barrett were instructed by DWF, while Keating Chambers’ Sarah Hannaford QC and 11KBW’s Andrew Sharland were instructed by Eversheds for the Secretary of State for Business Innovation and Skills, which is acting on behalf of the IS.

In a statement, DWF’s head of litigation Graham Dagnall said: ‘Our litigation team has a strong and longstanding positive relationship with the Insolvency Service, having worked with the organisation for approximately 20 years advising on public interest matters, and we’re challenging the panel review result purely on the basis of a technical issue.

‘This type of challenge is not uncommon in the public sector, where the EU regulations on procurement are very strict to ensure transparency and equal treatment and it’s important for both us as a supplier to the public sector and for public sector bodies to be seen to comply with European legislation. We’ve got strong public sector litigation expertise and once this technicality has been resolved we’d welcome the opportunity to resume working and supporting the Insolvency Service.’

Sarah.downey@legalease.co.uk

Legal Business

Strategic hires: DWF brings in Addleshaws employment head; Addleshaws takes on Eversheds financial services partner

legal-business-default

DWF has hired Addleshaw Goddard’s former national head of employment Andrew Chamberlain to take on an identical role at his new firm, leading the strategic growth of its 60-strong UK-wide employment team.

Chamberlain headed Addleshaws employment team for nine years until 2012, when Michael Leftley took over, and served terms on both the firm’s executive committee and its governance board.

He has over 25 years’ experience advising corporate clients and FTSE 100 employers on all aspects of employment, from service agreements through to termination and restrictive covenants to TUPE, and has particular in-depth industry expertise in the financial services, transport and retail sectors.

Chamberlain initiated and led the development of Addleshaw Goddard’s transaction services team, an in-house centralised support team to manage the process elements of legal work, which was recognised in the Financial Times’ Innovative Lawyers Awards.

Commenting on the appointment, Andrew Leaitherland, managing partner & CEO at DWF said: ‘The UK legal market is undergoing significant change and these changes are bringing opportunities, which Andrew has said to me he feels strongly that DWF, based on its current market proposition, its senior management sponsorship and its ambition, has the right mindset to embrace and build a new employment proposition in the market which better meets the needs of clients.’

Chamberlain’s appointment is the latest in a series of strategic lateral hires for DWF which include, most recently, the recruitment of Stephen Miles as CEO for commercial services from Pinsent Masons.

Meanwhile, Addleshaw Goddard this week announced the hire of financial services partner Fiona Ghosh from Eversheds.

City based Ghosh, who currently co-heads Eversheds payment processing group, acts for financial services providers in the retail and investment banking and insurance services sector, as well as being a key advisor in the field of retail payments.

A statement from the 174-partner firm said: ‘[Fiona] has market leading expertise in joint ventures and acts for acquirers, payment facilitators and merchants on a global basis – her clients include American Express, Euronet and numerous US merchant acquirers.’

The hire marks a return to Addleshaws for Ghosh, who was a lawyer at the top 25 firm between 2001 and 2006.

Malcolm Pike, Addleshaws commercial services divisional managing partner said: ‘We are delighted to welcome Fiona back to the firm. Her skill set perfectly complements ours in that she has an existing strong track record of deals under her belt, she has financial services market credibility; and excellent client and relationship skills.’

Ghosh’s hire follows the announcement on 16 May that Addleshaws has appointed business support and restructuring head John Joyce as managing partner for a three-year term after a contested election against real estate head Adrian Collins, following outgoing chief Paul Devitt’s ahead-of-term resignation.

Devitt stood down more than a year before his term was due to end on 30 April 2015. The 174-partner firm carried out a soundings process followed by a formal period for nominations, which closed around Easter time and moved to a formal vote this month.

caroline.hill@legalease.co.uk

Legal Business

Redundancy watch 2014: DWF lays off 19 business services staff after post-merger finance integration

legal-business-default

DWF has made 19 business services staff in its finance department redundant, the firm confirmed today (17 April), following the conclusion of a consultation which put 21 at risk last month.

Staff in Glasgow, Edinburgh, Birmingham, Leeds and Manchester were put under threat as part of the move by the firm to restructure its finance team following the integration of five legacy accounting systems, after its recent rapid succession of mergers.

At the same time, the firm announced that it would be creating ten new roles in the same department, for which interviews are ongoing.

In a statement, the UK top 25 firm said: ‘We’re doing all we can to minimise the number of people affected and we’re very grateful to those directly affected by the proposals, and their colleagues, for their continued professionalism and support.’

In a previous statement released by the firm last month, CEO and managing partner, Andrew Leaitherland (pictured) said: ‘It is with real regret for the individuals concerned that we have started a consultation about a proposed restructure of our finance team, potentially affecting up to 21 people based in our offices in Glasgow, Edinburgh, Birmingham, Leeds and Manchester.

‘This follows the integration of five legacy accounting systems over the last 18 months, which has led to a reduction in the number of people needed to run those systems, as well as continued centralisation of our finance operations so that we can deliver a more efficient and effective client service.’

Currently in 22nd position in the LB100, the firm has had almost two years of rapid expansion, including its February 2013 acquisition of the lion’s share of Cobbetts, and its merger with City insurance practice Fishburns. In November the firm posted a 57.5% increase in H1 revenues from £59.4m to £93.6m.

The firm announced yesterday that it has appointed Pinsent Masons head of financial institutions and human capital Stephen Miles to take over from managing partner Leaitherland as the chief executive officer (CEO) of its commercial services division, in a role that will see him take a senior leadership role alongside CEO of insurance Paul Berry, and Leaitherland.

Other top City firms to make recent redundancies include Ince & Co, which earlier this month confirmed that ten shipping and insurance fee-earners along with six secretarial staff have been made redundant following the conclusion of a consultation launched in February.

CMS Cameron McKenna and Dundas & Wilson placed 60 support staff roles at risk following the duo’s recently announced union in March, with 40 roles under consultation at Dundas & Wilson and around 20 jobs at risk within CMS and its third party suppliers Integreon, Initial and Xerox.

francesca.fanshawe@legalease.co.uk

Legal Business

DWF brings in Pinsents partner to take over from Leaitherland as CEO of commercial services

legal-business-default

DWF has appointed Pinsent Masons head of financial institutions and human capital Stephen Miles to take over from managing partner Andrew Leaitherland as chief executive officer (CEO) of its commercial services division.

Miles (pictured) will be a member of both DWF’s executive and strategic boards and will report directly to Leaitherland who, prior to this appointment, was undertaking the commercial CEO responsibilities in addition to his managing partner and overall CEO role.

On joining, longstanding Pinsents partner Miles will be responsible for executing the firm’s commercial services strategy. DWF’s commercial services division accounts for approximately £100million of turnover (with the remainder attributable to insurance services), employs over 600 people and has 194 partners. The division’s core strengths are in corporate, banking, employment, litigation and real estate across 12 locations in the UK and Ireland.

Miles will also work closely with chief operating officer Natalie Griffin, who is responsible for operational management within the commercial services division, as well as the three commercial services practice group heads: Nic Crocker; Graham Dagnall; and Alasdair Peacock.

During his time at Pinsents, Miles led its banking and restructuring, financial regulation, and employment and pensions practices, and, in his capacity as a transactional banking lawyer, acted for both financial institutions and corporates including the national acquisition and leveraged finance teams of The Royal Bank of Scotland, Barclays and HSBC.

Leaitherland said: ‘This role is critical to the future development of commercial services at DWF and Stephen’s wealth of management experience, his strong leadership track record and his impressive understanding and insight into changing client needs will give us an exceptional platform for future growth.’

Miles added: ‘DWF is a forward-thinking and ambitious business which is looking to cement its position in the UK top 20 and there is a real opportunity here for me to help develop the firm’s national reputation for commercial legal services and deliver significant growth across the UK. I’m very excited by the prospect of this new challenge.’

Francesca.fanshawe@legalease.co.uk

Legal Business

Revolving Doors: Key hires for Mishcon, Penningtons Manches, DWF and TLT as NRF loses head of planning

legal-business-default

With the blurring between criminal and civil law becoming ever more prominent, Mishcon de Reya announced last week that Alison Levitt QC, the principal legal adviser to the Director of Public Prosecutions (DPP) of England and Wales, is to join the firm as a dispute resolution partner, as other firms to announce key hires over the past few days include TLT, DWF and BrookStreet des Roches.

Levitt, who oversaw Crown Prosecution Service’s decision-making and potential prosecutions in relation to the News of the World phone-hacking investigations, will join the LB100 top 40 firm in April, where she will concentrate on bribery and corruption, significant regulatory matters, private prosecutions and will offer high-level advocacy where necessary.

Head of dispute resolution, Kas Nouroozi said: ‘There are very few individuals in the English market who have worked at the highest level in public office and also have the experience of having operated in private practice. Alison’s depth and breadth of understanding of the working of the English criminal and regulatory system will prove invaluable to our clients. It is something that has worked to great effect in the United States and I believe will become more prevalent here in due course.’

Moving out of the City is Norton Rose Fulbright’s head of planning, Nigel Hewitson, who will leave the firm at the start of April for Oxfordshire-based commercial real estate boutique BrookStreet des Roches, which counts National Grid, MEPC, Lafarge Tarmac and Vodafone among its clients. Hewitson will establish and head up a new planning service at BrookStreet, which has long focused on the commercial real estate sector but, prior to Hewitson’s arrival, did not have a significant planning capability.

Before joining Norton Rose, Hewitson was head of planning at Howard Kennedy and served for several years as legal director at English Heritage. Recent notable cases of his include advising a consortium of Malaysian businesses on the acquisition and development of Battersea Power Station; advising on the planning aspects of Crest Nicholson’s 2013 Initial Public Offering on the Stock Exchange; and advising DP World on its development of the six berth London Gateway Port and its associated two square mile logistics park.

Managing partner at 20-partner BrookStreet des Roches, Hugh Blaza said: ‘Our clients have been telling us that they would like us to provide planning as well as our established services. We knew that, if we were to successfully establish such a planning service, we needed a highly-regarded individual with extensive experience across relevant sectors. Nigel ticks all the boxes. We are delighted he has decided to join us and we are very much looking forward to working with him.’

Hewitson said: ‘There is a very good business fit, which will enable me to compete effectively by bringing City quality at regional prices to a very price-sensitive market place. Equally importantly, there is a great personal fit. I share the view the firm holds that success is about more than doing good work: it’s also about enjoying working with your clients.’

Meanwhile, former Olswang restructuring and insolvency partner Séamas Gray has joined Penningtons Manches to develop the team following the firm’s merger of Penningtons and Manches last October.

Previously joint head of Pinsent Mason’s London restructuring practice, Gray has particular expertise in the healthcare, real estate, retail, leisure and pensions sectors, having set up the first dedicated pension restructuring team in the City in 2010.

Significant recent mandates include the restructurings of the Akari Group, a group of 39 care homes separating from the wider Bondcare Group; Ashpol Group, a property portfolio group with £130 million professional securities exchange listed debt; and Milton Keynes NHS Hospital Foundation Trust, a £285 million turnover, 3,000 employee hospital.

Franco Bosi, head of Penningtons Manches’ business services division, said: ‘His experience in complex restructurings as well as his considerable insolvency experience will fit perfectly and assist in the continued development of our established multi-disciplinary restructuring and insolvency team.’

Elsewhere, DWF has strengthened its financial services practice with banking partners Iain Shurwood and John Fox and real estate finance partner Simon Elphick, who join from Lawrence Graham.

Shurwood, who joined in February to head up DWF’s corporate banking team in London has experience in acquisition finance, corporate lending, restructuring and workouts, acting for major high street banks, borrowers and investors, while Elphick who also joined in February acts predominantly for lenders on financing and restructuring.

Fox, who is expected to join in April, has over 27 years’ experience acting for major banks and borrowers with a real estate focus.

Also in the City, TLT makes its fourth employment partner hire in six months with former head of employment at media and commercial law firm Michael Simkins, Mark McQuillan, whose practice focuses on retail & consumer goods and financial services, having

McQuillan, who was previously a partner at Addleshaw Goddard, advises listed companies, Fortune 500 companies and smaller owner-managed businesses on the full range of employment issues, with particular expertise in sensitive and high-value litigation, restructurings, outsourcings and employment change programmes.

Stuart McBride, partner and head of TLT’s employment, pensions & incentives group said: ‘Mark is a great fit for TLT. His arrival means we have true national coverage of employment expertise and a solid base in London. We’re very clear on our strategy to build on our market leading position in the south west, across the UK. Mark’s arrival is a significant step forward to achieving that.’

Francesca.fanshawe@legalease.co.uk

Legal Business

LB100 firms review partnership model as HMRC’s LLP changes loom

legal-business-default

The impact of HM Revenue & Customs’ decision to overhaul the way salaried partners are taxed is being felt across the City as a number of leading firms confirm they are reviewing their arrangements, although some of the largest Legal Business 100 firms have come out to categorically deny the changes will have any effect at all.

Firms including Herbert Smith Freehills, Ashurst, TLT, DWF, Weightmans, and Trowers & Hamlins have all confirmed to Legal Business that they are reviewing their partner remuneration arrangements in anticipation of the new rules, which will mean partners with under 25% of their salary attached to profits will be regarded as having a ‘disguised salary’ and treated as employees by tax authorities in a move expected to add thousands of pounds onto firms’ tax bills.

In response to the overhaul, which HMRC stated at the end of February will come into effect in April 2014 despite protests from the industry, Hogan Lovells is understood to be currently considering the changes but no final decisions had been made at the time of going to press, while Herbert Smith Freehills said it is ‘looking into how [the changes] will impact us’.

While top 15 LB100 firm Ashurst says it will ‘not ask for any additional capital’ it is ‘reviewing the structure of remuneration packages’, according to a spokesperson, and at Simmons & Simmons, which has 85 non-equity partners, a spokesperson added: ‘[The firm] eagerly awaits further guidance that was due to be issued, which will assist in assessing whether changes to the remuneration or capital structure are required.’

Of the Magic Circle firms, Linklaters and Slaughter and May have very few non-equity partners – 28 and four respectively according to figures provided for the Global 100 – and both firms said they expect no real impact from the latest measures.

Allen & Overy, which has 85 non-equity partners, told Legal Business that it expects the proposals to have ‘no significant impact on us as all our partners share in the profits of the firm’.

Partners with under 25% of their salary attached to profits will be regarded as having a ‘disguised salary’.

Magic Circle rival Freshfields Bruckhaus Deringer, which had only 29 non-equity partners at the last tally, stated that none will be affected by the changes, although it declined to say why.

With 166, Clifford Chance has by far the most non-equity partners of the Magic Circle firms, but was the only one to decline to comment on its plans.

Of the firms that have announced substantive changes so far, TLT has requested that each of its 60 fixed-share partners contribute £20,000, a move that will boost its funds by a minimum of £1.2m. ‘We will put in place external funding for fixed-share partners if needed, to support any capital contribution,’ a spokesperson for the firm said.

National firms Trowers & Hamlins and Weightmans are both expected to require fixed-share partners to inject capital following a consultation.

Norton Rose Fulbright, CMS Cameron McKenna, Dentons and Macfarlanes all refused to comment.

sarah.downey@legalease.co.uk

Legal Business

LB100 firms review partnership model as HMRC’s LLP changes loom

legal-business-default

The impact of HM Revenue & Customs’ decision to overhaul the way salaried partners are taxed is being felt across the City as a number of leading firms confirm they are reviewing their arrangements, although some of the largest Legal Business 100 firms have come out to categorically deny the changes will have any effect at all.

Firms including Herbert Smith Freehills, Ashurst, TLT, DWF, Weightmans, and Trowers & Hamlins have all confirmed to Legal Business that they are reviewing their partner remuneration arrangements in anticipation of the new rules, which will mean partners with under 25% of their salary attached to profits will be regarded as having a ‘disguised salary’ and treated as employees by tax authorities in a move expected to add thousands of pounds onto firms’ tax bills.

Legal Business

Premier League: Gateley advises West Ham on sale of Upton Park as DWF gets behind Everton on Umbro signing

legal-business-default

The fast-paced Premier League last week handed two lucrative deals to LB100 firms Gateley, Howard KennedyFsi, Hill Dickinson and DWF, as West Ham sold its iconic Upton Park ground and Everton Football Club (FC) entered a five-year partnership with Umbro.

Birmingham-based firm Gateley and West End firm Howard KennedyFsi advised on West Ham’s sale of Upton Park to Galliard Group after the team won the rights to use the Olympic Stadium for its new ground from 2016.

Howard Kennedy’s team, who advised longstanding client Galliard, was led by real estate partner David Philips.

Gateley advised West Ham, led by real estate partner Richard Pettifor. The firm acted for West Ham last year when the club was confirmed as main tenants of London’s Olympic Stadium, beating off other bids from sides such as top five team Tottenham Hotspur.

The deal came about after the Government agreed to provide £25m in financing to convert the venue. The club is set to pay around £2m a year in rent.

In other Premier League deals, as Everton FC fans enjoy departed coach David Moyes’ well-publicised struggles at his new team Manchester United, they will also be celebrating a new five-year kit and sportswear deal with iconic football brand Umbro, which manufactured the team’s kit during its 1987 league victory and its 1995 FA Cup win.

DWF advised Umbro on its latest deal with the north west club, which kicks in on June 1 this year and will see Umbro produce all on-pitch and training products for the men’s, women’s and academy teams at Everton and also sponsor the club’s grassroots programmes, with Everton wearing the famous double diamond from the start of the 2014/15 season.

Craig Chaplin and Catherine Harrison from DWF led for Umbro in this deal, while corporate partner Sue Russell at Liverpool-based Hill Dickinson led the advice for Everton.

Chaplin said: ‘It has been great to work with an iconic client on such an important deal.’

David.stevenson@legalease.co.uk

Legal Business

‘Go on, have a go’ – TLT partner joins DWF drawn by ‘huge number of opportunities’

legal-business-default

The momentum and energy surrounding DWF’s rapid growth has been credited for its latest hire, TLT corporate partner Richard Tall, who arrived in the London office this month with two associates, bringing the top 30 firm’s national corporate practice to 31 partners.

Acting for bidders, targets and financial advisers including major listed companies, Tall (pictured), who joins with solicitors Joe Cobley and Caroline Urban, has experience in schemes of arrangement and rule 9 dispensations under the Takeover Code, as well as securities offers from unlisted bond issues to the Official List.

Recommended in the Legal 500 as ‘very commercial and practical in his advice’, Tall brings with him work in progress including an unlisted bond issue and an enterprise investment scheme job.

Commenting on his appointment, Tall said: ‘As such a fast growing business, DWF is presenting itself and its people with a huge number of opportunities. I came in for chat with [CEO and managing partner] Andrew Leaitherland and head of corporate in London Jay Birch, and really got the impression that they see and do things differently. There are a number of initiatives that I was keen to run, they listened to what I had to say and I felt like I could make a difference as well.’

He added: ‘I’ve got a number of particular strands in my own specialism which I am keen to take forward in DWF; I’ve got some not necessarily mainstream ideas in terms of products and services that we can provide on the corporate side. And the great thing is that having suggested them, people are saying: “go on, have a go!”‘

The lateral hire follows the appointment of former Lawrence Graham (LG) employment partner Helga Breen, who left LG ahead of its planned merger with Wragge & Co, which is expected to go live in May, to lead DWF’s London employment team.

DWF’s 80-strong corporate team has seen a 140% year-on-year increase in deal volumes across the UK, with particular growth in the financial services, real estate and TMT sectors.

Currently in 22nd position in the LB100, the firm has had almost two years of rapid expansion, including its February 2013 acquisition of the lion’s share of Cobbetts, and its merger with City insurance practice Fishburns. In November the firm posted a 57.5% increase in H1 revenues from £59.4m to £93.6m.

John Wood, head of TLT’s corporate team said of Tall’s departure: ‘Our growing national team of corporate lawyers will continue to advise our UK-wide client base. Two recent hires include corporate partner Jon Close and specialist energy & renewables corporate associate Kay Hobbs.’

francesca.fanshawe@legalease.co.uk

Legal Business

Merger watch – 2013 a record year for legal mergers as 2014 promises more of the same

legal-business-default

The long-awaited consolidation of the legal market accelerated in 2013, which was a record year for large UK law firm mergers, with 28 deals announced involving at least one top 100 UK firm or firms that when merged will be likely to join the top 100 in 2014.

This follows a similarly record year in 2012, when there were 26 announced mergers involving at least one top 100 UK law firm.

Recent research by Jomati Consulting, which claims that 2014 promises further high levels of consolidation, points to a number of strategic patterns in evidence over the past year, including the emergence of a group of major national players in the personal injury and insurance sectors, with highly acquisitive Slater & Gordon and DWF the most closely watched.DWF’s 2012/13 turnover was up by 84% to £188m on the back of 5 mergers in 18 months, while last year Slater & Gordon acquired the personal injury division of Pannone in a deal worth £33m, following on the heels of acquisitions including Manchester-based Fentons, which added 280 staff to the rapidly growing Australian-listed firm’s UK presence.

However, the need to build national coverage has been a factor in play in some of the larger mergers of 2013, including CMS Cameron McKenna’s end-of-year merger with Dundas & Wilson in the rapidly consolidating Scottish market, as Cameron McKenna also looks to boost its energy and infrastructure practice.

Firms are also more than ever looking to gain critical mass and ‘bench strength’ across key practice areas, which was in evidence in Wragge & Co’s December tie-up with Lawrence Graham and Penningtons acquisition of Manches in October, although this was also a rescue deal after Manches went into administration.

Tactical international acquisitions have remained a significant trend, including Hogan Lovells merger with South Africa’s Routledge Modise, Norton Rose Fulbright’s takeover of Canada’s Armstrong Mitchell, with the Sino-Australian-UK combination of SJ Berwin and King & Wood Mallesons the only major global merger of 2013.

Tony Williams, Jomati principal and former managing partner of Clifford Chance, says: ‘In 2012 we could clearly see that the long-awaited consolidation of the UK legal market had begun and it has continued throughout 2013. This market changing process is now playing out in dynamic fashion and we do not expect it to end anytime soon.

‘The outlook for major UK/US mergers remains challenging partly due to the profitability disparity between US and UK firms. However, there is still a strong level of interest if the right merger candidate can be found. In any case, 2014 will see further consolidation of law firms right across the UK 100 and beyond. We should all prepare for a busy year.’

david.stevenson@legalease.co.uk