Legal Business

New Johnson Controls EMEA legal head to review Eversheds sole adviser deal following restructure

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David Symonds, EMEA general counsel (GC) for merged entity Johnson Controls International (JCI), is leading a restructure of the company’s legal function following the completion of the $16.5bn combination of Johnson Controls and Tyco International in September.

The new structure will involve lawyers arranged on a country basis, with a ‘virtual centre of excellence’, which includes a contract management group in Cork, a commercial transactions team and litigation team in Brussels, and a labour and employment counsel based in Manchester. Some lawyers will work as ‘business partners’ in more strategic roles.

Symonds has put forward a proposal to JCI’s human resources and finance teams to approve the structure, and confirm that savings made will be consistent with expectations.

Speaking to Legal Business, Symonds said: ‘We will become one team. Legacy Tyco lawyers will be expected to go out and familiarise themselves with the legacy JCI businesses, and support them and vice versa. One of the targets I am looking to set by the financial year 2017 is to demonstrate that we are one fully-integrated team.’

At present there are 50 staff in the EMEA legal team, including administrative assistants, paralegals and contract managers in addition to qualified lawyers, with Symonds anticipating that number could reduce further once the new structure beds down.

Tyco’s sole-adviser arrangement with Eversheds will remain in place until September 2017 and it is understood that Symonds is hoping to keep that structure in place following a review across EMEA in the new year, although he added that this may not necessarily be with Eversheds.

Previously, both legacy businesses operated with distinct cultures and legal teams, with legacy Tyco preferring a decentralised structure, with lawyers in each country supporting and working across all of the different businesses. Tyco, which has operated on a sole-adviser mandate with Eversheds since 2007, also had several subject matter experts as well as lawyers who supported the different businesses in the region at a strategic level as ‘business partners’, but in addition to other roles.

Meanwhile, the legacy Johnson Controls legal team operated a business partner system, with a lawyer looking after all of Europe for one part of the business, and a centralised team in Brussels that handled commercial transactions, litigation and corporate secretarial.

The biggest changes include the fact that the centralised legal team is no longer based in Brussels, with Symonds preferring a virtual approach. In addition, the centre of excellence will no longer include corporate secretarial, which will be based outside the regional legal remit.

kathryn.mccann@legalease.co.uk

Legal Business

Eversheds defends £100m Northern Rock claim over allegations of professional negligence

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Eversheds is being sued by Northern Rock Asset Management (NRAM) over allegations of professional negligence, in a claim worth £100m.

The claim, filed by NRAM, is in relation to advice the law firm provided following a review of two annual statements for a ‘together loan’ – a combination of a secured mortgage and an unsecured loan at a single interest rate with one combined monthly payment.

However despite a claim form, there is currently no case management conference, no claim particulars and no trial date set.

NRAM is instructing Brick Court Chambers’ Tom Adam QC and Tony Singla, with Reed Smith partner Tom Webley acting.

It is understood that Brick Court was first instructed two years ago by NRAM, and little progress has been made in the interim period.

Eversheds has instructed Clyde & Co, with partner James Preece instructing 4 New Square’s Jonathan Hough QC and George Spalton.

Northern Rock claims that the annual statements ‘did not comply with the requirements of the Consumer Credit Act’. The claim form also adds that Eversheds failed to provide advice within a ‘reasonable time’.

The claimant alleges the negligent advice given by Eversheds meant the loans were not enforceable and NRAM became liable to repay or refund all charges and interest it had charged to borrowers.

An Eversheds spokesperson said: ‘This claim is being vigorously defended. Eversheds is fully satisfied that it discharged its duty of care to NRAM and that the claim is without foundation’

‘Eversheds was asked to review a suite of loan documentation by NRAM in 2010, to consider compliance with the Consumer Credit Act. Eversheds advised an experienced commercial lawyer within NRAM’s legal department, who was responsible for consumer credit documentation, that NRAM’s documentation did not appear to include certain information necessary to comply with the prevailing regulations (which Eversheds specified). NRAM appear not to have acted on that advice for a considerable period or at all, and is now seeking to blame Eversheds for the consequences of the information being absent from the documentation’.

kathryn.mccann@legalease.co.uk

Legal Business

No surprises: Frontrunner Lee Ranson appointed chief executive of Eversheds

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Lee Ranson has been appointed chief executive of Eversheds, following a three week period in which no other candidate was nominated.

Nominations closed on Friday 30 September with Ranson (pictured) automatically elected into the chief executive role. If someone else had been nominated the process would have run for a total of 45 days.

Ranson, who is currently managing partner, has long been the frontrunner to take over from longstanding chief executive Brian Hughes who departs the role in May after two four-year terms.

Legal Business revealed last month that Ranson, along with international managing partner Ian Gray and global company commercial head Keith Froud had been in negotiations to forge a new leadership team as the firm strived to avoid a divisive contest.

It is understood that Gray’s post will change or a new role may be created, while Froud is likely to be appointed as the new managing partner by Ranson.

Speaking to Legal Business, a senior partner at the firm said: ‘Ian’s role is likely to change, possibly a new role will be created for Ian but ultimately they are still talking about it, basically none of it is firmed up.

‘Keith and Ian are likely to be Lee’s two lead partners on the executive working alongside him in the running of the firm. I don’t think we are going to get too hierarchical about it, they will both have extremely important roles.’

As early as last September Ranson said he was positioning himself for the chief executive role after being tasked with leading a ‘Growth Agenda’ following the firm’s subdued performance for the financial year 2014/15.

Ranson said: ‘Where I am at the moment, the next logical step for me would be chief executive – all things being equal in 12 months’ time.’

Ranson joined Eversheds in 1990 as a commercial litigator handling complex disputes for HSBC, Lloyds and TSB, taking leadership of the real estate and real estate litigation group in 2006. He became the firm’s managing partner in 2009.

kathryn.mccann@legalease.co.uk

Legal Business

Engineering success: Eversheds hires top Nabarro construction disputes partner Douglas

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Eversheds has hired disputes partner Jonathan Douglas from Nabarro to join the firm’s construction and engineering team.

Douglas (pictured) is a leading construction disputes lawyer with experience in high value litigation and arbitration and sits on Nabarro’s partnership board and executive.

Having made partner in 2005, Douglas was also the firm’s divisional managing partner for disputes. He has particular sector expertise in offshore wind, power and energy and office and retail work for owners and contractors.

Douglas joins Eversheds’ construction and engineering team of over 100 lawyers from Nabarro’s London office.

Eversheds’ hire reinforces a disputes practice that had recently lost star arbitration partner Stuart Dutson to Simmons & Simmons, who left after seven years at the firm. Dutson had a practice built around the energy and gas sector and was cited in The Legal 500 as one of 36 leading lawyers in international arbitration in London.

The LB100 firm also recently lost a second disputes veteran earlier in the year, with arbitration veteran Andy Moody leaving for Baker & McKenzie.

Eversheds global construction and engineering head Simon Oates said: ‘The addition of a disputes lawyer of Jonathan’s standing is key to continuing our development in the UK and internationally. Our clients are working on some of the biggest and most challenging infrastructure projects and this appointment greatly enhances the Eversheds team that is there to help, guide and protect them as they deliver.’

Douglas added: ‘I have enjoyed my time at Nabarro and wish my friends and colleagues there every success but I am also excited about the opportunity to join Eversheds’ specialist construction and engineering team with such a strong London presence and international capability.’

matthew.field@legalease.co.uk

Legal Business

Eversheds starts talks on new management structure as leadership election looms

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Eversheds has begun talks to forge a new leadership team as the firm strives to avoid a divisive contest after current chief executive Bryan Hughes steps down next May. Current managing partner Lee Ranson is expected to take Hughes’ role in a management structure with two other partners.

Legal Business understands that current international managing partner Ian Gray’s post will change or a new role may be created, while global company commercial head Keith Froud is likely to be appointed as the new managing partner by Ranson.

A senior partner at the firm said: ‘Ian’s role is likely to change, possibly a new role will be created for Ian but ultimately they are still talking about it, basically none of it is firmed up.

‘Keith and Ian are likely to be Lee’s two lead partners on the executive working alongside him in the running of the firm. I don’t think we are going to get too hierarchical about it, they will both have extremely important roles.’

The talks have been regarded by some partners as part of a bid to avoid a divisive leadership contest pitting Ranson against Gray. The change of leadership comes also as a sensitive point for Eversheds, which has consistently struggled to sustain growth since the banking crisis.

However, senior partners are divided as to whether there will be much change in the current strategy once Hughes steps down.

One partner said: ‘I guess the guys need to consult with the partnership and Lee will, I’m sure, do that as part of the process. I wouldn’t have thought anything too radical though.’

However another added: ‘Every new exec team brings its own strategy so I would be very surprised if they don’t bring their own ideas and an innovative approach going forward. I would be very surprised if it is a roll on situation.’

Ranson (pictured) declined to comment but last September said he was positioning himself for the chief executive role after being tasked with leading a ‘Growth Agenda’ following the firm’s subdued performance for the financial year 2014/15.

Ranson said: ‘Where I am at the moment, the next logical step for me would be chief executive – all things being equal in 12 months’ time.’

kathryn.mccann@legalease.co.uk

Legal Business

Revolving doors: Post-summer hiring spree continues with Eversheds, Pinsents and Clydes adding to their ranks

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The post-summer hiring spree continued in earnest this week, with Eversheds, Pinsent Masons, Clyde & Co, Gibson, Dunn & Crutcher and Dentons bolstering their benches with new partner hires.

Ashurst lost another partner this week, this time to Dentons in Italy, which strengthened its corporate, M&A and private equity practice in Rome with the hire of Aian Abbas along with associate Alma de Rosa and trainee Violetta Cozzone.

Abbas, who has a particular focus on corporate finance and leveraged finance transactions, has advised Oakley Capital on the acquisition of Facile.it and Mutui.it and assisted Quercus and Swisslife on the acquisition of ASI.

Federico Sutti, Dentons Italy managing partner said the hire was a step forward in the firm’s strategy to expand their corporate M&A practice. Dentons’ Rome office opened in July 2016.

Stefano Speroni, head of the corporate and M&A group in Italy added: ‘Aian’s addition to the team will significantly deepen our service offering to our clients, particularly in the private equity area, positioning our firm at the highest levels of this sector which will be crucial to our success in the years to come.’

Further afield, Pinsent Masons has added to its Australia offering with the hire of Ewan Robertson, a partner at Piper Alderman. Robertson’s main focus is on corporate and commercial work with an emphasis on transactional and projects work, M&A and joint ventures, particularly in the energy and resources sectors.

Head of Pinsent Masons Australia, David Rennick, said: ‘We’ve had an active first year of operation and have quickly developed to be one of the most experienced team of legal advisers in the Australian infrastructure market. Ewan’s expertise will broaden our corporate offering and strengthen our M&A capabilities.’

Meanwhile in the City, Gibson Dunn has continued its London expansion with private equity partner James Howe from Proskauer Rose, while Rob Ireland has returned to Clyde & Co as an aviation partner from Kennedys.

Ireland is a leading lawyer in the aviation sector, who previously spent nine years at Clyde & Co, including five at Beaumont and Son. He specialises in all aviation related liability issues, advising a range of insured clients and their insurers on claims, from those related to major catastrophes, to issues related to baggage, cargo, hull, and personal injury. He has extensive experience in litigation in England and Wales and has worked across legal systems globally.

Commenting on the hire of Ireland, Maria Cetta, a partner at Clyde & Co commented: ‘We’re delighted to welcome Rob back to Clyde & Co as he has an exceptional track record and reputation in the aviation industry, which will further add to our already market-leading position.’

Finally, Eversheds has taken two project finance partners from Norton Rose Fulbright, with energy and infrastructure duo Mark Dennison and Conrad Purcell both joining the firm.

kathryn.mccann@legalease.co.uk

Legal Business

Freshfields lands Eversheds head of international arbitration in rare City lateral

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Freshfields Bruckhaus Deringer has landed Will Thomas (pictured), Eversheds’ head of international arbitration, in a rare lateral hire in the Magic Circle firm’s City heartlands.

Thomas, who became head of Eversheds’ international arbitration group three years ago, departs after 17 years at the firm. He joined Eversheds in 1999 and has been based in Paris since 2001. Thomas made partner at Eversheds in 2010.

Thomas relocates to Freshfields’ London HQ as part of the move and will also spend time working with the Freshfields’ Paris team to strengthen collaboration between those offices. He has also been tasked with building out the London presence of the public international law practice headed by Paris-based partner Ben Juratowitch. Though Freshfields remains one of the preeminent global names in arbitration, the firm did suffer a reverse in 2014 when several of its leading names quit to launch the arbitration boutique Three Crowns.

Thomas, a highly regarded practitioner, has handled a string of big-ticket disputes in recent years including defending Iran from a $600m claim by Turkish mobile operator Turkcell to win that country’s first ever investor-state arbitration.

Nigel Rawding QC, head of Freshfields’ London international arbitration practice, said: ‘Will’s expertise and experience combined with our platform create a formidable offering for current and prospective clients alike.’

Thomas is the third senior arbitration practitioner to leave Eversheds in the last 12 months, with London duo Andy Moody and Stuart Dutson departing for Baker & McKenzie and Simmons & Simmons respectively.

Eversheds has appointed Singapore-based Rod Bundy and Paris-based David Sellers as global co-chairs of its international arbitration group.

tom.moore@legalease.co.uk

Legal Business

Getting closer: Eversheds to move to same building as Harry Elias as Singapore merger talks continue

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Eversheds will move into the same building as Singapore merger suitor Harry Elias Partnership this winter as merger talks continue between the two firms.

Eversheds will move into the SGX centre in November, and while talks with Harry Elias are ongoing, progress has been slow due to Singapore’s tightly regulated legal market.

The merger, which will need approval from Singapore’s Ministry of Law, is unique in that it will allow Eversheds to gain access to Singapore’s legal market without being subject to local licensing requirements that only allow firms to practise Singapore law in ‘permitted areas’ and are subject to renewals.

The only fully integrated firm at present is Morgan Lewis & Bockius, which combined with Stamford Law in March 2015 to enable it to practise across all legal service areas.

Legal Business revealed in March that Eversheds was in talks with Harry Elias in a bid for a Singapore tie-up. The firm has had an office in the city since 2009, which is led by managing director Oommen Mathew. The outpost covers corporate commercial, dispute management, banking and finance and human resources and employment.

Harry Elias, which has about 60 lawyers, is led by managing partner Philip Fong. The full service law firm is well-regarded for its strong dispute resolution practice which includes expertise in international arbitration, and its formidable matrimonial and family law practice.

In March Eversheds Asia managing partner Stephen Kitts described South-East Asia as two distinct markets with different dynamics.

‘With offices in Singapore, Hong Kong, Japan, China and India, he sees South-East Asia as a strategically important commercial region.

‘Singapore has become a very successful hub for international arbitration, it’s developed a strong reputation. The Singapore International Arbitration Centre has very much come to prominence in the last ten to 15 years, the government has put a lot of weight behind it and promoted it very hard and it’s become extremely credible.’

Singapore is still a lucrative market for many law firms, with Osborne Clarke recently expanding its south-east Asia presence through an association with a new Singaporean firm, OC Queen Street. In July, Reed Smith entered into a formal alliance with Singaporean firm Resource Law giving the firm the ability to practise Singapore law for the first time.

kathryn.mccann@legalease.co.uk

 

Legal Business

Eversheds consults on new management structure

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Lee Ranson clear favourite to take chief executive role

Eversheds has begun talks to forge a new leadership team as the firm strives to avoid a divisive contest after current chief executive Bryan Hughes steps down next May. Current managing partner Lee Ranson is expected to take Hughes’ role in a management structure with two other partners.

Legal Business understands that current international managing partner Ian Gray’s post will change or a new role may be created, while global company commercial head Keith Froud is likely to be appointed as the new managing partner by Ranson.

Legal Business

Eversheds and DWF appointed to West Midlands first regional legal panel

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Eversheds, DWF, Trowers & Hamlins and Manchester law firm Pannone Corporate have been appointed as advisers on the newly-formed West Midlands Combined Authority (WMCA) legal panel.

The WMCA was formed this summer from 17 local authorities and three local enterprise partnerships to create jobs and drive economic growth in the West Midlands.

The authority’s first legal roster includes four law firms across three legal frameworks. The authority tendered for three lots, in full service provision, regulatory advice and parliamentary agency. Eversheds has been appointed across all three frameworks, while DWF were appointed to the full service lot. According to tender documents, the panel is worth about £5m over four years.

Firms will provide advice for the initial four year period while the WMCA has been granted an £8bn investment programme over a 30 year period for the region.

Eversheds Birmingham senior partner David Beswick said: ‘We are pleased to support the range of services that WMCA provide. We are committed to the rejuvenation of the local area and look forward to supporting and enhancing the work that is already underway to rebalance the UK economy through the Midlands Engine.’

DWF head of real estate Toby Askin said: ‘We have a Birmingham-led team of legal experts whose knowledge and experience combined will offer the authority the best possible legal support allowing them to meet their vision, values and objectives.’

The combined authority is responsible delivering on an improved transport network, including in the areas around the planned HS2 rail service.

The WMCA will also have access to a number of other local authority panels in its regional remit, such as Wolverhampton City Council’s legal panel of ten law firms.

Another recent panel review saw Transport for London (TfL) confirm it would renew its four-year legal panel. The transport authority’s current legal panel includes 11 firms, with Dentons, Trowers & Hamlins, Lewis Silkin, Berwin Leighton Paisner, Eversheds, Freshfields Bruckhaus Deringer, Herbert Smith Freehills, K&L Gates and Gowling WLG all on the roster.

matthew.field@legalease.co.uk