Legal Business

Fee transparency: Olswang, OC, Taylor Wessing and 12 others sign up to service to reduce legal fee disputes

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Innovation CMS UKOsborne ClarkeTaylor Wessing
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Taylor Wessing, Olswang and CMS Cameron McKenna are amongst a host of firms to sign up to Apperio – a platform designed to create transparency on legal fees.

Fifteen law firms have signed up to the initiative so far including Osborne Clarke, Taylor Wessing, Charles Russell Speechly and Taylor Vinters, in a bid to help clients track their legal spend by regularly sharing fee information using a transparent platform.

According to Apperio founder and former CMS Cameron McKenna lawyer Nicholas d’Adhemar, the initiative will significantly reduce disputes over fees between clients and the respective firm. ‘During my career as a lawyer, I experienced wrangling over legal fees due to the opaque nature of billing. Poor communication between the firm and the client would sometimes lead to clients being charged with random bills, sometimes three times higher than what was expected,’ said d’Adhemar. ‘Apperio will effectively help clients receive reduced bills, and see fee’s recorded accurately and on time.’

Other features include a streamlined tender process and a tool which allows clients to monitor the amount of partner/associate time spent on each transaction/case. ‘The idea is to encourage proactive management [on these issues] as opposed to a reactive fallout,’ d’Adhemar added.

Some fifteen clients have signed up to the platform, mainly consisting of venture capitalists and private equity firms so far, including Octopus Investments, Capvest, Patients Know Best and Elliptic. Apperio’s next move is to introduce the idea into mainstream corporate, and have over half of UK’s top 200 law firms signed up by the end of the year.

Clients subscribe to Apperio by paying a quarterly fee, and are charged in accordance to the amount of legal work they want tracking, ranging from an overall legal spend of £350,000 up to £10m.

D’Adhemar launched Apperio in February 2013 initially as a tendering process for clients, which later evolved into a legal fee tracker the following year. Before this, d’Adhemar worked as legal counsel at Sterling Energy for a year in January 2009, having left CMS Cameron McKenna after three years of being an associate.

jaishree.kalia@legalease.co.uk

Legal Business

Partner promotions: Taylor Wessing makes five up to partner in UK as Clydes global round sees 13 made up

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Partnership promotions Taylor Wessing
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As it shifts to an all equity structure, Taylor Wessing has this year promoted five lawyers to partner in its UK round, building on last year’s promotions which saw three made up in the City. Meanwhile, Clyde & Co has made up 13 to its partnership.

With the promotions set to take effect on 1 May, two lawyers were made up in the real estate practice, one in its patents offering, one in the IT, telecoms and competition practice, and a final one in disputes and investigations. A further five have been made senior counsel with one each in private client, corporate, real estate, patents, and data protection.

UK managing partner Tim Eyles said: ‘We remain committed to promoting internal talent and are delighted to announce these much deserved promotions, which see the work we have been putting into our Path to Partnership initiative for associates coming to fruition.’

‘With our move to an all equity structure coinciding with these promotions on 1 May, we will for the first time be able to welcome our new partners into a single partnership in which all will have a real stake in the firm’s future and will be able to work together even more effectively as we seek growth for our clients, our people and our business.’

In an international round, Clydes promoted 13 lawyers to equity partner spread across its offices in the UK, Europe, US, the Middle East and Asia Pacific. The largest beneficiary was the City which saw four promoted across aviation, corporate, insurance and projects. A further 11 were boosted from equity partner status to senior equity partner.  

Other promotion rounds announced this month includes Ashurst which promoted 20, of which 45% were female, while Macfarlanes saw a reduced round of five, of which 40% were female.

Taylor Wessing partner promotions in full:

Paul Glass, disputes & investigations

Paul Leamy, real estate

Emma Oakley, real estate

Matt Royle, patents

Sian Skelton, IT, Telecoms & Competition

Senior counsel promotions in full:

Lisa Bevan, private client

David Bates, corporate (private equity, corporate tech)

Maddalena Padrin, real estate

Ed Vickers, patents

Sally Annereau, data protection

Clyde & Co equity partner promotions in full:

Clare Hatcher, Projects & Commodities, London

Elisabeth Moseley, Corporate, London

Craig Rooney, Aviation, London

Jai Sharma, Marine & International Trade, Guildford

Tom White, Insurance, London

Fabrice Pradon, Aviation, Paris

Susie Abdel Nabi, Dispute Resolution, Dubai

Patrick Murphy, Dispute Resolution, Dubai

Alain Sfeir, Corporate, Riyadh

Gareth Horne, Insurance, Sydney

Trudy Seow, Aviation, Singapore

Conor Warde, Transportation Finance, Hong Kong

Jessica Kelly Insurance, San Francisco

Senior equity promotions:

David Abbott, Insurance, London

Helen Bourne, Insurance, London

Michelle Crorie, Insurance, London

Toby Rogers, Insurance, London

Ray Smith, Corporate, London

Mark Beswetherick, Insurance, Dubai

Nassif BouMalhab, Dispute Resolution, Dubai

Peter Hodgins, Corporate, Dubai

Paul Jebely, Transportation Finance, Hong Kong

Eric Moon, Insurance, San Francisco

Christina Terplan, Insurance, San Francisco

sarah.downey@legalease.co.uk

Legal Business

‘A significant cultural shift’: Taylor Wessing to move to all equity partnership

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Taylor Wessing is set to convert into an all equity partnership on 1 May following a lengthy review and partnership vote held last week.

A significant 95% of the partnership voted yes to the proposed change which involve a ‘modest’ capital increase from ex-fixed equity members according to the firm, in order to bring them fully in line with their proportionate share of equity contributions but there will not be a firm wide capital call to implement the change.

The firm’s current two-tier partnership for the UK comprises 52 equity partners and 50 fixed share partners. Having been a merit-based system for years, it follows an appraisal led by a structure review committee made up of an equal number of equity and fixed share partners nominated by the partnership to ‘ensure a balanced and consultative approach’. The committee included managing partner Tim Eyles, HR director Caroline Rawes, and finance director William Barnes.

Managing partner Eyles (pictured) said: ‘We have been thinking for some time, because we are a very collaborative partnership, about how to ensure dynamic progression for everyone within the partnership. We’ve always been a purely merit based partnership and we wanted to take that a step further and find the right structure to create a shared sense of interest in and ownership of the firm.’

Eyles added: ‘For our associates, it also reinforces our merit-based culture and their ability to progress based on performance. It’s a significant cultural shift…We have consulted extensively and every effort was made to make sure all the angles were carefully considered.’

Others set to make the move to all equity structures include Mishcon de Reya this autumn, where current equity partners will become ‘senior equity partners’ and junior partners will become ‘junior equity partners’.

sarah.downey@legalease.co.uk

Legal Business

The importance of a ‘disclaimer’: High Court finds in favour of Grant Thornton in Barclays negligence dispute

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Litigation Addleshaw GoddardGrant ThorntonTaylor Wessing
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The High Court has this morning (18 February) found in favour of Grant Thornton in relation to its high profile auditors’ negligence dispute brought against it by Barclays Bank.

Heard on the 12 February, Brick Court Chambers’ duo Simon Salzedo QC and Oliver Jones appeared for Grant Thornton, and were instructed by Taylor Wessing, while 4 New Square pair David Halpern QC and Benjamin Wood acted for Barclays and were instructed by Addleshaw Goddard.

The dispute arose after Barclays relied on two non-statutory audits carried out by Grant Thornton for the Von Essen Hotels Group (VEH) in 2006 and 2007 in continuing to fund VEH under a £250m loan facility. The bank alleged Grant Thornton had been negligent in producing the reports because it failed to uncover fraudulent overstatements of VEH’s financial position by two of its employees, and, subsequently, causing Barclays financial loss when VEH became insolvent and couldn’t repay the loan.

Constituting the first case in which the lawfulness of a Bannerman clause in an auditors’ report had been considered, each of the reports produced by Grant Thornton included a disclaimer which stated they were made solely to VEH’s director and that the accounting giant did not accept responsibility to anyone other than VEH and its director for its audit work.

Barclays argued that this disclaimer was ‘unreasonable’ and therefore inapplicable – for which Grant Thornton sought summary judgment on that point and won.

Justice Cooke held the disclaimer was ‘clear on its face’, ‘could not have been misunderstood’ and ‘would have been read and understood by anyone at Barclays who had read the two page reports’.

‘Grant Thornton made it clear that it was not prepared to assume responsibility to Barclays in respect of these reports. There was nothing unreasonable in that stance, as between two sophisticated commercial parties, where the approach of auditors limiting their responsibilities is well known… Barclays should have anticipated the existence of such a clause and, in my view, must have expected some such clause to be present.’

The judge concluded that Grant Thornton is entitled to summary judgment on the basis that Barclays ‘have no realistic prospect of success in the action in the face of the disclaimer’ and there is ‘no good reason’ why the action should go to trial.

A Barclays spokesperson said: ‘We are disappointed in the Court’s decision relating to our claim against Grant Thornton LLP, the former auditors of Von Essen Hotels Ltd. We will however continue to pursue all avenues available to the bank to recover sums lost in connection with the loan facilities granted to Von Essen.’

Addleshaw Goddard is also currently advising Barclays in a dispute to recoup money loaned to partners of collapsed US firm Dewey & LeBoeuf, an instruction the firm picked up following the hire of partner Richard Clayton from TLT.

sarah.downey@legalease.co.uk

Legal Business

Clashing titans: Taylor Wessing acts as MetLife sues A&O client JP Morgan for $107m

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Litigation Allen & OveryTaylor Wessing
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Two giants of the US financial services market, insurer Metlife and investment bank JP Morgan, have begun a legal battle in the UK High Court over a $107m sum the insurance firm says it is owed after ‘breaches of contract’.

Metlife is suing its banker for not paying what it says is the true value of Argentine inflation-linked bonds, purchased in 2007, after the state rigged data to distort inflation figures.

The insurer’s Argentinean unit claims JP Morgan is using a figure it ‘knows to be false and distorted’, with the investment bank’s Buenos Aires managing director Facundo Manujin having acknowledged the state’s ‘falsification’ of inflation measurement the consumer price index.

Metlife has instructed Tim Strong, a disputes partner at Taylor Wessing, and John Taylor QC of Fountain Court to bring the claim. Metlife’s legal team will argue that the losses were caused by JP Morgan’s use of an index that economists argue only accounts for a third of true inflation levels and is not in good faith of the deal. The insurer is also seeking interest and costs.

JP Morgan’s own economist admits that inflation levels were over double that of the consumer price index but the investment bank argues that there is ‘no event, no matter how grotesque the restrictions or limitations placed on the calculation’ that could alter the level of return on the bond.

Allen & Overy partner Calum Burnett and David Wolfson QC of One Essex Court have been instructed by JP Morgan. Hearings are set to conclude by 30th January.

tom.moore@legalease.co.uk

Legal Business

‘A fresh perspective’: Taylor Wessing hires Eversheds GC and new IT director

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Strategic recruitment Eversheds SutherlandTaylor Wessing
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Taylor Wessing has kick started the new year with two key recruits, hiring Eversheds‘ general counsel (GC) Angela Robertson as director of risk and GC, and Kevin Harris as its new IT director.

Robertson’s role will include managing the firm’s regulatory and compliance affairs and advising the board on risk management. She will also coordinate risk issues for the firm internationally and will become chair of the international risk management committee.

Robertson will succeed Neil White as GC when he retires in April 2015. White joined the firm in 1975 and was a partner in the construction and engineering practice before becoming the firm’s GC in August 2011. Robertson joined Eversheds in March 2011 before which she was the director of conflicts at Clifford Chance for eleven years, after being a solicitor from 1988 at the firm.

Eversheds is not recruiting for a new GC but instead is currently seeking a director of risk and compliance. Compliance director Chris Belcher will take over as interim director until a successor is found.

Taylor Wessing has also brought in a new IT director, Kevin Harris, who was previously technology director at Deloitte UK. During his time with the accountancy giant he managed its technology projects portfolio and led a team of 100 staff.

Tim Eyles, Taylor Wessing managing partner, said: ‘We look forward to benefitting from Angela’s wise counsel both in the context of risk and as general counsel. Kevin will help us to develop genuine differentiating and revenue-generating technology for our clients, by aligning IT investment to our business goals. Both Angela and Kevin bring with them a fresh perspective and superb experience. I’m confident that they will add real value to our business.’

jaishree.kalia@legalease.co.uk

Legal Business

H1 2014/15: ‘We don’t want to grow simply to be bigger’ – Taylor Wessing reveals 7.3% UK revenue increase

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Financial results 2014/15 Taylor Wessing
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Taylor Wessing has today (4 December) announced its half-year financial results, posting a 7.3% rise in revenue for H1 2014/15 in the UK alongside a 5.5% increase internationally.

Managing partner Tim Eyles says the firm enjoyed success across multiple practice areas including corporate, real estate, finance, disputes, IP, and private wealth. Speaking to Legal Business, he said: ‘All the pistons seem to be firing well – I was very pleased about the half year. Clearly we’re more cautious about the second half because of the general election. But we have benefitted from our international expansion, better integration, and FDI from the Middle East and Asia. Current signs are that activity in general will remain strong’

As for further expansion, Eyles added: ‘It’s as much about intensifying our current relationships as it is about developing more. We see jurisdictions outside Europe as being very active. We’re always aligned to improve bench strength but we feel we are the right size. We don’t want to grow simply to be bigger.’

It marks another healthy half year performance for the 960-lawyer firm, having last year unveiled a double digit increase in UK revenue of 10% while internationally its revenues rose by 9%. Meanwhile, in June, the firm disclosed financial results for the 2013/14 year, recording a 21% rise in profit per equity partner to £657,000 alongside an increase in UK and global revenues of 7.4% and 6.4% respectively with international income standing at £241.2m. The results also follow a period of international expansion including tie-ups in Indonesia and South Korea, where in May it formed an association with local firm DR & AJU.

A host of firms have announced their half year performance, including Stephenson Harwood yesterday posting a 12% increase in turnover to £64m from £57m in 2013, with chief executive Sharon White citing the firm’s new Dubai office for rising revenues.

sarah.downey@legalease.co.uk

Legal Business

‘Trophy assets’: Bakers and Taylor Wessing lead on Gherkin sale

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Baker & McKenzie and Taylor Wessing helped finalise the sale of London’s iconic Gherkin building to the Safra Group for over £700m.

The sale last month of one of London’s most distinctive and recognisable landmarks, the 40-storey skyscraper, located at St Mary Axe in the City’s primary financial district, was placed into receivership in April after one of its owners was placed in insolvency, with big-four giant Deloitte appointed as receiver.

Legal Business

Freshfields, Linklaters and Taylor Wessing advise on United Biscuits sale to Turkish buyer

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Corporate Freshfields Bruckhaus DeringerLinklatersTaylor Wessing
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Freshfields Bruckhaus Deringer, Linklaters and Taylor Wessing have taken the leading roles representing the sale of UK-based United Biscuits to Turkey’s largest food and beverage company Yildiz Holding.

The British food manufacturer – which makes McVitie’s, Jaffa Cakes, Hobnobs and Penguins, and Jacob’s Cream Crackers and Twiglets – will be acquired from private equity owners The Blackstone Group and PAI Partners by Yildiz for a reported £2bn.

Legal Business

Selling icons: Bakers and Taylor Wessing lead on Gherkin sale to Safra Group while Magic Circle duo act on Canary Wharf bid

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Baker & McKenzie and Taylor Wessing have helped finalise the sale of London’s iconic Gherkin building to the Safra Group for over £700m, while Linklaters and Slaughter and May acted on the unsuccessful preliminary bid for Songbird Estates, the owner of Canary Wharf Group.

As one of London’s most distinctive and recognisable landmarks, the 40-storey City of London skyscraper was expected to be purchased by a foreign buyer. Located at St Mary Axe in the City’s primary financial district, the building was placed into receivership in April after one of its owners was placed in insolvency, with big four giant Deloitte appointed as receiver.

The skyscraper, home to law firms including Kirkland & Ellis and Hunton & Williams, was purchased by German real estate company IVG Immobilien and investment banking company Evans Randall from Swiss Re for £630m in 2006 but the purchasers have struggled with debt issues in recent years. Its new buyer, the Safra Group, is controlled by Brazilian billionaire Joseph Safra, and currently has $200bn of assets under management.

This heavyweight real estate mandate saw a Bakers team led by London-based partner and global co-head of financial restructuring & insolvency Ian Jack, head of real estate Stephen Turner and head of investment funds James Burdett, act for the facility agent for the senior lender syndicate and its receivers Deloitte. The syndicate comprises five banks and is led by Bayerische Landesbank. Other Bakers lawyers involved include London-based restructuring partner Louise Webb as well as teams from the firm’s German and Luxembourg offices.

Jack said the landmark deal had ‘involved an incredibly comprehensive and competitive marketing exercise which has yielded a superb result’. The firm has picked up some high profile real estate deals in recent years, including advising on the £1.4bn capital raising by Battersea Power Station from a syndicate of Asian and Middle Eastern banks.

Taylor Wessing, meanwhile, advised the buyer with a multi-disciplinary team led by real estate partner Paul Lawrence, alongside corporate partner Ronald Graham, and corporate tax partner Robert Young. This summer also saw Taylor Wessing secure a role advising on property group UOL’s purchase of the Heron Plaza site for £97m. A 3,200-square metre site located off Bishopsgate and sold by property tycoon Gerald Ronson, that deal constituted UOL’s first major development in London and its first foray into Europe.

Other major real estate activity in recent weeks saw Songbird Estates, the owner of Canary Wharf Group, reject a preliminary bid from the Qatar Investment Authority and Brookfield Property Partners for £2.2bn, a move which saw Linklaters corporate partner Matthew Elliott advise the bidders opposite a team from fellow Magic Circle firm Slaughter and May.

sarah.downey@legalease.co.uk   

For more coverage on real estate, see Back in the game – revival at last for real estate but the players have changed