Legal Business

Revolving doors: Senior hires for Withers, Baker & McKenzie, Brown Rudnick and TLT

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The past week saw Withers hire Taylor Wessing’s head of contentious trusts and estates as the BBC’s head of litigation returned to private practice with a move to Baker & McKenzie, and Brown Rudnick and TLT made strategic hires in intellectual property (IP) and real estate respectively.

Steven Kempster will become the thirteenth partner in Withers’ contentious trust and succession group when he arrives in mid-July and brings the group up to seven partners in London. The group was founded 20 years ago by Dawn Goodman, who remains head of the department.

Kempster, who joined Taylor Wessing from Herbert Smith in 2008, brings with him a reputation for handling Russian disputes. He was, however, unsuccessful with a claim brought by his client, Russian oligarch Vladimir Slutsker, against his ex-wife Olga for a 50% share of the £40m London home they purchased using an offshore trust.

Kempster told Legal Business his practice is ‘burgeoning with Russian, Middle Eastern and Far Eastern disputes’ due to their growing number of UK investments and desire to have recourse to English courts.

Given the growing convergence of family law and contentious trusts work, Kempster says ‘the crossover at Withers, which has a high quality family law practice, is very complimentary to my own practice.’ He adds: ‘Taylor Wessing doesn’t have a family law department, which is a shame as it is a practice that crosses over quite well with contentious trusts work, particularly divorce cases.’

Goodman said in a statement: ‘Steven is well-known for his expertise and successes in contentious trust work, and has advised clients from around the world on complex matters for 15 years. His experience and leadership skills will be a real asset to the team.’

Elsewhere, Baker & McKenzie hired Nadia Banno from the BBC, where she was head of litigation. Banno will join Baker’s as of counsel and will particularly focus on the firm’s public law, and regulatory investigations.

Banno has worked at the BBC for the past nine years, of which she spent the last two heading the litigation team. Her experience includes advising in relation to the Jimmy Savile matter, the Pollard Review and the Dame Janet Smith Review, as well as the civil claims compensation scheme.

She also has experience of managing both domestic and international disputes, investigations and crisis management. She has advised on data protection and freedom of information, defamation, privacy, contempt and reporting restrictions.

Baker & McKenzie head of disputes John Leadley said: ‘We’ve worked closely with Nadia for a number of years and know first-hand what a talented and impressive lawyer she is. Having Nadia’s expertise and broad experience in the team will be a tremendous boost to our dispute resolution practice, particularly our public law, and regulatory investigations offering.’

Meanwhile, Brown Rudnick has recruited Speechly Bircham’s head of technology and intellectual property (IP) Alexander Carter-Silk, who has left the firm ahead of its merger vote to combine with Charles Russell. The vote is expected to take place in August this year.

Carter-Silk has 25 years’ experience of advising on contentious and non-contentious IP and technology matters. He headed Speechly’s trade mark designs and brand practice, and has experience of advising on advertising and marketing regulation and reputation management, including privacy and defamation.

Elsewhere TLT has hired Foot Anstey partner Daniel Halstead to boost its real estate offering in the UK. Halstead, who joined Foot Anstey from Osborne Clarke in 2011 to set up the firm’s Bristol office, will join TLT as its third property and development partner in Bristol.

Halstead specialises in real estate development and investment matters for institutions, property companies, developers, housing associations and corporate occupiers. He has particular experience in representing student accommodation projects, and some recent work includes advising on the £45m acquisition of a student village, the redevelopment of a Bristol city centre student scheme, and real estate finance matters for Santander.

Halstead told Legal Business: ‘There is increased investment into the property market as a whole. I aim to use my previous experience in the student accommodation field and work alongside the London and Manchester offices to service the firm’s existing property clients.’

TLT’s head of real estate Andrew Glynn added: ‘We continue to grow our team and expertise in response to client demand. Daniel brings a wealth of experience and expertise that will further boost the support we can offer our clients across the UK.’

Some of TLT’s real estate group clients include BBC, WH Smith and Boohoo.com.

Jaishree.kalia@legalease.co.uk

Tom.moore@legalease.co.uk

Legal Business

Withers to appeal £1.6m negligence finding as former client also appeals point of judgment

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Leading private client firm Withers has confirmed it will appeal a recent High Court decision that ordered the firm to pay £1.6m in damages after upholding a professional negligence claim, while the claimant Wellesley Partners (WP) has said it also intends to appeal a finding of the judgment.

Heard over a nine-day trial in October 2013, the dispute arose after Withers acted for executive search company WP in relation to the admission of new partners into the partnership, which subsequently required the drafting of a new LLP agreement. As part of the agreement, Bahraini bank Addax Bank was to make a significant capital contribution (about £2.5m) and acquire a 25% interest in the partnership.

This subsequently required the drafting of a new LLP agreement, which was completed on 14 May 2008. It was agreed between WP’s founder Rupert Channing and Addax that the latter should have an option to withdraw half its capital contribution. The LLP agreement allowed Addax to exercise that option at any time during the first 41 months of the agreement.

However WP alleged that its instructions to Withers were that Addax’s option should only kick-in after 42 months (as an earlier draft had provided) and that Withers altered this provision without any instructions to do so. Withers’ defence was that it made those changes on Channing’s instructions.

Relying on telephone call records between Channing and Withers, Mr Justice Nugee held that Withers must have either misunderstood the instruction or noted it down wrong or misremembered when it came to redrafting the clause agreement.

He went on to dismiss three other claims of negligence against the firm. The damages awarded were broken down for US loss of profits (£1,057,290); London loss of profits (£430,023) and ‘diversion of Mr Channing’s time’ (£125,000). He added that he was not in a position to rule on costs and this should be referred to a costs judge if the parties are unable to agree.

Withers has now been given permission to appeal the judgment, although no official date has been set.

WP has also announced its intention to appeal the judge’s finding that Withers was not negligent in its handling of events when the alleged error came to light.

Atkin Chambers’ Fiona Parkin QC and Mischa Balen (instructed by Enyo Law partner Simon Twigden and associate Charlie Morris) are representing the claimant while Hailsham Chambers’ Michael Pooles QC and 2 Temple Garden’s Charles Dougherty QC (instructed by RPC partner Paul Castellani) are acting on behalf of the defendant.

WP initially filed a claim to damages totalling £13m which was reduced to £8m. In relation to the award, Withers said last week: ‘The amount of damages awarded is one fifth of the amount claimed, and we believe our former client could have avoided incurring large costs had he accepted our settlement offer.’

sarah.downey@legalease.co.uk

Legal Business

High Court orders Withers to pay £1.6m over professional negligence claim

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Leading private client firm Withers has this week been ordered by the High Court to pay £1.6m in damages after the court upheld a professional negligence claim alleging the misdrafting of a limited liability partnership agreement.

Atkin Chambers’ Fiona Parkin QC and Mischa Balen (instructed by Enyo Law) represented the claimant while Hailsham Chambers’ Michael Pooles QC and 2 Temple Garden’s Charles Dougherty QC (instructed by RPC) acted on behalf of the defendant.

Heard over a nine-day trial in October 2013, the dispute arose after Withers acted for executive search company Wellesley Partners (WP) in 2008 over the admission of a number of new partners into the partnership. This included Bahraini bank Addax Bank, which was to make a significant capital contribution (about £2.5m) and acquire a 25% interest in the partnership.

This subsequently required the drafting of a new LLP agreement, which was completed on 14 May 2008. It was agreed between WP’s founder Rupert Channing and Addax that the latter should have an option to withdraw half its capital contribution. The LLP agreement allowed Addax to exercise that option at any time during the first 41 months of the agreement.

However WP argued that its instructions to Withers were that Addax’s option should only kick-in after 42 months (as an earlier draft had provided) and that Withers altered this provision without any instructions to do so. Withers’ defence was that it made those changes on Channing’s instructions.

Parkin QC (acting for the claimant) asked Mr Justice Nugee to consider Wither’s failure to make a relevant attendance note but he rejected the argument, ruling: ‘I do not accept that as a general principle. It is of course good practice to make attendance notes, precisely because the absence of them makes it more difficult to establish what instructions and advice were given, but I do not accept that the absence of an attendance note in some way counts against the solicitor in forming a view as to where the truth lies.’

In relying on what happened based on telephone call records between Channing and Withers, Justice Nugee further held that the lawyer involved must have either misunderstood the instruction or noted it down wrong or misremembered when it came to redrafting the clause agreement.

He went on to dismiss three other claims of negligence against the firm. The damages awarded were broken down for US loss of profits (£1,057,290); London loss of profits (£430,023) and ‘diversion of Mr Channing’s time’ (£125,000). He added that he was not in a position to rule on costs and this should be referred to a costs judge if the parties are unable to agree.

A statement issued by Withers today (13 March) said: ‘We respect the judgment of Mr Justice Nugee. We are pleased that he dismissed three of the four claims against us and, in relation to the fourth claim, acknowledged the uncertainty as to what instructions our client had given us. The amount of damages awarded is one fifth of the amount claimed, and we believe our former client could have avoided incurring large costs had he accepted our settlement offer.’

Sarah.downey@legalease.co.uk

Legal Business

Key real estate and construction hires for Macfarlanes, Taylor Wessing and Withers

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Property and construction lawyers are taking advantage of being back in vogue with a number of high profile moves in the sector this week including Ashurst partner Anthony Burnett-Scott’s move to Macfarlanes, Nabarro’s head of infrastructure Matthew Jones to Taylor Wessing and Wither’s hire of Fenwick Elliott real estate partner Julie Teal.

At Taylor Wessing, Jones will join the construction and engineering group, working closely with the firm’s real estate group, its planning, funds and tax teams and its banking group in relation to real estate acquisitions and development finance.

Acknowledged by the Legal 500 as offering ‘expert advice on construction and procurement issues,’ Jones advises on all aspects of construction including procurement, drafting and negotiation of building contracts, consultancy appointments, and dispute resolution.

The dual-qualified English-Australian lawyer advised Land Securities in its joint venture with Canary Wharf on the construction of the Walkie Talkie. His previous projects extend to jurisdictions including Italy, Spain, Portugal, the Netherlands, Romania, Barbados, Egypt, Turkey, Australia, Libya and Nigeria – a boost for Taylor Wessing as it seeks to extend its international reach outside of Europe.

On his appointment, Jones (pictured) said Taylor Wessing is a firm ‘both respected and admired for its quality and momentum’ adding: ‘I am enthusiastically looking forward to working with clients and colleagues in the UK, Asia, the Middle East and elsewhere in Europe.

‘In our business it’s people that matter: the clients whom we advise, our colleagues we work together with and the professional community in which we operate. Those relationships – and the opportunity to provide intelligent and astute advice – help to define who we are. I am privileged then to have fond memories and friendships from my time at Nabarro and, looking ahead, will enjoy contributing to Taylor Wessing’s ongoing efforts and success.’

Laurence Cobb, head of construction & engineering at Taylor Wessing, said: ‘Matthew is extremely highly regarded in the construction and real estate community, and his hire is evidence of our commitment to those sectors.’

Elsewhere, third-tier commercial real estate firm Macfarlanes has notched up a third significant partner hire from from top 15 LB100 firm Ashurst, as the arrival of Burnett-Scott follows the hire of former head of construction Anne Minogue in the summer and former head of real estate, Ian Nisse, who joined in the autumn of 2011 and heads the commercial real estate team at Macfarlanes.

Having been a partner at Ashurst since 1999, Burnett-Scott’s clients include supermarket Morrisons and Qatari Diar, which appointed Ashurst to three of its real estate investment legal panels, with the firm providing advice on its construction, infrastructure and engineering projects.

This latest hire from Macfarlanes comes as the highly profitable independent UK firm departs from an almost singularly organic approach to growth, to using lateral hires to build its business in key areas.

The 312-lawyer firm posted a 12% rise in revenues to £114.2m for 2012/13 and a profit per equity partner figure of £985,000, up 9%.

On Burnett-Scott’s appointment, Nisse said: ‘Anthony is a highly experienced real estate partner with an excellent reputation and has advised on some of the most complex, high value real estate transactions in the UK.’

Senior partner Charles Martin, added: ‘Anthony represents an important step in the rebuilding of our commercial property team. The tremendous platform that Ian has built with our full support combines lateral and home-grown talent of the highest calibre. Our ambition is now to lay claim to, and firmly establish, a place at the top table for the most complex real estate projects in the UK, serving the leading players in the market.’

Meanwhile, leading construction firm Fenwick Elliott has lost former SJ Berwin real estate partner Julie Teal to private client firm Withers. Ranked second-tier in the Legal 500, Fenwick Elliott has already witnessed the exit of a number of partners, including Julian Critchlow who joined fellow City firm Payne Hicks Beach to help launch its new construction and energy practice this year. Elsewhere, disputes specialist David Robertson, a former lawyer at Baker & McKenzie, moved to Berwin Leighton Paisner in February, and arbitration expert Frederic Gillion joined Pinsent Masons’ Paris office.

Withers real estate practice group leader Paul Brecknell, said the team’s fee income grew by nearly 20% last year, having ‘experienced a significant growth in demand for construction-related advice, as investors and property owners look to maximise value with developments and improvements.’

Teal added: ‘I have worked with the Withers team for a number of years and have always been impressed by their commitment to achieving their clients’ objectives. The team works on very exciting commercial and residential projects and I look forward to bringing my experience to bear on these.’

sarah.downey@legalease.co.uk

Legal Business

Comparing apples with, err, pears: Dentons’ financials show slight increase in revenue as Withers and Travers reveal numbers

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If the financial results of 2013 are useful for one thing, it will be to remind us of the sheer volume of transcontinental mergers, nearly-ran mergers, and the growth in popularity of the Swiss verein model.

The tail end of the financial reporting season has seen Dentons post its first, broadly flat set of results since the three-way merger of SNR Denton, Salans and Fraser Milner Casgrain, while Withers and Travers Smith (which stands out all the more for its fierce independence) have both seen a small increase in turnover.

Dentons posted a combined total turnover of £829.7m, placing it broadly in the top 20 of global law firms in terms of turnover. Its PEP figure is £452,000, while net earnings stand at £225.2m.

The turnover sum is reached by combining the revenues of each limb of the verein, which on the face of it seems straightforward but for the fact that they do not all have the same financial year. This will undoubtedly skew any really meaningful comparison with Dentons’ peers.

Compared with last year, Dentons’ revenue figure represents a 1% increase and PEP is down by 1%. A spokesperson for the firm confirmed that by practice area, corporate work made up for around 61% of total global revenues, or £507.5m, disputes brought in £164.4m (20%), finance work contributed £75.4m (9%), and property £82.3m (10%) of the total revenues.

Elsewhere, Withers, which in May called off merger talks with Speechly Bircham, saw its revenues rise by 4% to £117.8m from £113.3m the previous year. It’s PEP, however dropped by 4% from £386,000 to £370,000. The top of equity has also dropped from 548,000 to 519,000 but the bottom of equity rose by 4% to £272,000.

Given the firm’s private client focus, it’s no surprise that wealth planning made up for almost half of its turnover, 48%, with disputes and corporate bringing in 17% and 15% respectively.

Meanwhile, the ever independent Travers Smith posted total revenues of £86.2m, up 3% from £83.8m last year. However, PEP dropped by 2% to £790,000 from £804,000 in 2011/12.

The results comes in a week that saw Herbert Smith Freehills announce its financial performance for just seven months – the period since the union between Herbert Smith and Australian leader Freehills went live on 1 October – but refuse to disclose the proceeding five months of the legacy City firm’s financial year.

The issued seven-month figures appear to support claims that the firm has seen an effective 10% fall in its profitability, at least judged by the rough ‘n’ ready formula of a pro-rata reading of the results over a 12-month period.

The seven-month results show revenues of £471.2m, with net profits of £137.2m, to be shared across 316 equity partners. On a 12-month extrapolation – admittedly a very rough guide – this equates to a profit per equity partner (PEP) of £753,000, against a legacy figure for Herbert Smith of £840,000 for the 2011/12 year. The legacy Herbert Smith PEP figure is on the basis of 131 equity partners.

David Willis, managing partner of HSF, told Legal Business that a straight financial comparison is not realistic. ‘You’re not really comparing like-for-like with the old firm. We’ve bought together two firms,’ he said.

david.stevenson@legalease.co.uk

Legal Business

Withers and Speechly union off as SJP and KWM edge closer

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Merger talks between private client firms Withers and Speechly Bircham were called off at the end of May as both sides claimed the merger would not be in their best interests.

A joint statement from the firms said: ‘Following detailed discussions between the management and partnerships of Withers and Speechly Bircham, both sides have now concluded that a merger would not be in the best interests of both firms and have agreed not to pursue this further. The talks have enhanced the respect that both firms have for each other.’

Legal Business

Norton Rose Fulbright announces global practice heads as Withers chair moves to New York

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Both Norton Rose and Withers have made changes to their senior management, with one entering a seven-day countdown to its full merger with Fulbright & Jaworski as the other regroups after talks with Speechly Bircham fell through last week.

Norton Rose Fulbright today announced its global practice heads for the firm’s three largest practice areas; corporate, banking and finance.City-based legacy Norton Rose partner Martin Scott, currently head of corporate for Europe, will take over as global head of corporate from Hong Kong-based David Stannard, who re-joined Norton Rose in 2001 from the Hong Kong Securities and Futures Commission.

UK-based Norton Rose banking partner Jeremy Edwards will maintain his current position as global head of banking, while Fulbright’s US-based Linda Addison will take over as global head of dispute resolution and litigation from Deirdre Walker, who has been Norton Rose group head since 2009.

Global chief executive Peter Martyr – who alongside Scott, Edwards and Addison formally adopts the role when the merger goes live on 3 June 2013 – appointed the practice heads and, unlike many other large City firms, those appointments are not limited to a set term.

Martyr said: ‘Dispute resolution and litigation; corporate, M&A and securities and banking and finance will continue to be key strengths for Norton Rose Fulbright globally, in conjunction with our existing six key industry strengths.’ The merger will create a 3,800-strong lawyer firm, with 54 offices including 11 in the US.

Withers, meanwhile, has confirmed that New York-based senior partner Ivan Sacks will take over from Anthony Indaimo as chairman in July.

Withers last week voted against a potential tie-up with Speechly Bircham, with the private client firms issuing a joint statement stating that a merger ‘would not be in the best interests of both firms.’

However, the vote to replace Indaimo – who has served the maximum two consecutive three-year terms allowed under Withers partnership agreement – took place in March, long before the talks collapsed.

That merger would have created a 600-lawyer practice with a combined revenue of £170m, elevating it into the top 25 of the Legal Business 100.

sarah.downey@legalease.co.uk

Legal Business

Not so private client – Speechly Bircham and Withers call off high-profile merger bid

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Merger talks between private client law firms Speechly Bircham and Withers have been abandoned, the firms announced today (23 May).

A joint statement from the firms said: ‘Following detailed discussions between the management and partnerships of Withers and Speechly Bircham, both sides have now concluded that a merger would not be in the best interests of both firms and have agreed not to pursue this further. The talks have enhanced the respect that both firms have for each other.’

The merger would have created a 600-lawyer practice with a combined £170m and would have elevated it into the top 25 of the Legal Business 100. It is understood that both firms had put the proposed union to their partnerships this week to gauge support, which led to the union being called off.

In a statement, Speechlys managing partner Michael Lingens said: ‘Our discussions with Withers were both interesting and positive but both sides separately concluded that we should pursue independent paths.

‘For Speechly Bircham, that means continuing our strategy of developing our well-established commercial and private wealth practices in an increasingly international context. We have recently opened an office in Zurich as part of our focus on international private wealth, and growth in the funds and tax work of our Luxembourg office has just led us to move to larger offices there.

‘We intend to open a third office in a major European location this autumn, with a significant team hire. The office will be focused on providing corporate and tax services to a commercial client base in line with the profile of our other offices.’

The proposed deal had been received by some as a promising union, though rivals generally saw the deal as more advantageous to the smaller Speechly than Withers. There was some gap in the underlying profitabilty of the pair with Withers enjoys a substantially higher profit per lawyer at £72,000 compared to Speechly’s £46,000. However, Speechly would have given Withers a solid mid-market transactional team to offset its core private client team.

The abandoning of the talks comes despite a sustained run of consolidation in the UK and internationally, with SJ Berwin currently in discussions over a union with Asia Pacific giant King & Wood Mallesons.

sarah.downey@legalease.co.uk

Legal Business

Withers and Speechly Bircham set to merge

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Private client leaders Speechly Bircham and Withers are set to merge, potentially creating a 600-lawyer, £170m practice that will fit easily into the top 25 of the Legal Business 100.

News of the union was revealed by RollonFriday on 22 March. On paper the union would make strategic sense. The two firms have almost identical profit margins (Speechly 20%; Withers 21%), although Withers has a considerably higher profit per lawyer of £72,000 to Speechly’s £46,000.

However, the real benefits of the merger will be the combined strength in serving high-net-worth clients. The two firms are highly ranked across various private client disciplines in The Legal 500 and both have considerable international wealth management practices. Withers is a longstanding transatlantic law firm, while both have expanded in recent years into different but strategically important private client jurisdictions, including Switzerland, Luxembourg and Singapore.

Both firms are also no stranger to tie-ups: Withers merged with US practice Bergman Horowitz & Reynolds in 2002, while Speechly’s acquisition of Campbell Hooper in 2009 was widely credited as being the first of a wave of mid-market consolidation post-Lehman.

A likely deal comes amid a continuing run of consolidation in the middle ranges of the UK profession, with Legal Business revealing this month that Addleshaw Goddard and Nabarro had recently held – and abandoned – merger discussions.

Update Monday 25 March – The firms have released a joint statement.

‘Withers and Speechly Bircham can confirm that they are in preliminary discussions regarding a potential merger. Both firms see exciting opportunities for growth in such a merger.

‘Both Withers and Speechly Bircham have been growing their international offering in response to changes in the global legal market and the increasing importance of private capital in the world economy.

‘There is still a lot more work to be done before any final decision can be reached and so we will not be issuing any further comment at this stage.’

However, one former Withers partner said that the talks are far from preliminary.

mark.mcateer@legalease.co.uk

 

 

Legal Business

Generation game

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International wealth preservation and succession planning is now a core component of most successful private client practices. Legal Business assesses how far firms will go to keep it in the family

If innovation is a measure of how competitive London’s private client market has become, then the contest for top spot has only intensified over the past year. With London seen as a safe haven for many of the world’s high-net-worth individuals (HNWIs), the question for the capital’s leading private client practices is how to develop an edge over the competition. Strategies include international expansion, rare lateral hires, and offering entirely new service lines – all illustrating that private client lawyers have needed to adapt to a swiftly evolving and increasingly global market.