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HMRC review raises questions over law firm financing as banks tighten up lending terms

Law firms are facing a shake-up of their banking and taxation arrangements as both lenders and HM Revenue & Customs (HMRC) move to minimise their losses under the current system.

Following HMRC’s consultation on limited liability partnerships, draft legislation will be unveiled in its autumn statement, which is expected to substantially tighten the criteria for favourable tax treatment under partnership.

The legislation, which according to Norton Rose Fulbright partner Dominic Stuttaford may be tweaked but is unlikely to change tack, is expected to say that a partner is someone with a share of the equity – and of the risk – leaving the status of salaried partners in limbo. Continue reading “HMRC review raises questions over law firm financing as banks tighten up lending terms”

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Revolving Doors: Key hires for Mayer Brown, Greenberg Traurig, Herbert Smith, K&L Gates and Pinsent Masons

The lateral hiring spike of September is running into October, as Mayer Brown and US rival Greenberg Traurig Maher bulk up in London, Herbert Smith Freehills (HSF) and K&L Gates recruit into their Australian practices, and Pinsent Masons boosts its Middle Eastern energy projects team.

Mayer Brown has hired Patricia Jones, a real estate partner from SJ Berwin, to join its team in London, following the hire last week of corporate partner Greg Stonefield from White & Case. Jones has been at SJ Berwin for 10 years and most recently acted for British Land on the redevelopment of the Shoreditch Estate. Continue reading “Revolving Doors: Key hires for Mayer Brown, Greenberg Traurig, Herbert Smith, K&L Gates and Pinsent Masons”

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Party for one: E.ON appoints Pinsent Masons as its sole UK adviser

The single-supplier legal advisory model appears to be gaining traction as Pinsent Masons has won its second exclusive fixed-fee contract this year, with energy giant E.ON appointing the firm as sole legal advisor for general matters, a first in the energy sector.

The terms of the arrangement mean E.ON’s UK legal function will reduce its roster of legal advisers to just one. The five-year deal will ‘encompass work across a full range of specialist legal services,’ a statement said today (3 Oct). Continue reading “Party for one: E.ON appoints Pinsent Masons as its sole UK adviser”

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Election fever: Sandelson re-elected as disputes chief as global MP vote draws near

Set against the wider backdrop of its global managing partner contest, Magic Circle firm Clifford Chance has re-elected Jeremy Sandelson as global head of the firm’s litigation and dispute resolution practice in an uncontested election.

Having been in the role since 2009, Sandelson will serve a second four-year term. His pedigree in management with the firm is long-established, as the disputes chief previously acted as managing partner of the London litigation practice in 2003, and regional managing partner for the UK and the Middle East from 2005. Continue reading “Election fever: Sandelson re-elected as disputes chief as global MP vote draws near”

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Global ambassador: CMS partner Fiona Woolf to represent the City as Lord Mayor

The City legal profession collectively regards itself as a global ambassador for UK enterprise but CMS Cameron McKenna energy partner Fiona Woolf has been officially awarded the representative role of the Lord Mayor of the City of London, becoming only the second female holder of the post in its 800-year history.

Woolf will be the City’s 686th Lord Mayor – to be distinguished from the wider Mayor of London role – and will take on the role of global ambassador for UK-based financial and business services from Friday 8 November. Continue reading “Global ambassador: CMS partner Fiona Woolf to represent the City as Lord Mayor”

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Wigs and veils up for discussion by Lady Hale and Lord Neuberger in Supreme Court briefing to mark a new legal year

Deputy president of the Supreme Court Lady Hale today (2 October) advocated a new approach to attracting youths from diverse backgrounds starting first with the elimination of barristers wigs, in a meeting otherwise dominated by the issue of full-face veils in court.

In a briefing held together with Lord Neuberger to reflect on his first year as president, the outspoken deputy addressed a series of questions over the use of the niqab in court, which dominated headlines in September after Judge Peter Murphy found that defendant Rebekah Dawson must remove her veil when giving evidence. Continue reading “Wigs and veils up for discussion by Lady Hale and Lord Neuberger in Supreme Court briefing to mark a new legal year”

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Comment: The air of unreality – can the big deal deliver for Ashurst?

‘Historically, what killed Ashurst’s mergers has been apathy. Latham, Fried Frank, Clifford Chance – people were apathetic.’ So recalls one former veteran of the City firm.

Ashurst has finally voted on a transformative merger with its Australian partner. But even two years since the firm agreed a formal alliance with big six Australian outfit Blake Dawson, the idea of Ashurst going through with the tie-up still seems odd, unreal even, though this timeframe was always set out and the Australian practice immediately took the name of its City suitor. Continue reading “Comment: The air of unreality – can the big deal deliver for Ashurst?”

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Layton leads the field as CC set for managing partner election

The race to fill the shoes of Clifford Chance (CC)’s longstanding global managing partner David Childs has reached a decisive stage, with the initially reluctant Matthew Layton widely cited as the favourite as the firm takes soundings on potential candidates.

Layton is widely tipped to be running alongside three other likely candidates: Paris-based office managing partner and M&A corporate specialist Yves Wehrli; global head of tax, pensions and employment David Harkness; and City-based banking and finance partner Andrew Carnegie. Continue reading “Layton leads the field as CC set for managing partner election”

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Consolidation watch: Dentons and McKenna Long in merger talks

Dentons and McKenna Long & Aldridge confirmed late on Monday (30 September) that they are in merger talks to create a firm with more than 3,100 lawyers around the world.

The firms are reported to be aiming to complete the deal by 1 January 2014 and in response Dentons issued the following statement to the US media:

‘Since creating Dentons earlier this year, we have been very clear in our determination to always deepen our capabilities to serve clients in the U.S. and around the world.

‘This has included discussions with firms and lawyers for whom we have great respect and share common goals. Continue reading “Consolidation watch: Dentons and McKenna Long in merger talks”

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More drama from Berlin – criticism of Hogan Lovells client led to departure by partner now leading team to rival

Surprise surrounding last week’s announcement that Hogan Lovells’ 30-lawyer Berlin arm is leaving to launch a German law practice for Morrison & Foerster has been compounded by the indications that local TMT partner Christoph Wagner was earlier asked to leave the firm for publicly criticising a client.

The decision by the 2,527-lawyer Anglo/American firm came after Wagner wrote an article in German newspaper FAZ looking at the antitrust concerns surrounding Deutsche Telekom’s decision to impose data limits on its flat rate internet connections, which German journalists have reportedly warned is a threat to the freedom of the web. Continue reading “More drama from Berlin – criticism of Hogan Lovells client led to departure by partner now leading team to rival”

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Africa expansion: Eversheds in talks to launch in five key jurisdictions

Eversheds is significantly expanding its Africa offering and is currently in discussions to establish offices in the key markets of Tunisia, Morocco, Ghana, South Africa and Kenya over the coming months.

The 1760-lawyer firm has also today (1 October) announced the launch of the Eversheds African Law Institute (EALI), which will share knowledge, training and regional and international commercial opportunities with member firms. Continue reading “Africa expansion: Eversheds in talks to launch in five key jurisdictions”

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Guest post: Grayling’s conference speech – main points and some reflections

Earlier this week, Chris Grayling MP, Secretary of State for Justice and Lord Chancellor, delivered his speech to the Conservative Party Conference in Manchester.

Like the speech of Sadiq Khan MP at the Labour Party Conference, Grayling’s speech was short. He opened by referring to a story in the Daily Mail about several young men having an easy time in prison. We were informed that, ‘within twelve hours, they were in segregation. Locked up for longer in their cells, not hanging out with their mates. Without a TV. Privileges stripped. Weeks added to their sentences after a swift disciplinary process.’ Good red meat for the party faithful. Continue reading “Guest post: Grayling’s conference speech – main points and some reflections”

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Ashurst closes in on Australian tie-up and leadership election

As Ashurst dots the Is and crosses the Ts on its merger with Australian top-tier firm Blake Dawson, a number of partners report an internal mood of resignation, despite a two-year courtship that has avoided significant tension or fallout.

As Legal Business went to press, both firms were to vote on full financial integration following the 2011 deal that aligned the pair ahead of this year’s vote. The merger will create a top 50 global law firm with revenues of well over £500m. Continue reading “Ashurst closes in on Australian tie-up and leadership election”

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The $6.4trn question – as legal advisers jostle for position, can shale gas live up to the hype?

Jaishree Kalia assesses the big hopes and big risks facing the emerging shale gas industry

Every few years a new sector or niche comes along that promises huge opportunities for law firms that can tactically position themselves. Such hyped sectors often turn out to disappoint, but there is no doubt that the shale gas industry has become the latest – and hottest – touted market.

It’s not hard to see why interest has been piqued. In a little over a decade, shale gas has transformed the energy dynamics of the world’s largest economy, now constituting over 20% of US energy production. Having turned the US into an energy exporter, it is expected to exceed 40% of US energy output by 2035. Continue reading “The $6.4trn question – as legal advisers jostle for position, can shale gas live up to the hype?”

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From a big bang to a whimper – infighting and calls for reform of regulatory framework

Caroline Hill and Sarah Downey assess the agendas in the MoJ’s review of regulation

The Ministry of Justice (MoJ)’s decision to conduct a review of the profession’s regulatory landscape comes just a little over a year since the landmark Legal Services Act (LSA) came fully into force. The irony is that barely has the radical reform been enacted that was supposed to sort out fundamental problems with professional standards and all parties seemingly now believes it’s time to once again go back to the drawing board.

Since justice minister Helen Grant announced in June that the government would look at ‘what could be done to simplify the regulatory framework and reduce unnecessary burdens on the legal sector’, the MoJ has received submissions from the City of London Law Society (CLLS), the Solicitors Regulation Authority (SRA), the Law Society, the Legal Services Board (LSB), the Legal Services Consumer Panel (LSCP), the Bar Council and the Bar Standards Board (BSB).

Continue reading “From a big bang to a whimper – infighting and calls for reform of regulatory framework”

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Lloyds sees knock-on effect of GC for group legal hire

In-house promotions and moves often have a domino effect across the wider legal function and Lloyds Banking Group (LBG) is no exception. The major British financial institution has recently announced that former corporate M&A head Hugh Pugsley will take over as general counsel (GC) for group legal from Kate Cheetham, who was promoted to deputy GC this January.

Pugsley, a former associate at Allen & Overy, has moved up the ranks of the 60-strong team and will now be responsible for advising the banking giant on financial reporting, M&A, corporate development, HR, and property-related issues.

Continue reading “Lloyds sees knock-on effect of GC for group legal hire”

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Barclays £5.8bn rights issue sees CC, Sullivans and Freshfields in the lead

Barclays has begun the biggest capital raising by a UK bank since 2009, under which Clifford Chance (CC), Sullivan & Cromwell and Freshfields Bruckhaus Deringer led on its initial £5.8bn rights issue, as the global financial institution moves to plug a £12.8bn funding gap.

A team from CC, led by London corporate partner Patrick Sarch and capital markets partner Simon Thomas, advised on English law for Barclays, while a Sullivan & Cromwell team in London advised the bank on US law, led by client relationship partners George White and John O’Connor.

Deputy general counsel Michael Shaw led the Barclays team.

Continue reading “Barclays £5.8bn rights issue sees CC, Sullivans and Freshfields in the lead”

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Profile: Michael Shaw, Barclays

The banking giant’s deputy GC discusses management challenges

Barclays deputy general counsel (GC) Michael Shaw has proved himself to be highly adaptable since joining the bank in 2009 from legacy Herbert Smith.

It was in 2010 that the outside world witnessed the knock-on effect of Barclays Capital head Jonathan Hughes stepping down, after which Judith Shepherd moved into the role, leaving vacant her position as GC of retail and business banking (RBB). For seven months Shaw stood in as interim RBB GC before Mark Chapman was appointed in October 2010.

Continue reading “Profile: Michael Shaw, Barclays”

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Life During Law: Lord Goldsmith QC

I’ve been really fortunate. I’ve had extraordinary opportunities in my career. I’ve had the opportunity not just as a hands-on lawyer, but also to do some politics, to take part in the affairs of the country… I’d like to think also that I’ve helped some people in a number of ways.

There have been a lot of memorable cases. The Afghan warlord we got convicted at the Old Bailey. I suppose Caparo in the House of Lords – a huge case on auditors’ negligence. That was a tremendous result – we happened to get the result on the day of my wedding anniversary. That was quite nice.

The favourite part of my job is being in court. It shouldn’t be but it is. I like being there, I like arguing, I like winning. It doesn’t always happen. I want to put on a good show, to do a good performance, and to solve the problem. I don’t like not solving legal problems.

Continue reading “Life During Law: Lord Goldsmith QC”