Legal Business

CMS junior partners to pay up to £50k in response to HMRC shake-up

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CMS Cameron McKenna has called on its fixed-share partners (FSPs) to make a substantial contribution of capital in light of HM Revenue & Customs’ (HMRC) recent overhaul of the way partnerships are taxed.

Members of the junior partnership that fall into band one of the firm’s four-tiered remuneration structure have been asked to contribute around £35,000 to £50,000 each. With 90 partners in this bracket, this means a total capital investment of up to £4.5m.

A partner at the firm told Legal Business: ‘The firm doesn’t necessarily need the money – it’s not a call for borrowings or to meet debt requirements. It’s a call to even out the capital positions across the various levels of the partnership. People were not necessarily happy taking on more borrowings but it hasn’t caused any ructions across the junior partnership.’

Legal Business

Redundancy watch: CMS and Dundas cut 60 support staff roles

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CMS and Dundas & Wilson confirmed today (30 April) that they have made 60 staff redundant ahead of their £300m merger, set to go live tomorrow.

The redundancies follow the duo’s announcement in mid-March that 60 support staff roles were at risk, including 40 roles at Dundas & Wilson, while around 20 jobs were at risk within CMS and its third party suppliers Integreon, Initial and Xerox. CMS confirmed at the time there would be no impact on any fee-earning roles.

In a joint statement today a spokesperson said: ‘There has been considerable work going on as we prepare for the combination of CMS with Dundas & Wilson on the 1 May. With any combination it is regrettably to be expected that there are some duplication of roles resulting in redundancy.

‘While there is no reduction in the number of lawyers, we can confirm that as we anticipated about 60 support roles have been made redundant with two thirds of those roles within Dundas & Wilson and one third within CMS and its third party suppliers.’

The move comes after CMS completed a redundancy programme in 2013 that cut 37 jobs across fee-earner and support roles.

Other firms to have made redundancies this year include Ince & Co and DWF, which, following a series of mergers, last month made 19 business services staff in its finance department redundant following the conclusion of a consultation which put 21 at risk in March.

Sarah.downey@legalease.co.uk

For more coverage of CMS see ‘Buy-side story: how CMS and Dundas & Wilson finalised their surprise merger’

Legal Business

Camerons’ fixed-share partners to contribute up to £50k in response to HMRC shake-up

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CMS Cameron McKenna has become the latest firm to call upon its fixed-share partners to make a substantial contribution of capital in light of HM Revenue & Customs’ (HMRC) recent overhaul of the way partnerships are taxed.

Members of the junior partnership that fall into band one of the firm’s four-tiered remuneration structure have been asked to contribute around £35,000 to £50,000 each. With 90 partners in this bracket, this means a total capital investment of up to £4.5m.

A partner at the firm told Legal Business: ‘The firm doesn’t necessarily need the money – it’s not a call for borrowings or to meet debt requirements. It’s a call to even out the capital positions across the various levels of the partnership. People were not necessarily happy taking on more borrowings but it hasn’t caused any ructions across the junior partnership.’

Last May saw the CMS Cameron McKenna reform its partnership remuneration model in an attempt to enable salaried partners to become a full equity partner more quickly while simultaneously increasing management scrutiny of performance. The system has new partners holding a fixed-share of the equity for at least four years before moving on to full-equity status.

In January the firm’s UK LLP accounts showed a 6.6% revenue drop for the 2012/13 financial year, alongside a 12.5% slide in operating profit. Profit for the financial year available for discretionary division among members of the firm also fell 4% from £39.4m to £37.8m in the same period.

Camerons’ capital call is in line with similar moves made in recent weeks by LB100 firms to meet their obligations under the rule changes. Earlier this month, Hogan Lovells announced that around 65 non-equity members would be required to make a capital contribution of around £60,000 to £100,000 each, with capital investment totalling between £3.9m and £6.5m – a move that will save the firm having to pay more in tax in respect of national insurance.

sarah.downey@legalease.co.uk

Legal Business

Partner promotions: Wragges and DAC Beachcroft make up significantly more lawyers; Olswang promotes two

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Ahead of its 1 May merger with City firm Lawrence Graham, Wragge & Co has more than doubled the number of partner promotions it made last year to five, including two in its housing, development & regeneration team.

Ed Colreavy and Jacqueline Knox were made up in the housing practice. In other practice areas, Ian Gordon was made up in pensions disputes, Jasvir Jootla in restructuring and corporate recovery, and Gus Wood in the firm’s energy group.

Senior partner Quentin Poole said: ‘We have looked at talent, experience, client requirements and growth opportunities, and have decided to promote these five exceptional individuals to the partnership.’

In contrast, Olswang has made up just one new partner apiece in its London and Berlin offices. The promotion of Kevin Cordina and Gordon Geiser to partnership at Olswang, which takes effect from 1 May, will bring the number of partners in the top-40 LB100 firm to 121 across eight offices in Europe and Asia.

This is one fewer than last year for the firm, which promoted three to partnership in March 2013, again in London and Berlin.

Cordina is a patent lawyer, specialising in electronics and will be based in the firm’s City base, while Geiser – a dual qualified restructuring and insolvency expert in Berlin – will help the firm extend its cross-border capability and supports the recently launched Olswang Restructuring Solutions, which is aimed at providing counsel to companies, managers, shareholders and creditors during crises and near-critical situations in Germany.

Meanwhile top-30 LB100 firm DAC Beachcroft has appointed 16 to partnership, more than three times the five associates promoted in each of the last two years. Over half (nine) of the promoted lawyers across the firm’s Birmingham, Bristol, Leeds and Newport offices were women, while five promotions were in its City base, taking the total number of partners at the firm to 256.

While the majority of promotions took place in across various divisions of the firm’s signature insurance practice, three lawyers in both corporate and commercial and real estate have also been promoted.

This comes after the firm promoted two new partners in its Madrid office last December, José María Pimentel and Luis Siles.

DAC Beachcroft managing partner, Paul Murray, said: ‘After years of relative steadiness, this year’s bumper promotion numbers are a clear sign of our solid commercial performance to date and the ambition we have for future growth. As ever, the growth of the business is led by what our clients need. This is reflected in the various practice areas, sector expertise and locations of those being promoted.’

 

DAC Beachcroft 2014 partner promotions in full:

Hans Allnutt, global insurance (London)

Anne Batanero, real estate (Bristol)

Louise Bloomfield, employment & pensions (Leeds)

Anthony Carrington and Dan Prince, claims validation team (Birmingham)

Kathy Farmer, practice governance & risk (Leeds)

Emma Fuller, motor (Newport)

Barbara Goddard, casualty, (London)

Liz Jones, large loss (Birmingham)

Daniella McGuigan, employment & pensions (Leeds)

Lili Oliver, motor (Bristol)

Ben Pariser, real estate (Bristol)

Glenn Ruddy, real estate (London)

John Singh, corporate & commercial (London)

Alex Von Westernhagen, corporate & commercial (London)

Nick Williams, corporate & commercial (Bristol)

 

francesca.fanshawe@legalease.co.uk

Legal Business

Deal watch: Nabarro and Addleshaws take the lead on £800m Hermes/Co-Op regeneration joint venture

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While major real estate deals are hard to come by, the usual suspects continue to take the lion’s share of the work as LB100 firms Nabarro and Addleshaw Goddard have advised on a £800m real estate deal between Hermes Real Estate and The Co-Operative Group to become equal partners on the regeneration of buildings and land in central Manchester.

The 20-acre regeneration of Manchester urban land, called NOMA, is considered to be the UK’s biggest regional redevelopment project. The joint venture involved teams of lawyers at both firms to cover real estate, joint venture and tax aspects of the deal.

The Nabarro team advising longstanding client Hermes was led by real estate partner Simon Staite and included funds and indirect real estate partner Chris Luck, planning partner Christopher Bowes, and tax partner Nick Burt.

At Addleshaws, the team advising The Co-Op was led by real estate partners Mark Haywood and Monica Brij, as well as partners Justine Delroy and Philip Goodstone who specialise in tax and joint ventures respectively.

Nabarro’s Staite, said: ‘This is an exciting deal and the UK’s largest regional redevelopment. The range of what our clients intend to build will create a vibrant new neighbourhood in one of Europe’s most vibrant cities. It only takes a site visit to see the potential of this project, right next to the Co-Ops’ new HQ, the refurbished Manchester Victoria Station and the Printworks.’

Addleshaws’ Haywood added: ‘This 20-acre, £800m scheme promises to be a game changer for Manchester’s continuing urban re- invention as an international city for business and investment.

‘We are delighted to have played a part in bringing together two organisations that share the same vision for responsible sustainable mixed use city centre development, and who together will unlock real long-term value for investors, residents and business.’

Other high-profile real estate coups for Nabarro recently includes partner Marie Scott being shortlisted for Real Estate team of the Year at the 2014 Legal Business awards for work advising Google on all aspects of its £1bn acquisition and development of a site at Argent’s King’s Cross estate for the development of its new UK headquarters, which includes around one million square feet of office space.

Addleshaws, meanwhile, which was appointed to a panel of five firms to provide commercial legal services for both the Co-operative Group and Co-operative Financial Services, has previously advised the group on the sale and leaseback of its new head office building in Manchester, after a foreign investor purchased the One Angel Square property for £142.3m.

Sarah.downey@legalease.co.uk

Legal Business

Partner promotions – Trowers, Nabarro and BLP see reduced numbers as Addleshaws holds on eight

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Partner promotions at the UK’s leading firms have largely been down so far down this year, as firms including Trowers & Hamlins, Nabarro and Berwin Leighton Paisner all promote fewer senior associates than last year, with Addleshaw Goddard maintaining a promotion level of eight associates.

Trowers & Hamlins made up just four new partners globally, down from seven in 2013, of which three were in the Middle East – Oman, Dubai and Bahrain – and just one in London.

Three of the promotions were across the top 50 firm’s global real estate practice, with the remaining one promotion in corporate. The promotions were a 50:50 split in female and male promotions. All promotions will take effect from 1 April 2014. Last year, the majority of promotions took place in London, while elsewhere they were in Manchester and Dubai.

Trowers’ senior partner Jennie Gubbins said: ‘We have a strong, international portfolio of work across real estate and corporate, which are both highly important, strategic areas for the firm. We are actively developing and expanding these core areas in the UK and overseas. These promotions will help us make additional strides towards bolstering our offering to clients and – with three promotions in the Gulf – further strengthening our Middle East offices.’

Meanwhile, Nabarro announced last week (27 March) that three associates would be made up, down from eight last year, taking effect from 1 May. The top 30 firm said this year’s round focused on the firm’s intellectual property, funds and real estate practice areas in London. All the partners came of age through Nabarro’s talent development programme for senior associates – a joint venture with the London Business School set up in December 2010 to create a wider pool of potential partnership candidates.

Elsewhere Berwin Leighton Paisner (BLP) made up eight senior associates to partner level, down one from last year, of which the lion’s share are in London.

Six promotions took place in London, while the remaining two were in Moscow and Hong Kong. BLP’s corporate department saw the largest intake with four partner promotions, followed by finance with two, and one each in disputes and real estate. All of the appointments are effective from 1 May 2014. BLP’s managing partner Neville Eisenberg said: ‘I am delighted to welcome these very talented lawyers into the partnership.’

Addleshaw Goddard, on the other hand, promoted eight, in an all-male round of promotions, also taking effect from 1 May. Last year, the firm made up three female partners, also from a total of eight. Promotions have remained UK-based for the last two rounds, with London and Leeds taking on three partners this year and two in Manchester.

‘Unusually for us, this year all the successful candidates meeting the competencies in those areas are male,’ says Addleshaws senior partner Monica Burch. ‘We have a strong cohort of managing associates pushing for partnership and I anticipate that we will have a more gender balanced slate next year and going forward.’

The results follow a mixed set of numbers from the Magic Circle so far: Freshfields Bruckhaus Deringer is promoting 15 this year, up one on last year; Allen & Overy is promoting 16, down from 19; and at Slaughter and May it is a bumper year for promotions, with seven associates made up to partner, up from two in the previous two years.

Jaishree.kalia@legalease.co.uk

Legal Business

CMS and Dundas to cut up to 60 jobs ahead of May merger

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CMS Cameron McKenna and Dundas & Wilson have placed 60 support staff roles at risk following the duo’s recently announced union.

Confirmed today (21 March), there are 40 roles at risk at Dundas & Wilson, which will require a consultation process, while around 20 jobs are at risk within CMS and its third party suppliers Integreon, Initial and Xerox. CMS confirmed there will be no impact on any fee earning roles. The move was first reported on legal website RollOnFriday.

In a joint statement the firms said: ‘There is lots of activity currently underway to achieve the combination of CMS with Dundas & Wilson with effect from 1 May. To build the best structure for the combined business, we have looked at both firms and relevant third party suppliers. We have briefed our support teams about the roles at risk.’

‘This merger brings benefits to our clients and the majority of our staff, but as with any combination it is regrettably to be expected that there are some duplication of roles resulting in redundancy. This is an unsettling time for those potentially impacted and we will be doing our best to support them over the coming weeks.’

The move comes after CMS completed a redundancy programme in 2013 that cut 37 jobs across fee earner and support roles.

There have been a number of departures from the Scots practice in the wake of the December agreement to combine with CMS. Senior departures include construction partner Siobhan McCloskey-Oudahar; head of real estate disputes Andrew Walker; employment partner David Walker; head of environment Mark Brumwell; employment partner Mandy Laurie; IP/IT partner Allan Wardhaugh; and corporate partner and former chairman David Hardie.

Traditionally Scotland’s top law firm, Dundas had faced several years of difficult financial performance and senior departures ahead of agreeing the deal. The union will create a combined practice with revenues of around £300m and membership of the wider CMS international alliance.

Sarah.downey@legalease.co.uk

For more coverage see ‘Buy-side story: how CMS and Dundas & Wilson finalised their surprise merger’

Legal Business

Olswang brings in ex-Linklaters Paris TMT head in further hire on the Continent

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Olswang has made a further senior TMT lateral on the Continent, boosting its Brussels and Paris practices with the hire of former Linklaters TMT head Sylvie Rousseau.

Having left Linklaters last spring, Rousseau, who is registered at both the Brussels and the Paris bar, has been brought in to enhance Olswang’s telecoms, IT, outsourcing and data protection cross-border offering and extend its reach into Africa, where she is said to have significant experience.

Her track-record includes advising the Nigerian-based telecommunications infrastructure provider IHS Holding Limited on their purchase of MTN’s mobile network towers in Ivory Coast and Cameroon.

She also has established a strong network and close relationships with various industry bodies and European institutions, including the European Commission’s Article 29 Data Protection Working Party, as well as local regulators, such as the Belgian Privacy Commission and the French CNIL.

This is the latest of a series of lateral hires from the top 35 UK firm, including in January taking on Orrick, Herrington & Sutcliffe’s IP/IT head Andrea Splittgerber to boost its German European data protection and sourcing practice.

David Stewart, chief executive at Olswang, said: ‘Sylvie’s appointment is designed to support the continual growth of our truly international TMT practice at Olswang. With data protection grabbing headlines and the prospect of major infrastructure sharing deals in the telecom sector, global organisations need legal professionals who can navigate the intricacies of national regulations, understand the political landscape and deliver forward-thinking advice.

‘With Sylvie working between Brussels and Paris we will be able to extend our capability not only to French-speaking jurisdictions in Europe, but also to francophone Africa. Ultimately, Paris is the hub for francophone Africa TMT transactions, so Sylvie’s input will be a major boost for Olswang to be able to make the most of the growth potential in that region.’

francesca.fanshawe@legalease.co.uk

Legal Business

Revolving Doors: Lateral hires for Squire Sanders, Olswang, Irwin Mitchell, DAC Beachcroft and Osborne Clarke

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In the latest series of lateral appointments across the UK’s leading firms, Squire Sanders has hired former Berwin Leighton Paisner (BLP) director of China business as a partner in its global corporate practice, as Olswang welcomes former Gateley contentious insolvency partner Louise Bell, Irwin Mitchell hires restructuring and insolvency specialist Edward Judge, and DAC Beachcroft brings in Eversheds’ former head of procurement in Newcastle, Ruth Connorton.

Meanwhile in Italy, Osborne Clarke has hired former R&P Legal antitrust partner, Enrico Fabrizi.

A dual-qualified lawyer in England and Wales and the People’s Republic of China (PRC) with more than two decades’ experience advising both international and Chinese clients on cross-border corporate, commercial and M&A transactions, Michelle Chen is one of the latest to depart BLP as she joins Squire Sanders’ City practice.

After qualifying among the first PRC lawyers in 1990, Chen worked for 10 years as an international law advisor to the State Council of the PRC and has an in-depth understanding of the Chinese government.

She has been closely involved in several high profile projects, including the formal transfer of sovereignty over Hong Kong from the United Kingdom to China and the establishment of the Hong Kong legal system.

Chen also served as group legal counsel at Hong Kong-based investment holding company Hutchinson Whampoa, responsible for the group’s China-related matters.

Jane Haxby, partner and EMEA chair of Squire Sanders’ global corporate practice, said: ‘We welcome Michelle to the firm and to the London office, where she is the fifth partner to join us since January. Michelle is highly regarded by her peers, many of whom include in-house counsel at some of China’s largest businesses.

‘She joins us at an important time, as our China outbound and inbound work continues to develop. Chinese outbound M&A, in particular, is growing globally with the UK, Western Europe, Germany especially, and North America being key regional focuses for Chinese investors. Following our recent appointment of China outbound specialist Dr. Benjamin Kroymann in Shanghai, Michelle’s experience will further strengthen our capabilities for clients both in China and internationally.’

Also in London, former Gateley insolvency litigator Louise Bell joins Olswang’s commercial litigation, insolvency and civil fraud team where she brings her focus on substantial claims brought by insolvency practitioners, often working on fraud and complex recovery options.

Bell’s clients include KPMG, Grant Thornton, BDO, FRP Advisory, Moore Stephens and Griffins, and she has worked for banks including Lloyds Banking Group, Clydesdale Bank and National Australia Bank in pursuing recovery options outside of a formal insolvency.

In a clear statement of intent to continue to instructing Bell, head of Grant Thornton’s contentious insolvency team, Kevin Hellard said: ‘Olswang has significantly strengthened their offering in this growing market with the addition of Louise Bell to their team. Louise is an accomplished litigator and increasingly a leading player in the contentious insolvency market. We look forward to continuing to work with Louise and the wider Olswang team in the future.’

Meanwhile, Judge marks Irwin Mitchell’s 21st hire into its commercial practice since the start of 2012, as he joins the top 25 firm’s London office from SGH Martineau, where he specialised in both contentious and non-contentious corporate restructuring and recovery.

In the North, DAC Beachcroft takes on Eversheds’ former head of procurement law, Connorton, who specialises in non-contentious procurement matters advising clients in both the private and public sectors, including the NHS, and who brings with her three colleagues from Eversheds in Newcastle upon Tyne.

With 20 years’ experience in the sector, five of which were spent in-house at Yorkshire Water, Connorton’s recent experience includes the de-commissioning contracts at Sellafield, Olympic Legacy procurement and Network Rail franchising.

Martin Cannon, head of the commercial team at DAC Beachcroft, said: ‘Ruth is a national figure in procurement law with No. 1 rankings in Chambers and Legal 500. The work she does will complement and enhance our existing services in real estate, regulatory and public law, local government and health and take us into a whole new space in terms of our national procurement offering.’

Across to the Continent, meanwhile, Fabrizi joins Osborne Clarke from local firm R&P Legal to head its Italian antitrust practice and oversee the firm’s expansion in Rome, bringing with him a team of three lawyers.

Fabrizi advises on Italian and international competition law, state incentives and unfair business practices, as well as on regulatory issues, particularly in the digital business and energy sectors.

Riccardo Roversi, managing partner of Osborne Clarke Italy – which was formed through its merger with SLA Studio Legale Associato in 2012 – commented: ‘Enrico’s arrival enriches our pan-European competition practice, which is led by Thomas Funke. His experience, combined with the growing Brussels office means OC has a deeper bench of talent available to its clients who need national and EU advice.’

francesca.fanshawe@legalease.co.uk

Legal Business

Nabarro bolsters City disputes capability with DLA IT litigation head hire

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Top 30 LB100 firm Nabarro has bolstered its City disputes capability with the addition of DLA Piper’s IT litigation head Lee Gluyas.

Gluyas specialises in both commercial litigation and arbitration in complex IT disputes. Having acted for and against technology companies, the 424-lawyer firm said his appointment is part of a strategic move to build on its existing presence in the sector.

Acknowledged by the Legal 500 as ‘considered and calm’, Gluyas joins a team whose high-profile casework includes acting in ongoing litigation relating to the collapse of Lehman Brothers and Kaupthing, and achieving a landmark rectification decision in one of the largest pension litigation cases in recent years, on behalf of the trustees of IBM’s UK pension plan. Other prominent cases include advising on the Greater Gabbard Offshore Winds dispute, and on behalf of US computer technology corporation Oracle in its successful Supreme Court appeal in the parallel imports case against M-Tech Data.

Nabarro’s head of dispute resolution, Jonathan Warne said: ‘Lee’s appointment is an important part of our strategy for growing the disputes team. The depth of his expertise and understanding of the technology sector will complement the work many others around the firm are also engaged in. When disputes occur in the IT sector, they are often complex, cross-border and high value. We have a strong track record of delivering successful results for clients in this space, a track record that will be enhanced greatly by Lee’s addition to the team.’

Senior partner Graham Stedman added: ‘[The firm] acts for many high profile technology firms including Oracle, Twitter and Google, not to mention an array of fast growth tech start-ups. Strengthening our expertise in this growth sector is timely. Continuing to strengthen our dispute resolution practice, which forms an essential element of our international growth, is equally important for the future growth of the firm.’

The firm, which posted a healthy 22% profit rise to £42.5m in its 2012/13 limited liability partnership accounts in January, has made selective hires to its City office in recent months, including taking on Osborne Clarke partner Richard Brown in September last year to head its employment practice.

The news of Gluyas’ move to Nabarro follows the firm’s announcement yesterday (6 March) that French firm August & Debouzy has left its European alliance. The firm’s head of international Patricia Godfrey is now leading a team from across the alliance, which includes Germany’s GSK Stockmann + Kollegen, Italian firm Nunziante Magrone and Spanish firm Roca Junyent, to find a new French partner, and exploring interest from firms in other parts of Europe.

Sarah.downey@legalease.co.uk