Legal Business

Eversheds’ sole adviser mandate under threat as Severn Trent starts tender process

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In-house Eversheds SutherlandSevern Trent
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FTSE 100 company Severn Trent Water is to kickstart its tender process in a matter of weeks, as its current single-supplier mandate with Eversheds expires at the end of March 2015.

Eversheds has been in a Tyco-style sole adviser role with the UK water company since 1 April 2010, with a relationship dating back to October 2007. Under the arrangement, managed by client partner Ian Gray, Eversheds carries out the entire range of plc activity, including regulatory, commercial, competition, employment and property.

Although the company deals primarily with Eversheds, it does farm out some treasury and substantive M&A work to Herbert Smith Freehills (HSF) and in May 2013, the water company turned to HSF to reject a preliminary takeover offer by a Canadian, Kuwaiti and UK consortium, reportedly valued at £5bn.

It is understood that Severn Trent, which has a 12-member in-house team led by group company secretary and general counsel (GC) Bronagh Kennedy, is only looking to tender work currently handled by Eversheds at the moment, keeping the arrangement with HSF in place. It is likely that the company will either select a similar sole adviser mandate, or may alternatively split the work between two firms. At the time of writing, Eversheds did not confirm whether it would be involved in the new tender process.

Speaking to Legal Business, Stuart Kelly, head of legal at Severn Trent, said: ‘The sole provider model has served us well and I can see a world where that continues – with a provider decided by the tender process. A broadly similar commercial model would be the most likely option.’

He added: ‘It’s not only the sole provider arrangement that’s worked. We have a substantial fixed fee structure within that and that has been the centrepiece to the relationship. The problem I have is what we do next and how we remain one of the best in class. We can’t just roll into the next five-year block and expect the same arrangement to perform for us. I’m very keen that this is a properly-run tender process with a fair outcome and clearly defined outputs.’

Eversheds has been successful in obtaining single-supplier mandates and managed to extend its sole adviser role with Tyco last month. The deal saw Tyco EMEA GC David Symonds ask the firm to look at cutting all legal analysis to one-page documents.

kathryn.mccann@legalease.co.uk

Legal Business

Conditional Fees – who wins?

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Litigation Eversheds Sutherland
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 MARKET VIEW – LITIGATION 

Ian Gray, Litigation head at Eversheds, looks back on the firm’s experience of alternative fee arrangements in commercial disputes, explains the lessons learned, and looks ahead to the future of dispute funding

One-off conditional fees

I remember being told around 1998, just prior to the introduction of conditional fees, that the general counsel of one large client was fed up that litigation lawyers did not have any ‘skin in the game’ and that, as a result, they ran cases too far, without a care for the costs. In the years that followed, we did a series of small and large conditional-fee cases. In truth, we had some tough experiences along the way, at times losing more than just some skin.

Legal Business

Ireland: Tracking Dublin’s Young Tigers

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Ireland Arthur CoxEversheds SutherlandMcCann FitzGerald
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Ireland is breathing a little easier again. With more than five years of economic turbulence battering both businesses and reputations, the nation has finally managed to hoist itself out of recession. Having officially exited its €67.5bn bailout programme in December 2013 – a move described by finance minister Michael Noonan as Ireland being ‘handed back her purse’ – this summer also saw the Central Statistics Office announce economic growth of 2.7% for the first quarter of 2014.

While the situation is still deemed perilous in many parts, with a mammoth public deficit, a woeful property market and high unemployment, a sense of confidence is returning to Ireland’s legal elite. And such is the battle-hardened resilience of the young lawyers that made partner around the time the economy crumbled – including those at Arthur Cox, McCann FitzGerald, A&L Goodbody, William Fry, Matheson and others – that a crop of up-and-coming individuals are emerging as the next generation of stars to define Ireland’s legal market in the years ahead.

Legal Business

Eversheds real estate head and tax partner to form high-end boutique

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Property Eversheds Sutherland
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The head of Eversheds’ international real estate group, William Naunton, is to leave the firm alongside tax partner Clive Jones to set up a high-end real estate boutique, after both have served a one-year notice period.

Jones and Naunton, who was a main board member until he stepped down in 2011, made their intentions clear when they handed in their notices in January, meaning they will be free to set up on their own in the New Year of 2015, with the unusually long notice period understood to reflect Naunton’s significant book of business.

Naunton leaves Eversheds after 24 years at the firm, having recently moved into high-value loan book acquisition work. He and Jones, who joined Eversheds six years ago from Clifford Chance, have also been assisting a growing number of private equity firms, typically on buildings worth between £100-250m.

Jones, who spent 12 years at Clifford Chance, specialises in handling indirect taxes on real estate. He led on Evans Randall Investment Management’s £452m acquisition of the Rhodium companies and the 5 Canada Square office building in Canary Wharf from The Royal Bank of Scotland in 2007.

With demand for office space in London hotting up after the subdued post-financial crisis years, Naunton and Jones are understood to be capitalising on the improved market, where a lack of available office space in prime locations has sparked competition among occupiers, as London’s corporate tax rates tempt more companies to headquarter in England’s capital.

‘It is an interesting move and William is a respected practitioner so I will be following it with interest.’

A senior real estate partner

If the pair’s ambition to service high-end real estate work is successful, it will put them in competition with Andrew Carnegie’s team at Clifford Chance, Justin Cornelius’ team at Berwin Leighton Paisner and Amanda Howard’s real estate finance group at Nabarro.

It is unusual to see breakaway boutiques in this sector of the market and one potential rival commented: ‘It is an interesting move and William is a respected practitioner so I will be following it with interest. Eversheds will be disappointed to lose him.’

David Watkins, head of real estate at Eversheds, said in an e-mailed statement: ‘It is correct that Clive and William will be leaving the firm at the end of their notice periods. Our understanding is that they intend to open a boutique real estate practice in 2015. I thank both of them for their contributions over the years.’

The move follows other recent spin-offs from top ten City firms, most recently Olivier Fréget, co-head of Allen & Overy (A&O)’s global antitrust group until the end of last year, who in May left the Magic Circle firm to launch boutique firm Cabinet Fréget – Tasso de Panafieu (CFTP).

In arbitration, Freshfields Bruckhaus Deringer’s London head Constantine Partasides QC in March launched Three Crowns alongside former colleague Jan Paulsson and Paris arbitration head Georgios Petrochilos. In April, Freshfields disputes partner Christian Borris left the Cologne office to set up a local arbitration boutique.

tom.moore@legalease.co.uk

Legal Business

Eversheds real estate head and tax partner to form high-end boutique

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Property Eversheds Sutherland
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William Naunton and Clive Jones to depart after year-long notice period.

The head of Eversheds’ international real estate group, William Naunton, is to leave the firm alongside tax partner Clive Jones to set up a high-end real estate boutique, after both have served a one-year notice period.

Jones and Naunton, who was a main board member until he stepped down in 2011, made their intentions clear when they handed in their notices in January, meaning they will be free to set up on their own in the New Year of 2015, with the unusually long notice period understood to reflect Naunton’s significant book of business.

Legal Business

In-house: Ben Sherman’s GC moves to Myla; DfT’s former GC Muttukumaru joins Monckton

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In-house Eversheds SutherlandMonckton Chambers
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Lee Gage has left Ben Sherman after five years as general counsel (GC) to join luxury lingerie retailer Myla in the same role. His move comes as Monckton Chambers yesterday (3 June) announced the arrival of the Department for Transport’s (DFT’s) former GC Christopher Muttukumaru as a tenant.

While at Ben Sherman, owned by New York Stock Exchange-listed clothing group Oxford Industries, Gage handled licensing issues and was responsible for the global legal function and global rights portfolio for the Ben Sherman brand. His former deputy, Elizabeth Cook, has taken over the GC role.

Gage previously spent five years at Harbottle & Lewis, where he became senior associate, and two years at intellectual property firm Briffa in the early 2000s.

Harbottle and Lewis continues to act as a legal adviser to Ben Sherman on brand licensing and domain name and trademark disputes.

Gage’s arrival at 12-boutique retailer Myla, in a newly created role, coincides with increasing legal risk surrounding retail regulation, branding and competition issues, as retailers also address changing consumer behaviour and a continued pressure on margins.

Eversheds head of retail James Batham said: ‘Out of the recession you’ve seen a number of companies building up their in-house legal teams to save costs but the retail environment is particularly burdensome.

‘One issue retailers face is fighting for brand protection and anything affecting their brand they will throw resources at.’

Muttukumaru, meanwhile, joins Monckton following a high profile public sector legal career that saw him appointed as GC at the DfT in 2011, leading a group of over 90 lawyers advising the DfT and its executive agencies.

Highlights of his career include acting as secretary to Lord Scott’s inquiry into the export of defence and dual-use equipment to Iraq, a role as deputy legal adviser at the Ministry of Defence, where he worked on issues including the negotiation of the statute setting up the International Criminal Court; and as legal adviser to the Department for Culture, Media and Sport.

Paul Lasok QC, head of Monckton Chambers said: ‘Professional and lay clients in a number of market sectors encounter difficult problems in relation to which Christopher, with his background and experience, is uniquely placed to give authoritative guidance and advice. His return to private practice after many years in the public sector fills a serious gap in the market.’

tom.moore@legalease.co.uk

Legal Business

Strategic hires: DWF brings in Addleshaws employment head; Addleshaws takes on Eversheds financial services partner

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Strategic recruitment Addleshaw GoddardDWFEversheds Sutherland
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DWF has hired Addleshaw Goddard’s former national head of employment Andrew Chamberlain to take on an identical role at his new firm, leading the strategic growth of its 60-strong UK-wide employment team.

Chamberlain headed Addleshaws employment team for nine years until 2012, when Michael Leftley took over, and served terms on both the firm’s executive committee and its governance board.

He has over 25 years’ experience advising corporate clients and FTSE 100 employers on all aspects of employment, from service agreements through to termination and restrictive covenants to TUPE, and has particular in-depth industry expertise in the financial services, transport and retail sectors.

Chamberlain initiated and led the development of Addleshaw Goddard’s transaction services team, an in-house centralised support team to manage the process elements of legal work, which was recognised in the Financial Times’ Innovative Lawyers Awards.

Commenting on the appointment, Andrew Leaitherland, managing partner & CEO at DWF said: ‘The UK legal market is undergoing significant change and these changes are bringing opportunities, which Andrew has said to me he feels strongly that DWF, based on its current market proposition, its senior management sponsorship and its ambition, has the right mindset to embrace and build a new employment proposition in the market which better meets the needs of clients.’

Chamberlain’s appointment is the latest in a series of strategic lateral hires for DWF which include, most recently, the recruitment of Stephen Miles as CEO for commercial services from Pinsent Masons.

Meanwhile, Addleshaw Goddard this week announced the hire of financial services partner Fiona Ghosh from Eversheds.

City based Ghosh, who currently co-heads Eversheds payment processing group, acts for financial services providers in the retail and investment banking and insurance services sector, as well as being a key advisor in the field of retail payments.

A statement from the 174-partner firm said: ‘[Fiona] has market leading expertise in joint ventures and acts for acquirers, payment facilitators and merchants on a global basis – her clients include American Express, Euronet and numerous US merchant acquirers.’

The hire marks a return to Addleshaws for Ghosh, who was a lawyer at the top 25 firm between 2001 and 2006.

Malcolm Pike, Addleshaws commercial services divisional managing partner said: ‘We are delighted to welcome Fiona back to the firm. Her skill set perfectly complements ours in that she has an existing strong track record of deals under her belt, she has financial services market credibility; and excellent client and relationship skills.’

Ghosh’s hire follows the announcement on 16 May that Addleshaws has appointed business support and restructuring head John Joyce as managing partner for a three-year term after a contested election against real estate head Adrian Collins, following outgoing chief Paul Devitt’s ahead-of-term resignation.

Devitt stood down more than a year before his term was due to end on 30 April 2015. The 174-partner firm carried out a soundings process followed by a formal period for nominations, which closed around Easter time and moved to a formal vote this month.

caroline.hill@legalease.co.uk

Legal Business

Eversheds in talks to extend voting rights as 164 junior partners inject cash

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Financial management Eversheds Sutherland
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Fixed-share partners to make capital contributions of 25% of profit share

Eversheds started talks in April over the voting rights of its fixed-share partners (FSPs) after they were asked to contribute 25% of their annual earnings in response to HM Revenue & Customs (HMRC) tax changes for limited liability partnerships (LLPs).

The firm called on its 164 junior partners to make the contributions to avoid being deemed employees, which would require Eversheds to pay national insurance contributions for them.

Legal Business

Eversheds UK associates largest beneficiary of partner promotions in 21-strong round

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Partnership promotions Eversheds Sutherland
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Eversheds’ UK associates are the beneficiary of over half of the top 15 firm’s latest partner promotions as 21 lawyers join its partnership ranks.

The promotions, down from 28 last year but back to a similar level to 2012, when the firm made up 22 lawyers, see the firm’s commercial practice group gain seven new partners while litigation gains six, human resources (HR) six, and real estate two new partners.

Eversheds has also appointed seven associates as legal directors, four as counsel and one as operations director.

Of the total promotions this year, 52% took place in the firm’s UK practice groups, with 12 lawyers made up, while 48% of partners were made up across Belgium, China, Germany, Hong Kong, Poland and Sweden.

Eversheds chief executive Bryan Hughes (pictured) said: ‘Over the last year, we have seen significant growth across our international operations, driven by the dedication and hard work of our people, including the talented individuals who have been promoted this year. The range of skill sets and experience of our new partners, directors and associates is wide ranging and is a great foundation to build upon for the future.’

jaishree.kalia@legalease.co.uk

Eversheds promotions in full (including to director or counsel where indicated):

Belgium

Lieven Devos (litigation)

China

Jack Cai (commerical)

Germany

Wolfgang Hierl (Counsel) (real estate)

Christian Hilpert (Counsel) (commercial)

Tobias Maier (Counsel) (commercial)

Dirk Monheim (HR)

Stefan Osterkorn (Counsel) (HR)

Bernd Pirpamer (HR)

Alexandra Watzlawek (HR)

Hong Kong

Vishal Melwani (litigation)

Netherlands

Marie-Louise Lugard (Legal Director) (HR)

Poland

Gerard Karp (commercial)

Paweł Lipski (commerical)

Spain

Luis Aguilar(Legal Director) (HR)

Jose Pedro Alberca (Legal Director) (litigation)

Sweden

Per Westman (HR)

UK

Tom Bray (HR)

Peter Bowen (Operations Director) (real estate)

Michael Buchanan (real estate)

Alistair Cree (commercial)

Hugh Gittins (Legal Director) (HR)

Steven Hacking (commercial)

James Hyde (litigation)

Ben Jones (commercial)

David McGuirk (litigation)

Neil Newing (Legal Director) (litigation)

Chris Pickens (litigation)

Sophie Robinson (commerical)

Clare Rudd (Legal Director) (real estate)

Susan Samuel (real estate)

James Shackleton (Legal Director) (litigation)

Matthew Taylor (litigation)

Jon Walters (HR)

Legal Business

Thompson to lead City charge as Eversheds unveils new office leadership

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Leadership Eversheds Sutherland
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Eversheds has today (10 April) announced its new senior office partners across its London, Newcastle, Nottingham and Cardiff bases, with its highly-regarded joint head of UK financial services, Pamela Thompson, taking the helm in London.

Thompson will take over from incumbent City senior office partner (SOP) Anthony Arter, who has held the role for the last five years, when the appointments go live on 1 May.

Meanwhile in Newcastle, shipping head Stephen Mackin will take over from incumbent restructuring partner, Paul Dutton, who has held the role for two years and will now be undertaking a broader role within the northern corporate restructuring teams.

Elsewhere, Mark Fletcher will be assuming the role in Nottingham senior office partner from commercial partner James Fry, who has held the role for almost six years, while in Cardiff, real estate partner Kathryn Roberts will become head, taking the reins from Alan Meredith who has been office head for the last 14 years.

The new SOPs were appointed by chief executive Bruan Hughes after he and the outgoing SOPs consulted with the partners in each local office.

Hughes said: ‘The role of senior office partner is vitally important and while Alan, Anthony, James and Paul have performed the role in their own individual ways, they have all delivered on behalf of the business and created and maintained a necessary team ethos in their localities. I would like to record my thanks for everything that the SOP team have done over the years, it is very much appreciated. And of course, the very best of luck to their successors!’

Thompson has been widely acknowledged as a star performer at Eversheds – which last financial year saw group turnover increase nearly 3% from £366m to £376m, according to its LLP accounts in January. During the research for a profile on the firm published late last year –The ideal law firm for 2013? Eversheds hunts for its breakthrough – one ex-partner said: ‘Financial services has always done really well, predominantly down to Pamela Thompson who is utterly brilliant.’

During his time as London senior office partner Arter, who is also head of pensions, was intrinsic in spearheading and promoting a number of initiatives in the firm’s City base, including CSR projects with local communities and driving collaborations with key City institutions.

News of the appointments comes after the firm confirmed yesterday (9 April) that it would be joining the series of law firms asking partners to contribute capital in response to HM Revenue & Customs tax changes for limited liability partnerships, requesting that fixed-share partners make a contribution of 25% of their annual earnings, as well extending the voting rights for those partners.

francesca.fanshawe@legalease.co.uk