Legal Business

Cost cutting and near-shoring – Field Fisher Waterhouse ties up with Manchester’s Heatons

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Following last year’s announcement from Field Fisher Waterhouse that it was looking to move a number of its London support functions to Manchester in a bid to cut costs, the top 40 LB100 has merged with local boutique Heatons.

Field Fisher’s partnership voted last week to merge with Heatons, which specialises in real estate, corporate and intellectual property. In 2006 the now single-site Manchester firm lost its Birmingham office to Clarke Willmott, leaving it with just 12 fee earners at the time including three partners, which has subsequently dropped to eight fee earners, led by managing partner Matthew Fleetwood.

Field Fisher has had an office in Manchester since 2004 and Fleetwood will become the managing partner of the joint Manchester operations working with Sarah Ellson, who leads the firm’s existing Manchester office.

The tie-up comes after Field Fisher last year announced it was looking at moving IT and secretarial roles to Manchester in a bid to cut costs, as part of an on-going strategy review conducted by managing partner, Michael Chissick (pictured).

By extending its operations outside of London, it’s only other UK site, the firm is banking on being able to provide more cost effective options to its clients.

Chissick commented: ‘Like many other UK City law firms, we have to continuously find ways of providing more value to our key clients. Feedback from our clients has encouraged us to look at having an enlarged regional operation, which has resulted in this merger.

‘We have long known and admired the Heatons team. This merger will give us the ability to offer more competitive rates across various practice areas and will improve our geographic reach for national and regional clients. We also have a number of long standing clients in the Manchester area that we are keen to continue supporting.’

Field Fisher last year unveiled disappointing financial results, posting a 2.5% drop in revenues to £95m, compared with £97.6m in 2012, while profit per equity partner decreased 7% on the figure published by Legal Business in 2012, down from £434,000 to £402,000.

The firm, which has engaged in a number of unsuccessful mergers, including both Lawrence Graham and Osborne Clarke in 2012, is the latest to look at setting up or extending a ‘near-shoring’ base, after Ashurst in 2013 announced its intention to establish a 150-strong unit in Glasgow.

david.stevenson@legalease.co.uk

Legal Business

Mid-market feeding frenzy: Addleshaw, Bristows, Field Fisher and Irwin Mitchell unveil lateral hires

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The New Year lateral hiring spree has gathered momentum, with Addleshaw Goddard, Irwin Mitchell, Bristows and Field Fisher Waterhouse all announcing new acquisitions today (7 January).

Leeds-based Bill Gilliam will join Addleshaw’s commercial litigation team as a partner after 20 years at Eversheds, where he was head of healthcare and life sciences. His experience includes a secondment as acting head of legal in the commercial directorate of the Department of Health, and cases include procurement disputes for Covent Garden Market Authority and Roche Diagnostics, as well as assisting with the Mid-Staffordshire Inquiry.

Elsewhere, the appointment of tax investigations partner Phil Berwick from Pinsent Masons into Irwin Mitchell’s business legal services (BLS) division takes the number of new hires by the national giant to 20 in two years, and follows on from the high- profile hire of Pinsents’ former dispute resolution and litigation head Nigel Kissack in October. He is joined by Nick Dawson, a legal director in the corporate team at DWF, who joins Irwin Mitchell as partner, and senior corporate associate, Rob Laugharne, who moves to Irwin Mitchell in Birmingham from Shoosmiths.

As a former head of the tax investigations team at McGrigors, now Pinsents, since 2009, Berwick will join Kissack in Irwin Mitchell’s London office. Having left the Inland Revenue 18 years ago where he was an inspector of taxes, Berwick has worked in the investigation teams of various accountancy and consultancy firms, including four years as head of tax investigations at Tenon.

He deals with a range of HMRC’s specialist units, but is principally involved in investigations instigated by HMRC’s specialist investigations and local compliance fraud teams with expertise in advising clients on international disclosure facilities.

Chief executive for BLS, Niall Baker, said: ‘Last year, Irwin Mitchell’s turnover exceeded £200m for the first time and our BLS division played a hugely important role in this success.

‘These latest appointments speak volumes for our determination to keep expanding and are a further sign that senior advisers, not just lawyers, are excited about what we are doing and want to be part of it.’

Meanwhile, shortly after its partners voted in favour of the tie-up with Birmingham heavyweight Wragge & Co last month, Lawrence Graham will see its head of EU, competition and regulation, Rosemary Choueka, leave to join Bristows to become a partner in its competition team.

Head of competition at Bristows Pat Treacy commented: ‘We are delighted to welcome Rosemary to our very busy team. Having gained experience at the European Commission and having subsequently advised businesses on all areas of competition law, she is also experienced in general EU law and on regulatory issues in sectors including technology, healthcare and waste.

‘Our team has grown significantly over the past few years to cater for increased workload, so her arrival is very timely as increased competition focus on high technology industries seems likely to lead to greater demand for sector specialists with a deep understanding of competition issues.’

This comes as Bristows announces the promotion of three associates Dominic Adair and Jeremy Blum (intellectual property); and Adrian Sim (IT) to partnership in May.

Finally, Field Fisher Waterhouse’s corporate team has been bolstered by the arrival of Mayer Brown corporate partner Mark Walker. Walker, who joined FFW yesterday (6 January) had been a partner at Mayer Brown since 1996 and spent six years in the firm’s Frankfurt office. FFW managing partner Michael Chissick said that Walker’s experience in private M&A, venture capital, family office and private equity investments in the UK and Germany, would fit particularly well with the firm’s strategic focus, as does his experience in technology transactions.

francesca.fanshawe@legalease.co.uk

Legal Business

Revolving Doors: Strategic growth for A&O, Eversheds, Wiggin, Dentons, Field Fisher and Olswang

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In the last major round of hires before 2013 draws to a close, Allen & Overy (A&O) has boosted its international competition capability while Eversheds has expanded its City tax team and firms including Wiggin, Dentons, Field Fisher Waterhouse and Olswang have this month made strategic lateral hires across the media, energy, real estate and insolvency space.

At the start of December, A&O hired Herbert Smith Freehills (HSF) competition partner Peter McDonald to head its Australian antitrust and competition practice. Previously a senior officer at the Australian Competition and Consumer Commission (ACCC), at HSF McDonald advised clients in the energy, mining, industrial, retail and financial services sectors.

McDonald, who is a member of the Competition and Consumer Committee of the Law Council of Australia, has experience of covering transactional advice, merger clearances, consumer and regulatory issues and defending clients in investigations and legal actions by the ACCC.

A&O co-head of the global antitrust practice Elaine Johnston said: ‘Peter’s appointment furthers our strategy to put in place a top-quality team of antitrust lawyers in the three key global regions: Asia Pacific, Europe and the United States. This ensures that we can offer our clients the critical advice they need on global antitrust, regulatory and litigation issues.’

The move comes after A&O this summer boosted its global antitrust practice with the hire of Visa Europe’s general counsel (GC) and executive vice president and company secretary Vanessa Turner as a partner in Brussels.

On the Continent, the burgeoning Paris market saw Dentons hire energy duo Ramin Hariri and Vincent Lacombe a week ago (3 December) from France’s largest law firm, Fidal, to boost its energy offering with a particular focus on Francophone Africa.

The duo focus on energy and project finance across the oil, gas, mining and infrastructure space in France, Africa and the Middle East and have experience of working under ‘OHADA’ – the organisation for the harmonisation of business laws adopted by 17 West and Central African nations.

Dentons Europe chief executive, Dariusz Oleszczuk said: ‘They work for a number of large energy and utilities companies and governments, which fits well with Dentons’ overall Africa strategy. In particular, they bring strong expertise under OHADA, which is greatly appreciated by clients. I am confident that the addition of Ramin and Vincent will not only enhance Dentons’ existing client relationships in Francophone Africa, but will also provide many new opportunities throughout our global firm.’

The move followed Olswang’s tie up in Germany with insolvency lawyer Christian Köhler-Ma, to launch ‘Olswang Restructuring Solutions’ – a business aimed at providing counsel to companies, managers, shareholders and creditors during crises and near-critical situations in Germany. The new consultancy service will launch on 1 January 2014.

Previously, Köhler-Ma was senior partner at Leonhardt Rechtsanwälte in Berlin and his clients have included Systracom Bank AG, Gameplay Deutschland GmbH, nuclear power plant engineering company Kraftwerks-und Anlagenbau AG and internet advertising agency I-D Media AG.

In the City, meanwhile, a key in-house mover over the past fortnight was Deloitte’s heavyweight tax litigation director Giles Salmond, who resigned to head up Eversheds’ City VAT disputes and indirect taxes practice.

As an indirect tax litigation specialist, Salmond has represented multinationals and UK PLCs both before the UK courts, tribunals and the European Court of Justice. Previously, he acted for Condé Nast in a leading VAT case and he was also involved in the first UK tax mediation.

Eversheds tax head David Jervis said: ‘Giles has developed a strong reputation in the market having acted for a wide range of clients across all sectors including consumer business, leisure and the financial services sector, having been involved in a number of high profile disputes with the tax authorities.’

Within the media law sector, boutique firm Wiggin this month recruited TV lawyer Medwyn Jones to join its TV group as a partner. Medwyn joins from Harbottle & Lewis, where he has been a partner for 20 years, and has advised some of UK’s leading drama production companies (including the producers of Sherlock, Call The Midwife, and the recent BBC drama series The Escape Artist), as well as on-screen and writing talent, rights owners, events owners and agencies.

He starts his new role at Wiggin in January. The hire follows that of Ted Shapiro, who was previously head of legal at the Motion Picture Association, who joined as a partner at the beginning of 2013.

Wiggin co-head of the TV group Charles Moore said: ‘In the advent of the UK TV tax credit, which Wiggin helped initiate, our TV practice has never been busier. We are already working with US networks and cable companies, UK broadcasters, banks and other financiers, as well as UK independent production companies, on a raft of UK and international productions and other ventures. With Medwyn joining our team, we will have a combined UK TV expertise and client base that is second to none.’

Also in the City, Field Fisher Waterhouse strengthened its real estate investment offering with the hire of partner Rhodri Pazzi-Axworthy from Nabarro, who will join on January 6 and will be based in the firm’s London office.

Freshfields Bruckhaus Deringer-trained Pazzi-Axworthy became a partner at Nabarro in 2006. He also chaired Nabarro’s European Alliance’s Real Estate Group. Prior to that, he worked as a partner at Maxwell Batley between 2002 and 2006. He has experience of representing investors and developers, and advising on the real estate aspects of complex corporate and finance driven transactions.

jaishree.kalia@legalease.co.uk

Legal Business

H1 2013/14: Field Fisher reveals 7% spike in turnover

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The first half (H1) of the 2013/14 year is proving to be more benign than last as Field Fisher Waterhouse joins a number of top 40 firms to post a revenue increase, seeing turnover up by 7% to £49.9m compared to £46.8m at the same time last year.

These results are set against the 358-lawyer firm’s overall drop of 3% in revenue in 2012-13 to £95m and an 8% decrease in profit per equity partner to £398,000.

Field Fisher’s managing partner Michael Chissick (pictured) said in a statement that the firm is currently ahead of budget, adding that ‘after a turbulent couple of years we are now in much better shape and can look forward to the second half of the year’. He noted that it was the firm’s best start since 2008.

Announcing its H1 results the firm singled out Paris and Brussels, which ‘had great starts to the year’ while the strongest performing practice areas are corporate, dispute resolution and financial services and funds.

So far H1 results have been positive for UK firms as Olswang posted a turnover increase of 15% to £57.6m while Gateley and Trowers & Hamlins declared a H1 revenue growth of 4%. Weightmans reported a 7% increase to £41m and Clyde & Co set the standard for the top 20 with a revenue increase of 16.5% on last year to £169m.

In a sign that firms are benefiting from better management arising out of the lean years, the top 15 insurance firm said in a statement that its growth ‘has been achieved through a combination of underlying growth and improvements in our working capital management.’

Chissick added: ‘Some of our peers are currently posting double digit growth for the first six months and so we mustn’t be too complacent. There is still a lot of work to do.’

david.stevenson@legalease.co.uk

Legal Business

Field Fisher loses construction head to Fladgate weeks after loss of privacy head to Hogan Lovells

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Just weeks after Field Fisher Waterhouse lost its head of privacy Eduardo Ustaran to Hogan Lovells, the 350-lawyer UK top 40 firm has seen head of construction Alan Woolston move to West End firm Fladgate.

Woolston, who specialises in construction and engineering law, takes associate Chris Farrell with him and his arrival brings the number of partners in Fladgate’s construction and projects team to eight.

The hire comes as Fladgate pursues a strategy to build up its construction and projects team, having brought in Rosenblatt’s former head of projects, contracts and infrastructure Cathy Ley in June this year.

Meanwhile, Woolston’s departure from Field Fisher comes after Ustaran – a senior equity partner who built and led the firm’s first-tier privacy and information law group – in October joined 2527-lawyer Hogan Lovells’ global privacy and information practice to manage its European capability.

Ustaran was notably held to a 19-month notice period but it is understood that the same draconian restrictions will not apply to Woolston, who has been at the firm for five years was not an equity partner.

It’s been a turbulent time for 150-partner Field Fisher, following unsuccessful merger discussions with both Laurence Graham in June 2012 and Osborne Clarke in January this year.

The 358-lawyer firm unveiled a 3% drop in revenue this year to £95m alongside an 8% drop in profit per equity partner to £398,000. In contrast, the past financial year saw Fladgate’s PEP rise by 2% to £406,000.

Woolston said of his appointment: ‘Fladgate has an ambitious plan for its future development. This, combined with its established construction and projects team, international focus and expertise in complementary areas, provides an exciting opportunity for me to develop my practice and to build the relationships for the benefit of my clients.’

francesca.fanshawe@legalease.co.uk

Legal Business

Strategic hires: Field Fisher head of privacy to join Hogan Lovells but held to 19 month notice period

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Hogan Lovells has moved to significantly boost its European privacy capability with the hire of Field Fisher Waterhouse group head Eduardo Ustaran as the departing lawyer is held to a 19 month notice period by his firm.

Having built and led Field Fisher’s first-tier privacy and information law group, heavyweight Ustaran will join 2527-lawyer Hogan Lovells’ global privacy and information practice to manage its European capability.

The dual-qualified English solicitor and Spanish abogado is acknowledged in the Legal 500 as providing ‘very knowledgeable and commercial support’ while also displaying ‘deep involvement in the data protection community.’

Field Fisher’s privacy clients include Vodafone, Thomson Reuters, Ernst & Young, Nintendo, Reed Elsevier and Orange Business Services.

Commenting on Ustaran’s arrival, Christopher Wolf, global co-head of Hogan Lovells privacy and information management practice, said: ‘We are seeing significant growth in privacy and data protection regulation and enforcement in the EU. We already have a strong privacy team in the US, London and in continental Europe in both UK and multi-jurisdictional data protection projects.

‘Eduardo will significantly boost our capabilities in this area. In particular, Eduardo has a highly-regarded track record in advising on complex and business-critical data protection issues, including his involvement in the development of the future EU data protection framework through his advisory role to the UK Ministry of Justice.’

It’s been a turbulent time for 150-partner Field Fisher, which saw it unsuccessfully attempt merger discussions with both Laurence Graham in June 2012 and Osborne Clarke in January this year.

The 358-lawyer firm also unveiled a 3% drop in revenue this year to £95m alongside an 8% drop in profit per equity partner to £398,000.

In a statement Field Fisher said: ‘It has been an absolute pleasure working with Eduardo and we understand his desire to move to Hogan Lovells to leverage their global platform. We wish him every success in his future career. Eduardo Ustaran’s leaving date is 1 May 2015.’

A spokesperson for the firm said that Ustaran was being held to a 19 month notice period because he is a senior equity partner and that the normal notice period is 11 months.

sarah.downey@legalease.co.uk

Legal Business

Regulatory upheaval: MoJ reshuffle leaves reforms uncertain as LSB drops Herbert Smith for judicial review

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The future of regulatory reform of the legal sector appears to be hanging in the balance as justice minister Helen Grant, who announced the review in June, is replaced by former solicitor Shailesh Vara and further announcements over changes to the Ministry of Justice (MoJ) team are awaited.

The review, which has seen regulators and representative bodies including the Solicitors Regulation Authority, the Law Society, the Bar Standards Board (BSB), the Bar Council and the Legal Services Board (LSB) submit proposals for reform to the MoJ, is currently one of a number of issues being considered as the MoJ decides what the revamped team’s ‘portfolio’ will include.

A spokesperson for the MoJ said: ‘There may be changes, there may not be, we will know more by the end of the week.’

The submissions saw the BSB and the Bar Council call for the abolition of the LSB, which is also currently embroiled in a dispute with the Criminal Bar Association (CBA) over its decision to go ahead with the highly unpopular Quality Assurance Scheme for Advocates (QASA).

The CBA issued a legal challenge in September when CBA chairman Nigel Lithman QC claimed: ‘The well-argued submissions of the criminal bar on the problems inherent in the proposed QASA scheme fell on deaf ears as our regulators determined to plough ahead and impose it in its entirety.’

The LSB today (9 October) confirmed to Legal Business that Herbert Smith Freehills, the panel firm which it has instructed to defend against its decision to introduce the four level grading system for criminal advocates, has been taken off the defence after the firm rejected a Protective Costs Order that would have led to its fees being capped. Fellow panel firm Field Fisher Waterhouse has been instructed, led by senior partner Matthew Lohn.

A spokesman for the LSB told Legal Business: ‘We are constantly managing our expenses and costs.’

11 KBW’s Nigel Giffin QC, who was instructed by Herbert Smith, will continue to represent the LSB.

Baker & McKenzie is representing the CBA, led by partner Joanna Ludlam who is instructing counsel Blackstone Chambers’ Dinah Rose QC and Tom De La Mare QC. CBA members Rufus Taylor, David Howker QC, Christopher Hewertson and Katherine Lumsdon, are also working for the claimant on a pro bono basis.

The LSB’s legal panel consists of Eversheds, Field Fisher, Herbert Smith, Bates Wells & Braithwaite, Bircham Dyson Bell and Hogan Lovells.

The case is due to be heard later this year. Herbert Smith declined to comment.

david.stevenson@legalease.co.uk

Legal Business

Trainee retention: Macfarlanes & Latham reveal numbers

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Macfarlanes has become the latest City firm to decide on its trainee retention rates, with 18 out of 24 trainees – equating to 75% – being offered a permanent position at the firm.

The figure, which represents a dip on last year’s near full house of 92%, comes after three trainees were not offered a position, however two trainees did not apply for a job with the firm and one declined the permanent newly-qualified (NQ) role on offer.

According to senior partner Charles Martin, the drop in retention this year is due to a number of factors, including the preferences of those qualifying not matching the opportunities on offer, which are in turn driven by client demand and strategic priorities.

Martin said: ‘Recruiting, training and retaining the very best legal talent is fundamental to giving our clients the excellence which they expect of us. Graduate recruitment is the cornerstone of the firm. Unlike others, we have not reduced our trainee numbers materially nor do we intend to do so.

‘We are always very mindful of our wider responsibilities when we recruit for our trainee scheme. We aim for as high a level of retention as possible. The investment that is made on both sides also creates a strong incentive to make this work. Poor retention is bad business.’

The news comes as Latham & Watkins yesterday reported a retention rate of 93% after offering 13 of its 14 trainees a permanent position. The world’s third largest firm by revenue has said it will increase its trainee intake numbers, in contrast with firms including the Magic Circle’s Allen & Overy (A&O) and Clifford Chance.

Retention rates among the City’s leading firms have been largely respectable to good this round, with Linklaters, Clifford Chance and Freshfields Bruckhaus Deringer all unveiling a rate of over 80% and Slaughter and May topping the chart at 90%, although Allen & Overy trailed its rivals on 72% and announced it is to cut its trainee intake by 15% in 2015.

However, the validity of this round’s rates are being called into question following the revelation that firms including Field Fisher Waterhouse have within their so-called retention rate offered a number of NQs only a 12-month fixed term contract.

 

caroline.hill@legalease.co.uk

sarah.downey@legalease.co.uk

Legal Business

NQ retention and pay: Good news for NRF and Bird & Bird but FFW puts 5 trainees on extended contract

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If you see a rabble of trainees at the pub this lunchtime they may well be from Norton Rose Fulbright (NRF), which today (13 August) announced it has increased its newly-qualified (NQ) salary by £1,500 and offered in excess of 90% of its trainees a permanent position.

The newly merged, 3,800-lawyer firm has announced a trainee retention rate of 92% after offering 24 of its 26 trainees a NQ role, up from 89% in its last round in May. It has also increased its NQ salary from £61,500 to £63,000, effective 1 July (and backdated to 1 May this year). First and second year trainees will remain constant at £38,000 and £43,000 respectively.

On the retention figures, Sarah Kelly, London head of HR at NRF said: ‘These are our first retention figures since our US combination went live and we are really pleased with the rise to a 92% retention rate. We have had three qualification rounds this year and have kept a consistently high retention rate throughout.’

Elsewhere, the news has also been good for trainees at Bird & Bird, which this round boasts a 94% retention rate. A total of 15 out of 16 trainees from the 2011 intake were made offers, with all accepting associate roles with the firm, while one chose to return to university.

Commercial partner Christian Bartsch said: ‘We are delighted to have been able to offer full contracts to 15 of our trainees from the 2011 intake. They have worked very hard and demonstrated an exceptional level of commitment to the firm. We would like to take this opportunity to welcome them as associates within their respective practice groups.’

However, at City firm Field Fisher Waterhouse the position for trainees is far less clear. The firm’s retention rate appears on the surface to be a respectable 76%, as the firm has offered 12 of its 17 trainees a role and all have accepted. But the figure is in fact far lower as five of these 12 positions have been structured as a 12-month fixed term contract to give the partners further time to assess their performance. A spokesperson for the firm claimed that ‘none of the fixed-term positions are for a paralegal role being dressed up as a NQ role,’ and that the firm is ‘confident that all of these will ultimately result in permanent positions.’

At Orrick, meanwhile, only two out of its eight trainees applied for a training contract, according to a spokesperson for the firm, giving it a retention rate of just 25%.

sarah.downey@legalease.co.uk

Legal Business

Looking for answers: Field Fisher considers near-shoring as part of strategy review

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After a turbulent year that has seen Field Fisher Waterhouse attempt a number of mergers and seen it unveil disappointing financial results, the firm is facing its issues head on, including looking at moving certain London support functions to Manchester as part of an ongoing strategy review initiated by managing partner Michael Chissick on his appointment in February this year.

If the move goes ahead, some non-legal roles such as IT and secretarial could be moved to Field Fisher’s seven-lawyer Manchester base in a bid to cut costs.

The shake-up is one of a number of options being discussed as part of a whole business review initiated by Chissick (pictured) earlier this year, which formed part of the basis of his appointment as managing partner.

As part of the same review, Field Fisher is set to introduce a new multi-million pound technology programme later this year, which will upgrade phone and communications systems and wifi networks.

The firm is also set to vote later this month on the proposed relocation of its London office to a larger, 80,000 sq ft three-floor office on a Thames-side site near London Bridge.

Chissick, formerly head of technology and outsourcing, succeeded managing partner Matthew Lohn in February, just a year after the firm overhauled its management structure following a 10-month governance review.

Lohn, who was voted in as managing partner in October 2011 after a contested vote, became senior partner in March this year; a role which was reintroduced after being abandoned in January 2012.

The move comes after a year that saw Field Fisher unsuccessfully attempt merger discussions with both Laurence Graham and Osborne Clarke and unveil a drop in both revenue and profit figures.

The firm posted a 2.5% drop in revenues to £95m, compared to £97.6m in 2012, while profit per equity partner has decreased by 7% on the figure published in the LB100 last year, from to £434,000 £402,000 – following a 16% drop in 2011/2012. Equity partner numbers are up slightly, from 41 to 46.

Field Fisher is the latest UK law firm to consider a ‘near-shoring’ base as a means to cut costs after Ashurst last month announced its intention to develop a 150-strong unit in Glasgow, headed by former Dundas & Wilson partner Michael Polson, which will cover back office support and volume legal work, initially document review in litigation and corporate.

francesca.fanshawe@legalease.co.uk