Legal Business

BP turns to Herbert Smith as claims over Algeria terrorist attack mount

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BP has instructed Herbert Smith Freehills (HSF) to defend it against claims the oil major’s security precautions at an Algerian gas plant were flawed at the time of a terrorist attack in 2013 that killed 40 people.

The claims at the English High Court stem from an attack by al-Qaeda-linked militants against the In Amenas gas plant in Algeria operated by BP as part of a joint venture with Norway’s Statoil and Algeria’s Sontrach.

The militants took over 800 hostages during the siege in January 2013 and 40 foreign nationals were killed, six of whom were British. Foreign workers were forced to put explosives around their necks by the terrorists before the Algerian military regained control of the site.

An inquest carried out last year by judge Nicholas Hilliard QC highlighted multiple failures by the plant’s management to upgrade protection – partly on the grounds of cost. Hilliard recorded verdicts of unlawful killing. A French criminal investigation is ongoing and a former BP engineer is suing the oil giant for more than $100m in Texas, claiming that the oil major failed to both provide him with safe transport out of the region and act on specific knowledge of a threat.

In the UK two personal injury law firms, Slater and Gordon and Irwin Mitchell, have issued claims against BP on behalf of survivors and families of the deceased estimated to be worth between £15m and £20m.

Slater and Gordon is acting for 20 survivors and three families of men killed in the attack and claims the ‘energy giant failed to take proper precautions to protect the workers at the plant’.

Slater and Gordon litigation lawyer Alicia Thompson, who is representing the group said: ‘Our clients have been through a tremendous ordeal over the past three years and for them to hear that BP has denied liability was a terrible blow. In light of that decision we felt we had no choice but to issue legal proceedings.’

Hillard’s inquest also flagged that security drills were rarely held, the front gates to the facility were said to have been frequently left open and that there were no armed guards in the foreign workers’ living quarters or in the compound’s 12 watchtowers.

Four HSF partners in Paris and London have been instructed to steer BP through the criminal investigation in France and claims from survivors and victims’ families in the English High Court.

The firm’s disputes relationship partner for BP, Craig Tevendale, is leading on the matter. He is being supported by the firm’s London-based personal injury litigator Howard Watson, HSF’s Paris head of corporate crime and investigations Jonathan Mattout and Paris head of energy and infrastructure Bertrand Montembault.

Irwin Mitchell is representing the families of BP employees Carlos Estrada Valencia and Sebastian John, who were killed during the attack. Clive Garner, head of international travel litigation at Irwin Mitchell, said: ‘As well as seeking justice for our clients, it is crucial that lessons are learned from what occurred at In Amenas. All organisations with employees working abroad must carefully review their operations and ensure that the safety and security of their employees is their number one priority.’

tom.moore@legalease.co.uk

Legal Business

Linklaters and HSF land roles as Aussie pension fund ups stake in £5bn King’s Cross redevelopment

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As pension, sovereign and private equity funds rush to invest in prime London real estate, Linklaters has picked up a major client as Australia’s largest pension fund purchased a 42% stake in the £5bn redevelopment of King’s Cross.

AustralianSuper, which Linklaters corporate partner Jessamy Gallagher won as a client early last year, selected the Magic Circle firm to advise on its £435m purchase of a 42% stake in the King’s Cross project (pictured). The development will transform a 67 acre site in central London into 2,000 homes, a hotel and a retail complex estimated to be worth £5bn on completion. It is one of the biggest city centre regeneration projects in Europe, with 10 new parks and squares, 20 new streets and three new bridges across Regent’s Canal.

Gallagher, alongside real estate partner Martin Elliott, advised AustralianSuper as it purchased the UK government’s 36.5% stake and German logistics group DHL’s 6% stake. The UK government has received £371m from the sale, with DHL’s stake estimated to be worth around £60m. The deal means AustralianSuper now has the majority stake in the project, with a 67% interest, following an initial acquisition in April 2015, which Linklaters also advised on.

With Australian pension funds replicating the UK real estate push carried out by their Canadian peers, Gallagher has been aggressive in the Australian market, resulting in Linklaters winning a spot on AustralianSuper’s inaugural European legal panel last year.

One of the other firms to win a place, Herbert Smith Freehills, acted on the other side of this deal for the UK government. Real estate partner Julian Pollock led the HSF team on the sale, with the firm having advised government subsidiary London and Continental Railways on King’s Cross Central for more than two decades.

Pollock said: ‘Whilst it feels like the end of an era, the firm is enormously proud of its involvement in a world class regeneration project such as King’s Cross Central, having seen and helped it evolve from a largely derelict site to a vibrant new neighbourhood.’

tom.moore@legalease.co.uk

Legal Business

Trainee retention rates: Herbert Smith, Weil and Trowers release figures

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Herbert Smith Freehills (HSF), Weil, Gotshal & Manges, and Trowers & Hamlins are the latest firms to publish their trainee retention rates, with HSF recording its third straight score over 90%.

Of a total intake of 35, 33 trainees at HSF received offers, all of which were accepted. This achieves a total retention rate of 94%.

This time last year, the firm retained 39 of 42 trainees, which was a rate of 93%. Meanwhile, 92% of its autumn qualifiers were kept on at the firm, with 34 out of 37 accepting offers.

Elsewhere in the City, Weil Gotshal has announced a perfect 100% retention rate, with its smaller intake of three trainees to remain at the firm. This is the American firm’s second perfect score in a row after it retained all nine of its autumn 2015 qualifiers.

Trowers is retaining 88% of its qualifiers in this round. This includes seven of the eight trainees qualifying this spring, plus former trainee Jack Frier who qualified ahead of schedule as his previous work experience made him applicable for a shorter training contract.

This month’s announcement is encouraging for Trowers, as 12 months ago the firm reported an 82% retention figure when it kept on nine of 11 qualifiers. This was followed by an even more disappointing autumn 2015, when five out of seven trainees or 71% accepted NQ positions.

daniel.coyne@legalease.co.uk

This post originated from our sister website Lex 100, which is continually updating its trainee retention table as results arrive.

 

Legal Business

Match of the Day: Jones Day, Herbert Smith and Walker Morris score roles on Crystal Palace FC investment

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Teams from Jones Day, Herbert Smith Freehills and Walker Morris have won mandates as Premier League football club Crystal Palace FC restructures in an ownership deal with US billionaires Josh Harris and David Blitzer which includes an initial £50m investment.

Crystal Palace, which is currently seventh in the Premier League and just five points behind the lucrative Champions League spots, will use the initial £50m cash injection to redevelop its stadium (pictured) in south east London. The club has assumed a general partnership structure made up of Harris, Blitzer and current chairman Steve Parish.

HSF advised the existing shareholders, including wine merchant Stephen Browett, founder of investment fund Marathon Asset Management Jeremy Hosking and Churchill Insurance founder Martin Long, on the sale of part of their stake in the club. The existing shareholders, and their investment vehicle CPFC2010, retain a stake.

Jones Day and Wall Street firm Wachtell, Lipton, Rosen & Katz were instructed by Americans Harris and Blitzer. Both are well known in the private equity space, with Harris one of the founders of US leveraged buyout giant Apollo Global Management and Blitzer head of head of tactical opportunities at Blackstone Group. Serial sports investors, the pair currently own the NBA’s Philadelphia 76ers and ice hockey team New Jersey Devils. City private equity partners at Jones Day, Raymond McKeeve and Michael Weir, led the deal in the UK for the Harris and Blitzer.

James MacArthur, head of private equity at HSF, led the legal advice for the existing shareholders. Walker Morris head of sport David Hinchliffe advised Crystal Palace FC.

Walker Morris, through Hinchliffe and his team, has experienced strong deal flow in the sports industry as overseas investors take stakes in the UK’s biggest football clubs. Recent mandates include advising a Thailand-based consortium on its takeover of Reading FC estimated to be worth around £25m.

Hinchliffe has advised Crystal Palace since it was bought out of administration in 2010 and said ‘the investment will provide valuable funds to enable the club to make long term investments in the infrastructure and give the fans the first-class facilities they deserve’.

tom.moore@legalease.co.uk

Legal Business

Property panel: Freshfields, Herbert Smith and Addleshaws make British Land roster

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Magic circle heavyweight Freshfields Bruckhaus Deringer has joined Addleshaw Goddard, Herbert Smith Freehills, Jones Day, King & Wood Mallesons, Mayer Brown and Simmons & Simmons on British Land’s first panel.

The property investment firm, which appointed former Freshfields partner Elaine Williams as its first general counsel in September, said it would also continue to work with other firms such as Sheppherd & Wedderburn and Carey Olsen in specialist areas.

While the panel review began before Williams joined as the FTSE 100 firm’s first general counsel in November, Williams was involved in the later stages and final decision making.

Williams said: ‘We were extremely impressed with the quality of the proposals submitted and in particular the thoughtful suggestions for effective collaboration and efficient provision of legal services. We are looking forward to developing closer collaborative ways of working with our panel firms”

King & Wood Mallesons legacy firm SJ Berwin has been a long-time adviser to British Land, with partner Matthew Priday advising on its complex acquisition of Aviva’s Paddington Central estate for £470m in ten weeks in 2013. Priday also acted on all aspects of the company’s West End portfolios including the flagship Regent’s Place scheme.

Other panel reviews to wrap up before Christmas include Edinburgh City Council, Tata Chemicals and Coca-Cola.

victoria.young@legalease.co.uk

Legal Business

Life During Law: Stephen Wilkinson, Herbert Smith Freehills

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My summer holidays were spent licking envelopes at my parents printing factory in Hemel Hempstead. My parents were an odd mix, my mum an Italian immigrant and my father as English as they come. They were very keen that I have a profession as they wanted something better for their kids. The business is still in the family.

I learnt classical guitar as a kid. Every time I got to the next grade, a bit like a dog getting a treat, I got a guitar. I had a room full of guitars in my late teens. My Fender Stratocaster is one of my most prized possessions. They end up getting used more by my daughter now.

I was crazy about basketball as a kid and toured with the England youth teams. Nowadays I wouldn’t get anywhere near a team – I’d need to be twice as big.

Legal Business

HSF’s Palmer handed TheCityUK role as it seeks to protect London’s legal hub status

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Elected as senior partner of Herbert Smith Freehills earlier this year, corporate heavyweight James Palmer has been appointed chair of legal services at professional services lobby group TheCityUK.

A go-to lawyer for FTSE 100 corporates including BP and Rio Tinto, Palmer will lead a group of senior lawyers from across the City as the lobby seeks to promote London and its position as a global economic hub. Replacing Serle Court’s Khawar Qureshi QC, in his role as chair Palmer will be tasked with maintaining and improving the competitiveness of English law and the City’s status as a legal hub.

Recent priorities of the group have included responding to consultations on courts fees, and contributing to the creation of a specialist court for financial services disputes in London – the Rolls Building Financial List.

Palmer promised to ‘capitalise on the opportunities and tackle the threats to the competitiveness of UK legal services’ in his new role.

He added: ‘I am also keen that the group draws on its depth of insight and brings its experience to bear on the key strategic issues facing the financial and related professional services industry.’

TheCityUK chief executive Chris Cummings said: ‘We are very pleased to appoint a chair of James’ calibre to lead the work of our legal services group. UK legal services is a leading sector in its own right – employing more than 310,000 people right across the UK – and is also an enabler of growth across the wider economy. The UK is the leading international centre for legal services, but it is a highly competitive sector and with other jurisdictions vying to take our position, it is vital that the UK remains the most attractive jurisdiction for international business.’

Palmer also led for 12 years the specialist M&A lawyers’ group in the UK, the Takeovers Working Party of the Law Society of England and Wales and The City of London Law Society. He is also chair of the Listing Authority Advisory Panel of the Financial Conduct Authority and is a trustee of the public policy research think-tank, Reform.

tom.moore@legalease.co.uk

 

Legal Business

Herbert Smith Freehills renews commitment to Singapore with local firm alliance

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Herbert Smith Freehills (HSF) has established a formal alliance with Singapore firm Prolegis, almost two years after it chose not to renew its licence to practise locally.

HSF, which decided not to renew its Singapore Qualifying Foreign Law Practice (QFLP) in February 2014, has had a ‘best friends’ relationship with three-partner firm Prolegis since February this year.

Singapore’s attorney general V K Rajah has approved the formal law alliance (FLA), which means HSF retains its independence, while the firms can integrate marketing, billing, client service and legal services. However, HSF must still direct its Singapore law work to Prolegis, which has relocated its staff to an office next to HSF in Singapore’s Raffles Place.

HSF south-east Asia managing partner Alastair Henderson told Legal Business the firm prefers the FLA structure as it provides more flexibility.

He said: ‘For our clients, Singapore law is an increasingly important part of their business in south-east Asia. The Singapore government is promoting it as the governing law for transactions, so we want to give our clients the best possible one-stop shop for Singapore law.

Prolegis founder Ban Leong Oo added: ‘We don’t have the regional reach that HSF has, and we don’t have the relationships that a global elite firm like HSF has. So really it’s a combination of that network which will help us.’

HSF gave up its QFLP claiming it did not want to commit to specific growth plans as required by the licence, while four of the other six firms originally awarded QFLPs, Allen & Overy, Clifford Chance, Latham & Watkins and Norton Rose Fulbright, were given five year renewals in 2014.

The other firm to be awarded a QFLP, White & Case, has also had its licence renewed, for four years, in April this year. 

victoria.young@legalease.co.uk

Legal Business

Plea pioneers: HSF advises bank on first deferred prosecution agreement with SFO

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Herbert Smith Freehills (HSF) is advising ICBC Standard Bank on its deferred prosecution agreement (DPA) with the UK Serious Fraud Office (SFO) – the first deal to be struck since DPAs came into force in February 2014.

The proposal to enter the DPA was approved in principle by Lord Justice Leveson yesterday (26 November). Both the SFO and ICBC Standard Bank will appear before the Crown Court at Southwark to apply for final approval before the same judge on 30 November.

The SFO instructed 1 Brick Court silk Sir Edward Garnier QC; QEB Hollis Whiteman’s Crispin Aylett QC and Red Lion Chambers’ Allison Clare.

HSF confirmed it had been instructed by the bank with a team led by disputes partner Rod Fletcher alongside Cloth Fair Chambers’ Nicholas Purnell QC but the firm said it would not comment further until the hearing is concluded.

The bank said in a statement any fine relating to the events dating from 2012 to 2013 is not expected to exceed $40m. ICBC Standard Bank is 60% owned by the Industrial and Commercial Bank of China and 40% by South Africa’s Standard Bank Group.

Introduced last year, DPAs offer an alternative for prosecutors that struggle to charge corporate entities due to the cost and complexity of cross-border investigations.

With a DPA, prosecutors can offer more lenient treatment to companies that report themselves for financial crimes. DPAs are widely used in the US and have received some backlash as critics believed it encouraged corrupt companies to pay fines to avoid prosecution.

The full details of the case and terms of the agreement will be given at the hearing next week.

jaishree.kalia@legalease.co.uk

Legal Business

RBS litigation: judge takes defence team to task over ‘less than wholly satisfactory’ disclosure process

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Herbert Smith Freehills (HSF) and its client the Royal Bank of Scotland have been criticised for their role in a ‘less than compelling’ and ‘unfocused’ disclosure process in the long running £4bn shareholder dispute against the bank.

In a judgment handed down from the High Court this morning, Mr Justice Hildyard decided ‘with very considerable reluctance’ to an adjournment of the trial until 6 March 2017. RBS and its lawyers HSF had requested the delay, claiming it was impossible to prepare the evidence required.

The shareholder claimants opposed the extension, claiming that the disclosure process had already taken many months and, questioned why there needed to be a re-review of all the disclosed documents without explanation.

In his ruling, Hildyard J described ‘what appears to be an unfocused disclosure process, which has fanned out exponentially and extravagantly without sufficient control and direction… the commitment of increasing resource to the identification of documents, leaving a diminished resource for their assimilation, without properly taking stock as to whether the process had overtaken the purpose.’

One of the most high-profile features of this case has been costs, and Hildyard said while the court does not ‘intend by any means to peer behind the curtain of legal privilege, the lack of clear evidence is all the more worrying given the apparently small percentage of their allotted budget for witness statements the defendants’ legal team have so far spent on this process.’

Hildyard J said some of the evidence provided by the defence has been both ‘unsettling’ and ‘less than compelling’, and cited a description provided of the pleaded issues as ‘incredibly broad and complicated’.

In accepting the need to move the trial date, Hildyard J observed that a submission made by the claimants ‘to the effect that the defendants must re-think their approach and strategy and must be able to achieve better progress in the future carries force’.

Last month several Lloyds Banking Group institutional clients broke away from the shareholder action group and instructed Mishcon de Reya instead of Signature Litigation. The action is brought against the bank’s former chief executive Fred Goodwin and three other directors, and relates to a rights issue in April 2008, in which RBS sold its shares at £2 per share. The claimants allege that the prospectus on which the rights issue was based was ‘defective’ and contained material misstatements and omissions.

The RBS Shareholder Action group is the largest of three currently in dispute with RBS, with the others represented by Quinn Emanuel Urquhart & Sullivan and Stewarts Law.

HSF continues to defend RBS in both cases, with a team lead by partners Adam Johnson, Simon Clarke, Kirsten Massey and James Norris-Jones.

HSF declined to comment.

sarah.downey@legalease.co.uk