Legal Business

Mishcon and Hogan Lovells line up as KWM takes case against Goodwin Procter over PE team

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Litigation Goodwin ProcterHogan LovellsKing & Wood MallesonsMishcon de Reya
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Mishcon de Reya and Hogan Lovells are to face off as King & Wood Mallesons (KWM) issues a claim against Goodwin Procter over several private equity hires made by the US firm.

As reported by Legal Business in July, KWM wrote to Goodwin over potential legal proceedings against it concerning the exit of a six-partner private equity team. The team, which included Paris managing partner Christophe Digoy and Maxence Bloch, is understood to have walked out with at least £8m in annual billings.

KWM’s claim is understood to be against both Richard Lever and Goodwin Procter. Lever announced he would leave KWM in April 2015 to develop a City PE practice at Goodwin, while the Boston-based announced the Paris team would join it from KWM a year later.

Goodwin is being represented by Hogan Lovells’ employment partner Stefan Martin, while Mishcon’s head of employment Daniel Naftalin is acting for KWM. Goodwin and KWM both declined to comment on the case.

KWM has said it will re-build its practice in France, highlighting that its profitable Paris funds team was unaffected by the Goodwin departures. The firm’s European partnership has undergone a testing 18 months, having recently re-organised its structure, moving from 17 to three divisions, asked 24 partners to leave in March and increased its loan facility with Barclays earlier this year.

This month the firm replaced both leaders for its legacy SJ Berwin practice, opting for Frankfurt partner Michael Cziesla as EUME senior partner, defeating Dubai-based disputes partner Tim Taylor QC. Earlier this October the partnership elected Tim Bednall as EUME managing partner, defeating Gareth Amdor in a two-man race for the position.

victoria.young@legalease.co.uk

For more on King & Wood Mallesons, subscribers can see Branded for an in-depth look at the firm.

Legal Business

‘Dramatic change’: Hogan Lovells launches association in Shanghai free trade zone

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Hogan Lovells has become the third international law firm to enter the Shanghai Free Trade Zone through an association with local firm Fidelity Law.

The Chinese firm’s new office will be led by managing partner Wang Ping. Hogan Lovells’ team will be led by Shanghai-based Asia corporate head Andrew McGinty and IP partner Katie Feng.

Fidelity is based in Xiamen in south eastern China Fujian province with around 170 lawyers and 32 partners, specialising in white collar law, real estate, trade and cross-border corporate finance work. The firm previously had six offices in the south China province.

Two other law firms have opened up in recently in the zone, under a scheme whcih enables foreign firms to provide Chinese legal advice. In 2015 Baker & McKenzie became the first international firm to launch a joint office in the Shanghai FTZ with Beijing firm FenXun Partners.

Before the launch of the zone, the only international firms to practice Chinese law were those with mergers in the country, such as Hong Kong headquartered King & Wood merging with Australia’s Mallesons and UK-based SJ Berwin.

Holman Fenwick Willan (HFW) also entered the zone earlier this year. HFW formalised its partnership with Wintell & Co in April, which enabled the firm to practice domestic law. Shanghai-based Wintell has more than 20 partners and nearly 100 lawyers across Guangzhou, Tianjin, Ningbo and Zhoushan. The firm specialises in shipping, insurance and corporate law.

Hogan Lovells Asia Pacific and Middle East managing partner Patrick Sherrington said: ‘This is an exciting time in Asia. The establishment of the Shanghai Free Trade Zone by the Chinese government and the implementation of the new rules allowing foreign law firms in China to team up with a Chinese firm have dramatically changed the landscape.’

matthew.field@legalease.co.uk

Legal Business

Hogan Lovells’ Hamburg head resigns amid spying investigation

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Germany Hogan Lovells
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Hogan Lovells‘ Hamburg office managing partner Eckard Schwarz has resigned over claims of illegal surveillance by an employee of former client EWE Group.

Schwarz has been replaced by intellectual property partner Susanne Karow as the office head, but remains a partner at the firm.

German media site NDR reported energy company EWE spied on a former employee working closely with Hogan Lovells’ Hamburg office. The company’s HR director Nikolaus Behr resigned in September over the allegations.

Employment specialist Schwarz joined Hogan Lovells in 1997 and has been managing partner in Hamburg since 2007. The Hamburg district attorney’s office conducted an investigation into the claims, but no further is set to be taken.

Hogan Lovells confirmed Schwarz had stepped down and Karow would take on the managing partner role on 1 November. Karow has 20 years’ experience with the firm in its Hamburg office and is a senior patents and trademark lawyer at the firm.

Hogan Lovells refused to comment on the investigation citing client confidentiality.

The firm has four offices in Germany with a presence in Hamburg, Dusseldorf, Frankfurt and Munich. In 2013, a nine-partner team from the firm’s Berlin office quit to join Morrison & Foerster, leading to the closure of the branch.

matthew.field@legalease.co.uk

 

Legal Business

CMA plucks from Freshfields and Hogan Lovells in ongoing restructure

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Competition Freshfields Bruckhaus DeringerHogan Lovells
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As part of an ongoing restructure, the Competition and Markets Authority (CMA) has made three key appointments to its legal team with hires from Freshfields Bruckhaus Deringer and Hogan Lovells.

Freshfields senior associate Colin Raftery joins the CMA on 21 November as a director of mergers. Currently sitting in the firm’s antitrust, competition and trade group, Raftery advises on all aspects of EU and UK competition law. He joins current directors of mergers Stephanie Canet and Andrew Wright.

Former senior associate at Freshfields Martim de Lancastre Valente joins the CMA as a legal director alongside former senior associate at Hogan Lovells Tim Capel. The pair will join the CMA this month.

Earlier this year Latham & Watkins hired the CMA’s director of mergers Jonathan Parker after two years at the watchdog. Clifford Chance also took its pick from the CMA in April, hiring director of mergers Nelson Jung as a City partner. The competition watchdog has been plagued by high staff turnover since it launched, and the granting of competition powers to the Financial Conduct Authority last year has not helped matters, with the City regulator bringing in a string of big names from the lower paying CMA.

Having long been viewed as stable, the UK’s competition law agenda has been shaken up significantly over the last 12 months, with the CMA’s public attack on the proposed merger of mobile networks O2 and Three in May a recent example.

madeleine.farman@legalease.co.uk

Read more in the feature: ‘Less bark, more bite – competition to the fore as tougher enforcement arrives’

Legal Business

Consolidation in the City: Hogan Lovells mulls moving headquarters

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Hogan Lovells has called on real estate giant Cushman & Wakefield to find the firm 350,000 sq ft of office space to consolidate its three City offices into one.

The firm currently has its main base at Atlantic House but occupies two further buildings on Holborn Viaduct, with 1,400 people employed across the three buildings including more than 630 lawyers and 150 partners.

Hogan Lovells’ lease expires in 2026, but has break clauses in 2019 and 2023. The firm has previously moved a number of UK roles into a legal services centre in Birmingham which opened at the end of 2014, for handling low cost legal work. A spokesperson said the firm is also looking at an option of reconfiguring its current Atlantic House space to consolidate all three offices into one. 

Several other law firms are currently reviewing property options. Freshfields Bruckhaus Deringer has scouted out options for a new Liverpool Street headquarters when its lease expires on Fleet Street. Last year, Ashurst began preparing to move its London operation to a 275,000 sq ft office in Spitalfields by 2019, moving the firm from its main office on Appold Street.

Freshfields also launched plans last year to open up a nearshoring space, instructing Knight Frank to find 100,000 sq ft in Manchester in a move which would considerably cut the firm’s expenditure on UK office space.

Earlier this month Bird & Bird consolidated its London offices into a new workplace at 12 Fetter Lane, giving the tech-focused firm space to grow its City headcount by up to 25%. The new London office space comprises of 147,000 sq ft over 12 floors.

Several law firms are targeting new offices in Dublin, with Pinsent Masons seeking out new office space in the city and Kennedys planning to double the size of its office size to around 13,000 sq ft.

matthew.field@legalease.co.uk

 

Legal Business

DLA innovator Stephen Allen resurfaces at Hogan Lovells

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Innovation DLA PiperHogan Lovells
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Hogan Lovells has hired former DLA Piper director Stephen Allen following his exit from the firm in March this year.

Allen was director of delivery and quality at DLA controlling a department of 100 staff responsible for operational initiatives. The team focused on pricing and profitability, flexible lawyering and innovations, including negotiating a relationship with Lawyers on Demand (LOD).

He will take up his role as Hogan Lovells head of legal services delivery in September, with a remit to bring together operations in legal project management and resource allocation such as the firm’s Birmingham legal services centre and its use of alumni and contract lawyers.

Prior to joining DLA in 2014, Allen was head of global legal services transformation at PwC, where he delivered projects such as legal sourcing deals for Balfour Beatty and EoN.

From 2009 to 2012, Allen was director of innovation at Berwin Leighton Paisner, establishing the firm’s Managed Legal Service unit, a multi-source legal platform to deliver greater efficiency and value for clients.

His time at DLA saw the firm highly commended at the Legal Business Awards 2016 for Legal Innovator of the Year. DLA launched its flexible working unit in 2015, an initiative driven by co-chief executive Simon Levine and Allen.

Working with LOD, the venture allows the firm to work with DLA alumni supported by LOD’s team of freelance contractors. Around 50 lawyers are expected to join by the end of 2016, supported by LOD’s pool of 400 lawyers.

Initially launched in the UK, the firm has since expanded its partnership with LOD into Asia-Pacific and Australia, launching in Sydney, Brisbane, Melbourne, Perth, Hong Kong and Singapore to create one of the world’s largest New Law ventures.

Hogan Lovells deputy chief operations officer Darren Mitchell said: ‘Stephen will have a global focus on ensuring that we are being innovative and that we are working as efficiently as possible, whilst maintaining the high quality that clients expect from Hogan Lovells.’

Allen added: ‘I will be looking to expand the team over time and to significantly develop what Hogan Lovells is already doing around legal project management and resource allocation.’

Hogan Lovells has made some recent pushes into legal innovation, developing its Regulatory Accelerator tool launched earlier this month for FinTech companies looking to navigate Financial Conduct Authority regulations.

matthew.field@legalease.co.uk

Legal Business

Hogan Lovells in the driver’s seat for Uber as TfL challenged

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Litigation Hogan Lovells
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Hogan Lovells is acting for Uber in its legal challenge to new car hire rules issued by Transport for London (TfL).

Uber wants to review the latest guidelines brought in for private hire cars which would introduce stricter rules on the company. Uber has written to TfL challenging the new rules.

The regulations on minicabs include written English tests for drivers – to be introduced from October, insurance for drivers for the entire time that their vehicle is licensed and informing TfL of any changes to Uber’s the operating model or app.

Hogan Lovells partner Paul Dacam is instructing Blackstone Chambers’ Tom de la Mare QC and Hanif Mussa on the challenge.

TfL is being represented by its in-house team and has instructed Martin Chamberlain QC of Brick Court to lead the matter.

The ridesharing company has faced a series of legal challenges to its business model across the globe. Recently its UberPop service was blocked by courts in France and Germany and Uber pulled out of Hungary in July following the imposition of new protectionist legislation on transport apps.

Uber has expanded its legal team in the UK over the past 12 months since the hiring of Matt Wilson as general counsel for UK, Ireland and the Nordics in July 2015.

Wilson, who featured in the 2016 GC Powerlist, has already had to deal with a series of disputes arising from Uber’s model and the challenges of new regulations that aim to preserve London’s black cab industry. In October Uber defeated a High Court challenge from TfL over the legality of its app in London.

A TfL spokesman said: “We responded to Uber’s letter and will be robustly defending the legal proceedings brought by them in relation to the changes to private hire regulations. These have been introduced to enhance public safety when using private hire services and we are determined to create a vibrant taxi and private hire market with space for all providers to flourish.”

matthew.field@legalease.co.uk

Legal Business

In-house: Hogan Lovells, Clifford Chance and Linklaters pick up spots on new EU banking panel

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Adviser reviews Clifford ChanceHogan LovellsLinklaters
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Magic Circle firms Clifford Chance and Linklaters have been joined by Hogan Lovells and PwC on a new panel created by the new EU authority responsible for winding up banks.

The EU’s Single Resolution Board (SRB) tendered for legal advisers earlier this year, for contracts worth an estimated maximum total value of €15m.

The SRB was established at the start of 2016 with the role of winding up failed Eurozone banks as the key decision making body within the EU’s Single Resolution Mechanism.

According to tender documents seen by Legal Business, the three law firms and PwC’s EU services division will provide advice. The contracts last for two years, with options to renew for up to two 12 month periods.

The documents describe the board as ‘one of the cornerstones of a new architecture in banking supervision and resolution’. It aims to end ‘the toxic cycle of too-big-to-fail’ that led to previous banking crashes.

The SRB serves as the resolution authority within Europe’s banking union to prevent banking failures spilling into a full-blown financial crisis, like those that hastened the collapse of the Greek banking system in 2008 and the Cypriot financial crisis in 2012-13.

The contracted firms will provide advice on areas including corporate law, banking law, capital markets, labour law, real estate and intellectual property.

The SRB’s invitation to tender called for firms to submit CVs of advisers from at least four EU member states and demonstrate significant cross-border experience.

Hogan Lovells Frankfurt-based corporate partner Tim Brandi said: ‘We are proud of our appointment to the legal panel of the Single Resolution Board. We consider this appointment as recognition of our unique bank restructuring experience.’

The SRB was fully operational as of January 2016 as the new regulations on EU banking came into force. It is chaired by the former president of the German financial regulator BaFin, Elke König.

matthew.field@legalease.co.uk

Legal Business

Revolving doors: Willkie and Hogan Lovells add to City offices while A&O continues Europe hiring

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Strategic recruitment Allen & OveryHogan LovellsWillkie Farr & Gallagher
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Law firms have attempted to blow away the Brexit blues with new partner hires. Willkie Farr & Gallagher and Hogan Lovells have added to their London offices, while in the Magic Circle Allen & Overy has expanded in Germany and Clifford Chance has boosted its Washington DC practice.

Hogan Lovells has grown its London tax practice to seven with the addition of Elliot Weston who joins from Gowling WLG.

Weston has previously acted on real estate and funds matters, as well as M&A and joint ventures. His past work includes the £100m public listing of student accommodation firm REIT on the London Stock Exchange.

Hogan Lovells tax co-head Karen Hughes said: ‘Given [Elliot’s] significant track record in the real estate sector and in the funds market, I know he will help bring further opportunities across the corporate practice group.’

New York-based Willkie has hired former Herbert Smith Freehills financial services consultant Henrietta de Salis as a partner in its London office.

De Salis joins the firm’s London asset management group and financial services department. She has previously worked at Linklaters in the financial regulation group and as head of capital markets at reinsurer Swiss Re. Willkie recently added Bain Capital Credit’s European GC Mark Fine as a partner in May this year.

In the US, Magic Circle firm Clifford Chance has enhanced its litigation practice by adding Janet Whittaker as a partner, joining from Simpson Thacher & Bartlett.

Whittaker has worked on international commercial arbitrations in energy, oil and gas, IT and private equity and previously acted as legal counsel at the International Centre for Settlement of Investment Disputes.

Clifford Chance Americas litigation and disputes resolution head David DiBari said: ‘We are committed to expanding our US Litigation and Arbitration practice in the US through key lateral hirings and organic growth. Janet is a great addition to our team.’

In Germany, Allen & Overy (A&O) boosted its global antitrust practice, appointing Börries Ahrens in its Hamburg office as partner. Ahrens joins from White & Case, where he became a partner in 2010.

A&O Germany senior partner Neil Weiand said: ‘Ahrens enjoys an excellent reputation in the German market. With his appointment, we are strengthening our German teams in response to clients’ growing needs for advice on antitrust issues.’

Ahrens will work alongside partners Ellen Braun and Jürgen Schindler, and he joins following the appointment of Yvo de Vries as partner based in Amsterdam. De Vries served as head of legal compliance at Philips Lighting.

matthew.field@legalease.co.uk

Legal Business

Eversheds, Hogan Lovells and Bakers secure spots on defence multinational’s first panel

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Adviser reviews Baker McKenzieEversheds SutherlandHogan Lovells
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Eversheds, Hogan Lovells and Baker & McKenzie are among nine firms to have won places on French multinational aerospace, defence and security firm Safran’s inaugural global legal panel.

Weil, Gotshal & Manges, as well as Fieldfisher and Osborne Clarke (OC) have also made the roster, alongside domestic French boutiques Betto Seraglini, Brunswick Société d’Avocats and Courrégé Foreman.

The panel will last two years, expiring at the start of 2018. It was instigated and led by the company’s group general counsel (GC), Adam Smith, who joined Safran in September 2014 after spending four years as chief compliance officer for French industrial group DCNS.

Although there are nine firms on the panel with the same framework agreement, Eversheds, Hogan Lovells and Baker & McKenzie will handle the bulk of legal work for Safran, which has an annual legal spend of around €10m. The rest of the firms have been appointed to the panel for specific or niche mandates, including Weil Gotshal for corporate, Betto Seraglini for arbitration, Brunswick for venture capital work and Courrégé Foreman for white-collar crime.

Fieldfisher is currently on the panel for environmental work, though it could also be used for data protection, IT and intellectual property.

Before Smith joined Safran, the legal team operated an informal adviser roster with around 30 firms and most of the company’s legal spend went outside that panel. However, it was decided that in order to get better rates from law firms as well as value-adds, such as secondees, a formal legal panel would be a better fit.

After initial analysis, over a dozen firms were invited to pitch. The main selection criteria were quality and expertise, knowledge of Safran’s industry, value for money, and innovation in legal solutions and ways of working.

kathryn.mccann@legalease.co.uk