Legal Business

‘Major implications for solicitors’: Law Society backs Mishcon in Dreamvar property fraud case

The Law Society is considering intervening in a negligence case between Mishcon de Reya and its former client, Dreamvar, after Dreamvar was duped into buying a property from a fake owner.

A High Court judgment in December last year found Mishcon liable for negligence and ordered the firm to pay £1.08m to Dreamvar in damages.

In September 2014, Dreamvar was duped into buying a £1.1m property in Earl’s Court, West London. The property seller impersonated the actual property owner via a forged driving licence and TV licence before disappearing with the £1.1m fee.

Dreamvar’s claims against Mishcon related to its failure to identify ‘a number of features relating to the transaction which individually or collectively should have alerted it to there being a real risk of fraud.’

Mishcon is taking the case to the Court of Appeal, and stated that: ‘This judgment has major implications for solicitors and for the professional indemnity market. This goes beyond real estate and the result will impact on all transactional lawyers.’

The Law Society has announced its intention to intervene in the case, but was unable to provide a timeline for when a decision will be made.

Law Society president Robert Bourns said: ‘The Law Society is aware of the Dreamvar case and the potential difficulties it poses for practitioners working in conveyancing. We are currently considering the full implications of the case, including whether it would be appropriate for us to intervene in the appeal and what additional guidance we should provide to practitioners on the matter.’

Robin Simon represented Mishcon in the case, and instructed Radcliffe Chambers’ Jeremy Cousins QC and Peter Dodge. Dreamvar was represented by Healys which instructed David Halpern QC.

tom.baker@legalease.co.uk

Legal Business

Mishcon’s claimants succeed as Supreme Court rules an Act of Parliament is required to trigger Brexit

The Supreme Court has ruled that the UK cannot leave the EU without parliamentary approval, in a decision which means there will be a debate in the House of Commons to determine how Article 50 can be triggered.

Lord Neuberger, president of the court said: ‘The main issue is concerned with the fact that the government has a prerogative power to withdraw from international treaties as it sees fit. However the government cannot do that if it changes UK laws without the consultation of parliament.

‘Today by a majority of eight to three the Supreme Court rules that the government cannot trigger article 50 without an act of parliament.’

A press statement from the Supreme Court also asserted that the devolved regions of Northern Ireland, Scotland and Wales do not need to be consulted to trigger Article 50.

Lead claimant and 51-year-old investment manager Gina Miller was represented by Mishcon de Reya, who instructed the services of Lord Pannick QC and Rhodri Thompson QC.

Mishcon disputes partner Rob Murray (pictured) who is acting on the case, dismissed the possibility of an appeal: ‘The Supreme Court is the end of the line. I’m not expecting any reference to the European Court of Justice. It’s not something that was argued in the hearing.’

Bindmans partner John Halford, represented the People’s Challenge group. The group, backed by a CrowdJustice campaign that has raised around £170,000, argues that ‘Royal Prerogative cannot be used to remove ordinary people’s rights granted by Act of Parliament.’ Halford instructs a team that comprises Helen Mountfield QC of Matrix Chambers and Gerry Facenna QC of Monckton Chambers.

Representing the Secretary of State for Exiting the European Union David Davis, was Blackstone Chambers’ James Eadie QC. Eadie, who has been nicknamed ‘the Treasury Devil’, has previously advised the government on issues such as drone strikes and prisoner voting.

The 11-strong panel of justices is the largest ever assembled for a court case since the inception of the law lords in 1876. The justices are: Lord Neuberger, Lady Hale, Lord Mance, Lord Kerr, Lord Clarke, Lord Wilson, Lord Sumption, Lord Reed, Lord Carnwath, Lord Hughes, and Lord Hodge.

Prime Minister Theresa May gave a landmark speech on 17 Jan outlining the UK’s future relationship with the EU. It was announced that the UK will sever its ties with the single market, however May emphasised that she envisioned a ‘truly global Britain.’

Debevoise & Plimpton London co-managing partner Lord Goldsmith said: ‘The political significance of this decision will be much debated, but its practical implications are clear. Prime Minister May’s deadline of 31 March to invoke Article 50 now seems in danger. The ability of the Government to put through an Act of Parliament without causing further delay in the timetable will surely be strongly tested in the coming weeks.’

Lord Chancellor Elizabeth Truss said: ‘While we may not always agree with judgments, it is a fundamental part of any thriving democracy that legal process is followed. The government has been clear that it will respect the decision of the court.’

tom.baker@legalease.co.uk

Read the full decision here.

Read more in: ‘Great expectations – Neuberger speaks’

Legal Business

‘Innovation is happening’: Mishcon launches legal tech start-up scheme

Mishcon de Reya has become the latest firm to embrace innovation in legal tech, today (16 January) launching an incubator programme for tech start-ups in the legal industry.

Launched in conjunction with start-up and tech investment fund L Marks, MDR LAB seeks to promote legal-minded technology that will benefit both lawyers and their clients. The scheme will see the firm welcome a number of start-up companies into the business for 10 weeks this summer.

Specifically, Mishcon is interested in innovations that assist with the administration of various areas of its legal practice. The firm has placed extra value on technology that can streamline its litigation and transactional law services, but will also welcome ‘wildcard’ innovations that do not conform to these prerequisites.

Applications for the programme close 12 March, with a demo day for the successful companies scheduled for 14 July.

Nick West, chief strategy officer at Mishcon, commented: ‘MDR LAB is part of our broader technology strategy and is one of a number of R&D projects designed to help us better understand and embrace new technologies. Innovation is happening across our industry and we want to be at the forefront of it. We are looking forward to hearing from the disruptors.’

Mishcon’s hire of West from New Law pioneer Axiom a year ago was the start of a clear strategic push into the legal tech arena. 2016 saw the launch of Mishcon Discover, making the firm the first in the UK to provide e-discovery services in partnership with a technology provider.

The launch of MDR LAB is in step with a growing trend for firms to invest in new legal technology. In 2015, Dentons’ NextLaw Labs signed a deal with ROSS Intelligence to develop a legal adviser app powered by IBM Watson. NextLaw Labs also invested in legal tech start-up Apperio in March 2016 and backed two startups, Libryo and Clause, as part of an initial co-investment worth around €200,000 towards the end of last year.

tom.baker@legalease.co.uk

For more on Mishcon, read ‘The USP – What is Mishcon’s secret formula?’

Legal Business

Comment: What does Mishcon know that your managing partner doesn’t?

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It is often rightly noted that law is a conservative old game, as can be gleaned from the identikit strategies of City law firms. Invest in transactional work and international offices, manage your partnership proactively, half-heartedly corporatise the business and hire a load of non-lawyer professionals with dubious mandates.Makes sense right? Except when everyone else does it. Turns out there is a little thing called supply and demand and if you are chasing clients in the same place as everyone else, it is harder to make a buck.

And as the entertaining, buccaneering, bling-styled ascent of Mishcon de Reya illustrates, going your own way can be obscenely good business and fun to boot. Mishcon wanted to change in the 1990s but still decided to stick to what it was good at.

Luckily what Mishcon was good at proved to be a licence to print money as disputes, private client and real estate boomed even as larger City law firms looked elsewhere. As ever the most important thing in business and life is being lucky but you don’t move Harvard Business School case studies saying that.

Still, as we address in this month’s cover feature, there was a bit more to it than that. There were plenty of West End law firms with broadly comparable practice groups that failed to get anywhere near the gravity-defying growth achieved by Mishcon. The key to its success was longevity and culture.

A group of a dozen or so talented individuals with chemistry, trust and ambition clubbed together to begin Mishcon’s reinvention 20 years ago. That gave the firm a consistency, coherence and the ability to think creatively. That group of individuals allowed the firm to create an ethos and culture that has served the firm well – light on bureaucracy and status and long on entrepreneurial energy and personal ownership.

It is not a very complicated model – law is not a complex business – but Mishcon did a better job than peers of keeping the good stuff of the law firm model while being ready to slap on loads of new kit when required, such as non-lawyer professionals who aren’t third-raters.

This model was reinforced by a culture that largely lives up to its billing. When most law firms talk about culture and values, you check your wallet – but Mishcon really sells it. Take that substance and add the firm’s audacious approach to flogging the brand and you have the most distinctive formula for success currently in the LB100.

Of course, sustaining that potent mix as the firm grows and its inner circle hands over will be a challenge. Indeed, the normal lag of reputation suggests that by the time your firm is getting bigged up on the cover of magazines, the glory days have already passed. But if there is one firm you imagine defying the laws of gravity a few years more… well, you know the name by now.

alex.novarese@legalease.co.uk

Read more: ‘The USP – What is Mishcon’s secret formula?’


Legal Business

What does Mishcon know that your managing partner doesn’t?

legal-business-default

It is often rightly noted that law is a conservative old game, as can be gleaned from the identikit strategies of City law firms. Invest in transactional work and international offices, manage your partnership proactively, half-heartedly corporatise the business and hire a load of non-lawyer professionals with dubious mandates. Makes sense right? Except when everyone else does it. Turns out there is a little thing called supply and demand and if you are chasing clients in the same place as everyone else, it is harder to make a buck.

And as the entertaining, buccaneering, bling-styled ascent of Mishcon de Reya illustrates, going your own way can be obscenely good business and fun to boot. Mishcon wanted to change in the 1990s but still decided to stick to what it was good at. Luckily what Mishcon was good at proved to be a licence to print money as disputes, private client and real estate boomed even as larger City law firms looked elsewhere. As ever the most important thing in business and life is being lucky but you don’t move Harvard Business School case studies saying that.

Legal Business

The USP – What is Mishcon’s secret formula?

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‘The emphasis around our culture is no billy bollocks…’

Elliot Moss, director of business development

 

‘Mishcon is like being at uni but you get paid for it.’

Kevin Gold, managing partner

 

‘What does anyone want? Make decent money and hang around with their mates.’

Kasra Nouroozi, head of dispute resolution

In 1994, a young South African lawyer named Kevin Gold was sitting in his office at central London practice Bayer Rosin flipping a coin to decide the future of the firm he ran. ‘Heads or tails… Olswang or SJ Berwin…’

Legal Business

RBS group action settles with Quinn, Stewarts and Mishcon claimants as Signature prepares for trial

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The long running saga that is the £4bn shareholder group action against the Royal Bank of Scotland (RBS) has reached a decisive stage, as claimants represented by Quinn Emanuel Urquhart & Sullivan, Stewarts Law and Mishcon de Reya have settled their case while thousands of claimants represented by Signature Litigation will press ahead for trial next spring.

The RBS 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 alleged that the prospectus on which the rights issue was based was ‘defective’ and contained material misstatements and omissions.

Quinn, Stewarts, and Mishcon, which were instructed by a host of investors, are set to attend a private court hearing this Wednesday (7 December) to manage the logistics of the settlement with the case’s presiding judge, Justice Robert Hildyard.

Stewarts’ disputes partner Clive Zietman wrote a letter to the judge in relation to the hearing, where attached was a court order signed by the trio of settling parties.

Over 30,000 individual investors represented by Signature and Leon Kaye, have decided against settlement and are set for trial on 6 March 2017.

RBS chief executive Ross McEwan said in a statement: ‘We have been very clear that we wanted to deal with as many of our legacy litigation issues as possible during 2015 and 2016.’

‘We are pleased to have reached this agreement and hope that it will be accepted by the remaining claimant groups so that this long course of complex and costly litigation can now be concluded.’

The case has been dogged in controversy since its inception in 2014. In June Legal Business revealed Quinn, Stewarts and Signature were seeking millions worth of costs incurred from the claimants of Mishcon. Mishcon partner Richard Leedham, who took the instruction to lead the institutional clients from Signature last year, filed a costs estimate totalling £700,000 for legal work on the case up until that point. Mishcon settled the issue with the other firms weeks after.

Herbert Smith Freehills continues to represent RBS, with a team lead by partners Adam Johnson, Simon Clarke, Kirsten Massey and James Norris-Jones. The firm itself came under scrutiny after it emerged in June it would likely exceed its previous cost estimate of £92m.

sarah.downey@legalease.co.uk

Legal Business

Mishcon employment partner heads in-house in rare exit from City firm

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Mishcon de Reya has seen a partner exit from its ranks, as it has emerged that employment lawyer Helen Croft has joined communications agency, Mission Media, as its chief operating officer and general counsel (GC).

Promoted to partner in 2012, Croft (pictured) is experienced in both employment tribunals and High Court litigation. She represented clients across retail and hospitality, financial services, fashion and luxury, including senior executives, plc directors and high net worth individuals on their employment arrangements and day-to-day and post-employment issues. Her clients include Gordon Ramsay, Christian Louboutin, Badoo and Business Environment Group.

She joined Mission Media this month where she is now tasked with leading the company’s legal unit. Founded in 2004, the company has offices in London, New York and San Francisco. The company is currently a client of Mishcon’s. Previous mandates allocated to the firm includes advising on IP issues for the company’s #makeithappen campaign filming. These issues included, but were not limited to, copyright, moral rights and trademarks, as well as strategic advice on dealing with representatives of both the London Eye and Westminster Council.

Signalling a move away from the traditional domination of a lengthy career in private practice, studies released earlier this year by the Law Society showed the profession continues to expand due to greater levels of entry in-house. Its Annual Statistics Report concluded the in-house community now constitutes 21.6% of the profession, against 21.1% in the 2015 report, outpacing a 2.3% increase in the general number of practising solicitors.

For Mishcon, partner departures are a rarity at the Holborn-headquartered firm. The last high-profile exit was media litigator Charlotte Harris, best known for her work during the Leveson Inquiry as the lawyer for celebrities over allegations of phone hacking and a vocal campaigner for media law reform. She moved to Kingsley Napley in 2014 to set up its media and reputation unit.

sarah.downey@legalease.co.uk

Legal Business

Mishcon succeeds as claimants win Brexit challenge against government

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A group of claimants has landed its first blow in an article 50 case against the government, after the High Court ruled that it has no constitutional power to trigger Brexit.

The judgment for the politically charged case was handed down this morning (3 November) by the lord chief justice, Lord Thomas of Cwmgiedd who read out a summary the court’s decision to a packed courtroom in London’s Royal Courts of Justice.

Sir Brian Leveson, president of the Queen’s Bench Division, and Mr Justice Cranston are the presiding judges on the judicial review, which heard whether Prime Minister Theresa May has the power to serve notice of withdrawal from the EU under Article 50 or whether she needs a vote in parliament approving withdrawal.

However the decision is expected to be appealed and Blackstone Chambers’ James Eadie, representing the government, has asked for leave to appeal, which was granted by the court. 

According the decision: ‘The secretary’s case regarding his ability to give notice under Article 50 was based squarely on the Crown’s prerogative power. His counsel made it clear that he does not contend that the 2015 Referendum Act supplied a statutory power for the Crown to give notice under Article 50. He is right not to do so. Any argument to that effect would have been untenable as a matter of statutory interpretation of the 2015 Referendum Act.’

‘The secretary of state does not have power under the Crown’s prerogative to give notice pursuant to Article of the Treaty on European Union for the United Kingdom to withdraw from the European Union.’

Mishcon de Reya partner Kasra Nouroozi (pictured) led the team advising the headline claimant on the challenge and has instructed Blackstone Chambers’ duo Lord David Pannick QC and Tom Hickman, as well as Matrix Chambers’ Rhodri Thompson QC and Monckton Chambers’ Anneli Howard.

The case has been brought by investment banker Gina Miller, and others.

A second legal challenge was brought by high-profile barrister Jolyon Maugham QC of Devereux Chambers, who launched a publicly-funded campaign with human rights firm Bindmans to consider a public law case on the result of the referendum.

Maugham QC set up the campaign on Crowdjustice.co.uk, and raised its target of £10,000 in 12 hours from more than 400 backers. The money raised will be used to take advice from public and human rights partner John Halford of Bindmans, who will instruct a team of constitutional law barristers.

A third claimant is British hairdresser Deir Dos Santos, who is represented by Edwin Coe.

Defending the government, namely the Secretary of State for Exiting the EU, David Davis, is 11KBW’s Jason Coppel QC.

During early proceedings in July, serious concerns were raised in an exchange between Pannick and the presiding judges about the ‘racist, anti-Semitic and objectionable’ abuse directed at Mishcon de Reya.

In a statement Law Society president Robert Bourns said: ‘The ability to have such questions determined by an independent judiciary is central to the rule of law – something which the Law Society of England and Wales strives to promote both within the UK and around the world – and we are fortunate that the independence of our judges is recognised globally.

‘The question as to whether the decision to trigger Article 50 is one for the government, using the royal prerogative, or for Parliament through statute is central to this court case. Most commentators assumed that this case – whatever the outcome in the High Court – would be appealed to the Supreme Court so today’s ruling is a step along the road to a final decision.’

sarah.downey@legalease.co.uk

Read the judgment here.

Read more reaction to the decision in: ‘The outcome of the Supreme Court is not foreseeable’: City lawyers react to Brexit challenge

Legal Business

Mishcon leader Gold to stand for final term as managing partner

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Mishcon de Reya has kicked off the process for electing its managing partner, with current leader Kevin Gold indicating to the partnership he is willing to stand for the role for a final term.

Corporate lawyer Gold (pictured) first became managing partner in 1997. He previously served as corporate head from 1995 after joining the firm with his team from London commercial firm Bayer Rosin that same year.

With his current three-year term coming to an end at the end of this month, the firm has begun the election process whereby two members of management may put their names forward. The firm’s management team includes Gold, executive partner James Libson, chief operating officer Bambos Georgiou, and all department heads.

Gold is currently standing unopposed for the role and has indicated to the board that, if appointed, this will be his final term. However candidates have the until 4 November to put their names forward.

In 2013 Mishcon held it’s first-ever management elections for both the managing partner and department head positions, during which Gold was re-appointed after an uncontested election alongside disputes head Kas Nouroozi and corporate head Nick Davis.

Speaking to Legal Business, Gold says the firm ‘engages in a huge amount of dialogue’ during the process.

During his tenure Gold has overseen substantive growth for the City firm, which announced robust profits for the 2015/16 financial year with profit per equity partner up 5% to £1m as revenue in London climbed to £127.9m from £110m. Revenue has soared an impressive 104% over the last five years.

Following a year-long consultation with the partnership and external advisers, the 400-lawyer firm revealed a refreshed strategy for the next decade, with a target to lift UK revenue by 40% to £175m within the next three years.

Under Gold’s leadership the firm has also rolled out a private client business and e-discovery venture in recent years, while its New York office – a separate business which generated around $13m annually – was scaled back to a patent-only practice. Gold also oversaw the firm’s move to a full-equity LLP structure and its office move to Africa House in Kingsway.

Other firm election news of late includes Eversheds which in early October saw the appointment of Lee Ranson to chief executive where he will succeed longstanding leader Brian Hughes.

sarah.downey@legalease.co.uk

Read more on Mishcon’s leader in: ‘Life During Law – Kevin Gold’