Legal Business

Comment: NRF’s Martyr – ‘Society craves balance but the profession drives our people in a different direction’

legal-business-default

Our profession is facing a growing tension between the drive for profit – the resurgent guiding principle of the 2000s – and the increasing demand for more social responsibility among businesses. Post-recession, we can add increased competition, the scrutiny of the business press and a growing focus on efficiency into the mix, all of which amounts to a potential recipe for trouble.

Although there is nothing intrinsically wrong with the familiar notion of equating success with profit, there is a risk that it can become all-consuming, resulting in selfish behaviour, disregard for others, treating people as costs, short-term thinking and an unattractive reputation for sweating the assets.

We live in a market-driven economy, lightly tempered by regulation to mitigate against the worst excesses. But a free market does not provide balance. Indeed the very essence of a market is that it always moves to a point of excess and has to be adjusted, whether by regulatory intervention or social or economic pressure. This is nothing new.

Here is the dilemma: in prioritising profitability, we place increasing demands on our lawyers and business services teams to seek more efficient working methods. We ask them to focus on productivity while promoting efficiency, discipline and intolerance of mediocrity – all of this in a society that is increasingly vocal about the absence of social responsibility in business. In such an environment, one could forgive people for having a fairly cynical view of life with their employer.

Our workforce model is changing. Lawyers are viewing their careers in a different way to past generations, placing less of an emphasis on long-term commitment to a single organisation. There is more contracting for time at the heart of employment, which may well reinforce the view that lawyers and business services teams are cost centres to be engaged as appropriate. None of this is good for the business. A successful business needs to look beyond the bottom line and consider how it can embed socially inclusive values within its culture.

We can’t turn back time. What we can do is look to our current situation and address that crucial need for balance. Society craves balance, yet we drive our people in a direction that is fundamentally detrimental to business and paints our industry in an unattractive light. Law firm leaders have a responsibility to set the tone across the profession and to help younger lawyers understand the benefit gained from a broader work-life perspective.

We should be encouraging all our people to join in activities that benefit others and in doing so reinforce a sense of community in an environment where it is under threat, and respond to the demand for social responsibility. A healthy business looks after its profit, but also does everything it can to enable its people to lead more balanced lives.

The impetus for striking this balance should not be driven by pro bono and volunteering league tables, but by the real benefit to be gained from wider social and cultural engagement. In order for it to stick it has to be implemented from the top down, meaning it is up to senior management to set the standard of engagement across the industry. That engagement isn’t simply a case of putting money behind charitable initiatives. There is arguably no clearer way of demonstrating our commitment than by offering up our profession’s most precious commodity – our time.

Direct action from law firm leaders and other senior figures not only illustrates to the wider community that socially responsible activities are a key concern for our profession, but also serves to encourage others to get involved. By providing this steer, law firm leaders can help our profession move closer to achieving that necessary balance. Speaking from personal experience, it also happens to be fun, which is no bad thing.

Peter Martyr is global chief executive of Norton Rose Fulbright.

Legal Business

Breeding cynicism – a call to move past the money-driven culture afflicting law

legal-business-default

NRF’s Peter Martyr argues senior lawyers need to speak out for a more responsible vision of the profession

Our profession is facing a growing tension between the drive for profit – the resurgent guiding principle of the 2000s – and the increasing demand for more social responsibility among businesses. Post-recession, we can add increased competition, the scrutiny of the business press and a growing focus on efficiency into the mix, all of which amounts to a potential recipe for trouble.

Legal Business

Clyde & Co ramps up South African offering with Norton Rose, ENS hires

legal-business-default

Clyde & Co has continued its seemingly relentless international push of the last 18 months, this time recruiting ten new lawyers including five partners in South Africa, bringing the total number of legal staff across its Johannesburg and Cape Town offices to 30.

The Global 100 firm, which has been in South Africa since May 2014, bulks up its presence at a time when major firms such as Herbert Smith Freehills and DLA Piper are just establishing practices on the ground.

From Norton Rose Fulbright the firm has hired head of insurance Tony Hardie and former director Amelia Costa, who is also an insurance specialist. The duo join as partners and will be accompanied by Christopher MacRoberts and Ina Iyer at the firm’s Johannesburg office.

Hardie is recommended by The Legal 500 for dispute resolution and was with Norton Rose for almost 30 years, while Costa had been with the firm since 2006.

Two more partners join Clyde & Co from local leader Edward Nathan Sonnenbergs (ENS) Africa, with litigators Robert Scott and Alon Meyerov joining the Johannesburg office along with Nicole Gabryk and Kate Swart who join as associates. Scott has spent six years in the disputes department at ENS, while Meyerov’s focus is on disputes in the construction and engineering sectors.

The firm has also appointed Athol Gordon from another strong domestic firm, Bowman Gilman. Gordon is a medical malpractice lawyer who joins as partner. With more than 20 years’ experience, he will be posted in the Cape Town office.

Clyde & Co international arbitration group partner Maurice Kenton, who has been involved in the firm’s expansion into South Africa, said: ‘With this latest expansion we are now not only firmly established as a top tier insurance practice in the region but have also positioned ourselves in a position of strength in the commercial and construction disputes space. Our clear strength in disputes, whether domestic or international, and the insurance sector minimises conflicts and means we are uniquely positioned to provide our clients with muscular litigation and arbitration services.’

This latest move in Africa follows Clyde & Co securing a merger with Scottish firm Simpson & Marwick in September, as well as hiring a string of partners to join its global arbitration group over the past 18 months.

The firm has been one of the fastest-growing UK-based firms in recent years, with revenues growing 8% to £395m in 2015.

victoria.young@legalease.co.uk

Legal Business

Dealwatch: Herbert Smith Freehills strikes gold with Polyus takeover bid

legal-business-default

Herbert Smith Freehills (HSF) has picked up a new client as a number of firms took advisory roles in Sacturino’s bid to buy the remaining part of Polyus Gold it does not own.

Russian billionaire Said Kerimov’s company Sacturino, together with its parent company Wandle Holdings, already owns a 40.2% stake in Russia’s largest gold producer Polyus Gold. 

Jersey-based Polyus, which had instructed Debevoise & Plimpton in 2012 for its stock exchange listing, turned to HSF, which advised with a team led by London corporate partners Mike Flockhart, Greg Mulley and global M&A head Steven Wilkinson.

Sacturino was advised by Norton Rose Fulbright with a London team led by partners Chris Pearson and Paul Whitelock supported by corporate partner Simon FT Cox and banking partner Rich Hughes. A Norton Rose team from Moscow is being led by partners Julian Traill and Alexander Tsakeov.

This time around Debevoise is on the other side of the deal table, acting for Sacturino alongside Jersey firm Bedell Cristin on the financing aspects of the deal, which values Polyus Gold at $9bn.

The financier for Sacturino’s bid VTB Capital was advised by Allen & Overy (A&O) with a team led by banking partner Sanjeev Dhuna and supported by corporate partner Richard Hough and tax partner Chris Harrison. Ogier Jersey also acted alongside A&O with a team led by partner Chris Byrne.

On Wednesday Polyus said the offer was disappointing and had ‘materially undervalued’ the company.

HSF has recently advised opposite EY for British American Tobacco as its long standing client signed a conditional agreement to acquire 100% of Europe’s largest eCigarette retailing network, CHIC. 

victoria.young@legalease.co.uk

Legal Business

Revolving Doors: Norton Rose Fulbright takes Hogan Lovells partner as Squires builds in Germany and BLM makes a senior hire

legal-business-default

Despite the summer break being upon us, law firms have continued to invest in their recruitment strategies. Norton Rose Fulbright (NRF) continued to build its Hong Kong offering by hiring a partner from Hogan Lovells, while Squire Patton Boggs turned in-house and BLM scored a ‘major coup’.

NRF has made several additions to its Hong Kong offering of late with David Johnson joining in March from K&L Gates having previously been a partner at Allen & Overy, and the promotions of James Parker and Allan Yee in May. But, the firm took has now taken its partner headcount in the city to 23 with the addition of Hogan Lovells’ Terence Lau.

Lau, who joins as a corporate and equity capital markets partner, was made up to partner in 2008 and has worked on a variety of matters including equity offerings, initial public offerings, M&A, private equity, share repurchases and regulatory and compliance. He has also worked on joint ventures and schemes of arrangement.

Squires also made an international appointment, recruiting Rouven Schwab, general counsel of global fertilizer and specialty chemicals enterprise ICL Group in Frankfurt. Schwab joins as a partner in the firm’s chemicals industry group having been responsible for managing legal activities of over 40 business subsidiaries across Europe and Asia-Pacific.

‘We are delighted to welcome Dr Schwab to the firm’s global chemicals team. His hands-on experience working in-house at a global manufacturer will be valuable asset to our international clients,’ said Carolyn Buller, Squires’ chemicals group chief.

Meanwhile, BLM bolstered its presence in the UK by hiring the head of DAC Beachcroft’s national disease unit Paula Jefferson. She joins BLM’s specialist abuse claims team alongside DAC lawyer Catherine Davey, and employee Sarah Wright.

Jefferson has worked various public sector bodies including faith groups, the ministry of defence, schools and charities on abuse claims as well as on international injury claims such as those following the Mumbai terrorist attack.

Michael Pether, head of BLM’s public sector group, said: ‘The addition of Paula to the team is a major coup for the business and one that will only serve to improve our depth of experience and customer offering  across the many sectors where historic and, all too sadly, more recent abuse arises. Her long track record of sensitively advising in high profile matters, including representing the BBC in connection with the Jimmy Savile claims, speaks for itself and we look forward to sharing the benefits of Paula’s experience with our customers.’

Finally, Balfour Beatty revealed its new group General Counsel (GC) after Chris Vaughan stepped away from the position. David Mercer takes on the role having been GC for the group’s UK construction and services businesses since 2011. Mercer previously worked in-house at BP and as a partner at Upstream Law.

michael.west@legalease.co.uk

Legal Business

Dealwatch: Herbert Smith Freehills leads on winning bid for £4.2bn Thames super-sewer project

legal-business-default

Herbert Smith Freehills (HSF) have advised the consortium picked to deliver a £4.2bn super-sewer stretching 15 miles under London to prevent untreated sewage flowing into the Thames.

HSF fielded a nine-partner team, spearheaded by the firm’s EMEA head of infrastructure Patrick Mitchell, to advise the Bazalgette Consortium on its winning bid to become the infrastructure provider for the Thames Tideway Tunnel. With construction on one of the UK’s biggest infrastructure projects set to commence in 2016 and complete by 2023, HSF is set for years of legal fees from a project aimed at preventing 39 million tonnes of untreated sewage flowing into the Thames.

Named after the civil engineer who designed London’s Victorian sewer system, Sir Joseph Bazalgette, the consortium will own, finance and deliver the project. The group, selected yesterday as the preferred bidder, is made up of funds managed by Allianz Capital Partners, Amber Infrastructure, Dalmore Capital and DIF. Thames Water, which will operate the tunnel running beneath the Thames from Acton to Stratford, instructed Linklaters for its legal advice with a team led by Charlotte Morgan.

Other HSF partners advising the consortium included corporate specialist Gavin Williams, finance duo David Wyles and Jake Jackaman, regulatory specialist Tim Briggs, real estate lawyer Julian Pollock, construction partner Jillian Chung and planning solicitor Matthew White.

Mitchell, who counts London Underground and Transport for London as clients, said: ‘We are delighted to be advising the Bazalgette Consortium on its bid to become the infrastructure provider of the Thames Tideway Tunnel project. In addition to being a hugely significant and necessary project for London, the project structure has great potential to be utilised in the provision of other infrastructure.’

Partners Philip Vernon and Derwin Jenkinson led for Ashurst in advising the Department of Food and Rural Affairs on the bidding process, while water and sewage regulator Ofwat instructed a team led by Peter Hall at Norton Rose Fulbright for its legal advice.

tom.moore@legalease.co.uk

Legal Business

Greenberg Traurig builds European real estate team with 12-lawyer hire from A&O and Norton Rose

legal-business-default

In a bid to enhance its real estate offering in Central Europe, Greenberg Traurig last month recruited 12 lawyers to its Warsaw office from Allen & Overy (A&O) and Norton Rose Fulbright (NRF).

Joining Greenberg is A&O’s Warsaw real estate head Radomił Charzyński and NRF’s Warsaw real estate head Agnieszka Stankiewicz. Charzyński brings with him three others, including senior associate Karol Brzoskowski, who becomes a partner at Greenberg, and two senior associates, while Stankiewicz, named a leading individual in The Legal 500 for Polish real estate, brings with her local partner Magdalena Życzkowska-Jóźwiak, one senior associate and five associates.

Legal Business

Targeting Warsaw: Greenberg takes A&O and NRF former Polish real estate heads in 12-lawyer hire

legal-business-default

Greenberg Traurig has hired real estate teams from both Allen & Overy (A&O) and Norton Rose Fulbright as it bolsters its practice in Warsaw with 12 new lawyers.

In a serious bid to grow and integrate its real estate network outside of the US, Greenberg Traurig has added 12 lawyers to its Warsaw office to create ‘one of the largest and most diversified real estate practices in the region’, according to the firm.

The firm has recruited Norton Rose Fulbright partner and former property team head in Warsaw Agnieszka Stankiewicz. She was named a leading individual in The Legal 500 for Polish real estate and recently advised ING on several major deals in the country. Stankiewicz brings with her local partner Magdalena Życzkowska-Jóźwiak, one senior associate, and five associates.

The firm has also hired A&O’s Radomił Charzyński, counsel and former head of real estate in Warsaw. He brings with him three others including local partner Karol Brzoskowski and two senior associates.

Both Charzyński and Stankiewicz join Greenberg as partners, and will work alongside Warsaw partner and head of the real estate group Marek Grodek. The new additions take Greenberg’s real estate team in Central Europe to a total of 30 lawyers while, with the arrival of the four-partner property team, the Warsaw practice will house 12 partners in total, headed by Jarosław Grzesiak and Lejb Fogelman. The office includes a seven-partner corporate team that covers M&A, private equity and capital markets, and one tax partner.

Grzesiak told Legal Business: ‘When I joined from Dewey & LeBoeuf in 2012, Greenberg had ten lawyers; we now have 80. We are top-tier in M&A but the modern day real estate practice is becoming multi-faceted and now includes capital market and finance aspects. Greenberg is building an international real estate practice and no other firm in Warsaw is stronger in real estate, given our offering in related practices.’

jaishree.kalia@legalease.co.uk

Legal Business

Reshuffles: Hogan Lovells reshapes board as Norton Rose Fulbright elects new chair

legal-business-default

Hogan Lovells has elected three partners to its 12-strong global board while Norton Rose Fulbright (NRF) has announced the appointment of its US non-executive chair, Ken Stewart, as global chair of the firm.

The Hogan Lovells trio includes London-based disputes partner Ruth Grant who succeeds commercial and retail banking head Emily Reid; Washington DC-based class action group head Craig Hoover who was re-elected to one of the ‘at large’ seats alongside partners Daniel Gonzalez and Michael Silver; and Washington DC-based disputes partner Cate Stetson who takes over from healthcare partner Helen Trilling.

All appointments will take effect on 1 May 2015 for the board which supervises affairs of the firm but without executive responsibility for strategy, management, and operating decisions. It also provides advice to chief executive Steve Immelt and the firm’s international management committee.

Firm chair Nicholas Cheffings, who was recently re-elected to his post in February for a second three-year term, said: ‘The board plays an important role in the governance of Hogan Lovells, in its relationship with our management team, and in listening to, and representing, the views of partners. The high level of participation in this election process is testament to that.’

Meanwhile NRF has appointed non-executive US chair Ken Stewart as its global chair from tomorrow (1 May). Based in Dallas and a corporate partner with over 30 years of experience, Stewart will ‘focus on fostering the global practice’s cross-border collaboration and growing client relationships’.

An ‘ambassadorial leadership role’ that runs for a one-year term, Stewart succeeds Johannesburg-based Sbu Gule who will continue as chair of NRF in South Africa and as vice-chair globally.

sarah.downey@legalease.co.uk