Legal Business

Partner promotions: Reed Smith focuses on London in 24-strong round, as MoFo promotes just one in the City

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London dominates the latest promotions round at Reed Smith, with a quarter of the 24 newly-made partners at the US firm based in the City, while Morrison Foerster has promoted one in London in a round of 12.

Six associates were made up to partner in Reed Smith’s London office, three more than in Chicago, Philadelphia and Pittsburgh, which each received three promotions to partner. While it is one fewer than the seven made up in London last year, the City has again accounted for at least a quarter of partner promotions.

The promotions, as was the case in 2015, largely centred on those servicing the firm’s financial services clients. London lawyers Monica Dupont-Barton, who specialises in acquisition and leveraged finance, and real estate debt and securitisation lawyer Angelina Soon made partner in the firm’s financial services industry group. Tom Webley makes partner as a member of the banking and financial services litigation and regulatory groups after picking up a string of Libor and forex manipulation work.

Data privacy and information technology lawyer Kate Brimsted, M&A lawyer Andrew Clark and pensions specialist William Sutton were also made to partner.

Reed Smith made fewer partner promotions in 2016 than in previous years, with 22 out of 24 promotions made up in the UK and the US. Hong Kong was the other recipient of partner promotions, as Angel Ng and May Wong were made up. Last year there were also promotions in Abu Dhabi and Shanghai.

At Morrison Forrester capital markets lawyer Scott Ashton made the cut in a global round of 12. Ashton specialises in private placements and public offerings of debt and equity, and is recommended by the Legal 500 for debt capital markets. The firm made up one other partner in Europe, with Berlin technology partner technology transactions making the grade, while one partner was made up in Tokyo, and the remainder in the US.

tom.moore@legalease.co.uk

Reed Smith’s promotions in full:

Kate Brimsted, London, IP, Information & Innovation

Andrew Clark, London, Corporate

Monica Dupont-Barton, London, Financial Services

Angelina Soon, London, Financial Services

William Sutton, London, Pensions

Tom Webley, London, Banking and Financial Services Litigation

Angel Ng, Hong Kong, Corporate

May Wong, Hong Kong, Corporate

Jesse Ash, Washington DC, Life Sciences

Siddesh Bale, Chicago, Corporate

Gregory Chase, New York, Shipping

Kevin Dreher, Chicago, Insurance Recovery

Rick Etter, Pittsburgh, Labour & Employment

Kerry Halpern, Philadelphia, Corporate

Justin Kontul, Pittsburgh, Financial Industry

Sara Lima, Philadelphia, State Tax

Michelle Mantine, Pittsburgh, Global Regulatory Enforcement

Brendan McNallen, San Francisco, Energy & Natural Resources

Edward Mullen, Richmond, Regulatory Enforcement

Nipun Patel, Philadelphia, Commercial Litigation

Matthew Petrillo, Chicago, Energy & Natural Resources

Christopher Sheaffer, New York, Corporate

Peter Stuhldreher, Houston, Labour & Employment

Julia Trankiem, Los Angeles, Labour & Employment

Morrison Foerster’s promotions in full:

Alexis Amezcua, San Francisco, Commercial Litigation

Scott Ashton, London, Capital Markets

James J. Beha II, New York, Securities Litigation, Enforcement, and White-Collar criminal defence

Noah Carr, Tokyo, Corporate

Matthew Chivvis, San Francisco, Intellectual Property Litigation

Kristina Ehle, Berlin, Technology Transactions

Enrico Granata, New York, Corporate

Erik Knudsen, Denver, Corporate

Diana Kruze, San Francisco, Intellectual Property Litigation

John Pintarelli, New York, Restructuring and Insolvency

Shannon Reaney, Palo Alto, Patent Counselling

Elizabeth Sluder, Los Angeles, Project Finance

Legal Business

Ince & Co hits choppy water in Singapore as Reed Smith appoints leadership duo

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As part of its quest to seek a local tie-up Reed Smith has secured the double hire of Ince & Co‘s Singapore managing partner and the head of its local alliance firm, putting Ince’s own Singapore law alliance at risk.

Ince’s Singapore office has become a hub for its core its shipping law and insurance practices, but the firm’s ability to conduct local law has been affected by the departure of Incisive Law managing director Mohan Subbaraman to Reed Smith.

Subbaraman was key to forming the Ince Law Alliance in March 2011 and his exit is expected to result in further departures from 10-lawyer Incisive Law to Reed Smith.

The Singapore venture has been viewed as a success for Ince and helped the firm to build out its shipping client base.

Ince & Co’s Singapore managing partner, Richard Lovell, also joins Reed Smith after 18 years at the firm. He has practised in Singapore since 1988 and specialises in insurance and marine disaster work in the surrounding region.

His arrival at Reed Smith, alongside Subbaraman, takes the number of lawyers at Reed Smith’s Singapore office to 21.

Asian expansion has become a key priority for the US firm, with Shanghai launching in 2011, Singapore opening in 2012 and Kazakhstan launching in 2014. But with Reed Smith unable to practise local law in Singapore, Subbaraman and Lovell have been tasked with creating a local alliance to change that.

Reed Smith said in a statement: ‘As part of Reed Smith’s strategy to seek a Formal Law Alliance in Singapore in the near future, the firm hopes to be joined by senior practitioner Mohan Subbaraman from Incisive, part of Ince & Co’s Formal Law Alliance in Singapore, and market-leading insurance and marine casualty partner Richard Lovell. No date has been confirmed for either Richard or Mohan’s arrivals.’

Ince confirmed the duo had retired with no definitive end-dates and that until then, the alliance with Incisive would continue. Further departures and the end of the alliance would affect the firm’s overall maritime, energy and offshore, trade and insurance practices. It would also leave a hole in the firm’s ability to advise the increasing number of global shipping and insurance clients looking to set up operations in Singapore.

However the firm today (30 October) announced that it had reshuffled its pack in the region to ‘demonstrate [its] ongoing commitment to clients in its core sectors with interests in Singapore and across Asia Pacific’.

Ince has appointed shipping, energy and international trade partner John Simpson to succeed Lovell as managing partner in Singapore. Simpson has been based in Singapore since 2007 and was made partner in 2010. Meanwhile, regional head of admiralty in Hong Kong, Harry Hirst, has been relocated and will join Simpson at the office, while finance lawyer Devandran Karunakaran, who recently advised the lenders on the BW Pavilion LNG financing, has been promoted to partner.

tom.moore@legalease.co.uk, jaishree.kalia@legalease.co.uk

Legal Business

Debevoise and Reed Smith face off as British American Tobacco launches €578m claim against PwC

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Litigators at the London arms of Debevoise & Plimpton and Reed Smith have been drafted in on a €578m (£418m) professional negligence claim brought by British American Tobacco (BAT) against Big Four accountancy firm PwC.

BAT has instructed Kevin Lloyd, a partner at Debevoise & Plimpton, to bring the claim against PwC in the Chancery Division of the English High Court. The legal action stems from PwC’s audit of paper maker Windward Prospects, a company with which BAT has a long-running dispute over the cost of cleaning up a polluted river in Wisconsin. BAT alleges PwC failed to fully account for clean-up costs of the polluted river in its audit of Windward.

A subsidiary of BAT, BAT Industries, claims it had an indemnity from Windward that it would cover past and future claims from the river pollution. BAT is now looking to recoup from PwC the value of two dividends paid out by Windward, totalling €578m, which were made on the basis of the PwC audit and allegedly jeopardised its ability to cover its share of the river clean-up costs.

A spokesperson for PwC told Legal Business: ‘We strongly dispute the claim and will be seeking to have it struck out in November.’

The dispute led the world’s second-biggest cigarette maker to jettison PwC as its own auditor in early 2015, a position it had held since BAT listed on the London Stock Exchange in 1998. BAT, which is also involved in a high-profile judicial review against the UK Government’s plain packaging rules for tobacco products, has since overhauled its global legal function to incorporate corporate and regulatory affairs.

Lloyd, who joined Debevoise from Herbert Smith Freehills in 2013, has instructed Andrew Thompson QC of Erskine Chambers to bring the case before the courts.

PwC, which wants to strike out the case on the basis there is no cause of action, argues the dividends were based on interim accounts and not audited accounts. The firm has instructed Reed Smith’s co-chair of global regulatory enforcement Charles Hewetson to defend the claim. Hewetson has brought in well-known professional negligence barrister, Simon Salzedo QC of Brick Court Chambers, as counsel.

tom.moore@legalease.co.uk

Legal Business

Reed Smith’s City outpost delivers 12% profit surge as staff numbers lifted

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Reed Smith experienced a double-digit surge in staff numbers across its largest Europe and Middle East offices last year as profits across London, Paris, Dubai and Abu Dhabi surged by 12% to £65m.

Companies House records for that group of offices, which includes its small Greek office in Piraeus, show a 6% increase in turnover for the 12 months to 31 December 2014.  Revenue rose from £145m to £153m. Over the past two years, income has jumped by 13% across the five offices to £153m from £136m in 2012. 

As a result, the number of employees across the region rose by 17% in 2014 to 605. The bulk of this hiring was on the ground, with just two extra partners joining the firm’s ranks to take the partnership number for this group of practices to 132. The number of fee earners increased to 342 from 308 in 2013.

While the US firm has predominantly focused on building out its City offering over the past five years, adding the likes of Travers Smith leverage finance partner Ben Davis and King & Wood Mallesons litigator Nick Brocklesby last year, the firm has invested heavily in Europe and Asia. Reed Smith launched in Frankfurt in June with seven partners from Mayer Brown; Orrick, Herrington & Sutcliffe; Willkie Farr & Gallagher; and Jones Day. In early 2014 the firm also opened a small office in Kazakhstan centred on attracting arbitration being sent to London.

How much the firm paid its highest paid partner across the UK, the Middle East, Paris and Greece stayed static at £2.27m after a sharp rise in 2013 that saw the region’s highest earner trouser an extra £300,000.

However, payments into the group from the parent firm in the US rose sharply last year, more than tripling in 2014 to hit £6.8m as the firm ploughed investment into the region. A spokesperson for Reed Smith said: ‘Reed Smith manage treasury on a global basis and payment from parent undertaking is simply the firm funding short term cash needs with advances from the US LLP.’

In March Reed Smith posted global revenues for 2014 up 7% to $1.15bn and profit per equity partner climbed 6% from $1.14m to $1.2m. 

tom.moore@legalease.co.uk

Legal Business

Getting a grip on the ‘slippery ladder’ – Reed Smith’s Tamara Box on women and law

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Imagine, in sequence, a football player, a surveyor, a figure skater and a managing partner of a law firm – all without gender association. Were you able to do that? Now imagine a carpenter. When you have that image settled in your mind, tell me the colour of her hair.

If you had a hiccup moment on the last pronoun, you’re not alone. A similar exercise was used by Gary Blasi, law professor emeritus at UCLA, to illustrate the gender-based hurdles that the mind must make in basic career-related situations. If you subconsciously picture a man as your firm’s leader, does that influence the actions you may take regarding the promotion of women?

For the past ten years or so, a spotlight has been shone on the dearth of female leaders in the legal industry. The ‘glass ceiling’ analysis of the eighties has been replaced by the ‘slippery ladder’ explanation of the 21st century: women voluntarily drop out of the partnership track at stages farther down the ladder, leaving the pool of available partner candidates to be disproportionately male. Yet that assumption is disingenuous. If women fall off the ladder or get stuck on a rung of it, it’s generally because the culture of partnership, just like the presumption of the gender of the carpenter, is male. And no mentoring, sponsorship or diversity programme is going to change a woman into a man.

Researchers have been trying to figure out why the legal industry has such a poor record on the progression of women. A synthesis of modern studies attributes male dominance in leadership to one or more unconscious stereotypes – stereotypes linking women to the home and family; stereotypes about women’s work styles, character traits and job competencies; and stereotypes about positions that are consciously or unconsciously perceived as male jobs.

For example, when a working mother leaves the office early, her colleagues may infer that she has a family obligation; when a working father leaves early, the same assumption is less likely to be made. A gender study by Joan Williams of UC Hastings claimed that some traits are perceived positively for men and negatively for women: assertiveness in a man is strength; in a woman it’s bitchiness. Similarly, social bonding behaviour among men is considered to be work related (he’s mentoring or rainmaking), but is considered to be frivolous among women (she’s chatting or gossiping). Until we sort out our paradoxical thinking, a meritocracy is impossible.

Perhaps the most pernicious stereotype for the legal industry is the one from the exercise in the opening paragraph: the idea that certain jobs are male. Williams further explains that when the leadership is predominantly male, ‘the setting will activate assumptions that associate competence with masculinity, thereby increasing the perceived competence of men’. The result of having a masculine organisational role stereotype is that male candidates appear to offer a better fit and are more likely to be selected.

Most of us are aware of the numerous psycho-social experiments done with identical CVs bearing either a female or a male name. Even in academia (where gender balance is better than in law firms), a CV with a male name will be judged by both genders to be more competent than the same CV with a female name. Curiously, evaluators will justify their selection by claiming that ‘his’ research is more insightful or his experience is more extensive, even though every word on the CV is identical.

Efforts to create gender-blind environments, however, have been counterproductive, in part because the unconscious stereotypes built up over a lifetime are not easily erased. Furthermore, an emphasis on political correctness restricts conversations that could dispel stereotypes; research shows that when two people avoid talking about their differences, their prejudices grow. But when forced to confront each other and explain their own personal stereotyping, individuals gain a greater appreciation for diversity and learn to respect the traits that are associated with the opposite gender. That’s important because we don’t want a law firm full of men and women who are just like them. We want a fully diverse team that values different characteristics and viewpoints.

We can do better. In what seems like a catch 22, we have to put more women into leadership roles in order to get more women into leadership roles. Making a policy choice for the purpose of implicit bias reduction is supported by sociological research: studies show that men and women who are exposed to strong female role models show significantly lower levels of bias.

Recognising our implicit bias may be the first step toward the creation of equitable promotional opportunities for women. We have to dispel the stereotypes if we are to ensure that future leadership is not overwhelmingly male, not gender-blind and not limited to half the talent pool.

Tamara Box is global chair of the financial industry group at Reed Smith.

For analysis of law firm’s initiatives to boost gender diversity see: The Target – will tougher measures finally boost gender diversity in the City?

Legal Business

Getting a grip on the ‘slippery ladder’ – women and law

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Reed Smith’s Tamara Box argues the profession needs to fight the gender stereotypes that stop women advancing

Imagine, in sequence, a football player, a surveyor, a figure skater and a managing partner of a law firm – all without gender association. Were you able to do that? Now imagine a carpenter. When you have that image settled in your mind, tell me the colour of her hair.

Legal Business

C-suite hires: Reed Smith brings in BLP’s leading KM director Dillon and new CIO

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US firm Reed Smith has hired Berwin Leighton Paisner’s (BLP’s) chief knowledge director Lucy Dillon, a hire indicative of knowledge management increasingly becoming an integral part of a law firm’s arsenal.

Set to join the firm’s London office, Dillon leaves BLP after 13 years where she was responsible for developing knowledge management across the firm’s international network.

Having started out as a litigation lawyer in Linklaters’ London office before moving into knowledge management, she is cited in the Legal Business Knowledge Management Report as part of a survey highlighting 20 standout teams in the know. During her time at BLP, Dillon reported to the firm’s former managing partner Neville Eisenberg and had direct board access while working closely with practice group heads.

The firm has also appointed pharma giant Mylan’s global IT transformation head Steven Agnoli as chief information officer. Set to work from the firm’s Pittsburgh office, previous roles include working as CIO at K&L Gates from 1998 to 2011.

Reed Smith’s chief operating officer Gary Sokulski said: ‘The senior management team is extremely pleased to add highly qualified professionals of Lucy’s and Steven’s calibre to Reed Smith. Both have exceptional qualifications and significant experience well aligned with our strategic business plans. The roles of CKO and CIO are increasingly important to a global law firm’s success. We are confident Lucy and Steven have what it takes to enhance and sustain the innovative, market-leading knowledge management and information technology functions.’

sarah.downey@legalease.co.uk

For more on knowledge management teams in the profession, see The Knowledge Management Report – 20 standout teams in the know

Legal Business

Reed Smith launches in Frankfurt with raid on US rivals

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Nearly a year in the offing, Reed Smith has opened its second German office with a bang, hiring a total of seven partners from Mayer Brown; Orrick, Herrington & Sutcliffe; Willkie Farr & Gallagher; and Jones Day to launch the firm in Frankfurt.

Ten years after first arriving in Germany with an office in Munich, Reed Smith has opened in one of Europe’s largest financial centres with partners in finance, corporate, regulatory, private equity and real estate.

Legal Business

‘A city of significant interest’: Reed Smith launches in Frankfurt with raid on US rivals

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Nearly a year in planning, Reed Smith has opened its second German office with seven partners arriving from Mayer Brown; Orrick, Herrington & Sutcliffe; Willkie Farr & Gallagher and Jones Day to launch the firm in Frankfurt.

Ten years after first arriving in the country with an office in Munich, Reed Smith will open in one of Europe’s largest financial centres with partners in finance, corporate, regulatory, private equity and real estate.

M&A partner Andreas Jürgens and restructuring partner Volker Kammel join the firm from Jones Day. They will be joined by Mayer Brown’s Dirk-Peter Flor and Simon Grieser, who are both finance partners.

Reed Smith has also moved to pick up real estate partner Martin Meissner from Orrick Herrington & Sutcliffe, which announced earlier this year that it will cut the size of its German network in half by closing its Frankfurt and Berlin offices.

The team will be completed by Willkie Farr & Gallagher duo Rolf Hünermann, who currently heads the firm’s German compliance and enforcement group, and M&A partner Octávio de Sousa, who has a strong client base in the private equity space. Hünermann joined Willkie in 2007 from Clifford Chance as part of a five-lawyer switch and made partner in the process.

Officially opening 1 June, Reed Smith’s Frankfurt office will be led by current Munich managing partner Stefan Kugler, a capital markets specialist who sits on the firm’s executive committee. The hires take the total number of partners across Reed Smith’s German operation to 20, with 13 partners currently working out of Munich.

‘Frankfurt has been a city of significant interest to us for some time,’ said Kugler. ‘Having built strong foundations in Munich, our goal is to add to our existing bench strength and also broaden our full- service offering to support the growing needs of our clients with interests in the German market.’

Reed Smith has been aggressively growing its financial industry group in Europe and secured the hire of Berwin Leighton Paisner’s structured finance chief Tamara Box in 2011. Box, who now chairs Reed Smith’s financial industry group, said: ‘Our great strength in the financial industry and the fact that so many of our clients are based in or significantly present in Frankfurt – a global financial centre – makes this move a natural fit.’

Alexander Thomas, Reed Smith’s global managing partner added: ‘The vast majority of our top clients in the finance sector have operations in Germany and our relationships with them continue to expand. This new presence in Frankfurt is testament to our continued investment in both the finance sector and our transactional practice globally.’

tom.moore@legalease.co.uk

Legal Business

Building the team: Cooley hires Reed Smith life sciences partner duo

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Cooley has made more recruits to its newly launched London office with the hire of Reed Smith life sciences partner duo John Wilkinson and Nicola Maguire.

The duo both joined the US firm in 2005 from Bird & Bird, having both worked at the firm for five years. Wilkinson is listed as a leading individual in the pharma and biotechnology sector according to The Legal 500 and focuses on a range of IP, regulatory, anti-trust and transactional matters. Recent instructions includes advising Danish-listed Bavarian Nordic, on a licence and supply agreement for its Ebola vaccine with Crucell Holland, one of the Janssen Pharma companies of Johnson & Johnson.

Maguire, who joined Bird & Bird after having spent time in-house at GE Lighting and Cable & Wireless, specialises in advising life sciences companies and other IP-rich clients on collaborations, M&A, joint ventures and other negotiated transactions.

On his move to Cooley, Wilkinson said: ‘Cooley was well known to both of us, owing to its platform and prestige in the life sciences sector. With the London office now established, the timing couldn’t be better to explore the natural synergies that we can collectively bring to a global client base.’

Cooley’s London managing partner Justin Stock, who recently joined from Morrison & Foerster to spearhead the City launch, added: ‘Their practice areas and client bases complement many of Cooley’s core strengths and they will add to the incredible momentum we’ve experienced here in London since day one. Cooley’s tech and life sciences brand is known throughout the world and we are excited to be further strengthening it here in the UK.’

The announcement comes just a week after the firm announced the hire of private equity and venture capital partner Stephen Rosen from Olswang. It also follows the London office winning its first major mandate from IGas, the UK’s biggest shale gas explorer, after bringing the instruction over from Morrison & Foerster upon joining Cooley in January. The firm is predicting ballpark turnover figures of upwards of $40m for the London office and has set a target for 70% of work to be generated from the UK and 30% of work to be generated via referral from the US side.

sarah.downey@legalease.co.uk