Legal Business

Big in Japan: Withers pushes further down the Silk Road with MoFo tax hires

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Strategic recruitment Withers
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Continuing its recent significant push into Asia, private client specialist Withers has launched a Tokyo tax practice- Withers Japan, Zeirishi Houjin (Withers Japan) – and hired Morrison & Foerster’s (MoFo) Singapore-based Eric Roose to head up its regional corporate tax practice.

Withers has also hired MoFo’s corporate tax advisers Chizuko Tomita and Takeo Mizutani, who will head up the new Japanese practice. Roose will remain in Singapore and lead the corporate tax practice from there.

The launch of the Tokyo office comes during a period of intense international expansion by Withers. Just last week, the firm launched three new offices in the US with the hire of a nine-partner team, the majority of which came from McKenna Long & Aldridge ahead of its combination with Dentons.

In April, Withers enhanced its corporate, litigation and IP law capabilities in the US with the hire of an 11-strong team from US outfit Kelley Drye & Warren and in December the firm launched in Australia, creating Withers SBL through an alliance with Sydney tax practice Balazs Lanzanas & Welch (BLW) and Melbourne-based corporate boutique SBL Shmith. In February, the firm announced a formal law alliance (FLA) with Singaporean law firm KhattarWong.

Commenting on the new developments, managing director Margaret Robertson said: ‘Eric is one of the leading corporate tax lawyers practicing in Asia and his hire is a significant step in building on our commercial services in Asia. His experience of establishing teams across Asia will be a huge asset as we continue to add to our capabilities.’

She added: ‘Our family office and entrepreneurial clients frequently require us to handle their corporate transactions as well as personal legal matters, and Eric and the Zeirishi team add significant strengths to our existing corporate tax team in the US and Europe. We are also very excited to add an affiliate office in Japan to our network, and anticipate that it will result in new ways of working with clients across Asia and the US west coast, where we are also investing in substantial growth.’

kathryn.mccann@legalease.co.uk

Legal Business

Withers takes its pick of McKenna Long partners ahead of Dentons tie-up as firm launches three US offices

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Strategic recruitment DentonsWithers
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Withers has launched three new offices in the US with the hire of a nine partner team – the majority of which come from McKenna Long & Aldridge as the US firm carries on leaking partners ahead of a combination with Dentons.

While one of the partners will be based in the private client specialist’s existing San Francisco office, the rest will be spread among new outposts for the firm including San Diego, Los Angeles and Rancho Santa Fe.

Of the nine partners being brought in by Withers to build its Californian presence, eight are from McKenna Long with Fred Vandeveer, Jeremy Crickard, Michelle Graham and Steve Chidester joining in Rancho Santa Fe; Carol Kao and Jeremy Moffit launching the San Diego office; Diana Hastings in San Francisco; and Elizabeth Bawden based in Los Angeles. Partner Michael Brophy is joining from Russ August & Kabat.

The McKenna Long team also comprises 16 other lawyers and nine support staff while counsel Christine Steiner joins from Sheppard Mullin Richter & Hampton.

Withers managing director Margaret Robertson said: ‘Our new California team provides a huge boost to our US capabilities and, in addition to our recent East Coast hires, grows our American partnership size by nearly a third. Our San Francisco office opened at the start of 2014, and an integrated technology, estate planning and real estate practice is winning work across the north of the state. The new team allows us to significantly extend our footprint across California, as well as provides real weight and strength for our clients in, and with interests in, the state.’

McKenna Long and Dentons confirmed that they would combine in April but the firms took the unusal step of stating in the announcement that ‘by mutual decision, not all lawyers and professionals will join the combined firm.’

Since then, there have been several partner exits including in May when Covington & Burling took a 20 lawyer team from McKenna Long consisting of five partners and 15 other fee earners. The group, which included the former chair of McKenna’s government contracts practice Frederic Levy, joined the firm’s Washington base.

michael.west@legalease.co.uk

Legal Business

Building the team: Withers boosts Connecticut office with 11-strong hire from US outfit

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Strategic recruitment Withers
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After undertaking a signifcant push into the Asia-Pacific market since the start of this year, Withers has now enhanced its corporate, litigation and IP law capabilities in the US with the hire of an 11-strong team, comprising five partners and six lawyers, to its Greenwich, Connecticut office.

The group join from US outfit Kelley Drye & Warren and include corporate finance partner Ridgway Barker, finance partners Patricia Lee and Clyde Tinnen, IP partner Steven Moore, who founded and led the patent group at Kelley Drye, and litigation partner James Nealon.

The firm’s efforts to improve its standing in the US follows its recently announced expansion plans in the Asia-Pacific region, with the firm establishing a formal law alliance with Singapore law firm KhattarWong, with the aim of providing a range of Singapore, UK, and US legal services to clients and boosting Asian revenues to a third of the firm’s total. It further launched a presence in Australia in December, creating Withers SBL through an alliance with tax practice Balazs Lazanas & Welch and corporate boutique SBL Shmith.

Withers’ US commercial practice head David Guin said: ‘The arrival of these talented and proven lawyers continues the rapid expansion of our firm and adds significant depth to the services we offer our corporate clients domestically and internationally.’

Dean Nicyper, who was recently appointed co-chair of the firm’s US litigation department, added: ‘With decades of experience across the spectrum of corporate and IP law issues, this group immediately enhances our ability to help our clients in all phases of the expansion of their businesses.’

sarah.downey@legalease.co.uk

Legal Business

A $40m award: Clyde & Co client Glencore loses High Court fraud case

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Litigation Clyde & CoWithers
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Withers‘ client, Romanian oil company OMV Petrom, has succeeded in its high profile dispute against natural resource giant Glencore at London’s High Court, with Glencore, represented by Clyde & Co, ordered to pay out just over $40m for fraudulently shipping oil of a lower than supposed quality to Romania in the 1990s.

Heard at trial over January and February, the dispute over allegations of fraud, deceit and conspiracy was made for damages of over $100m and arose after the defendant (formerly known as Marc Rich & Co) sold 32 shipments to Romanian state firms, which were alleged to have been a blend of various types of cheaper and heavier crude oils than what Glencore charged, thus ‘enabling Glencore to make a greater profit than it would otherwise have done’.

20 Essex Street trio Duncan Matthews QC, Andrew Fulton and Luke Pearce were instructed by Withers for the claimant while 7KBW’s Richard Southern QC and Brick Court Chambers’ Fionn Pilbrow took instruction from Clyde & Co for the defendant.

In a ruling published on 13 March, Justice Flaux held: ‘If, in relation to any given cargo, Glencore had disclosed the true position, Petex and/or Rafirom would have been able to reject the cargo and purchase the recognised grade elsewhere or, if inclined to accept a blend, to renegotiate the price downwards to reflect the lower value of the bespoke blend, a matter to which I return below in more detail in relation to the quantum of the claim.’

Petex, the original commission agent for the oil, previously commenced arbitration against the Swiss company in 2003 claiming breach of contract and/or fraud, however part of Glencore’s defence was that it was time barred and the company was not the successor in title to the Romanian companies which received the cargoes. In this trial Glencore also contended that Petex was aware that the shipment comprised a bespoke blend.

On the latest ruling, Justice Flaux said: ‘It follows that, applying the discount to the total quantity of the claim cargoes gives a figure for the discount of $26.3m. When that is added to the difference between the price paid and the cost, insurance and freight (CIF) price of the blends as calculated by [energy expert] Catherine Jago, the overall loss suffered by Rafirom and hence Petrom as its successor in title as a consequence of Glencore’s deceit is $40.1m.’

Glencore is expected to appeal the ruling. 

sarah.downey@legalease.co.uk

Legal Business

Withers leads way in major tie-up as Singapore rush continues

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Singapore Withers
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HSF, KWM and DLA Piper invest in key South-East Asia hub

Highlighting continued law firm interest in the Singaporean economy and its potential as a hub for South-East Asia, were the announcements in February by a host of Legal Business 100 firms of plans to enhance their presence. Most notably, Withers established a formal law alliance (FLA) with Singapore law firm KhattarWong while Herbert Smith Freehills (HSF) also teamed up with a local outfit, King & Wood Mallesons (KWM) confirmed plans to open an office, while DLA Piper secured a coup with the hire of Gibson, Dunn & Crutcher’s Singapore partner John Viverito to lead its offering in the city state.

Legal Business

‘Highest concentration of millionaire households in the world’: Withers launches alliance with Singapore’s KhattarWong

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Singapore Withers
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Just weeks after confirming its expansion plans in Australia, Withers has today (4 February) announced it has established a formal law alliance (FLA) with Singapore law firm KhattarWong.

In April this year the firms will form ‘Withers KhattarWong’ with the aim of providing a range of Singapore, UK, and US legal services to clients and boosting Asian revenues to a third of the firm’s total. KhattarWong’s entire 26-strong partnership will become partners at Withers.

Withers’ current Singapore outpost houses nine lawyers, including six partners, that offer tax and estate planning, corporate, and disputes advice. The office works closely with Hong Kong, which has over 35 lawyers.

KhattarWong’s 70-lawyer firm, meanwhile, focuses on banking, finance and property; corporate and securities; disputes; IP and technology; tax and private client.

The agreement follows on from Withers opening an office at Raffles Place in Singapore in 2012, with an agenda to provide tax and trust advice. More recent expansion saw the firm launch a presence in Australia in December, creating Withers SBL through an alliance with tax practice Balazs Lazanas & Welch (BLW) and corporate boutique SBL Shmith.

On its latest move into Singapore, Withers managing director Margaret Robertson told Legal Business: ‘Withers is looking to be a worldwide firm and will have one third of its business in Asia in the next three to five years. The market here is growing so fast in our space. Growth is very definitely the target – we want to make sure we service the KhattarWong clients internationally to build a strong reputation in Singapore.’ 

Looking ahead, Robertson added: ‘Building from our San Francisco opening, we’re looking to grow in California, because it complements the Asian expansion and we see a lot of work flow between Hong Kong, Singapore and California.’

Deborah Barker SC, managing partner of KhattarWong, said: ‘We decided in the late 80s to go regional. But this gives us access to a greater network around the world. This framework is really good for us. ‘

‘Singapore is without question the financial and legal centre of South East Asia and has the highest concentration of millionaire households in the world,’ added Withers Singapore office head Jay Krause. ‘This alone is enough to illustrate its importance to us, which only stands to increase as other economies in the region reach critical mass and seek to engage more fully with the global economy.’

sarah.downey@legalease.co.uk

Legal Business

Withers targets Asia through new Australian presence

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Asia Withers
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The end of 2014 saw two Legal Business 100 firms open international offices targeting new markets. Private client leader Withers launched in Australia, creating Withers SBL through an alliance with Sydney tax practice Balazs Lazanas & Welch (BLW) and Melbourne-based corporate boutique SBL Shmith, while Penningtons Manches set its sights on the US with the opening of its first overseas office in San Francisco’s financial district.

Withers has hired immigration law partner Rita Chowdhury to head up, on its side, the alliance with its Australian partners BLW, which was established in 2009 by three former Baker & McKenzie tax partners and SBL Shmith, a Melbourne boutique led by former Ashurst corporate partner Justin Shmith.

Legal Business

Targeting Australia: Withers establishes presence with local tax firm BLW and corporate boutique alliance

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Australia Withers
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Private-client focused firm Withers has launched a presence in Australia, creating Withers SBL through an alliance with tax practice Balazs Lazanas & Welch (BLW) and corporate boutique SBL Shmith, as it continues its strategy of ‘expanding into key markets for high net worth clients’.

Announced today (18 December), the firm has also hired immigration law partner Rita Chowdhury, who previously led the corporate and private client immigration practices at accounting giant Deloitte and at Baker & McKenzie, before forming her own practice earlier this year.

BLW was established in 2009 by three former Baker & McKenzie tax partners and focuses on tax, trusts and estates matters and tax disputes and investigations. Withers’ global immigration practice, meanwhile, was created two years ago with the hire of US partner Reaz Jafi from New York firm Abrams Fensterman.

The alliance between Withers and Sydney-based BLW also includes SBL Shmith, a boutique led by former Ashurst corporate partner Justin Shmith who is located in Melbourne. The alliance is being headed up for Withers by new recruit Chowdhury.

Withers managing director Margaret Robertson said: ‘This alliance represents a huge step forward in the development of Withers’ international footprint. Australia offers a great range of opportunities for Withers, not just as a stand-alone market for successful people, but also as an integral part of the regional Asia-Pacific market.’

‘We have monitored the Australian legal market for growth opportunities for many years and the range of services and skills offered by Rita and the Withers SBL alliance provide an incredibly strong entry proposition into what is a fairly fragmented field for private client firms.’

Robertson added that the firm’s alliance partners will work closely with teams in Hong Kong and Singapore to benefit from the vigorous flow of business between Australia, China and South East Asia more broadly. They will also work with European and US teams to provide advice to their Australian clients as they expand their investments outside Australia.

Other firms to enhance their presence in the Asia Pacific region includes Eversheds which in early December announced it had created a new network called Eversheds Asia Pacific Alliance (EAPA) to cover 20 firms across 41 different jurisdictions, including Australia, Malaysia and Thailand.

sarah.downey@legalease.co.uk

Legal Business

Withers wins roles representing property investors suing banks over swaps

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Litigation Withers
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Property tycoons are preparing to hit UK’s courts over allegations that some of the UK’s leading lenders mis-sold hedging products including those involving LIBOR.

Withers commercial litigator Andrew Wass has won roles on two real estate cases including representing Stuart Wall, owner of student accommodation company Opal Property Group, in the early stages of a multi-million pound lawsuit against the Royal Bank of Scotland Group (RBS), after alleging the company went into administration because the bank mis-sold complex interest rate derivatives while trying to rig the interest-rate benchmark LIBOR. It is understood that Dentons, which advised RBS on a successfully defended case in 2013, is advising the bank.

Wall claimed that RBS lacked transparency in revealing the risks associated with the commercial mortgage-backed securities market, which led to the company’s fall in March last year. At that time, Simmons & Simmons restructuring and insolvency partner Alan Gar advised Opal in its £1.2bn property debt restructuring, alongside Linklaters partner Chris Howard who acted for the steering committee.

Opal was the UK’s largest private owner of student accommodation with an estimated 20,000 rooms in 16 national cities, and had associations with 14 higher education institutions. The group went into administration in spring last year following lengthy debt restructuring discussions and a lender standstill.

Wass is also acting for the Bhatia family, which is potentially pursuing legal action against Barclays Bank for £45m after alleging the bank mis-sold a swap that lost them substantial amounts of money. The claim comes after the family owned hotels – the Waldorf Hotel in the West End and the Hyatt Regency in Birmingham – were put up for sale after their holding companies fell into administration.

Jaishree.kalia@legalease.co.uk

Legal Business

Financials 2013/14: Bristows records 4% revenue drop alongside 17% PEP slide as Withers enjoys revenue boost

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Financial results 2013/14 BristowsWithers
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London stalwart Bristows has revealed disappointing results for the 2013/14 financial year, as revenue has decreased nearly 4% to £34.1m while profit per equity partner (PEP) suffered a steep 17% drop to £364,000. Private client-focused Withers, meanwhile, saw revenue grow 4.7% to £123.3m from £117.8m as well as a 3.6% PEP boost to £376,000.

The 33-equity partner firm Bristows has recorded starkly different results to last year, in which revenue and PEP both rose 8% to £35.4m and £170,000 respectively, although profit per lawyer took a 3% dip to £110,000.

The technology and IP specialist firm has been credited in recent years for being a well-managed firm with a tight sector and practice focus. Despite having dropped out of the LB100 in 2008 due to falling revenues, it was perceived to have returned from a position of perceived weakness to something of a revival post-crisis. Even more envied was its 2012 figures which revealed ground-breaking results, as the firm’s top line swelled by 27% to £32.9m, while net income leapt 53% to £13.8m – by far the highest organic profit increase in the LB100 that year.

Despite the poor performance, the firm has been making selective lateral hires in recent months, including Wragge & Co’s head of EU, competition and regulation Rosemary Choueka, who departed the Midlands giant for Bristows’ competition team in January, while the firm announced the hire of HowardKennedyFsi corporate partner Louise Eldridge in June.

Major work highlights saw the firm’s patent litigation group, led by heavyweight Myles Jelf, successfully fight a case for claimant IPCom in a high profile patent dispute against HTC.

Withers, meanwhile, saw its net profit drop marginally from £22.5m from £22.4m. Last year the firm recorded mixed results with a 4% revenue increase against a 10% drop in profit per lawyer to £65,000 and a 5% decrease in PEP to £363,000.

The firm last year abandoned merger talks with Speechly Bircham, which has since merged with Charles Russell, after suggestions of a lack of support from the partnerships.

Withers also faced a professional negligence dispute this year, with the High Court ordering the firm in March to pay £1.6m in damages after upholding claims that alleged the misdrafting of a limited liability partnership agreement.

Sarah.downey@legalease.co.uk