IN-DEPTH
OFF THE BENCH
Magistrate with bipolar faces sack
PRACTICE PROFILE
IN-DEPTH
Lawyers act on high-end deals
Magic Circle ad pulls the wrong trick
MIDDLE EAST RICHES
AUSSIE SLIGHT
THIS WEEK
IN DEMAND
Skills shortage could see legal salaries rise
www.lawyersweekly.com.au
537
Friday 10 June 2011 Print Post Approved 255003/05160
THE FUTURE IS NOW
How global law firms are shaping Australia’s legal market
In-house
International
Private Practice
Sydney | IT
Hong Kong | Project
Sydney | Employment
Leading international technology vendor has a requirement for a dynamic and commercial IT lawyer with an excellent pedigree. High-level work will involve drafting & negotiation of complex agreements relating to outsourcing, systems integration and consulting transactions as well as provision of strategic legal advice to senior management. Major law firm and/or blue-chip technology company background required. Great package and international career prospects! Ref: SYD/4183/DS
No Mandarin required. This is an excellent opportunity for a junior lawyer interested in an exciting and challenging role overseas with a reputable international firm. On offer is cutting edge work in multiple jurisdictions across the region. An opportunity such as this has become rare for non-Mandarin speakers. If you have a background in project work then you should give serious consideration to this unique opportunity. Ref: HK/4298/RL
Leading national law firm has a new role providing expert advice with a commercial focus to a broad client base of both private and public sector employers. You will be well versed with the court process, possess a sound working knowledge of the OH&S laws, have the ability to draft pleadings, evidence and other court documents, brief counsel and work on smaller litigation cases with little supervision. Ref: SYD/4224/GG
4 – 8 years
2 – 4 years
3 – 4 years
Inhouse Sydney | Funds/Wealth Management
Sydney | Financial Services
Sydney | Construction x 2
New role for a commercially focussed lawyer with financial services experience to join this highly regarded wealth management and financial services group. You will play a key role advising senior management on legal issues relating to their broad range of products and services (including Super, Managed Investments and Life). Major firm background and/or in-house background required. Great prospects and dynamic culture on offer! SYD/4296/DS
This leading financial services provider has a rare opportunity for a highly motivated Financial Services Lawyer to join their expanding team. You will be working closely with key business units providing all aspects of financial planning advice. 5 - 7 yrs financial services experience (ideally in financial planning) gained in a major law firm and/ or corporate environment and a high degree of commerciality are essential. SYD/4257/OH
This major construction corporation is seeking one experienced front end and one experienced back end construction lawyer for two roles within its expanding team. The successful candidates will have 5 or more years front and/or back end construction experience gained at a top firm or recognised industry player. This is a chance to push your career to the next level. Ref: SYD/4260/OH & SYD/4295/OH.
Hong Kong | Corporate M&A
Singapore | Construction / Projects
Beijing | Project Finance
International law firm is searching for a Commonwealth qualified M&A specialist for a high profile role involving mergers & acquisitions, joint ventures and advisory work. Experience gained from a top tier or respected international mid tier law firm together with solid academics are necessary. Chinese speaking ability will be highly regarded but is not necessary for this role. Ref: HK/4233/RL
A new position with a global law firm has become available for a construction or project lawyer from a top or similar quality law firm to advise major international clients on the acquisition, development and construction of major off shore infrastructure projects and related joint ventures involving water, power and oil-and gas projects in SE Asia. Knowledge of EPC contracts is essential. Ref: SIN/4249/RL
Our client is one of the leading global law firms for project finance transactions advising on complex project structuring and development, financing and large scale construction in China. A role for a Commonwealth qualified associate with strong technical ability in drafting and negotiation of offtake, concession, supply and marketing agreements as well as EPC/ O&M is urgently needed. Mandarin is helpful but not essential. Ref: BEI/4264/RL
4 years +
International 4 years +
5 – 7 years
4 years +
5 – 10 years
3 – 6 years
Private Practice Perth | Banking & Finance
Sydney | Construction
Sydney | Litigation
This premier Australian law firm has a new opportunity for a talented lawyer with experience working on a range of corporate finance transactions, such as drafting basic finance documents, securities, condition precedents and ancillary documents. You must have excellent analytical and drafting skills and very solid academic results. You will work on all facets of the transactions involved in lending to corporations and securities and guarantees. Ref: PER/4292/GG
This large mid-tier firm has a new opportunity for a talented mid-level construction lawyer. You will work on predominantly front-end construction matters for a range of high profile clients. You be exposed to challenging and interesting construction and infrastructure matters and will receive guidance and mentoring from leading lawyers in this field. Plenty of direct client contact and clear career progression opportunities available. Ref: SYD/4288/GG
Unprecedented opportunity for star commercial litigators to join this major global firm. Working with partners who have unparalleled expertise in litigation and alternative dispute resolution you will have the chance to apply your skills in a wide range of commercial and corporate disputes including property, finance, regulatory and contractual dispute matters. Competitive salary and benefits on offer together with clear path for progression. Ref: SYD/4284/RL
Perth | Corporate M&A
Sydney | Projects
Brisbane | Employment
This expanding top-tier firm has a new opportunity for an Associate to join their highly regarded Corporate M&A group. You will gain first class experience working on M&A, JVs, private equity and ECM for both private and public corporations. You will work with down to earth partners in a friendly and supportive work environment where you will be rewarded with top quality work and competitive salary and benefits. Ref: PER/4275/RL
Our client is a highly regarded national mid tier with an outstanding reputation for its people focused culture and first rate legal services. The property and projects group provides a range of services including the full spectrum of commercial land transactions through to major construction and infrastructure projects including dispute resolution. They are seeking a lawyer with three years experience in construction, ideally a mix of front and back end. Ref: SYD/4294/RL
Opportunity for an experienced employment lawyer to join this top tier team in Brisbane focusing on the full spectrum of IR, employment, discrimination and OH&S matters. You will be acting for the some the world’s largest multinationals and blue chip clients across a range of industry sectors from transport and logistics, finance, telco and resources through to retail and local, state and federal government bodies. Ref: BRI/4274/RL
2 – 3 years
Associate
3 years
3 years +
Sydney | Corporate/Commercial
Sydney | Trademark Attorney
Specialist commercial law firm has a new opportunity for a lawyer with a solid background working on a range of corporate and commercial issues. You will have previous experience working on, acquisitions and divestments, corporate governance, regulatory and compliance issues, commercial contracts and procurements. Previous private practice experience is essential together with solid academics and excellent drafting and technical skills. Ref: SYD/4239/GG
Our client has one of Australia’s most prominent IP groups. They are seeking a registered trademark attorney or junior level associate lawyer with previous trademark experience to advise domestic and international corporates. The role involves advising on the full spectrum of issues from registration, portfolio management, prosecution and infringement including passing off and misleading and deceptive conduct. Ref: SYD/4268/RL
2 – 4 years
2 – 4 years
For a full list of active roles that Dolman is working on throughout Australia and worldwide visit www.dolman.com.au For further information, please contact one of our consultants: Olivia Harvey, Ralph Laughton, Daniel Stirling and Gail Gtreener. Sydney (02) 9231 3022 Melbourne (03) 8637 7317 or email dolman@dolman.com.au
Associate
2 – 5 years
Brisbane | Commercial Litigation 8 years +
A talented and savvy senior litigator is sought by this premier Australian practice to work on a broad range of contentious matters, including general commercial litigation matters, contract disputes, shareholder disputes, directors duties, workplace risk and compliance and a range of general insurance, compensation and indemnity disputes. You will have the ability to mentor and supervise junior lawyers and maintain strong existing client relationships. Ref: BRI/4289/GG
“This gives all recruiters a bad name, because it is not the way things should be done” JLegal Australia director Joseph Germano on what happens when a job advertisement goes wrong.
Contents regulars
Features
16 MIDDLE EAST REPORT:
6 THIS WEEK: A round-up of the latest legal news 10 IN-DEPTH: A poorly crafted job advert has the
Up-and-coming legal markets like the United Arab Emirates have much to offer intrepid Australian lawyers, writes Briana Everett
potential to ruin reputations, as one Magic Circle firm and its recruiter discovered. Claire Chaffey reports
12 IN-DEPTH: The decision over whether to dismiss a magistrate with bipolar disorder will have serious implications for the issue of mental illness in the workplace, writes Briana Everett
14 PRACTICE PROFILE: Optimism and innovation are part of the post-GFC climate, but property law practices’ most valuable assets – quality lawyers – are still in short supply. Claire Chaffey reports
24 CAREER COUNSEL: Lawyers turn a part-time work arrangement into a winning partnership. Briana Everett reports
26 FOLKLAW: The lighter side of the law
18
COVER STORY: Global law firms are being drawn to Australia. Lawyers Weekly profiles seven global firms already changing the market
l aw y e r s w e e k ly 10 j u n e 2 0 11
3
Editor’sNote
Editor, Justin Whealing
Lawyers Weekly is delighted to have the following industry leaders on its editorial board
AS GLOBAL law firms have followed the money and entered the Australian market in response to the growing economic importance of the Asia-Pacific region, the managing partners of Australian firms have often provided a defiant response to the arrival of new international competitors. While this attitude shows an impressive degree of stoicism, they should be worried – and they are. Minter Ellison chief executive John Weber told Lawyers Weekly that his firm “hasn’t been a national firm for 30 years”. Allens Arthur Robinson describes itself as an “international law firm” on its website, while Mallesons Stephen Jaques proudly boasts it is a “leading law firm in the Asian region”. This is all part of a subtle re-branding exercise by Australian firms as they seek to shore up their client base. While many national firms have an enviable reputation in the Australian market, they cannot claim to have a similar standing in other jurisdictions. Allen & Overy, Clifford Chance and DLA Piper – to name three firms that have entered the market over the past 18 months – have transcended their original hometowns after years of growth and expansion around the globe, and are viewed as leading firms in many of the countries in which they now operate. Despite what the leading figures within national firms might say publicly, they can feel the winds of change blowing and are repositioning themselves for the future. The merger of local firms Gilbert + Tobin and Blakiston & Crabb is a direct response of two local firms to the arrival of global rivals, while Mallesons Stephen Jaques incoming chief executive partner Stuart Fuller has previously told Lawyers Weekly that his firm remains on the lookout for a merger partner. A few of his rivals are in the same boat but negotiating matters in a more clandestine manner. In this issue, Lawyers Weekly profiles seven global firms and delves into their strategies in the Australian market (see cover story on page 18). With more choice than ever before, the words of Holding Redlich Sydney managing partner Ian Robertson that “it is a great time to be a client” certainly ring true. I would also like to thank my predecessor, Angela Priestley, who has stepped down as the editor of Lawyers Weekly after the best part of three years in the role. She has cemented Lawyers Weekly as Australia’s leading legal journal and set benchmarks for quality journalism and standards of integrity and professionalism that the editorial team will continue to uphold.
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THIS WEEK
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1 Pressure mounts on legal salaries 2 Legal recruiter apologises for ad shocker 3 Magic Circle firm has major ad fail 4 Allens female partners rise to 30 5 The dissatisfaction epidemic: why lawyers are unhappy 6 Lawyers in ASIC firing line 7 Maddocks takes two from top tier 8 Leather pants land partner in tight spot 9 Clutz partnership loses first round in defamation action 10 DLA Asia head rallies Canberra troops
Chris Freeland, Baker & McKenzie national managing partner and chair of the Sydney Film Festival, reveals his love of cinema on Lawyers Weekly TV (www.youtube.com/ lawyersweekly).
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Have your say Do you have something you’d like to share? Send an email to editor@lawyersweekly.com.au or phone (02) 9422 2875. Alternatively, go to www.lawyersweekly.com.au and make a comment online.
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EDITORIAL BOARD
L AW Y E R S W E E K LY 10 J U N E 2 0 11
Andrew Grech Managing director, Slater & Gordon
Nick Abrahams Partner and Sydney chairman, Norton Rose
Will Irving Group general counsel, Telstra Corporation
Helen McKenzie Deputy managing partner, Blake Dawson
Sharon Cook Managing partner, Henry Davis York
Joe Catanzariti Partner, Clayton Utz
David Cowling Partner, Clayton Utz
Robert Milliner Chief executive partner, Mallesons Stephen Jaques
Ewen Crouch Chairman of partners, Allens Arthur Robinson
Megan Pitt Director, Australian Government Solicitor
Sue Gilchrist Partner and practice leader (intellectual property group), Freehills
Lucinda Smith Partner, Thomson Lawyers
ABOUT US Editor: Justin Whealing Deputy Editor: Claire Chaffey Senior Journalist: Briana Everett Contributors: Sarah O’Carroll, Ben Nice Design Manager: Anthony Vandenberg Production Editor: Vanessa Fazzino Senior Online Producer: Rebecca Whalen Group Production Manager: Kirsten Wissel Group Sales Manager Adrian Fellowes SUBSCRIBE TODAY Lawyers Weekly is published weekly and is available by subscription. Please email subscriptions@lawyersweekly.com.au All subscription payments should be sent to: Locked Bag 2333, Chatswood D/C, Chatswood NSW 2067 ADVERTISING ENQUIRIES: Adrian Fellowes adrian.fellowes@lexisnexis.com.au (02) 9422 2134 (mob) 0407 489 060 Vic, SA, WA: Stephen Richards (02) 9422 2891 EDITORIAL ENQUIRIES: Justin Whealing justin.whealing@lexisnexis.com.au (02) 9422 2832 All mail for the editorial department should be sent to: Lawyers Weekly, Level 1 Tower 2, 475 Victoria Ave, Chatswood NSW 2067
CAB MEMBER SINCE SEPTEMBER 2000 Copyright is reserved throughout. No part of this publication may be reproduced without the express written permission of the publisher. Contributions are invited, but copies of all work should be kept, as Lawyers Weekly can accept no responsibility for loss. Lawyers Weekly and LexisNexis are divisions of Reed International Books Australia Pty Limited, ACN 001 002 357 Level 1 Tower 2, 475 Victoria Ave, Chatswood NSW 2067 tel (02) 9422 2203 fax (02) 9422 2946 ISSN 1833-5209 Important Privacy Notice: You have both a right of access to the personal information we hold about you and to ask us to correct if it is inaccurate or out of date. Please direct any queries to: The Privacy Officer, LexisNexis Australia or email privacy@lexisnexis.com.au. © 2010 Reed International Books Australia Pty Ltd (ABN 70 001 002 357) trading as LexisNexis. LexisNexis and the Knowledge Burst logo are registered trademarks of Reed Elsevier Properties Inc., and used under licence.
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make a powerful career move speak to the experts senior legal counsel - structured products. sydney.
employment lawyer. melbourne.
The Australian operation of this global financial services organisation provides a range of finance products and transactional services to institutional and investment customers around the world.
This firm is well regarded within the employment law space and pride themselves on their ability to service blue chip clients.
As their business moves back into growth mode, they have a vacancy for a banking and finance lawyer with significant experience in equities and derivatives products, gained within either the relevant practice of a leading law firm, or another major financial services organisation. You’ll support a market leading team, handling high profile transactions on a global basis. contact matthew lancey at matthew.lancey@hays.com.au or 02 8226 9664. corporate / commercial solicitor - 1-2 years pae. sydney. This leading Australian banking group operates a number of high-profile consumer credit brands and is looking for a corporate / commercial lawyer to advise on a range of business issues. You’ll provide commercially focused advice to key stakeholders in the areas of franchising, and TPA, for consumer credit and lending products. With major law firm training, you’ll demonstrate a thorough knowledge in as many areas as possible of the Corps Act (Chapter 7), the NCCP Act and the ASIC Act in relation to financial services. contact matthew lancey at matthew.lancey@hays.com.au or 02 8226 9664. corporate lawyer – 4-6 years pae. sydney. This international law firm’s energy and resources practice includes a group who provide corporate advisory and transactional services for their clients. They have a vacancy for a corporate lawyer to handle corporate and project finance, mergers and acquisitions and related regulatory issues. As the successful candidate it’s likely you‘ll have a minimum of four years experience in a corporate practice group, although direct experience with energy and resources clients is not essential. You’ll have strong academics and a track record within the corporate practices of high-profile law firms. contact matthew lancey at matthew.lancey@hays.com.au or 02 8226 9664. legal counsel – In-house. perth. This financial services organisation operates internationally and needs a corporate commercial lawyer to provide legal support to all business areas, with a particular focus on servicing the mutual protection / insurance functions. Knowledge of the corporate and regulatory obligations of insurance providers, mutual operations and the financial services sector will be crucial to the role. You’ll make a positive contribution to the planned development and growth of the company. contact stacey Back at stacey.back@hays.com.au or 08 9254 4598.
hays.com.au
Due to organic growth they need an employment lawyer to work on a range of matters extending from industrial relations issues to the interpretation of the Fair Work Act. Success will be achieved with your three plus years PAE experience in employment law and your desire to further your career. contact renee turner at renee.turner@hays.com.au or 03 9604 9669. er / Ir / wr / oh&s lawyers - 1 year pae to senior associate. Brisbane. This renowned top tier firm services a client base that is the envy of most practitioners. The down to earth partners are technical experts and excellent people managers; a rare combination. This team has shaped and influenced Australia’s industrial landscape, working on almost every significant employment event in recent history. Continued success and strong growth means opportunities now exist for specialists in WR, ER, IR and OH&S, working across collective and enterprise bargaining, industrial advocacy and safety or incident investigations. The culture and the work on offer is without parallel. contact amanda walker at amanda.walker@hays.com.au or 07 3243 3033.
thisweek
Life for police killers undermines judiciary The Law Society of NSW has criticised proposed mandatory life sentences for convicted police killers in NSW as “lacking thought”. Last week the NSW Government introduced a bill into Parliament that would make life sentences mandatory for anyone convicted of murdering a police officer. “The legislation is unnecessary, it undermines the proper role of the judiciary, it will not deter offenders and may have serious consequences from a law enforcement and prosecution perspective,” wrote Law Society of NSW president Stuart Westgarth. ALHR hits back at online sentencing plan The Victorian AttorneyGeneral’s proposal to draw from the results of an online survey to set minimum sentences for certain offences is little more than a “burst of populism” being displayed by a new government, according to Australian Lawyers for Human Rights (ALHR). The ALHR made the claim in response to a proposal by Victorian Attorney-General Robert Clark to use a Department of Justice survey, being conducted within the Herald Sun newspaper, to assist in setting new minimum sentencing standards.
The Web
Mandatory youth sentences will drive crime The Victorian Government’s plans to introduce mandatory minimum sentences for young offenders will do more harm than good, says the Law Institute of Victoria (LIV). According to the LIV, the government should rule out mandatory sentences of two years for offenders aged 16 and 17, as they will cause more problems than they resolve. “This type of sentence is more likely to drive young offenders into a life of crime than rehabilitate them,” said acting LIV president Michael Holcroft.
Allens looks after its own in latest partnership round ALLENS ARTHUR Robinson appointed 12 new partners across its Australian and Asian offices on 3 June, many of whom began their legal careers at the firm. As the firm’s largest round of partner appoint ments in four years, Allens has increased its total partner headcount to 185, including 30 females. This takes the firm’s total percentage of female partners to just over 16 per cent, which is lower than rival firms such as Mallesons Stephen Jaques and Freehills (both around 22 per cent). Newly appointed partners, who began their career at the firm, include Nicholas Adkins, Mark Malinas, Hop Dang, Jodi Reinmuth (pictured above), Gavin Smith and Duncan Travis. Also joining the firm’s partnership are Philip Blaxill, Julian Donnan, Karla Fraser, Michael Graves, Penny Nikoloudis and Matthew Whittle.
Beginning her career at Allens as a vacation clerk, energy and resources lawyer Reinmuth has been appointed as a partner in the firm’s growing Perth office. Joining the firm in Melbourne in 1996, Reinmuth initially moved to the firm’s Perth office on a twoyear secondment basis. “Then two years turned into five ... and now I’ve been in Perth for 10 years, which has been an extraordinary experience because the office here has grown incredibly in that period,” said Reinmuth. “[The internal programs] give a formal structure to mentoring. I’ve had the benefit of being involved in those programs and I think that’s helped me grow into the role of partner,” she said. “Becoming a partner is sort of the next step and it lets you continue your journey. In my case, I wanted to be a specialist and recognised in my field.” Also a newly appointed partner, Asianbased lawyer Hop Dang commenced his career as a clerk in Allens’ Hanoi office, performing general office duties. With the encouragement of Vietnam practice head Bill Magennis, Dang – who recently obtained his PhD from Oxford University – then embarked on a legal career and undertook his law degrees in both Vietnam and Australia. “Hop’s experience, and that of all our new partners, reflects the importance of having a strong mentor,” said chief executive partner Michael Rose. “In the past four years, Allens has invested heavily in identifying, training and formally mentoring of Allens Athur prospective partners.” Robinson’s 185 This latest round of partners are partner appointments for women –including the firm covers a range of three promoted practice areas, including in the latest resources, technology, partnership round banking and projects.
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R E W IND
China acknowledged that years of rapid development have led to a “very grave” environmental situation, including poor air and water quality and continued industrial pollution of the countryside. The United Nations backtracked on its staunch criticism of the Federal Government’s plans to swap asylum seekers with Malaysia, based on the numerous changes that have been made to the initial draft agreement. Bob Katter, an independent member of Federal Parliament, established a new political party called the Australian Party, aimed at luring blue-collar, rural and regional voters. The spectre of Bernie Madoff loomed again, with JPMorgan Chase seeking to strike out a $US6.4 billion ($5.9 billion) lawsuit by Madoff’s trustee, saying he had no right to sue on behalf of those conned by Madoff. China and Vietnam were at loggerheads over exploration of the South China Sea. Vietnam’s defence minister said that, given the current map of the sea, joint exploration with China was not an option.
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l aw y e r s w e e k ly 10 j u n e 2 0 11
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thisweek
Movers & Shakers
DE AL MAKERS
Major mortgage deal brought home
Deal name: GE Capital on entry into deed to sell interest in loan portfolios to Pepper Australia Key players: Blake Dawson; Freehills
BLAKE DAWSON has acted for GE Capital on its entry into a loans purchase deed to sell its interest in three loan portfolios, for a total consideration of about $4.8 billion, to Pepper Australia, advised by Freehills. Pepper Homeloans led a consortium that was successful against contesting bids from a number of other contenders looking to acquire GE’s Australian and New Zealand residential loan assets. The portfolios include insured and nonconforming loan books across Australia and New Zealand. Once completed, the sale will represent a total exit by GE from these two home lending markets, following the sale of the majority of its home loans portfolio to Commonwealth Bank of Australia in 2008. Pepper Australia is a non-bank lender and part of the Singapore-based Pepper Group. Its acquisition of GE’s mortgage books will be financed by a consortium of
facility providers including CBA, Westpac, National Australia Bank, Deutsche Bank and Värde Partners. The Freehills team was led by partner Mark Crean and senior associate Mark Currell. “It has been a privilege to work on such a transformational deal for our client, which will see it triple in size,” said Crean. “While it has been challenging and complex, I’m very pleased that we have helped achieve an excellent commercial outcome for Pepper Homeloans.” Blake Dawson lead partner Peter Stirling was assisted by Jonathan Stewart and Ted Nixey. “We are delighted to have assisted GE on this milestone transaction, which represents a culmination of its strategy to exit the home loan business. It was a complex transaction that brought together a number of disciplines across the firm,” said Stirling.
DE AL MAKERS
Stuart Mengler
Kylie Brown
Steven Klein
Firm
Allion Legal (Galaxy)
Allens Arthur Robinson (Foxtel); Freehills (Austar); Allen & Overy (Liberty)
Arnold Bloch Leibler (CatchoftheDay)
Deal name
Galaxy Resources on acquisition of 20% interest in Canadian James Bay project from Lithium One
FOXTEL on its proposal to acquire AUSTAR
CatchoftheDay and Scoopon on sale of minority stake to investment consortium
Area
Energy and resources
Corporate
Corporate
Value
Not disclosed
$1.52 per share
$200 million
Key players
Allion Legal’s Stuart Mengler
Allens’ Kylie Brown
Arnolds’ Steven Klein
Maddocks takes top-tier lawyer Maddocks has appointed Freehills lawyer Timothy Atkin as special counsel in the firm’s commercial resolution group. At Freehills, Atkin acted for a number of major corporations, including the Seven Network in the C7 case as well as the owner of Sydney Airport in a $500 million dispute with the NSW government. Lawyer leaves BHP for Mallesons Brisbane-based lawyer Tracey Turley has left BHP Billiton to join the energy, resources and projects team of Mallesons Stephen Jaques. Joining the firm as a senior associate, Turley specialises in joint ventures, project delivery and project development. Clutz recruits from Blakes Clayton Utz has appointed Blake Dawson lawyer Peter Bowden to its Melbourne banking practice. Joining the firm as a senior associate, Bowden specialises in restructuring and insolvency work. He has also spent two years in Tokyo working within the international finance team of UK firm Ashurst. G+T pro bono head moves to community sector Ben Fogarty has left his position as acting director of pro bono at Gilbert + Tobin to join the Homeless Persons’ Legal Service as a senior solicitor. Fogarty has practised in the community legal sector since 2004, specialising in disability rights and discrimination law.
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thisweek XANTI-TRAFFICKING CAMPAIGNX
A VISITING Nepalese anti-human trafficking campaigner had much of her audience in tears last week as she spoke of the horrors endured by women and children who fall victim to traffickers. Speaking at a forum at Sydney’s University of Technology, Anuradha Koirala, the founder and executive director of Maiti Nepal – an organisation that rescues and rehabilitates women and children sold into the sex trade or other forms of exploitation – spoke of her struggle to overcome what is a significant issue in Nepal. “Everybody talks about human rights,” she said to an audience of several hundred. “But I don’t know where the human rights of these girls are.” Koirala, who was an English teacher for more than 20 years and Nepal’s minister for women and children before opening her own home to victims of trafficking in 1993, said much of her struggle comes from the fact that strict laws against human trafficking are in place in Nepal, but are difficult to enforce. This, she explained, is largely due to corruption at the local police level or tardiness within the judiciary once charges have been laid. “The laws exist,” she said, “but enforcement is very, very bad.” She added, however, that the work of Maiti Nepal (which means “mother’s home”) has resulted in a slowly improving conviction rate.
PHOTO: ANNA ZHU, WWW.ANNAZHU.COM
Human rights heroine calls for support
Anuradha Koirala (bottom centre), with students from the University of Technology, Sydney.
“Maiti Nepal deals with the whole vicious cycle of trafficking,” she said. “We have been very successful in catching and convicting criminals.” To date, said Koirala, the organisation has secured the conviction of close to 500 people involved in trafficking, with close to that amount awaiting trial. Prevention, though, is the primary strategy used by Maiti Nepal, and Koirala explained that part of this strategy is to set up “transit houses” on the Nepalese-Indian border. In these houses, former victims of trafficking – many who now have HIV/AIDS – are employed to spot those who they think are being trafficked and report them to the authorities. Despite the difficulties she faces, Koirala was optimistic that the organisation had made
significant progress in educating those most at risk about human trafficking, and giving those who have been trafficked – or who have fallen victim to domestic violence, organ harvesting or child labour – a second chance in life. And the reason for her success was clear to all in the room. “What would you do if your daughter was standing there?” she asked. “How would you fight? If all of us join hands, nothing is impossible. That is my request to all of you. Join hands and make Nepal a trafficking-free society.” – Claire Chaffey
XGAP WIDENSX
head-count over the coming year and staff turnover has already increased in 31 per cent of organisations. Despite these developments, Buchanan notes that employers have not yet offered widespread, significant salary increases. “Certainly salaries have been increasing gradually over the past year and we expect this trend to continue as firms strive to compete and retain quality candidates,” he said. According to Buchanan, in the coming year high performers will be looked after either by receiving a salary at the top end of their band or through bonuses. However, the survey revealed that only six per cent of employers will offer increases above six per cent, while 43 per cent intend to increase salaries by less than three per cent. “Such low intentions are at odds with candidate expectations – particularly those of candidates in demand – and so we expect the gap between salary expectations to widen and salary pressure to grow.”
Salary pressure grows FORCES WITHIN the legal job market – including increased hiring intentions, skills shortages and a widening gap between employee and employer salary expectations – are combining to create a “perfect storm” of salary pressure in 2011. According to the 2011 Hays Salary Guide, the legal sector is yet to see significant salary increases despite positive hiring intentions and a shrinking talent pool. “The employment market over the past 12 months was dominated by low unemployment and increased job vacancies,” said Hays legal director Darren Buchanan. “At the same time, candidate confidence has continued to grow and skills shortages are now emerging.” According to Buchanan, 74 per cent of organisations expect business activity to increase over the next 12 months, 45 per cent of employers expect to increase permanent
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L AW Y E R S W E E K LY 10 J U N E 2 0 11
Watch our exclusive interview with Anuradha Koirala on Lawyers Weekly TV at www.lawyersweekly.com.au.
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thisweek XMOVING TRIBUTEX
A fond farewell for the departing NSW chief justice was followed by a warm welcome for his successor. Justin Whealing reports TWO SUCCESSIVE sittings of the Banco Court, NSW Supreme Court, last week provided a refreshing change from the adversarial nature of the legal system. Around 500 politicians, judges, barristers and eminent legal figures gathered on 31 May to honour the retiring chief justice of NSW, James Spigelman, with the congregation returning the next day to acknowledge his successor, Tom Bathurst QC. NSW Law Society president Stuart Westgarth, who spoke at both ceremonies, noted that Spigelman was retiring “at the peak of his powers”. “The hallmarks of your honour’s stewardship are the court’s timeliness, efficiency, good management, encouragement of alternative dispute resolution processes and, most critically, reasoned judgments of the highest order,” he said. Westgarth also highlighted the reduction of the court backlog during the early years of Spigelman’s tenure, mechanisms to resolve cross-border legal issues and his successful lobbying efforts to “defend” the profession from regulation by a national legal services board as significant career achievements. The former chief justice’s long commitment to social justice issues didn’t go unnoticed, either. As as a university student in the 1960s, Spigelman helped to organise the “freedom rides” through rural communities that aimed to promote greater civil and political rights for Aboriginal people. Spigelman later said this might have been “the most important thing” he has ever done. Westgarth turned the clock back 13 years to quote Spigelman’s own words back at him, saying that just as Spigelman had remarked that the “court was in good shape” upon his swearing-in in May 1998, the same could be said of the legacy Spigelman leaves to his predecessor, Tom Bathurst QC.
Westgarth’s comments were well received, despite the fact he and Spigelman have expressed different views over billable hours. Spigelman has previously labelled the time billing system as “inefficient”, while Westgarth told Lawyers Weekly in January that criticisms of time billing have been “exaggerated”. The following day, on 1 June, Tom Bathurst QC was officially sworn in as the 17th Chief Justice of NSW. The state’s Attorney-General, Greg Smith, paid tribute to Bathurst’s career as president of the Australian Bar Association and the NSW Bar Association. “Mr Bathurst brings to the position an enviable reputation, a wealth of experience and a commitment to public service,’’ said Smith. “I’m sure he will make an outstanding contribution to the administration of justice in NSW.” Like Smith, Westgarth – on hand to once again take his place as a keynote speaker – paid tribute to Bathurst’s achievements as a barrister, listing some of the high-profile cases he has been involved in, such as the C7 case, Sons of Gwalia and his most recent matter advising former James Hardie directors in a legal stoush with ASIC, prior to being announced as the new Chief Justice. “Colleagues have referred to your ability to sum up facts and legal principles very quickly, churning through large volumes of complex work easily and efficiently,” he said. Westgarth also referred to the tennis prowess of the Bathurst family. He said, genially, that while Bathurst is known as a handy player, he has never quite reached the heights of his mother, Joan Hartigan, who was a three-time winner of the Australian Open singles title and a double Wimbledon semi-finalist.
US/UK Update
Goodbye, and hello
Oxford tops Cambridge for excellence The University of Oxford is the top-ranked university law school when it comes to student perception, according to a study conducted by Legal Week. Seventy-eight per cent of the 3700 law students surveyed rated an Oxford education as “excellent”. Only 69.5 per cent of students said the same of its historic rival, the University of Cambridge. Fraudulent partner granted leniency UK firm Hogan Lovells has given Christopher Grierson, who has been ordered to repay the £1 million ($1.54 million) he claimed in false expenses, an extra week on the deadline, reports The Lawyer. The senior litigator, who was a respected partner with the firm for more than 30 years before his fraud was exposed last month, was due to repay the full amount by 27 May. Firm makes pro bono billable UK firm Clyde & Co is allowing its UK lawyers to include 50 hours of pro bono work as billable hours, reports Legal Week. The new policy came into effect in May and means lawyers can count some pro bono work as billable hours that go towards performance-related bonus targets. The firm introduced the same rule in its US offices at the end of 2010. Kennedys opens in Ireland UK firm Kennedys has officially merged with its Dublin affiliate office O’Hare O’Conner Walsh (OHOCW) to create Kennedys Ireland, reports The Lawyer. The move gives Kennedys its ninth international office and adds seven partners in the Irish capital. Senior partner Nick Thomas said: “The decision to take our relationship with OHOCW forward by establishing Kennedys Ireland ... was driven by very clear client demands for a stronger, market-transforming presence in Dublin.” Cobbetts NQs losing pounds The salaries for newly qualified lawyers at mid-tier UK firm Cobbetts have been cut by almost 20 per cent over three years, reports RollonFriday. While the class of 2008 earned £37,000 ($57,000) upon qualification, the class of 2011 can expect to get £31,000. The firm, which has offices in Manchester, Leeds, Birmingham and London, deals in corporate law and property. It suffered during the economic downturn, resorting to two redundancy rounds in close succession in 2008.
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indepth
word imperfect
A poorly crafted job advert has the potential to ruin reputations, as one Magic Circle firm and its recruiter discovered. Claire Chaffey reports
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agic Circle firm Slaughter and May has been forced to defend an online job advertisement seeking competition lawyers that was placed on its behalf by UK legal recruiter First Counsel (as reported in Folklaw last week). But it is difficult to fathom how anyone could have thought releasing the ad was a good idea. Among other things, First Counsel attempted to make it clear that candidates for the roles did not necessarily have to be from the UK. This in itself seems innocuous, except for the fact that the advert was phrased like this: “Perhaps counter-intuitively, the firm is not as exacting in terms of its requirements as one might expect, and will happily consider lawyers from Australia, New Zealand and Brussels.” While this was bad enough, the ad went on: “The location of the candidate should not have a bearing on the measure of the quality, provided the experience is relevant and the academics are strong.” If this didn’t raise a few eyebrows among job-seeking antipodean lawyers, the opening description of the firm would no doubt have caused a scoff or two. It read: “This Magic Circle firm is regarded, even among its Magic Circle peers, as unquestionably the premier law firm in the UK, and carrying its brand around on your resumé is about as powerful an endorsement of quality as you are likely to find.” The advertisement caught the attention of journalists at UK legal blog RollonFriday, who alerted Slaughter and May executive partner Graham White, who then immediately ordered that it be taken down. When contacted by Lawyers Weekly, White said the ad had been placed without the firm’s knowledge, and no one at the firm had seen the wording. “The intention of the advert was to make it clear that we would welcome applications from candidates with competition experience, even though it might not be experience in London,” explained White. “However, it was badly drafted and clearly could cause offence.”
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“If you know your firm and your client well enough, you should know that this is not the way they want to be portrayed” joseph gerMano, dIrector, jLegaL austraLIa
White also said that William Cock, a representative from First Counsel, had been to see him and that the company had “also sent a written apology”. “First Counsel very much regret causing offence and have said they apologise to all concerned,” said White. The incident raised several questions, not least of which is the potential damage to Slaughter and May’s reputation.
However, JLegal Australia director Joseph Germano does not believe the incident reflects poorly on the firm. “It will have more of an impact on the recruiters themselves rather than the firm,” he told Lawyers Weekly. “The mistake is more on the way the recruitment agents have portrayed the firm, rather than the firm itself, so they’re the ones that are really to blame.” According to Germano, the way in which the firm is portrayed by the recruitment company goes to the heart of recruitment, and incidents like this raise concerns about how good the relationship is between the firm and its recruitment agent. “If you know your firm well enough and your client well enough, you should know that this is not the way they want to be portrayed,” he said. “This gives all recruiters a bad name, because it is not the way things should be done. You really need to think twice about how you write your ads. “At the end of the day, you’re dealing with a market that likes to dot their i’s and cross their t’s. They really want to make sure that everything is kosher. Slaughter and May would definitely not want to be portrayed like that. In fact, they love lawyers from Australia.” While Germano is confident that Slaughter and May’s appeal to Australian, New Zealand and Belgian lawyers will emerge unscathed, the person responsible for writing the advert may not be so lucky. “Someone’s going to get their knuckles rapped at First Counsel, I can tell you,” he said. LW
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indepth
Test case
The decision over whether to dismiss a magistrate with bipolar disorder will have serious implications for the issue of mental illness in the workplace, writes Briana Everett
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he news that Sydney magistrate Brian Maloney is facing dismissal from the bench because of his 2010 diagnosis of bipolar disorder has rocked the legal profession and raised concerns among mental health advocates. The prevalence of mental illness within the legal profession is well known, but this latest debate has led many within the industry to question its potential impact on a practitioner’s ability to do their job. This month, the NSW Parliament will decide whether Maloney should be removed from office on the grounds of incapacity, following a recommendation by the Judicial Commission of NSW that he be dismissed. After failing to overturn the finding of the NSW Supreme Court that he was “incapacitated” for the job, leaders within the political, health and legal spheres have raised their hand in support of Maloney and the rights of people with mental illness. Along with NSW Premier Barry O’Farrell, MP Andrew Robb, who has also suffered from a mental illness, voiced his concern for Maloney, whom he believes has been unfairly treated because of his bipolar disorder. “If Parliament sacks him, it would be an overwhelming injustice and we will set back the acceptance of mental illness and the tackling of mental illness by two decades,” Robb told The Sun-Herald on 5 June. Recognising that the public must be protected and justice served, Jnana Gumbert, NSW branch president of the Australian Lawyers Alliance, told Lawyers Weekly: “We strongly oppose discrimination on the grounds of mental illness”. But, she noted, “it will always be difficult to strike a balance between those two concerns”. As Maloney embarks on the fight to save his job, some legal and political representatives argue that the magistrate’s bipolar disorder has affected his capacity to carry out his judicial duties. Supporting the commission’s findings, NSW Attorney-General Greg Smith told The Sun-Herald: “If your mental condition has a tendency to interfere with the way you carry out your job, then maybe you shouldn’t be on the bench.” Last week, Smith tabled the commission’s 155-page report after Maloney lost his attempt to prevent the matter from proceeding to Parliament. Since his appointment as a magistrate in 1996, Maloney has been the subject of a number of complaints, some of which were classified as “minor” and later dismissed. However, there have been further complaints regarding his conduct in court, leading the commission to form the opinion, in 2010, that he “may be mentally unfit to exercise efficiently the functions of a judicial officer”. As a result, on 20 May 2010, the conduct division of the commission requested Maloney undergo psychiatric
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examination, which finally led to him being diagnosed with bipolar II disorder. Three psychiatrists confirmed the diagnosis, saying that he has probably had the mental illness since the 1990s. In its report, the conduct division stated that Maloney’s “inappropriate conduct” has been “substantially caused” by his bipolar disorder. Given that he has served much of his time on the bench undiagnosed, the calls for Maloney’s dismissal have been met with frustration and anger from mental health groups over the lack of support in the workplace for people with mental illness. There are also fears that the stigma attached to mental illness will only be reinforced by this recent incident, especially if Parliament decides against Maloney. “The difficulty with having this played out in the media is the stigma that is going to attach to anybody who does disclose that they have a mental illness,” says Julie Hourigan Ruse, chief executive officer of the NSW Consumer Advisory Group – Mental Health. “It’s well recognised within the legal profession that mental illness is a serious concern and this will just push it further underground.” Gareth Bennett, director of people and development at Freehills, agrees. “I think it’s a very sad case … it certainly makes people very hesitant to speak up,” he says. “We have to make it safe for people to speak up. We need to make sure mental illness isn’t swept under the carpet.” According to Hourigan Ruse, with the appropriate support and medication, there is no reason why a person with bipolar cannot perform their duties as well as any other person. LW
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practiceprofile
Talent quest Optimism and innovation are part of the post-GFC climate, but property law practices’ most valuable assets – quality lawyers – are still in short supply. Claire Chaffey reports
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everal years have now passed since the global financial crisis made its mark on Australia’s property sector, but its effects are still being felt. While there is general consensus that the market is showing good signs of recovery in both the public and private sectors, and that external investment into Australia has not been killed off by the strength of the Aussie dollar, it is also recognised that conditions are unlikely to return to the pre-GFC golden age for law firms. The new landscape appears to be permanent.
Joining forces One of the primary hangover effects of the GFC is the fact that banks are still very reluctant to finance major property deals. As a result, investors have had to come up with new ways by which to enter the market. “There is an ongoing scarcity of development finance, so the only means to get deals going is to introduce joint venture partners and bring in other capital sources,” explains Melbournebased DLA Piper partner Tom Cantwell. “We now tend to spend our time doing the more complex deals, which makes our life as lawyers more interesting.” Steve Healy, a Sydney-based partner with Gadens Lawyers, has also noticed a shift towards joint financing. “A lot of developers still have difficulty getting finance and there is a growth towards syndicates … in some mezzanine funding to overcome that,” he says. “Anything that has a good product and brand is being very, very sought after.” While Australian banks are still being cautious, Cantwell says that external investors, including those from Europe, still have a healthy – if not bullish – interest in investing in Australian property. “It’s a very positive vibe over there,” he says, having recently returned from an Asia-Pacific investment forum in Frankfurt. “They strongly believe that the Asia-Pacific offers an investment environment that is much stronger than the European or US environment. There are much better short- to medium-term investment opportunities than there are locally.
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The strong Australian dollar hasn’t scared them off, either – that was one of the things we were trying to get a feel for.”
Great expectations Although the mood among property lawyers is certainly optimistic – with Cantwell saying deal flows are continuing to lift in the absence of “danger signs on the horizon” – there is also recognition that clients have taken advantage of the GFC to permanently tighten their belts and demand innovation in the ways firms provide cost cutting. One emerging factor, says Perth-based Corrs Chambers Westgarth partner Adam Churley, is legal process outsourcing (LPO). “Something we are keeping an eye on is the legal services outsourcing market. It’s not so much in property at this stage, but certainly in the more commoditised areas of discovery and preparation of standard documents, we are seeing an emergence and a consciousness among clients for the possible use of those services,” he says. “We are just working out how that fits in with what we do. Obviously, there are some quite
The challenge is on for us to find people and attract them, and we are trying to put the best packages forward”
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practiceprofile ”There are not many deals where you get a blank cheque and write your own figure. It’s a competitive market”
“Something which we are keeping an eye on is the legal services outsourcing market”
TOM CANTWELL, PARTNER, DLA PIPER
ADAM CHURLEY, PARTNER, CORRS CHAMBERS WESTGARTH
difficult issues around property managing projects, pricing, quality and risk management, but LPO is certainly an emerging issue.” According to Healy, the ongoing demand for lower prices is leading clients away from the “mega”, or top-tier, firms and towards the “major” firms. “It’s very much the case that property work is gravitating to firms our size,” he says. “I think it comes down to simple economics. If you can charge, as the big firms do, $800 or $900 an hour for M&A work or major litigation, it is going to be very difficult for property people to compete. “The big firms are still in property, but they really have to have the big transactions. They won’t do the stream leasing, the stream off-the-plan conveyancing, or portfolios of commercial leasing. That is just not going to work in a firm that size, so I think we have a very competitive advantage in that space.” Cantwell agrees that clients are continuing to take their lawyers to task over pricing, and says this has transformed the property legal services market into an extremely tight one.
“It all changed three years ago. There was a real tightening of the belts and a focus on value as well as service delivery. Now, I don’t think there has been a loosening of that belt,” says Healy. “The expectation is that you still provide the highest-quality service, with a quick turnaround time, but that you also have to be careful on pricing. There are not many deals where you get a blank cheque and write your own figure. It’s a very competitive market.”
Lacking talent As the market continues to pick up, a significant issue for property practices is the inevitable dearth of quality property lawyers that accompanies a prolonged market downturn. Cantwell says the lawyer shortage is largely due to the cyclical nature of property, and stresses that while the issue is not yet at crisis point, it is something the legal industry needs to look at carefully. “You get a hole when you don’t recruit for a few years,” he says. “The property industry is cyclical, so just when lawyers are maturing, the market will go into a downturn and they stop [practising property law]. When the market comes out of a
”It’s very much the case that property work is gravitating to firms our size” STEVE HEALY, PARTNER, GADENS LAWYERS
downturn, those lawyers are no longer sitting there as available resources. “When the next cycle hits, you’ve got to start from scratch, so you have either got very junior people or very senior people. It’s hard to get the quality in the middle.” According to Churley, this lack of quality lawyers – generally in the five-to-eight-year range – has forced his firm (which aims to grow one-third by 2015) to be creative and generous when attracting talent. “The challenge is on for us to find people and attract them, and we are trying to put the best packages forward … including good remuneration and flexible work arrangements, which are also coming to the forefront,” he says. Healy also acknowledges the lack of quality candidates and says firms are looking towards training lawyers internally rather than relying on the availability of external lawyers. “Property lawyers used to be trained in those business-as-usual transactions, but because so many firms now don’t have that sort of work, there is not really a pool of people,” he says. “It is necessary to train people yourself, rather than find them on the market.” LW
It all changed three years ago. There was a real tightening of the belts and a focus on value as well as service delivery”
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middle eastreport
Opportunity knocks Up-and-coming legal markets like the United Arab Emirates have much to offer intrepid Australian lawyers, writes Briana Everett
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lthough foreigners have been warned against travelling to some regions in the Middle East due to the threat of violence and terrorism, the United Arab Emirates (UAE) remain a relatively stable environment for Australian lawyers seeking a new professional challenge or adventure. “Abu Dhabi is the largest and wealthiest of the Emirates and is home to the majority of energy and projects work for the region,” says Dezz Mardigan, manager of private practice and practice group acquisition at JLegal. “In contrast, Dubai, which is relatively poor in natural resources compared with other emirates, has developed a business culture that is somewhat more entrepreneurial in nature.” While the world leaders at this year’s G8 summit discussed the need to provide support to Middle East citizens who have suffered from the “Arab spring” revolts against authoritarian regimes, UAE Vice-President and Prime Minister Sheikh Mohammed recently confirmed that the UAE’s economy is once again performing well, having achieved growth over the past two years. As a result, the legal recruitment market has picked up significantly in the past six months. “It’s definitely become a lot better, particularly in the past three months or so,” says Michael Bromley, managing director of EA International. “Both Abu Dhabi and Dubai have been hiring Australian lawyers from the top tier, so that market continues to improve, especially as it becomes harder to recruit talent through secondment from London.” Although there is mild trepidation as a result of the political unrest in the region, Bromley says people are starting to recognise the opportunities available. “There’s great opportunity there that might not exist in other jurisdictions right now.” Today, around 30 international firms have a presence in the Middle East, with a number of top-tier firms indicating their commitment to the region by opening new offices in Dubai and other major cities. On 25 May, Magic Circle firm Eversheds merged with Middle Eastern
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consortium KSLG, a move that will see the firm treble its size in the region. The merger, which includes law firms Dhabaan and Partners, Khasawneh & Associates and Sanad Law Group, will give Eversheds a presence in Abu Dhabi, Amman, Baghdad, Doha, Dubai and Riyadh. “The Middle East continues to be an exciting, dynamic market,” said Eversheds chief executive Bryan Hughes at the time of the merger announncement. “We have been looking to establish a region-wide offering for some time…” While Australian national law firms may not have a significant presence in the Middle East, international firms operating in Australia – such as Allen & Overy, Clifford Chance, DLA Piper, Norton Rose and Baker & McKenzie – all have offices throughout the region. And not just in Dubai and Abu Dhabi. “Doha is the location that’s really picking up,” says Marsden International principal Jonathan Walmsley. “There is a lot of project work going on, but there’s also corporate and finance.” This year, Baker & McKenzie opened a new office in Doha – the firm’s fifth in that region, in addition to Abu Dhabi, Bahrain, Cairo and Riyadh.
Demand-driven talent As the economy picks up and new, developing areas emerge, law firms in places such as Abu Dhabi and Dubai are once again leading the search for top talent. Typical of the UAE, the demand is for lawyers working in the projects, construction, energy and infrastructure practice areas. And in 2011, this demand is extending to lawyers from outside the region. “Although law firms are principally looking to hire from within their own region, they are open to lawyers who can provide evidence of a genuine reason to be in the Gulf, or who have a particular niche skill set that is in demand,” says Mardigan. The strongest demand, says Walmsley, is coming from Dubai and Abu Dhabi. “Interestingly, there’s quite a lot of activity in Abu Dhabi – particularly, big demand for projects lawyers. But this is no surprise given the amount of development that’s happening over there. Abu Dhabi is the place with the money,” he says. “There’s also lots of demand for construction, infrastructure, project finance and energy lawyers in Abu Dhabi.” In addition to these typical areas, recruiters have also noticed new trends emerging. Bromley, for example, has observed a greater need for construction litigation lawyers and an increase
Dubai, in the United Arab Emirates, has an entrepreneurial business culture.
in dispute resolution work, while Walmsley notes the potential for Australian real estate lawyers. “Australian real estate lawyers are in demand. Real estate law over there is based on our strata system, so it’s an easy transition for an Australian property lawyer. There aren’t many firms that do real estate work but, where there are, Australia is one of the premier markets they look to.” According to Mardigan, Australian lawyers in the international arbitration space or shipping also have some pulling power, with a noticeable rise in demand from Middle Eastern firms.
Perks and privileges The lifestyle associated with Middle East destinations such as Dubai and Abu Dhabi is one of the biggest drawcards for foreign lawyers – topped off by the impossible-to-resist tax-free income on offer. “There’s definitely a good lifestyle to be had. The cost of living has come down significantly from what it was before the GFC, so your accommodation costs aren’t what they were before,” says Bromley. “People who go to the Middle East are looking for something a little bit different. They’re looking for the chance to get their hands dirty on deals and to have a lot of client contact, and that’s what they’re going to get.” Allen & Overy project finance lawyer Nadia Kalic, who moved from Clayton Utz in Brisbane to Allen & Overy’s Dubai office in 2006, says the quality of work in the Middle East is “second to none”. However, it was the easy lifestyle that surprised her the most. “I think the ease of living over there was a surprise and was also probably one of the reasons why I stayed as long as I did,” says Kalic, a senior associate who returned to A&O Australia from Dubai in May last year. “A&O was one of the first firms in the Middle East; it opened an office in 1978. So in terms of the ties and the relationships at a business level, the work that came through was the type of work that you’d expect to get in any other
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middle eastreport “I think the ease of living over there was a surprise and was also one of the reasons why I stayed as long as I did” NADIA KALIC, SENIOR ASSOCIATE, ALLEN & OVERY
developed country at the time,” she says. “So I was getting that level of experience I would be getting elsewhere, like London or New York.” Kalic says the economy was booming when she did her stint in the Middle East, though Dubai was not yet on the radar as an emerging hotspot. As a result, her decision to work in Dubai was initially met with reservation from some of her colleagues. “It was a little bit of a punt, but I knew that working for an English law firm, as opposed to a local law firm, at least provided that comfort zone,” she explains. “Particularly in the project finance space, there was quite a lot happening and there continued to be quite a lot happening there after I hit the ground.” Bromley says Australian lawyers are generally very welcome in the Middle East. “They like Australians a lot,” he says. “We tend to be quite robust, willing to get on with things, and tend to fit in well within practices.”
The Australian expat community in the Middle East is equally as welcoming to newcomers. “As soon as the Australians over there knew you were Australian, they were very inclusive,” says Kalic. “I think the social side was part of the reason why it was easy to stay there for as long as I did.” Admitting she had reservations as a white female in the Middle East – and as a project finance lawyer working with clients in neighbouring regions such as Saudi Arabia and Bahrain – Kalic says she never felt unwelcome in the Muslim region. “I never had a bad experience in terms of interactions with the locals, from both a work perspective or a social perspective – and as a female as well,” she says. “I never felt uncomfortable … but obviously you have to be respectful [of the culture].” With the globalisation of the Australian legal industry, including the recent arrival of firms such as Clifford Chance and Allen & Overy,
“Doha is really picking up. There is a lot of project work going on ... also corporate and finance” JONATHAN WALMSLEY, PRINCIPAL, MARSDEN INTERNATIONAL
making the transition to the Middle East has become even easier, thanks to the number of offices these firms already hold in the region. And, according to Kalic, working at a UK or US firm has significant advantages, particularly in terms of the training and experience to be gained. “The quality of the mentoring, training and knowledge building that you will get in an English or American law firm will ensure you don’t miss out on those ancillary skills you should be getting at that level,” she says. “You’ll be working with people from all sorts of backgrounds, which is great, but you have that similar view and commonality.” Similarly, recruiters emphasise the importance of top-tier experience in Australia as a means to getting a foot in the door in the Middle East. Bromley says, “If you’re from a top-tier firm and you’ve got good experience – at least three years – then there are going to be options for you in the Middle East.” LW
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coverstory
Brave new world Since 1964, Australia has played host to a growing number of global law firms. The first, Baker & McKenzie, was seen as a pioneer at the time and has stood the test of time to retain its status as a major player in the Australian legal market. The latest, Clifford Chance, is undeniably one of the world’s legal power houses, and its entry into the Australian scene – via a dual merger – has, for many, cemented speculation that global firms are here to stay. Lawyers Weekly profiles seven global firms that have entered Australia at
different times, in different ways and for different reasons. Their strategies range from staying small and focused on a specific core of work, to building a sprawling and powerful presence capable of servicing clients’ every need. At the heart of all their strategies, however, is the deep-seated belief that global firms are the way of the future, and that those who fail to identify this trend and act on it will ultimately fail. We take a closer look at what exactly brought these global firms to our shores and how they see their role in Australia.
DLA Piper
Tony Holland Australian offices: 5 (sydney, Brisbane, Melbourne, Perth and Canberra) Lawyers in Australian offices: 450+ Global offices: 76 Lawyers in global offices: 4200
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THE DLA Piper story is proof that the “Our vision is to arrival of a global firm on local shores be a full-service does not just mean a ready supply of milk business law firm. We are not and honey to feast on. After a period of prolonged courtship just there for the big-ticket, onewith DLA Phillips Fox, with whom off M&A deals” the firm has had an “affiliation” since November 2006, in late January this year it was announced that full financial integration within the DLA Piper network would commence on 1 May. “We can help our clients go overseas and also provide a seamless and integrated service to DLA Piper’s clients,” said DLA Phillips Fox CEO Tony Holland at the time. By adding the five offices from DLA Phillips Fox, DLA Piper’s strategy was to take on all comers across the full commercial spectrum – as opposed to global rivals like Clifford Chance, which are only targeting high-end work across select practice areas. However, despite having access to the network of one of the world’s largest law firms, a significant number of DLA Phillips
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Fox partners indicated that they did not want to be part of a global law firm and have since resigned. In Brisbane, 10 partners left before integration in March to start an office for Thomsons Lawyers, while in Canberra, six of the firm’s eight partners announced their intention to start an office on 1 August for HWL Ebsworth. This prompted the Asia practice’s managing director, Alastair Da Costa, to fly to Canberra to shore up the firm’s commitment in the nation’s capital and to rally the remaining troops on the ground. Despite these setbacks, senior management remains committed to its strategy of being a full-service firm and has also been very careful to differentiate itself from global rivals and not hitch its star exclusively to the M&A market. “Our vision is to be a full-service business law firm. We are not just there for the big-ticket, one-off M&A deals,” says Tony Holland, now the DLA Piper Australia managing partner. “If clients have an IT issue, or a real estate issue or an employment issue, we can be there for all of their needs, not just one particular aspect.”
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coverstory
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coverstory
Baker & McKenzie
Chris Freeland
“I’m surprised about the comments made about this ‘radical’ concept of global firms. We have been doing it for almost 50 years”
Australian offices: 2 (sydney and Melbourne) Lawyers in Australian offices: 345 Global offices: 69 Lawyers in global offices: 3750+
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BAKER & McKENZIE was founded in Chicago in 1949 and being a global firm was the main goal right from the outset. Throughout the 1950s, the firm opened several new offices across the globe, adopting the strategy of hiring local lawyers and building an office around them. In 1964, two Australian lawyers who had studied at the University of Chicago and had dealings with one of the firm’s founders, Russell Baker, suggested that Australia would be a good base, especially to service mining industry clients. This made Baker & McKenzie the first international firm to settle in Australia. “When the firm opened it was seen as a very entrepreneurial thing to do, because the legal scene at that time was full of state-based firms,” says Baker & McKenzie national managing partner Chris Freeland. Once the Australian office was opened, those managing it were instrumental in establishing a presence in Asia, and the firm now has 69 offices across 41 countries. Given Bakers’ history, Freeland doesn’t see why the arrival of other global firms to Australia is causing such a stir. “I’m surprised about the comments made about this ‘radical’ concept of global firms. We have been doing it for almost 50 years,” he says. “Clients want assistance right across Asia and they don’t want to deal with lots of different firms in different countries. That sort of opportunity plays so well to a firm like ours.” But becoming global is not something firms can achieve overnight, says Freeland. He believes getting international strategy right will be crucial to the survival of Australia’s largest firms. “We know what it takes to operate on a global basis. It is not an easy thing. It is not something that you can do straightaway.” Despite this, Freeland concedes that a change in national strategy is not out of the question. “We don’t have any present plans to open more Australian offices,” he says. “The firm has historically operated in Sydney and Melbourne and we have been able to service our clients nationally from those two offices. “But we are not ignorant to the growing strength of the west and Queensland, and so I wouldn’t rule out the idea of an office outside of Sydney and Melbourne.”
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Jones Day
Matthew Latham
“No matter what the domestic firms might say, there is no doubt that the foreign firms are taking market share”
Australian offices: 1 (sydney) Lawyers in Australian offices: 37 Global offices: 34 Global lawyers: 2500+
FIVE YEARS is a long time for a global law firm. Although US-based Jones Day first opened an office in Sydney in 1998, it took another eight years to make a long-term commitment to the Australian market. In 2006, the firm poached Corrs Chambers Westgarth partners Matthew Latham and Chris Ahern and branched out from its US capital markets focus to start a domestic practice targeting a greater variety of corporate work. According to the firm’s competitors, it was doomed to fail, says Matthew Latham, Jones Day Sydney’s office administrative partner. “Wind the clock forward five years, and how the world has changed. Rather than being the proverbial shag on the rock, it is proof of concept.” Latham has noticed the shift in market sensibilities with the arrival of more global law firms, and that it’s hitting Australian firms the hardest. “No matter what the domestic firms might say, there is no doubt that the foreign firms are taking market share,” says Latham. “If you look at the type of work done by us, by A&O ... Clifford Chance, this is work that traditionally would have been done by large domestic law firms.” Despite the arrival of global firms and the resources boom, Jones Day has stuck solid to its one-office model in Australia, steadily increasing its head-count to its current level of nine partners and 28 lawyers. The firm might contemplate opening a Perth office down the track, says Latham, but it’s not on the immediate agenda. Asked whether the firm can have a meaningful national practice without a presence in Perth, Jones Day partner Weyinmi Popo says, “That may be the prism through which the Magic Circle firms view Australia, but I think ... that is very much a Johnnycome-lately view of Australia.” The poaching of energy and resources specialist Tony Wassaf from Allens Arthur Robinson last year has given Jones Day a client base in that market. However, its main focus continues to be M&A and corporate work, with private equity transactions an increasingly important part of the firm’s Australian revenue stream. “The suggestion that the Australian economy boils down to Perth is laughable,” says Popo. “We were here before the boom and will continue to be here after.”
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coverstory
Holman Fenwick Willan
Alex Baykitch
“It is a question of going in there and saying, ‘We can do it all for you...’ We think that has some attraction”
Australian offices: 3 (Melbourne, sydney and Perth) Lawyers in Australian offices: 50 Global offices: 13 Lawyers in global offices: around 400
ON 1 JUNE, Holman Fenwick Willan became the latest global law firm to expand to the west coast. Although the English-based firm has been in Australia since 2006, opening an office in Melbourne and then Sydney in 2009, Perth signals a major shift in its strategy away from its traditional focus of maritime law and transport logistics. “We are known best for our expertise and capability in shipping but, on the back of that, as clients like Maersk [one of the world’s largest shipping container companies] have diversified into other areas such as oil and gas, so has the firm,” says Holman Fenwick Willan partner Alex Baykitch. “We are beefing up our expertise and capabilities in those areas – not just on the corporate side, but also on the asset and finance side.” Baykitch says the firm has looked into the feasibility of opening in Perth since January 2010, but what pushed HFW to act was a request by one of its large Australian oil and gas clients to establish a dedicated office there. Leading the Perth operation will be barrister Julian Sher, the former head of Corrs Chambers Westgarth’s Perth office. While Sher’s capabilities are on the commercial litigation side, particularly with regard to banking and finance issues, HFW also poached former Blake Dawson partner James Donoghue, an energy and resources specialist. With around 70 per cent of the firm’s work in Australia sourced from overseas clients, HFW is looking to expand its suite of domestic clients, especially those with cross-border business interests. Baykitch believes this will happen over time, as the firm becomes more visible in the Australian market. Its immediate strategy is centered around convincing existing clients that they can do more for them than just handle transport logistics or reinsurance matters. “It is a question of going in there and saying, ‘We can do it all for you, from taking stuff out of the ground, to putting it on trains, and then putting it onto ships, and the contracts that go with that, not just from the carriage aspect, but also financing it all and putting the deal together. We think that has some attraction.”
Norton Rose WITH 2600 lawyers and 39 offices throughout Europe, the Asia-Pacific, Canada, Africa and the Middle East, the global reach of the Norton Rose Group is huge. The firm’s latest global expansion, via a merger with Canada’s Ogilvy Renault and South Africa’s Deneys Reitz on 1 June, reflects its strategy for growth in the future. “In the context of mining, energy, resources, infrastructure and transport, the merger was an Don Boyd extension of our strategy of looking at where the clients are going and where the work is emerging,” says Don Boyd, deputy chief executive of Norton Rose Group. “I think people It was this thinking that led the firm to enter the overlooked this Australian market in 2010, by way of a merger with increasing local firm Deacons. According to Boyd, it was the cross-border work group’s desire to build a greater presence in Asia that associated with made Australia an attractive venture. the resources, “Norton Rose was looking to expand its position in energy and Asia and saw ... that it was an opportunity to have a mining booms” double play in that you could also move into Australia, which was seen as a highly competitive area with very good large law firms,” he says. “I think what people had overlooked was this increasing cross-border work associated with the resources, energy and mining booms and infrastructure.” According to Boyd, while many global firms were already doing business in Australia, Norton Rose saw an opportunity to merge with a larger, well-known practice in Australia and took it. “Norton Rose wanted to develop, in particular, its mining, infrastructure, energy and transport practices going forward,” he says. By the same token, Deacons had also decided it Australian wanted to be part of an international firm. “Deacons offices: 4 (Brisbane, had formed the view that globalisation was going to sydney, Canberra take place … so it was a happy confluence of events,” and Perth) he says. Lawyers in As for the firm’s future, Boyd doesn’t rule out further Australian expansion but says at this stage there are no plans to offices: open more Australian offices. Rather, it is now focusing 440 on growing its Perth and Queensland offices. “We don’t Global offices: have plans to open in other cities at the present time 39 but, obviously, we’re looking at places where there has Lawyers in been significant growth. Perth has been a very good global offices: operation for us, as for any of the large firms.” 2600
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coverstory
Allen & Overy
Grant Fuzi
“We are not surprised that other firms have replicated our model, because it has been enormously successful”
Australian offices: 2 (sydney and Perth) Lawyers in Australian offices: 80+ Global offices: 36 Lawyers in global offices: 2300+
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IT WAS one of the biggest legal stories of 2010. Magic Circle firm Allen & Overy entered the Australian market by plundering the ranks of Clayton Utz and taking 14 partners from one of Australia’s biggest and most prestigious firms. One year on, A&O is no longer the talking point it once was. However, the firm has certainly made an impact, and has taken work as well as partners from its Australian top-tier rivals. The 2010 Bloomberg M&A Advisory League Tables reveal A&O jumped from 47th position for announced M&A deals in the Asia-Pacific (ex-Japan) in 2009 to sixth in 2010. Speaking about why he and his fellow Clayton Utz colleagues joined A&O, the firm’s Australia managing partner, Grant Fuzi, says: “I think it was a question of whether you want to remain with an Australian law firm providing local law advice on these global transactions, or do you want to be part of a global law firm that is leading and driving the global transactions.” A&O, which has offices in Perth and Sydney, is pursuing a strategy of targeting high-end work in the energy and resources and banking and finance sectors. Magic Circle rival Clifford Chance adopted a similar model, targeting blue-ribbon work in Sydney and Perth – a development Fuzi believes will not impact upon his firm’s Australian client base. “The arrival of Clifford Chance hasn’t made things harder for us at all,” he says. “We are not surprised that other firms have followed suit and replicated our model, because it has been enormously successful.” Further lateral partner hires at the top end and the recruitment of junior lawyers has seen A&O grow to 22 partners and more than 80 lawyers in its Sydney and Perth offices. The firm has set itself a target of 30 to 40 partners in Australia within the next three to five years. Fuzi believes the firm’s international connections will enable it to select the brightest young graduates, ensuring its long-term growth in Australia is largely organic. “We have one year’s experience of graduate recruitment under our belt. In Perth we have 100 per cent acceptance of our offers, and in Sydney it is not far off that,” he says. “This is a much higher rate when compared to domestic firms.”
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Clifford Chance
Peter Charlton
“The most active M&A market in Asia is Australia”
Australian offices: 2 (sydney and Perth) Lawyers in Australian offices: 26 Global offices: 32
THE NEWEST global law firm on the Australian block arrived with a bang. Clifford Chance opened on 1 May this year after a merger with boutique firms Chang, Pistilli & Simmons in Sydney and Cochrane Lishman Carson Luscombe in Perth. For many years it was mooted that Mallesons Stephen Jaques would be Clifford Chance’s strategic partner when it entered the Australian market. But as Peter Charlton, the head of the Asia region, told Lawyers Weekly at the firm’s launch party on 3 May, a merger with a small firm became its preferred model, so it could pursue a strategy that concentrated on high-end work across the banking and finance, M&A and energy and resources sectors. “The most active M&A market in Asia is Australia,” says Charlton. “The things that make sense at Clifford Chance and align with our global strategy are fund formation, high-end finance and particularly crossborder work. “We are global leaders in financial regulation, and the whole regulatory environment around the world is changing. Why shouldn’t Australia have a piece of that and pay for it?” By linking with CPS and CLCL, two well-regarded boutique firms, and bringing on board Ian Cochrane and Michael Lishman – former Mallesons senior partners with an existing blue-chip client base – Clifford Chance hopes to make inroads into the domestic market. Clifford Chance Sydney managing partner Mark Pistilli acknowledges the risk involved in taking on firms at the top of the Australian legal pyramid while referring “add-on” work, but he believes it is a risk worth taking. “The way this model works is to be friendly with other law firms. So we abide by our ethical standards to refer out pieces of work, and we often call on the expertise of others when there is a piece of the transaction missing,” he says. LW
Lawyers in global offices: 3200
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career
counsel
Joint venture
Grin and share it: 2011 Lawyer of the Year Award winners Amanda Goodier (left) and Shayla Strapps share the role of principal solicitor at CASE for Refugees in Western Australia.
Lawyers turn a part-time work arrangement into a winning partnership. Briana Everett reports WORKING TOGETHER as principal solicitors for not-for-profit organisation CASE for Refugees, lawyers Amanda Goodier and Shayla Strapps have proven the part-time work sceptics wrong. Last month they were jointly awarded the Law Society of Western Australia 2011 Lawyer of the Year Award, demonstrating that part-time and work-from-home arrangements are not an impediment to career success and recognition. “That’s what we like so much about the community legal sector,” says Strapps. “There’s so much acceptance about parttime workers, about working from home, about working mothers.” Strapps and Goodier share the role as principal solicitor at CASE for Refugees, working approximately two-and-a-half days each, including some days from home. “It can be a struggle as a lawyer to find fulfilling work part-time, but by sharing the role with Amanda at CASE for Refugees, I’ve had the opportunity to help refugees and the poor,” says Strapps. “I’m juggling raising a young family with working, so job sharing gives me the flexibility to work when I can.” Strapps maintains that sharing the management of the practice, which includes nine other staff, requires efficiency, organisation, communication and flexibility – from both the employer and employee. While part-time employees need
58 % 63 % SOURCE: ROBERT HALF INTERNATIONAL WORKPLACE SURVEY
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of Australian employees admit that they stay connected to work or do workrelated tasks when they are on holiday
of those say that filtering through work emails on holidays means they’re less stressed when they return from their break
to be organised, firms and organisations also need to review expectations and ensure that work targets are realistic. “It’s important for the staff to understand who it is that they need to approach on different matters and for there to be a reasonably clear delineation about who answers what questions,” she explains. And avoiding the “time-consuming talking stuff” within an office environment, according to Strapps, is essential for those working only a few days per week. “It’s very easy to be working supposedly two days a week and instead be working four days a week because there’s this pressure to get the work done,” she says. “Again, that comes back to really good communication between the employer and the employee.”
my
next move
With Ralph Laughton, managing director, Dolman
Q A
What advice do you have for young lawyers who aspire to private practice greatness?
You want to be successful in your new profession, so you studied hard for many years to prepare yourself to obtain greatness at a “big firm”. And it worked – you got the coveted job that you dreamt about. Now what? Make a career plan. Don’t rely on the firm to chart your career for you. As Alan Lakein, a well-known author on personal time management remarked, “Failing to plan is planning to fail”. You need to take the initiative with respect to your career path. Here are some triedand-tested tips: Set career goals: This is where you formulate your plan. Where do you want to be professionally in five or ten years? What’s your “end game”? Write it down.
Immerse yourself in the law: Become a good lawyer. Seek out a mentor, ask for constructive feedback and learn from your peers. Network: Develop meaningful relationships with as many people as possible within your profession, business community and the community at large. Who you know will be as crucial to achieving your goals as what you know. Join associations. Build your credentials: You need to develop a reputation as an expert so that your network of contacts will not only use you, but also recommend you. Four words: write, speak, teach, chair. Make thinking about your career plan and goals a routine habit. You’ll quickly become more aware of opportunities as they present themselves to you. It’s the best clear path to big-firm partnership, in-house general counsel or to achieving your ultimate goal – whatever that may be.
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folk
law
Breast defence A WOMAN’S sizeable cleavage has drawn more attention than usual in an American court after an Illinois lawyer claimed the presence of the large-breasted woman was a distraction to the jury. As reported by Lowering the Bar, the Illinois lawyer filed a motion seeking to prevent his opponent’s female “companion” from sitting with him during the trial, on the grounds that the woman’s rather large breasts would distract the jury. The motion states, “Defendant’s counsel is anecdotally familiar with the tactics and theatrics of plaintiff’s counsel... Such behaviour includes having a large-breasted woman sit next to him at counsel’s table during the course of the trial. There is no evidence whatever that this woman has any legal training whatsoever and the sole purpose of her presence ... is to draw the attention of the jury away from the relevant proceedings before this court...” According to the plaintiff’s response, the voluptuous woman was in fact the lawyer’s paralegal and fully qualified. “The defendant’s motion does not cite any existing law or make any good-faith legal argument for the proposition that a woman may be barred from a counsel’s table at a jury trial because she is ‘large-breasted’,” responded the plaintiff side. While the outcome of this motion is unknown, Folklaw isn’t quite sure what to say about this rather ridiculous but not particularly surprising use of court time. One can only feel sorry for the poor paralegal whose ample cleavage was the subject of court discussion and now officially on the record.
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THE EUROPEAN rumour mill is running hot with claims that one of Linklaters’ top business law partners has been nabbed for tax evasion after an incident involving leather pants and a non-plussed customs officer. RollonFriday reports that Ralph Wollburg, a partner at Linklaters but formerly of Freshfields, arrived at Germany’s Düsseldorf airport in February after a trip to New York. Apparently, in said partner’s bag were a rather expensive blouse and what has been described as “some sort of leather trousering” (reports in the German press described them as “lederhose”) What is unclear, apparently, is whether the pants were of the tight, glossy nightclub variety or the more traditional German, beerswilling, thigh-slapping national dress kind. Whatever his preference, Wollburg claimed they were gifts for his wife and that he had receipts to the value of €3,500. A customs officer reportedly told Wollburg he had to pay tax on the pants, to which the partner replied that he had already done so in the US. Unfortunately for him, his claims of, “Do you know who I am? I am one of the leading business lawyers in Germany” didn’t earn him any sympathy, and the officer promptly charged him with tax evasion. The officer then went on to issue a press release about the leather pant incident, describing the culprit as a “54-year-old man from Düsseldorf”. Sources told RollOnFriday that the partner in question is Wollburg, and the firm apparently refused to deny it.
Leather pants land partner in tight spot
Vandal lawyer drives straight into trap A BITTER and twisted lawyer in Seattle has been busted engaging in a bit of vandalism and name-calling in what appears to be a crusade against bad drivers. The Seattle Post-Intelligencer reports that lawyer Ronald Clarke Mattson has been accused of keying at least three cars, including one that was deliberately parked askew in an attempt to catch Mattson out. The first incident occurred in March when a woman returned to her Ford SUV to discover an angry note, penned on Washington Athletic Club stationery, on her windscreen. The note’s author politely suggested she “take some parking lessons” and called her an “idiot”. The woman later realised someone had dragged a key across her car doors. The second incident involved another woman who also returned to her car to find an terse note stuck to her Volvo station wagon. “Where did you learn how to park, Dweeb!!” it read, also scribed on Washington Athletic Club stationery. According to Mattson’s charge documents, fed-up building security officers eventually set up a sting operation in which they parked a Pontiac sedan askew in the area where the other cars had been keyed. As surveillance officers watched, Mattson drove straight into the net: he passed the Pontiac in his silver Porsche, stopped, reversed back, parked and then approached the car. Security officers later told police that Mattson was caught red-handed scratching the Pontiac. Busted, custard!
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