Lawyers Weekly, July 8, 2011 by Rebecca Whalen

THIS WEEK

COUNTRY REPORT

IN-DEPTH

OPINION

New Clutz partners all female

The enduring allure of HK

Lawyers, camera, action

Why Mallesons joined Facebook

BREAKING THE GLASS

BRIGHT LIGHTS

BARRISTERS BEHAVING BADLY

SOCIALLY AWARE

www.lawyersweekly.com.au

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Friday 8 July 2011

THE LEGAL RAINMAKERS How they make a splash in the M&A ocean

Expecting more this financial year? In-house Sydney | Banking

Sydney | Corporate

Sydney | Construction (back-end)

Exciting and diverse banking & finance role has arisen within this major international bank. Ideal first in-house move for a dynamic lawyer from a major firm with experience across financing transactions, loan structuring, DCM or derivatives. Excellent verbal and written communication skills are also a must! Enjoy a first class, complex workload within a collegiate, high-performing team environment. Ref: SYD/4363/DS

A rare opportunity exists for a dynamic Corporate Lawyer to move into a highly commercial role within this global business. You will work with the wider business and external stakeholders in drafting transactional documentation and provide advice around transactional risks and exposures. 2-5 years M&A, Private Equity or Banking & Finance experience gained at a major law firm is essential. Ref: SYD/4319/DS

An experienced back-end construction lawyer is needed to step on board and take the lead on a highly contentious construction dispute. This is a wide and challenging contract role which involves a hands-on approach in managing developers, contractors and external counsel. This is a unique opportunity to broaden the scope of your experience with an outstanding legal team. Ref: SYD/4295/OH

2 – 4 years

Sydney | Retail Banking 5 years +

One of Australia’s leading financial service providers is looking for a customer service focused banking lawyer for its expanding in-house team. You will work within a collegiate environment advising on a full spectrum of financial services matters. 5 years retail banking, or financial services experience gained at a top firm or recognised industry player is essential. Ref: SYD/4314/OH

2 – 5 years

Sydney | Construction 2 – 5 years

This internationally recognised Construction & Engineering company has a new opportunity for a dynamic lawyer to handle negotiations and advice on a range of high-profile projects. Front-end or mixed Construction Law experience required from a major law firm and/or a leading company in the infrastructure sector. Work directly with the business and take responsibility for your own portfolio of internal clients! Ref: SYD/4189/DS

10 years +

Sydney | Construction (front-end) 5 – 7 years

New, front end construction role working for a highly regarded infrastructure company. You will work closely with a key business unit advising on a range of engineering services contracts, subcontracts and commercial agreements. Experience in a mid or top tier firm or respected engineering, construction or infrastructure firm is desired. Ref: SYD/4362/OH

Private Practice Sydney | Construction

Sydney | Projects

Sydney | TMT

Fantastic opportunity to join a premier firm. This practice is led by industry recognised partners briefed by impressive clients on a variety of interesting construction, property and energy projects. You will gain hands-on experience in a team that encourages its lawyers to gain maximum client contact from a junior level. Mid or top tier experience and a positive can-do attitude required. Ref: SYD/4350/OH

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

Talented and ambitious lawyer is sought to work for top-tier partners and expects in this practice area. Exposure to a range of wholesale and commercial transactions with a particular focus on telecommunications, media and general communications work. Cross-border transactions across the Asia and the Middle East make this an exciting and challenging role. Hands on role and opportunities to travel overseas. Ref: SYD/4356/GG

3 – 5 years

3 years plus

2–3 years

Sydney | Banking & Finance

Sydney | Litigation

Brisbane/Sydney | Native Title

This firm has one of the most pre-eminent Banking & Finance practices in the Australian market and is seeking a savvy banking and finance lawyer for its expanding team. You will act for domestic and international banks and major financial institutions on a range of banking & finance areas including acquisition/leveraged finance, project/infrastructure finance, and corporate financing. Strong academics and a commercial approach are essential. Ref: SYD/4353/OH

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. Highly competitive salary and bonus scheme available. Ref: SYD/4284/RL

If you are a specialist in both the Native Title and Cultural Heritage practice areas and based in either NSW or QLD. Working across both the jurisdictions you will have the opportunity to travel. Exposure to a high calibre client base in the mining and resources sector. You will have strong drafting, technical and negotiating skills and the ability to work autonomously. Ref: BRI.SYD/4361/GG

2 – 5 years

Sydney | Trademark/IP litigation 2 years +

Our client is a top tier firm and is seeking a junior trademark lawyer and an experienced IP litigator to join their collegiate team. The successful candidates will have 2 or more years experience gained at a well respected firm, strong academics and an outstanding commitment to client service. Top quality work and exceptional career opportunities on offer. Ref: SYD/4175/OH | SYD/4268/OH

Associate

Senior Associate

Sydney | Employment

Melbourne | Litigation

Senior Associate

Excellent opportunity for a senior associate to join this growing national firm and work with an accredited specialist. You will work on a diverse range of contentious and non-contentious matters including industrial/employment disputes, drafting a variety of employment agreements, and advising on equal opportunity and OH&S matters for blue chip clients. Clients include corporates from a range of industry sectors and government bodies. Ref: SYD/4022/RL

For a full list of active roles that Dolman is working on throughout the worldwide visit www.dolman.com.au For further information please contact one of our consultants for a confidential discussion: Gail Greener ,Ralph Laughton, Daniel Stirling and Olivia Harvey. Sydney (02) 9231 3022 Melbourne (03) 8637 7317 or email dolman@dolman.com.au

3 years +

This premier national firm has a new opportunity for an ambitious insurance litigator to work on a broad spectrum of insurance matters. Ideally you will have previous experience working on a range of contentious insurance issues and policy advices, a solid litigation background will also be considered. Excellent academic results are essential together with enthusiasm and energy. Great career opportunity. Ref: MEL/4337/GG

“What we love and what we hate about the job, they are almost the same thing”

Contents

Mallesons Stephen Jaques M&A partner Craig Semple – Page 18

regulars

6 10 12

Features

COUNTRY REPORT: Claire Chaffey discovers why Hong Kong remains the place to be for lawyers from all over the world.

THIS WEEK: A round-up of the latest legal news

IN-DEPTH: Working on the groundbreaking legal documentary On Trial was a labour of love for producers Michael Cordell and Ian Collie. Claire Chaffey reports

IN-DEPTH: The experience of young barristers and solicitors was the inspiration behind the devious and revealing ABC drama Crownies. Stephanie Quine reports

OPINION: Mallesons Stephen Jaques’ Sue Ashe explains why law firms need to embrace social media, despite the risks involved CAREER COUNSEL: Organisations are still failing to adequately address the career progression needs of their employees, according to a new survey. FOLKLAW: The lighter side of the law

COVER STORY: They are the rainmakers of the legal world, the lawyers who sit at the table on billion-dollar M&A transactions. Justin Whealing finds out what makes them tick

Another rung bites the dust. Congratulations to our three newest Senior Associates, Despina, John and Tim. All bright talents. All hard workers. All promoted from within. [The climb continues.]

Despina Adamopoulos Commercial Disputes & Insolvency

COMMERCIAL | TAXATION | INSURANCE

John Chouris Insurance

Tim Graham Corporate & Commercial

L 14, 100 King William Street, Adelaide SA 5000 p: +61 8 8124 1811 www.foxtucker.com.au

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Editor’sNote

Editor, Justin Whealing

JOIN THE CONVERSATION Tweet, tweet Get your 140 characters of must-know legal news via @lawyersweekly Friendly faces Follow Lawyers Weekly on Facebook at www.facebook. com/lawyersweekly

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.

L AW Y E R S W E E K LY 8 J U LY 2 0 11

THIS WEEK’S edition of Lawyers Weekly profiles lawyers who work at the top end of the corporate sphere, lawyers with a growing client base in the not-for-profit sector and lawyers within the criminal jurisdiction. The rainmakers within the M&A practice groups (see cover story on page 18) at the top-tier firms are often the public face of some of Australia’s most well-known law firms. With the Australian Government stopping the proposed $8.4 billion merger between the Australian Securities Exchange and the Singapore Exchange earlier this year and, more recently, the ACCC taking Federal Court action to try and stop Metcash acquiring Franklins and the ASIC-led overhaul for the drafting of a prospectus, M&A and capital markets lawyers have assumed very important roles. For the captains of industry and commerce, they want lawyers and their respective firms to have commercial nous and a sound relationship with the various regulators. This means that for Australia’s leading M&A lawyers today, their negotiation skills are just as important, if not more so, than any “black letter” law knowledge they might possess. At the less glamorous end of the legal spectrum, while lawyers in the not-for-profit or criminal jurisdiction area might not be presiding over billion dollar transactions, in many ways the stakes for their clients are higher. New Way Lawyers, Australia’s first non-profit law practice, has gone from a start-up firm with no clients or staff to now having 11 staff and 160 clients (see Stephanie Quine’s story on page 9). Its founder, Carolyn Devries, said it is looking to open a second office in Brisbane, as its largely middle-class client base – which is ineligible to access legal aid – continues to take advantage of its fee-for-service pricing structure. Documentary makers Ian Collie and Michael Cordell have been shining a spotlight recently on the criminal justice system with their documentary On Trial, which recently screened on the ABC (see Claire Chaffey’s story on page 10). In an Australian first, they had access to film a murder trial, robbery and assault trial in the Supreme Court of WA and District Court of NSW. This program demonstrates the tremendous level of rigour, dedication and expertise that lawyers within the criminal jurisdiction bring to their jobs. The legal profession is a broad church indeed, with its importance keenly felt throughout all levels of Australian society.

TOP 10 STORIES ONLINE THIS WEEK

1 2 3 4 5 6 7 8 9 10

Clutz harassment case back in court Gloomy career prospects for law graduates MasterChef challenge faces Allens critique Blackburn boost could be Freehills’ blow Blakes adds 18 partners across Asia-Pacific Clutz partner promotions all women New DPP drama mirrors real life What not to do in interviews ASIC wins case against Centro directors Court documentary a worthwhile drama

NEXT WEEK

Following the recent struggles of mental illness sufferers Magistrates Jennifer Betts and Brian Maloney to save their positions on the bench, Lawyers Weekly looks at the issues surrounding mental illness in the legal profession and workforce participation.

EDITORIAL BOARD Lawyers Weekly is delighted to have the following industry leaders on its editorial board 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, Thomsons Lawyers

ABOUT US Editor: Justin Whealing Deputy Editor: Claire Chaffey Senior Journalist: Briana Everett Journalist: Stephanie Quine Designer: Ken McClaren Design Manager: Anthony Vandenberg Senior Online Producer: Rebecca Whalen Group Production Manager: Kirsten Wissel Group Sales Manager Adrian Fellowes Senior Account Manager Stephen Richards 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 sales@lawyersweekly.com.au (02) 9422 2134 (mob) 0407 489 060 Stephen Richards stephen.richards@lexisnexis.com.au (02) 9422 2891 (mob) 0429 305 836 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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YOUR PROFESSION OUR PASSION Finance Lawyer - Structured Products - 7 years+ PAE. Sydney.

Resources and Legislative Advice Lawyer - 3-6 years PAE. Brisbane.

The Australian operation of this global financial services organisation provides products and trading services to institutional and investment customers. They have created a position for a banking and finance lawyer with significant experience in equities and derivatives products.

This leading in-house Government department is commercially driven but still retains all of the beneﬁts of Government. Servicing a wide range of internal clients, you’ll delve into resources and native title law and have the goal of exploring and advising thoroughly on all legal issues rather than just ‘pushing the deal through’.

You’ll have gained this experience either within the relevant practice of a leading law ﬁrm, or in a similar role in another major ﬁnancial services organisation.

As an exceptional advice writer with a minimum of three years PAE, your experience doesn’t have to be from these practice areas. This is a one of a kind opportunity and your chance to break into these boom practice areas.

In return you’ll have the opportunity to work with teams who offer innovative and successful products to institutional investors around the world. 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, handling a broad range of work for established clients and building their network within a growth industry. You’ll have a strong academic track record and a minimum of four years experience in a corporate practice group, although direct experience with energy and resources clients is not essential.

Contact Shane Badman at shane.badman@hays.com.au or 07 3243 3033. Banking and Finance Lawyer. Melbourne. This firm services blue chip organisations and large financial institutions in the banking sector. They are seeking two lawyers to join their rapidly expanding practice to deal with work relating to recent changes in legislation and banking practices. Success will be achieved with your minimum of two years PAE experience in banking and finance law and desire to further your career. Contact Renee Turner at renee.turner@hays.com.au or 03 9604 9669.

This is an excellent opportunity to take advantage of the beneﬁts of working for a truly global law ﬁrm.

Senior Legal Counsel - Construction. Perth.

Contact Matthew Lancey at matthew.lancey@hays.com.au or 02 8226 9664.

This progressive international organisation provides services to both mining and oil and gas sectors. A construction law specialist with seven to ten years’ PAE is required to take a lead role in the provision of legal services to the business.

In-house Corporate/Commercial Lawyer - 7 years+ PAE. Sydney. This pioneering energy generation business is part-owned by one of the biggest companies in the world. As a result of a signiﬁcant project win, their Australian operations have grown to the point where they now need an experienced in-house lawyer to advise the board and management team on all corporate, commercial and regulatory issues. As an experienced corporate and commercial lawyer, you’ll be able to demonstrate experience advising major businesses on a range of issues, from joint ventures and statutory requirements to supplier contracts and property/environment related matters. Contact Matthew Lancey at matthew.lancey@hays.com.au or 02 8226 9664.

hays.com.au

You’ll be involved in drafting and negotiating major construction contracts, and advising project and commercial teams at all stages of the project. You’ll build key relationships in the business, and oversee and assist in the development of junior lawyers in the team. You’ll either be working as a senior associate in a toptier construction practice or in a similar in-house position. Strong drafting and negotiation skills, a commercial approach and excellent interpersonal skills will ensure your success. Contact Stacey Back at stacey.back@hays.com.au or 08 9254 4598.

thisweek

Allens takes on eight Indigenous interns Allens Arthur Robinson began its annual Indigenous winter internship program by placing eight Indigenous law students within the firm’s Sydney and Brisbane offices. The program is a core part of Allens’ pledge to provide employment opportunities to Indigenous people under the firm’s Reconciliation Action Plan. “Under the plan, we have five areas that we work under: pro bono, commercial relationships, leading in the profession, building cultural awareness and creating employment opportunities,” said graduate resourcing & development manager Bryony McCormack. New book a safe bet Norton Rose partner Michael Tooma authored a new book to challenge the standard approach to occupational health and safety. The second edition of Safety, Security, Health and Environmental Law was updated to address the new Model Work Health and Safety laws and recent landmark decisions. Tooma proposes 20 elements of safety, security health and environment management and highlights the legislative treatment of the areas in international jurisdictions.

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The Web

Lawyers unite against Victorian sentencing plans The Victorian Government’s mandatory sentencing proposals will lead to greater crime rates and turn jails into “schools for crime”, said the Law Institute of Victoria. The Law Council of Australia urged the Government to abandon its plans to introduce statutory minimum sentences for the offences of intentionally causing serious injury and recklessly causing serious injury, when either offence is committed with gross violence, and to retain judges’ and magistrates’ discretion.

Clutz partner promotions all women

Women dominated Clayton Utz’s latest round of partner promotions, with all three newlyappointed partners being female. Shae mcCartney (pictured) in the firm’s Brisbane workplace relations & safety practice, mary Pringle in the Perth real estate practice and Fran Rush in the Sydney banking practice joined the firm’s partnership, effective 1 July. a former partner of Clayton Utz, Rush has rejoined the partnership after recently returning to the firm. the latest additions to the firm’s partnership bring its total female partner headcount to 39 and the proportion of female partners to just under 20 per cent.

R E W IND

“Certainly they are all females but each of them are extremely competent lawyers,” Clayton Utz chief executive partner darryl mcdonough told Lawyers Weekly. “in many ways [the promotions] are no more than a reflection of where our firm is at the moment. most of our senior associates and special counsels are female and i think you’ll find a growing trend of women moving into the partnership. We work pretty hard at trying to get the systems right to encourage them to be able to do that.” according to mcdonough, the firm’s partnership growth strategy involves consolidation in some practice areas while growing other areas. “i’m expecting that things will be perhaps a little bit easier in the year to come, hopefully, and that there will be a lot more opportunities opening up.” also announcing partnership appointments last week was Blake dawson, which added 18 new partners, including 13 internal and five lateral appointments, to bring the firm’s total partner headcount to 186. the firm’s new partners in australia are Phil Breden, david mcmanus, timothy Sackar, Graeme tucker and Ross Zaurrini in Sydney; Gaelan Cooney, William Coulthard, Robert Lilburne, antonella Pacitti and Peter Ward in Perth; tanya denning in adelaide; Jane ellis in Brisbane/ Sydney; Jeff Lynn in melbourne; and Gavin Scott in Brisbane.

Federal Opposition leader Tony Abbott called for the immediate resumption of live cattle exports to Indonesia, saying there is no reason for the suspension to remain in place. An Islamic group which is banned in parts of Europe and the Middle East told the Australian Government to “get out” of Afghanistan after a conference, held in Lidcombe, questioning the role of the West in the Middle East. The Australian Securities and Investments Commission proposed that Tim Johnston, the former chairman of Firepower who lost $100 million of investors’ money, be banned from running a company for 20 years. European finance ministers saved Greece from financial disaster yet again by agreeing to allow Athens access to another crucial financial aid package worth €8.7 billion ($11.7 billion). British Prime Minister David Cameron promised to withdraw 500 troops from Afghanistan by the end of 2012, taking the total number of troops in the troubled country to less than 9000.

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thisweek

Movers & Shakers

D E A L O F T HE W E E K

Three firms power solar deal Deal name: Funding agreements for Solar Flagships Program to support large-scale solar power plants in Australia. Key Players: Norton Rose, Blake Dawson, Allens Arthur Robinson

NortoN rose has acted for the Department of resources, energy and tourism on the drafting and negotiation of the solar Flagships Program funding agreements. the solar Flagships program is part of the Australian Government’s $5 billion Clean energy Initiative and will support the construction of up to four large-scale, grid-connected solar power stations in Australia, using solar thermal and photovoltaic technologies. “the solar Flagships program represents one of the most globally significant transactions in the solar industry and will help establish Australia as a leading supporter of utility scale solar power,” said lead partner Vincent Dwyer, who is the Asia Pacific leader of the firm’s energy practice. other Norton rose partners who advised the Government included edwina Menzies, Geeta ram, Natasha Vyrnwy-Jones and Lynn Nguyen. Blake Dawson acted for solar Dawn

– a consortium of France’s Areva, Queensland state-owned Cs energy and the UK’s Wind Prospect. the team was lead by partner Joseph Mulcahy (construction), Paul Newman (energy) and simon Brown (corporate). senior associate tae royle also worked on the transaction. Allens Arthur robinson acted in the transaction for the consortium, comprising BP solar, Fotowatio renewable Ventures and Pacific Hydro. the Allens team was led by rob Watt as well as lawyers Nigel Papi and Andrew Mansour. on 18 June the Federal Government announced the consortium had been chosen to develop Australia’s first utility scale solar PV project under its $1.5 billion solar Flagships Program. Planning approval for the Moree solar Farm project is imminent. Full funding approval is expected by the end of 2011 and construction is scheduled to begin in mid 2012.

DE AL MAKERS

Justin O’Farrell

Fiona Smedley

Leighton O’Brien

Firm

Freehills (Abacus) Blake Dawson (Heitman LLC)

Freehills (UBS AG) Clayton Utz (ING)

Allens Arthur Robinson (Plenary Group); Clayton Utz (Government); Piper Alderman; Freehills; Mallesons Stephen Jaques

Deal name

Abacus joint venture

UBS acquires ING investment manager

PPP to deliver Defence Force accommodation

Area

Corporate transactions

Corporate M&A

PPP

Value

$600 million

$34 billion

$900 million

Key players

Freehills partner Justin O’Farrell

Freehills partner Fiona Smedley

Allens partner Leighton O’Brien

Sparkes lawyer joins IBA Sparke Helmore’s national executive officer, Stephen Macliver, was appointed Secretary-Treasurer of the Public and Professional Interest Division of the International Bar Association (IBA). Macliver’s appointment will see him become one of only nine elected officers that constitute the senior leadership of the IBA. Wallmans replaces CEO with managing partner Following the resignation of its CEO Catherine Schultz, who held the leadership position for just one year, Wallmans Lawyers appointed partner Trevor Edmond as its first managing partner in over a decade. Effective 1 July, Edmond will work with a board of five internal partners. Partner leaves Freehills for Corrs After 18 years at Freehills, commercial property partner Jay Andrews joined Corrs Chambers Westgarth. Joining Corrs’ Sydney office as a partner, Andrews advises on major transactions in the hotel and leisure sector. ABL adds Leibler’s son to partnership Arnold Bloch Leibler promoted four to its partnership, including Jeremy Leibler (pictured), the son of senior partner Mark Leibler. Jeremy Leibler joined his father’s firm in 2003 as an articled clerk and was appointed senior associate in 2009. Also joining the firm’s partnership from 1 July are Caroline Goulden, Matthew Lees and Genevieve Sexton.

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thisweek

Ex-Bakers chair new IMF head

The Former global chair of Baker & mcKenzie has become the first woman to head the international monetary Fund (imF). Christine Lagarde, formerly the French minister of Finance, beat mexican central bank governor augustin Carstens to land the plum role, which has traditionally always been filled by a european. She will replace Dominique StraussKahn, who stood down as the head of the imF in may after he was charged with sexual assault and attempted rape by american authorities. Prior to becoming a political figure, Lagarde was a senior partner with Baker & mcKenzie. She spent nearly 25 years at the firm, becoming its first female global chair in 1999 and being appointed as the head of the global strategic committee in 2004. The firm’s current global chair, eduardo Leite, described Lagarde as “an effective leader, who used her intellect, discipline and diplomacy to take the firm to new heights”. Lagarde assumes the role as the head of the imF at a time when many european economies are at crisis point, with violent protests against austerity measures in Greece. She formally assumed her new role on 5 july.

Pipers no longer plays workers comp tune PiPer AldermAn managing partner Tony Phelps will part ways with long-time colleagues Tracey Kerrigan and mark Keam as they leave the national firm to form a new boutique workers compensation firm in South Australia. The new firm, which is yet to be named, is due to open at the beginning of October this year and will be headed by the departing Pipers partners Tracey Kerrigan, mark Keam, John Hiatt and neville John. According to Phelps, the creation of the new firm reflects the national firm’s overall strategy to focus on dispute resolution, corporate law, employment relations and property and projects. “There was a divergence of direction. nationally, we’re trying to concentrate on a corporate/commercial practice with high-end litigation,” Phelps told Lawyers Weekly. “it’s incompatible to have a state-based workers compensation group at the same time - we’re heading in different directions.”

According to Phelps, the decision to cut the workers compensation arm of Pipers has been on the table for quite a while. “Workers compensation work has been under pressure for a long time ... the group itself has gradually reduced in terms of number of partners and number of lawyers in the area over the years and it just got to the point where it was no longer viable within a big organisation like us. it had to go specialist,” said Phelps. “it’s sad ... but it’s the advent of pressure on rates and practice areas. it’s happened in insurance practices all over Australia.” Phelps, Keam and Kerrigan have a long history, having gone to university together and starting at Piper Alderman within a week or two of each other, making it a “bittersweet parting” for the group. “We are remaining best friends. Of the four partners [leading the new firm] we’ve got over 100 years of experience between us with Piper Alderman,” said Keam. “We’ve had an extremely long association so there’s a fair degree of loyalty between the two firms and that’s been really helpful through the process.” Although the firm won’t be officially operating for another few months, Keam said the firm’s short-term priority is to ensure the effective transfer of clients. “We’ve had a 100 “it just got to the per cent take-up in point where it that regard,” he said. was no longer “Clients will see little viable within a big change from what organisation like they’re currently us. it had to go experiencing in a specialist” day-to-day way.”

Firms ignore value of client feedback The majoriTy of law firms (59 per cent) are not prioritising client feedback programs, thus causing frustration amongst in-house counsel. a global survey commissioned by LexisNexis* martindalehubbell has revealed that 52 per cent of law firms do not have a structured client feedback program and of those that do organise client satisfaction surveys, many fail to act upon the feedback and share those findings throughout the firm.

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“Firms that proactively use insights given by clients are more likely to improve and protect a relationship in the longer term,” said the director of international operations at LexisNexis martindale-hubbell, Derek Benton. “Corporate counsel report that one of their biggest frustrations is giving feedback that is neither properly fed back to relevant parties in the firm nor acted upon.” The survey of 415 senior personnel at law firms around

the world showed a stark division among respondents about the value placed on client feedback. “The most surprising aspect of this survey was the reasons given by firms for not seeking feedback,” said Benton. “For example, 38 per cent of respondent firms reported insufficient staff or resources as the main reason for not doing so.” *Lawyers Weekly is published by LexisNexis Australia.

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thisweek

Clients are flocking to Australia’s first non-profit law practice. Stephanie Quine reports The firsT Australian nonprofit law practice aimed at providing more affordable and ‘compassionate’ legal service is expanding. When Carolyn Devries opened New Way Lawyers (NWL) in 2009 with no other staff, no client base and no prior experience in running a law practice, her dream of building the first non-profit law practice seemed “overly optimistic”. But now, the firm’s office in Corinda, Qld, has five full-time lawyers, four administrative staff, two volunteer law clerks, an active client base of around 160 clients and a strong referral network with mediators, counsellors and accountants. The practice is now opening another office in Brisbane, with a view to expanding throughout Qld and Australia. Operating on a fee-forservice basis, New Way Lawyers is self funded, designed only to cover operating costs, and does not require an eligibility test unlike government-funded legal services. With a growing number of the middle class ineligible for legal aid, yet unable to afford the fees charged by commercial practices, Devries said non-profit practices address the disparity in the legal services market and help people falling through the gap. Devries, CeO and principal lawyer of NWL, is currently investigating legislation in different Australian states which might hinder the process of setting up further non-profit legal services. “A lot will rest on the national profession reform framework and how that sits with incorporated legal practice. We operate under Queensland legislation so it’s quite state specific,” she said. in 2007, the passing of the Legal Profession Act (Qld) allowed law firms the option to operate an incorporated legal practice and structure as a public company limited by

US/UK Update

Non-profit practice fills the gap

Gay marriage stirs up Ny lawyers New York lawyers have celebrated the historic passage of the Marriage Equality Act. After a week of nail-biting negotiations, the Senate voted 33-29 to give final approval to a bill recognising gay marriage in New York. The news was greeted by cheers and shouts among members of the New York State Bar Association House of Delegates who were instrumental in “reshaping the debate” and speeding up the bill’s passing, reports the New York Law Journal. Gaddafi summoned to ICC The International Criminal Court (ICC) has issued arrest warrants for Libyan leader Muammar Gaddafi and his son, Saif al-Islam, over charges of torturing and killing civilians and rebels. Libyan sources revealed that Belarus, which is not a signatory to the ICC treaty, might allow Gaddafi as an exile, though he has insisted he will not leave Libya, reports The Guardian.

guarantee - the common entity type used by charitable organisations. The practice model, according to Devries, has tended to attract more junior lawyers and those with a “passion for this kind of work”. The five lawyers at the Corinda practice which focuses on family, estate and criminal law - come from diverse legal backgrounds with salaries on par with the rest of the profession. “The reality is a lot of older lawyers are already partners of firms and it’s hard to attract them away. We get a lot of junior lawyers,” said Devries. Unlike many community legal centres, NWL provides service to clients right up to court representation and does not have to meet onerous daily billing targets, which according to NWL family and criminal lawyer Philippa Miller-ibos, means more time for “compassion, innovation and creativity”. “Because there is less focus on billable hours you can really take the time to think through a particular situation and develop a tailored legal approach,” she said.

uk justice chops legal aid Drastic cuts to legal aid have been given the green light by Justice Secretary Kenneth Clarke potentially leaving thousands without access to publicly funded legal advice, reports The Lawyer. The reform of the new Legal Aid, Sentencing and Punishment of Offenders Bill aims to reduce the Government’s £2.1bn ($3.2bn) annual legal aid costs, and will affect private family law cases, clinical negligence and personal injury, employment and some debt, housing, immigration and education cases. a&O moves to us Government hub Allen & Overy will expand its US footprint with the launch of an office in Washington DC, following Magic Circle rivals Clifford Chance and Freshfields Bruckhaus Deringer into the US capital. A number of lawyers from A&O’s New York office are anticipated to relocate to DC, reports The Lawyer. The firm plans to expand into areas including securities enforcement, project finance, international arbitration, antitrust and intellectual property.

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indepth

Trials and tribulations

Working on the ground-breaking legal documentary On Trial was a labour of love for producers Michael Cordell and Ian Collie. Claire Chaffey reports

aining access to film a murder trial in Western Australia was a lengthy and difficult process, but one which has changed the way people view the legal system, according to the producers of the groundbreaking documentary On Trial. Ian Collie and Michael Cordell began working on the idea of filming a documentary in the criminal jurisdiction almost five years ago and said it was a process rendered extremely difficult by the fact it had never been done before. Eventually though, they were allowed to film various criminal trials – including a murder trial – in the Supreme Court of Western Australia and the District Court of New South Wales. According to Collie, the result has been an “opening up” of a habitually closed and intimidating system. “After having seen On Trial, people come away with a far more favourable impression of the criminal justice system, so I think that is a positive,” he told Lawyers Weekly. For Collie and Cordell, who have previously produced other legal documentaries for the ABC including A Case for the Coroner and DIY Law (about self-represented litigants in the civil

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(Top left) Ian Collie (left) and Micael Cordell in the WA Supreme Court . (Above) Paul Yovich, senior Crown prosector (left ), David Edwardson QC, senior defence counsel, and a junior defence counsel as they appeared in On Trial .

jurisdiction), capturing the criminal jurisdiction on film was the pinnacle of legal documentaries – and one which was not easy to reach. “We have done a number of court-based documentaries in the past … so the criminal jurisdiction was almost like the last frontier,” said Collie. Collie said it took several years to negotiate with all the various stakeholders, from the Attorney-General’s Department to the courts, the police, the Director of Public Prosecutions and the Legal Aid Commission. “Once we got in, we still needed to get everyone’s permission, so often we’d have cases which would fall down at the 11th hour because we couldn’t get the consent of some key people,” he said. It was these challenges which eventually led Collie and Cordell to Western Australia, where there was less red tape as compared to Sydney and Melbourne, and a Chief Justice of the

Supreme Court (Chief Justice Wayne Martin) who was very supportive of the idea. “The Chief Justice was a big proponent of the transparency of justice, the accountability of the courts and having people see how justice really is done,” said Cordell. “I think he is more progressive than some of his counterparts in other states.” According to Cordell, the fact that many courts are still reluctant to allow electronic media into the courtroom remains a source of wonder. “The law and the courts are institutions which are fundamental to the workings of our Westminster system and democracy and justice,” he said. “At the same time, it has been very difficult for the electronic media to get access to the courts. My background is in journalism, so I have always found it a very stark contradiction that I can walk into a courtroom with a pen and a notepad and freely report on proceedings, but if I walk into that same court with a camera, the [rules] completely change. To me that is a real anomaly.” The reaction to the documentary has been overwhelmingly positive from both the public and the legal profession. Mark Moshinsky SC, the chairman of the Victorian Bar Association, told Lawyers Weekly he thought the series was “superb”. “I thought it conveyed very well what it’s like to run a trial and the pressures and tensions that all of those involved with a trial experience – including the judge, the barristers, the solicitors and the defendant – are under,” he said. “I thought it was a very useful educational tool for explaining to the public what actually happens in a criminal trial.” Cordell said he was particularly conscious of the need to make the right editorial decisions when portraying the trials. “We always feel a responsibility to be accurate and fair, but we felt an added responsibility here, and that was partly to give the audience an accurate idea of what happened during proceedings,” he said. “Inevitably, in these sorts of films, an audience is sitting there as the jury at home. They are intensely interested in how it’s all going to play out and they need to hear some ‘nuts and bolts’ of the evidence, so we worked very hard to try and make the right editorial decisions.” While Collie does not rule out a second series, Cordell said this series does not yet signify the beginnings of a tirade of courtroom documentaries. “I don’t think we are going to reach a point anytime soon where there is absolutely open slather in terms of electronic media access to the courts,” he said. “But I do think it is inevitable that the courts will open up.” LW

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indepth

when art imitates life

Photo: Wendy Mcdougall

A new television drama looks at how graduate lawyers cope with the demands of working for the Department of Public Prosecutions, both inside and outside the courtroom. Stephanie Quine visited the set

Andrea Demetriades plays young Australian-Palestinian solicitor Lina Badir

he experience of young barristers and solicitors was the inspiration behind a devious and revealing new ABC television drama, Crownies, which is due to air next week. Delving into the world of the Department of Public Prosecutions (DPP) and its eager young lawyers, Crownies is a 22-part series following five young graduates as they face the pressures of a fast-paced workplace, deal with horrific crimes, and tackle the big issues which arise in an apparently civilised society. One of the masterminds behind the concept is Hilary Bonney, a script associate on the show and a barrister who once worked at the Office of Public Prosecutions in Victoria. Bonney is also married to a crown prosecutor, and mentioned to Greg Haddrick, the head of drama at Screentime (the show’s producer), that the goings-on at the DPP might be good fodder for drama. “That’s how it started,” said Jane Allen, a former lawyer and the show’s writer and coproducer, during an interview with Lawyers Weekly.

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“Hilary works with the team at every story meeting. We can draw on all of her stories, all of her husband’s stories. It’s great to have her constant feedback and someone to say, ‘Here’s something that happened to me’,” said Allen. Allen worked as a sole practitioner in criminal defence before joining Slater & Gordon, where she travelled the country taking statements from women involved in a class action against a manufacturer of silicone breast implants. She draws on this experience when writing for the show. “We had thousands of clients across Australia. It was an extraordinary job to do,” she said. “We saw woman after woman terrified that she had a ticking time bomb inside of her. We were just chucked in and had to cope with all of that.” Allen said her previous life as a lawyer means she is not afraid to use technical language and draw on the myriad stories which arose during her career. Cast members Andrea Demetriades, Hamish Michael and Marta Dusseldorp each said they were ignorant of, or “had no take on”,

prosecutors before beginning work on Crownies. “All I knew was what I’ve been fed through the media and American crime shows, mainly about defence,” said Dusseldorp, who plays senior crown prosecutor and ‘head honcho’ Janet King. Fortunately, though, the cast and crew had significant access to the “real DPP”, which series producer Karl Zwicky said “has helped to portray how the people working there (particularly women) get their release from dealing with such terrible crimes” - crimes which he adds the show “does not sugar coat at all”. “We went into the offices of the NSW DPP and looked around when we were designing our set. We wanted to get that sense of working in a big office - they’re lawyers but they’re working in a big bureaucracy,” explained Allen. “We’ve spent a lot of time with members of the DPP and asked them things that have happened and they’ve taken us to court with them.” Dusseldorp said she was taken aback by some cases the show portrays (of which some are based on reality, others amalgamations of real cases, or totally fictional), especially after speaking to prosecutors and actual victims. “It’s been quite challenging to realise how ugly it can get and how atrocious a lot of the cases they deal with are,” she said. “It’s only through this work that I’ve come to really love and admire prosecutors in this country and the job that they do for the community.” Dusseldorp also met with recently retired NSW Director of Public Prosecutions Nicholas Cowdery, who highlighted the importance of mentoring in the DPP. “Nick’s insight was really helpful in my role as senior prosecutor. He went on a lot about the open door policy, and that has skewed my performance in my care for these young solicitors,” said Dusseldorp The show is currently filming its 17th and 18th episodes in a mock Supreme Court in Sydney’s Concord West. The show will air until the end of the year and is the first long-run series the ABC has aired for almost a decade. Crownies premieres on ABC 1 at 8.30pm on Thursday 14 July

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countryreport

Hong Kong dreaming

As the Chinese economy booms and more firms turn their attention to mainland China, some have questioned Hong Kong’s long-term viability as a global financial hub. Claire Chaffey discovers why, despite this threat, Hong Kong remains the place to be for lawyers from all over the world.

hen speaking to those in the know about the legal services market in Hong Kong, the good news is that the shadows of the economic downturn have been replaced by sunshine. Stilted economic flows have made way for a market enjoying some buoyancy, especially in the private equity and venture capital space. The amount of initial public offerings (IPOs) is increasing as a swathe of mining and resources companies – not present couple of years ago – list on the Hong Kong Stock Exchange and satiate China’s bottomless appetite for commodities. And while this period of economic sunshine must be met with an air of caution, given the ongoing economic woes of Europe and the US (and the fact that the global economy is so deeply interconnected), things in Hong Kong are, quite simply, very good.

Boom town A direct result of the ever-increasing commercial and financial activity in Hong Kong is a boom in the number of law firms jostling to secure a place in Hong Kong’s central business district.

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According to Hong Kong-based Minter Ellison partner Fred Kinmonth, Hong Kong is well and truly at “the top of the list” when it comes to cities with the greatest number of law firms present. “All the major US law firms are here, both west coast and east coast. All the big London firms are here, and there are more arriving. You also have firms from the Cayman Islands – the offshore firms are all fully represented here – plus you have all the local firms. There is continuous activity,” he says. “The business area in Hong Kong is absolutely full and rents are going through the roof. More and more people are coming here and prepared to pay the high level of rent. They could be looking elsewhere and perhaps going to Singapore or into China, but they’re not. They’re coming to Hong Kong in steady and increasing numbers.” According to Kinmonth, this landscape provides opportunities for lawyers which are both exciting and challenging, with knowledge of Hong Kong’s complexity and diversity being key to whether they will sink or swim.

“It’s definitely a very interesting place for lawyers to be, but it is a very complicated market. One has to really understand it if one is going to be successful,” he says. “There are a lot of firms that feel they just have to have a Hong Kong address on their note paper to impress clients of the fact that they’re global, and I’m not sure whether they really make any money here. On the other hand, people with a strong brand and who have found their niche do make a lot of money here.”

In for the long haul Kinmonth has been in Hong Kong for around 30 years. He adds that those who really want to succeed in Hong Kong need to commit to the place for more than just a few years, and the decision to stay for extended periods of time is a trend he is seeing more of. “At a more junior level, people come and go because they want to experience Asia and do three or four years and then move on,” he says. “But if one is going to progress and build one’s own practice, you just have to stay here. If you look at the firms that are successful, the people

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countryreport “There is an acceptance that experience outside one’s home jurisdiction, whether the home jurisdiction is Australia or elsewhere, really enhances the skills and abilities of lawyers, at all levels of seniority, to provide quality assistance and service to their clients,” DAVID FLEMING, PARTNER, BAKER & McKENZIE – HONG KONG

“All the major US law firms are here, both west coast and east coast. All the big London firms are here, and there are more arriving. You also have firms from the Cayman Islands – the offshore firms are all fully represented here – plus you have all the local firms. There is continuous activity”

“The Hong Kong office is key to driving business to Australia, introducing outbound investment from Hong Kong and China to the Australian office, capturing it at an early stage and ensuring that it is captured at this end” STEVEN GLANZ, PARTNER, BAKER & McKENZIE – SYDNEY

FRED KINMONTH, PARTNER, MINTER ELLISON – HONG KONG

at the top end have all been here for ages. They are really permanently based here.” According to Hong Kong-based Baker & McKenzie partner David Fleming, who has been in Hong Kong for around 20 years, sending lawyers to Hong Kong is a growing trend driven by two primary factors. “There is an acceptance that experience outside one’s home jurisdiction, whether the home jurisdiction is Australia or elsewhere, really enhances the skills and abilities of lawyers, at all levels of seniority, to provide quality assistance and service to their clients,” he says. “One of the other factors is a combination of increasing expansion and growth of international and domestic law firms already in Hong Kong, and an increasing wave of new entrants – US or European firms – whose domestic markets aren’t registering the same kind of growth.”

Standing tall By all accounts, the importance of Hong Kong as an international financial and commercial centre is no longer in dispute. And that, for Australia, is very good news.

“It is amazing the difference that exists only relatively recently. Two years ago I don’t think it was apparent to a number of my Australian partners how important it is to have strong connections with this part of the world,” says Kinmonth. “Now, with the enormous economic flows between Australia, New Zealand and China, there is nobody in the firm who doubts whether we should have a strong presence in Hong Kong.” According to Sydney-based Baker & McKenzie partner Steve Glanz, Hong Kong is an essential driver of business both in and out of China. “The Hong Kong office is key to driving business to Australia, introducing outbound investment from Hong Kong and China to the Australian office, capturing it at an early stage and ensuring that it is captured at this end,” he says. “There is a lot of outbound business from Australia as well, so the Hong Kong office is important in helping us look after our clients, and shepherd them through investments in Hong Kong and China. It’s a two-way street.” Even as the giant of mainland China looms in the distance, Fleming says that Hong Kong

remains a stable financial hub which is not threatened by China’s growth. “I suppose the proportion of our lawyers, over time, is increasing in mainland China offices, but not to the diminution of people in Hong Kong,” he says. “It is a growth story. We are seeing Hong Kong significance, not just for our office, but as an international financial centre and a gateway for trade and commerce, as continuing.” Kinmonth agrees. “I am an enormous believer in Hong Kong. People are constantly talking about financial activity moving to Shanghai or Hong Kong losing its position. I really do not believe that there is any chance of that happening, for a whole range of reasons, most of which are related to the rule of law, language, the depth of expertise here in the financial world, and the quality of life here,” he says. “All of these things are fundamentally important to its success, and as China becomes more sophisticated and the RMB becomes increasingly used as an international offshore currency, Hong Kong is just going to get stronger and stronger.” LW

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opinion

Can law firms be friends with social media? In May this year, Mallesons Stephen Jaques launched a Facebook page to lure graduates and summer clerks. Sue Ashe explains why law firms need to embrace social media, despite the risks involved

ocial media has added a whole new layer to the marketing lexicon for law firms. The traditional and often costly one-dimensional tools of the trade have been joined by the colourful, multi-dimensional, and youthful sounding blogs, wikis, podcasts and apps. With law firms now giving lawyers and clients iPhones and iPads - and even creating their own apps - social media is most definitely the new black (and not the Emperor’s new clothes). At Mallesons, we’ve decided to embrace social media and fold it into our communications and marketing strategy. The kit that allows access to these channels isn’t a “nice to have” fashion statement - it’s a business tool. Our staff have iPhones and some of our partners have iPads, and our view is that if we trust our staff to deal with major clients on advice that often leads to changes in legislation affecting corporate Australia, we can trust them to manage their time if they want to access social media sites whilst at work. The starting place for us was our social media strategy. This is geared at three key groups in the first instance: clients, law students and alumni.

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opinion

setting sail in unchartered waters

Sue Ashe

Would we alienate certain groups and would users on Facebook ‘un-like’ us?” Through LinkedIn and Facebook we keep in touch with our alumni, and we engage and collaborate with our clients using social media. For example, our smartphone strategy was to develop a rich, yet extremely intuitive application to give our lawyers and clients access to the information relevant to their work at any particular time. This might include locating a lawyer with the right skills and availability, checking progress on a particular client’s project, or accessing securely the electronic file on a particular transaction. Our IP Whiteboard includes insight on the latest IP trends and issues - we have about 1000 subscribers from around the globe and content is re-tweeted by other law firms, academics, clients and bloggers. Through Facebook, we have conversations with graduates. We tweet to those who want to follow us on Twitter and we use YouTube to share our videos. It was important from the outset to understand how all these sites, and potentially many more, would be used, to ensure a common link, look and feel between them all, to tell the Mallesons story and underpin our brand and strategic direction in an online environment. With the recruitment process upon us, we realised that we needed to focus on a more active Facebook presence. We wanted to communicate with law students via a channel which research shows they actively use and source information from. Secondly, we wanted to try and generate a two-way conversation with law students. The traditional routes to market, in what is a fierce war for the best talent, still remain, so social media won’t replace attendance at career fairs and face-to-face meetings, but it will help us differentiate our offer even more.

We engaged a specialist online brand agency and they guided us through the process, making sure that any decision made - from the design and content perspective - was based on sound research. They interviewed a sample of our graduate intake from last year, our recruitment partners and law students. As a result, we had an incredibly useful body of knowledge on which to base our approach. And yet despite all the research, there was still a sense that we were navigating unchartered waters. We had significant discussions about the impact of social media on our brand. What if a negative comment sparked a run on our reputation? How quickly could we react? Would we alienate certain groups and would users on Facebook ‘un-like’ us? How often would we need to post? What tone would we need to set? Two key considerations during this process were the impact of social media on our brand and how we would mitigate risk given that social media, unlike other routes to market, can potentially expose a brand to a vast audience where comments are passed on and shared, and where connections are made in real time. In terms of these two considerations, neither was a reason to not take part in social media. The solution is to listen and monitor, and have in place a process to mitigate the risk. This is about having in place systems, processes, policies and adequate resources to react when necessary. Our people and development team, along with our recruitment partners and a group called our ‘Facebook Ambassadors’, as well as the communications team, all monitor and respond to posts on our Facebook wall. We also agree what posts go up, and when. We try to keep it relatively informal and run competitions as well as ask questions. Lately we’ve been tweeting the results of a competition we’re running on our Facebook page where law students can, in no more than 140 characters, tell us what impact social media will have on lawyers of the future. With 50 entries and gems such as ‘Litigation will be a breeze - imagine how much easier discovery will be when all correspondence between parties is 140 characters or less?’ we’re quite enjoying our presence on Facebook. To date we have just over 1,200 ‘likes’. If Facebook were a country, it would be the third largest in the world, after China and India. We’ve got a long way to go … but we’re very happy with our on-line community so far. LW Sue Ashe is the head of communications at Mallesons Stephen Jaques

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In the e the stor coverstory

“What we love and what we hate about the job, they are almost the same thing” MALLESONS STEPHEN JAQUES M&A PARTNER CRAIG SEMPLE.

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eye of orm

coverstory

They are the rainmakers of the legal world, the lawyers who sit at the table on billion dollar M&A transactions. Justin Whealing finds out what makes them tick

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coverstory

TakE a LOOk iNsiDE

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or Stuart Byrne, it is the morning after the night before. It’s 11am on a Wednesday, and the head of Clayton Utz’s equity capital markets (ECM) team was working on a transaction until 3am before meeting me at the firm’s new Sydney digs, which still have that “just moved in” feel and smell. Remarkably, Byrne looks healthy, even fit, with no signs of last night’s lack of sleep or the type of saggy skin or lack of condition one might expect from a lawyer who regularly works for more than 12 hours each day. As we speak, it is not hard to imagine him hurtling around the rugby field as he used to do before his legal career became his main game. These days, Byrne is a heavy hitter in the corporate legal world as one of Australia’s foremost capital markets lawyers. Surely, Stuart, there are some days when you just want to turn off the BlackBerry and read a good book for a while? “Friends ask me, ‘Why do you work the hours you work and why do you work with these clients who can be quite demanding?” he says, when reflecting on what motivates him to work the hours he does. “It is never about the dollars, or if a deal is in the paper, or if it has lots of zeros after it. That sort of thing never grabbed me. “I have tried to work it out, but I think it is a sense that in this area, I can provide a contribution that helps clients do something they want to.” Byrne has had a seat at the table at most of Australia’s major capital markets deals over the past few years. With his great friend and mentor, the late Greg James – whom Byrne replaced as the head of the firm’s ECM team – Byrne acted for the banks on the $2 billion Myer IPO, the issuer Kathmandu

Deal – Noble Group $570 million takeover of Gloucester Coal in 2009

Deal – Origin Energy $2.3 billion entitlement offer

Lawyer – Tony Damian, partner, Freehills (Gloucester Coal) Why mention it? – This was the first time the Takeovers Panel had ever presided over a reverse takeover, with an application also being made to the High Court. Noble was able to secure the merger, after it increased its offer from $4.85 per share to $7.00 per share. What Damian said – “We helped the client achieve a good result in difficult circumstances. The decision means that the [reverse takeover] structure could survive so long as the directors of the bidders in the reverse takeover, in this case of Gloucester Coal, had the ability to walk from the deal should a better offer for the bidder come along."

Lawyer – Stuart Byrne, national head of equity capital markets, Clayton Utz (Origin Energy) Why mention it? – Byrne, in conjunction with Origin and Merrill Lynch, developed a new capital raising structure, the “PAITREO”. What Byrne said – “Some lawyers said this couldn’t be done, but we were able to work through that and get the yes answers for everything, and part of that was having good discussions with the ASX and ASIC. Lawyers can get a reputation for being the gatekeepers or the handbrakes or the conservative naysayers, but I get a lot of satisfaction out of providing a lot of positive assistance to get a deal done.”

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coverstory

on its $332 million IPO and advised long-standing Clayton Utz client, the port and rail operator Asciano Limited, on its $2.35 billion placement and recapitalisation in 2009 when that company was in a great deal of financial stress. Byrne cites that deal as providing a good case study of how tight the deadlines can be when working on such transactions, and how he derives his satisfaction from acting on deals, like this one, where he says he “didn’t sleep for one week”. “This was a make-or-break, direction-changing transaction for that company, and they were an especially valued client of the firm, in that the management of the company was very well known to us and we had had a long association with that business,” says Byrne. “I remember the sense of satisfaction I got in managing to motivate eight partners and staff, a total team of 17 people, in 30 minutes. “They were working from the Thursday until the Tuesday, when the deal was launched,” he says. It is that adrenaline rush that comes from working to tight deadlines under immense pressure that sets M&A and capital markets lawyers apart from the rest. “What we love and what we hate about the job, they are almost the same thing,” says Mallesons Stephen Jaques M&A partner Craig Semple. “The pressure of making the right call, of exercising the right judgment, of physically getting things done, they are experiences which sometimes don’t seem very enjoyable at the time, but when they are over, you think ‘geez, I enjoyed that’.” Semple has been involved with some of the largest and most controversial corporate deals over the past decade. As a young lawyer, he cut his teeth on transactions such as the Telstra privatisation and initial listing on the Australian Stock Exchange

Deal – Proposed $US66 billion merger between BHP Billiton and Rio Tinto Lawyer – Marie McDonald, national head of M&A, Blake Dawson (BHP) Why mention it? – One of the most controversial deals on the table in recent times, this proposed merger generated a huge amount of media commentary and raised the concerns of the regulators and China. BHP pulled the plug on two years of negotiations in 2008. What McDonald said – “It was a huge intellectual challenge working on this deal, in that BHP Billiton and Rio are dual-listed companies in Australia and the UK, so the legal team were trying to make the bid work legally and commercially in two jurisdictions. It meant taking a clean piece of paper and writing down how the bid might work and what the regulator and markets might accept and trying to devise a regime that could work for everyone. Even though the bid never actually came to fruition in the end, it was two years that I wouldn’t trade for anything and it was a fantastic experience.”

The deal goes ahead, rain hail or shine

Not even a natural disaster can stop a big deal in its tracks. In January this year, the $US 16 billion Gladstone Liquid Natural Gas Project was due to be signed in the Brisbane offices of Freehills. However, as around 25 senior business people and lawyers from Freehills, Allens Arthur Robinson, Blake Dawson and Addisons had gathered around to sign on the dotted line, floods in Brisbane meant that the office had to be evacuated, and an alternative venue was sought. “If you can imagine a boardroom of around 70-odd documents where we were getting the conformed copies together all ready for execution, and then at about 5pm (13 Jan) we were finally told by the building management and the SES that we had to evacuate the building that night,” Freehills partner Sharon Wilson told Lawyers Weekly at the time. “A number of the team members who were air lifted from Brisbane to Sydney were leaving behind houses ... that were under threat.” The deal was signed in Sydney the next day.

Deal – Airline Partners Australia (APA) $US9 billion takeover offer for Qantas in 2007 Lawyer – Craig Semple, partner, Mallesons (APA) Why mention it? – If it came off, it would have been one of the world’s biggest aviation deals at that time. The proposal put union groups and some politicians offside, as there was no guarantee Qantas workers would be able to transfer across to the bidding consortium, which included the the Macquarie Group, if successful. The Takeovers Panel eventually killed the bid off. What Semple said – “The way it ended meant it was slightly a bitter-sweet experience, but (fellow Mallesons partners) David Friedlander, Greg Golding and myself had an amazing experience, acting for the bidding consortium. It was a high-profile and intense deal and it had all the things you love and hate with a big transaction.”

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coverstory

The good times are back

in 1997 and the demutualisation and listing of National Mutual, which later became AXA. Since stepping up the partnership 10 years ago, Semple has carved a reputation as one of Australia’s leading securities and restructuring lawyers. He says that when you are in the middle of transactions such as the National Australia Bank takeover of 80 per cent of Goldman Sachs JBWere’s private wealth management business in Australia and New Zealand – a deal that gave the NAB over $50 billion in funds under advice and management-concepts of worklife balance go out the window. “The thing that people not in this field find it difficult to understand is that if you are an M&A lawyer, and as pathetic as this sounds... that is really what you love,” he says. “The thing that is the great anomaly here is that the times where it is really intense and you lose balance and you are working long hours, working with your client and your colleagues, there is a feeling that you’re in the trenches together, and there is a great camaraderie. “There is the adrenaline pumping and you are all working towards a common goal. They are the most rewarding times as well.”

According to Thomson Reuters, the value of announced M&A deals in Australia for 2010 totalled $US164.4 billion ($165 million), up from $69.1 billion in 2009. This was the highest recorded volume of deals since 2007. The top five law firms for announced deals in 2010 were: 1. Clayton Utz 2. Mallesons Stephen Jaques 3. Freehills 4. Blake Dawson 5. Allens Arthur Robinson

keeping the umpire happy As can be seen by the rejection of the proposed $8.4 billion merger between the Australian Securities Exchange and the Singapore Exchange, the ACCC taking Federal Court action to oppose Metcash’s attempted takeover of Franklins, and the ASIC-inspired reforms on the information in a prospectus, the regulators are now baring their fangs. The actions of lawyers, perhaps more than ever before, are now under the microscope, and clients are demanding that their lawyers have the negotiating skills to seal a deal with the regulators. “You need to know the regulators and spend time with them to develop relationships and to understand what is important to them,” says Freehills partner Tony Damian, who certainly has a good track record when it comes to dealing with regulators and smoothing the waters for big deals. In 2009 he successfully acted for Gloucester Coal in representations to the Takeovers Panel when it had attracted the interest of its eventual acquirer, the Noble Group, and was the lead partner on notable deals such as Eldorado Gold’s $8 billion merger with Sino Gold in 2009. He also acted for the Commonwealth Bank on its successful acquisitions of BankWest and Colonial respectively. “The importance of relationships with the regulators bear testament to the importance of conducting business face-to-face,” he says. “Often they have subtleties or concerns that you will only understand by spending time with them.” The head of the national M&A group at Blake Dawson, Marie McDonald, has been a partner at her firm for over 20 years. During that time, she has worked on some of Australia’s most talked about transactions, such as the proposed $US66 billion merger between BHP Billiton and Rio Tinto, which drew the scrutiny of a suite of global regulators. She says that, as compared to the 1990s, lawyers need to place more emphasis on a much wider set of skills. “In the 90s in this area, as a lawyer, you spent lots of time looking for loopholes, and it was all ‘black letter law’, going to

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Court and litigating takeovers. But since the Takeovers Panel was reinvigorated in 2000, there has been this overlay across black letter law, of having to be able to run your takeover in a way that complies with the Panel’s policies and principles,” she says. “As a result it is much more interesting and satisfying for M&A lawyers, as well as providing a better outcome for shareholders.”

Dusting yourself off One of the pitfalls of being an M&A lawyer is that you can often put in months or years of work, such as the failed merger between BHP Billiton and Rio Tinto on which Marie McDonald spent over two years, with no deal at the end of it. Last year Stuart Byrne was the lead partner on the proposed $1.3 billion Valemus float, which was pulled by its German parent company not long before its launch. Byrne led a team of around 18 partners and 30 lawyers on what would have been one of Australia’s biggest capital markets transactions last year. He says that to be a successful M&A lawyer, you need to be resilient and cope with such setbacks, and he concurs with Craig Semple, who says; “You learn to be philosophical with these things and still realise that you have produced work of the highest quality”. “In the recent experiences I had, like Valemus and a couple of other private equity floats that didn’t go ahead as floats, there is always that tremendous let down that you have been working hard as a team,” says Byrne. “That is when you go out, have a few beers and come back out on Monday and get back to working out how it could be done and, in the case of Valemus, after a brief pause, re-engaging with Lend Lease and seeing that through on the M&A side to the completion of the trade sale and, on the private equity side, to completion on the trade sale.” Sometimes it is how you played the game, rather than the final result. LW

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Butterworths

career

counsel

No ladder to climb Organisations are still failing to adequately address the career progression needs of their employees, according to a new survey of employee attitudes. A LOT OF employers have an unrealistic picture of how their employees see them and risk losing their top talent if they don’t offer clear career progression opportunities. According to a recent survey, which forms part of the Deloitte Talent Edge 2020 series, executives and talent managers who believe the talent market has returned to normal and they can return to “business as usual” are at risk of losing their talent to their competition. Deloitte’s April 2011 report, Building the recovery together – what talent expects and how leaders are responding, based on the survey of 356 employees from large global companies, revealed that as the

Post-hiring performance The number of businesses which back up new appointments with a formal onboarding process (helping a new employee make the transition to a new organisation) from the point of offer to their first day The number of employers who said they retained “some” contact throughout a new hire’s notice period (39 per cent got full marks for “frequent” contact) Source: Correct the post-hiring blind spot, Hays Recruitment

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economy strengthens, employees are now actively testing the job market. Currently, only 35 per cent of employees surveyed expect to remain with their current employers – a 10 percentage point decrease from a September 2009 survey – while 65 per cent of employees are passively or actively testing the job market. “Rising turnover intentions which built slowly but steadily during the recession may hit companies at the exact time when many executives predict talent shortages across business units that companies rely on to drive growth and innovation,” the report states. According to the survey, the 65 per cent of employees looking to leave their employers have strong, negative views about the job employers are doing to create challenging career paths and to open up advancement opportunities. Of those employees looking to leave their current employer, 53 per cent reported that the prospect of job advancement or promotion would persuade them to stay with their current companies. The survey revealed that the majority of employees “on the market” rate their companies’ efforts at creating career paths, developing leaders and retaining top performers as “fair” or “poor”.

30 % 50 %

next move

Kenneth Willis, consultant, Randstad Legal Getting timing right for the best offer It is both realistic and reasonable to expect that someone who studies a difficult degree and works long hours in a commercial law firm is motivated by financial reward, even if this is not the number one driver. Too often, the subject of salary is considered anywhere from crass to completely taboo - a smidgeon of sincerity on the topic is thus both refreshing and helpful for good candidates and employers alike. Significant disparities still exist between law firms for almost identical roles and it is not unreasonable per se to correct one’s salary by changing employer. However, even for those who accept this, a number of misconceptions exist, the greatest of all being timing of the move. It is commonly assumed that the best time to move is immediately after one’s annual salary review. While it is true that more “urgent” vacancies tend to become available around the end of financial year, there is never a bad time to move if one of the motivators is correcting a bottom-ofmarket salary package.

Those law firms that pay at the higher end of the market are fully aware of their position; they do so because they consider it vital to their competitiveness and performance and they have rightly concluded that attracting top talent comes partly from paying top salaries. Most importantly, law firms that pay the competitive salaries do not simply pay a premium based on a candidate’s present salary. They are in their competitive position as they have better information about their competitors, including EOFY salary increases that the candidate can expect at their present firm. It is unlikely that any candidate will move purely for money and such a move would be most ill-advised, even where one is blatantly underpaid, as this would almost certainly be accompanied by a number of cultural issues of far greater importance than salary. However, the ideal role can arise at any time and candidates are not obliged to wait for a less-thansatisfactory salary increase to start their search.

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folk

law

MasterChef team faces Allens critique

Last week on MasterChef Australia the contestants faced one of their toughest challenges yet - providing a three-course, silver-service lunch to a group of hungry, time-poor lawyers and their clients, all within an hour and a half. The challenge took place in the dining room of Allens Arthur Robinson’s sydney office, where MasterChef’s all male Blue Team had to provide a lunch to impress the MasterChef judges as well as the 12 lunch guests (a challenge seemingly tougher than catering for a 21st birthday party as the Red Team did). Allens chief executive partner Michael Rose explained the lunch brief to the Blue Team’s leader Peter Vickery - a 50-year-old account manager from nsW - requesting that a “lighter lunch” be provided and for everyone to be done and dusted by 2pm (understandably, they’ve got timesheets to get to).

The suited-up lunch guests arrived right on time at 12:30pm as the Blue Team scrambled in the kitchen. As the clock ticked, sitting next to Rose at the table was MasterChef co-host and judge Matt Preston who, right on cue, asked Rose, “What time was the entrée supposed to come out?” “Well, i asked for it to come out at a quarter to one,” said Rose (as ominous music played in the background). “What time is it now?” asked Preston. “it’s now ten to one,” said Rose, looking around a silent room of unimpressed lawyers. “i know some of you have some time constraints so we’re hoping it will arrive shortly.” The episode then cut to the Blue Team frantically “plating up” in the kitchen as they attempted to whip up the entrée quickly to avoid the wrath of the oh-so-busy lawyers. Thankfully for the Blue Team, although it was late, Rose described the entrée as “light”, “really tasty” and what he had in mind, but the main course of slow-cooked beef cheek and the chocolate tart dessert was “too heavy”. Unfortunately, the Blue Team failed to satisfy the Allens team and the MasterChef judges and came out the losers in the catering challenge. Based on the drama and depth of his critique, Folklaw wonders whether Rose secretly harbours a desire to be the next Matt Preston ...

Gloomy career prospects for law graduates Highlighting the apparently dismal career outlook for law graduates in the UK, a law firm has announced a particularly uninspiring job opportunity for a recent graduate. As reported by RollOnFriday, a city firm announced a “great temporary opportunity” for a graduate not to join the firm as part of a challenging summer clerkship but to work as a member of the catering staff. The incredibly tempting opportunity involves serving sandwiches to clients, reception duties, organising afternoon tea for staff as well as the challenging task of booking taxis - clearly what every law graduate with mountains of student debt strives for. The firm, which was not named in the advertisement, said it was looking for someone to make an immediate start and for interested candidates to get in touch with consultants Career Legal. While Folklaw feels sorry for any law graduate who is forced to take a catering job at a law firm, maybe it will inspire them to leave the law for MasterChef and lead a much more exciting life as a celebrity chef.

R e A d T H e L AT e s T FoLKLAW onLine www.lawyersweekly.com.au/folklaw

Lawyer uses arrest to pick up clients An American lawyer has used his arrest as a great marketing opportunity, passing on his details to other inmates. nYdailynews.com reported that Kenneth Perry, a veteran criminal defense lawyer, was arrested by the nYPd when he tried to stop them from questioning a client. Things apparently became heated and Perry is now accused of pushing a detective - a claim he denies. However, the 61-year-old was charged with harassment, obstructing government administration and resisting arrest, and brought into custody.

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Far from bemoaning his bad luck or wondering if this would ruin his career, Perry saw this as a marketing opportunity. in a display of rugged American individualism and entrepreneurship that would have American luminaries such as Herbert Hoover and Henry Ford smiling from the public gallery in the sky, Perry went and handed out all of his business cards to fellow inmates. Folklaw wonders whether Perry’s actions might result in a whole new approach to business development from American lawyers.

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Penny Parker In-House Sydney

taylorroot.com.au

Expect the market leader to know the market No-one knows the legal job market better than Taylor Root. After all, we’ve been leading the way in specialist legal recruitment for more than 20 years. And with offices in Europe, the Middle East, South East Asia and Australia, we can advise on the widest range of opportunities across global firms, niche practices and in-house. So whether you’re recruiting legal talent or looking for your next career move, talk to the experts. Contact our Sydney office on +61 (0)2 9236 9000 or our Melbourne office on +61 (0)3 8610 8400 or visit taylorroot.com.au

THE SR GROUP . BREWER MORRIS . CARTER MURRAY . FRAZER JONES . PARKER WELLS . SR SEARCH . TAYLOR ROOT LONDON . DUBAI . HONG KONG . SINGAPORE . SYDNEY . MELBOURNE