Lawyers Weekly, November 25, 2011

Practice Profile

Wing and a Prayer The state of banking & finance

in-dePth

trade Wars

Why Perth is vulnerable

this Week

country boy The LIV’s new president

oPinion

information overload A new era for discovery

www.lawyersweekly.com.au

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Friday 25 November 2011

Print Post Approved 255003/05160

doWn but not out Sweet times ahead for Queensland

Dolman Careers

Sydney | Corporate/Commercial

Corporate | PE/ECM

Partner

Senior Associate

This CBD firm with offices in the inner west are looking for a dynamic senior Corporate Commercial lawyer to join the firm as part of the succession plans for the business. No practice required. Ref: SYD/4567/AM

This expanding top-tier firm has a new opportunity for a Senior Associate to join their highly regarded Private Equity and ECM group. You will gain first class experience working on high level transactions. Ref: SYD/4449/AM

Sydney | Corporate Funds

Sydney | Employment

Senior Associate

Senior Associate

Top-tier firm requires a senior associate to work with highly regarded partners in the areas of funds and financial services. You will be involved in, fund formation, structuring, investments, exits for tier one financial institutions. Ref: SYD/4213/AM

International firm seeks a senior associate to work on a diverse range of contentious and non-contentious matters including industrial/employment disputes, drafting a variety of employment agreements, and advising on OH&S matters for blue chip clients. Ref: SYD/4454/AM

If you are interested in any of these opportunities or are a senior lawyer, special counsel or a partner looking to make a move then contact Alex McIntyre, Senior Consultant on (02) 9231 3022 or alex.mcintyre@dolman.com.au

Brisbane | Corporate

Brisbane | Litigation

Sydney | Funds

4 years +

4 – 8 years

6 years +

If you are searching for a role which offers a realistic work/life balance and great work then this could be the opportunity for you. This well respected firm has an opening for a corporate lawyer to work on a wide variety of corporate matters, including mergers and acquisitions, joint ventures, capital raisings, ASX listings and advising on a range of governance and compliance issues. Ref: BRI/4494/GG

Our client is a well regarded mid-tier firm seeking a senior lawyer to work on a range of contentious insurance related matters including personal injury, property damage and professional liability claims for a variety of clients. You must have the ability to mentor and support junior lawyers. Friendly and supportive team environment and interesting and challenging work on offer. Ref: BRI/3951/GG

A key leadership role for a driven senior funds lawyer has arisen in our client’s expanding team. You will advise on the full spectrum of funds transactions, play a key client management role and supervise a team of junior lawyers. Funds lawyers with 6+ years experience, an engaging personality and driven work ethic are encouraged to apply. Outstanding opportunity to take your career to the next level. Ref: SYD/4564/OH.

Perth | Corporate/Commercial

Sydney | Corporate/Commercial

Sydney | Construction

3 years +

3 – 5 years

2 years +

An opportunity for a commercially savvy corporate/ commercial lawyer to move across into a leading law firm is now available. Advise domestic and international blue chip clients on major projects, acquisitions and joint ventures. You will be offered mentorship by industry leaders and actively involved in the continued growth of this practice group. Genuine career progression on offer with a competitive salary package. Ref: PER/4448/OH

To be successful in this role, you will have top-notch drafting and technical skills, and previous experience working on a range of corporate transactions including mergers and acquisitions and be familiar with all aspects of the Corporations Act and other relevant legislation. This is an expanding national firm offering a genuine career path and plenty of client contact. Collegiate and friendly team environment.

Ref: SYD/4557/GG

This large nation firm has an opening for a construction lawyer with excellent drafting and communication skills to work on high level front-end construction and infrastructure matters for high profile clients. You will have solid construction experience or a solid general commercial or litigation background will be considered if you can demonstrate an interest in specialising in this practice area. Great training and mentoring. Ref: SYD/4288/GG

Melbourne | Property Finance

Sydney | Property

Sydney | Banking & Finance

Senior Associate

3 – 5 years

2 – 3 years

This team has been internationally recognised as an Australian leader in advising on high profile, international project finance matters. Due to the team’s continued growth they are looking for a senior associate to come onboard and play a key leadership role lead advising on the acquisition and financing of infrastructure and property projects. Exciting opportunity with an outstanding firm. Competitive salary within a supportive environment. Ref: MEL/4569/OH

An opportunity has arisen for a mid level lawyer with expertise in commercial real estate property transactions to join this busy group. The role will involve advising on all aspects of property transactions including assisting clients with: acquisitions and disposals, joint venture arrangements, property management, development projects, leasing and property financing arrangements. Highly competitive salary and benefits on offer. Ref: SYD/4366/AM

This is a firm which looks after and rewards its lawyers, fosters a supportive firm culture and offers genuine secondment opportunities. If you have 2-3 years worth of banking and finance experience gained at a well established firm, a driven disposition and are consider yourself a top tier calibre lawyer then this is the role for you.

Ref: SYD/4568/OH

Singapore | Project Finance

Tokyo | Project Finance

Singapore | M&A, Energy & Resources

4 years +

4 – 6 years

4 – 7 years

Join the Asian infrastructure and project finance practice of a highly regarded growth oriented U.S. international law firm. A solid background and expertise in syndicated finance transactions will be viewed favourably. The work on offer is outstanding. Recent projects include an expressway in the Philippines, a stadium in Singapore and power and water projects in Vietnam and the Middle East. Ref: SIN/4512/RL

An associate experienced in project finance or who has demonstrable solid general lending experience with a desire to work on project finance transactions gained from a top or quality international mid tier firm is sought by a leading UK law firm. The work primarily represents Japanese corporates on cross-border matters in China and Asia. Japanese language ability is NOT required but would be helpful. Ref: TOK/3720/RL

Our client’s market leading corporate practice continues to expand in order to meet its strategic regional growth plan. A seasoned M&A associate with a broad background preferably in either oil & gas, mining or other natural resources to draft agreements and advise on transactions and projects in power and infrastructure development such as road, rail or ports is needed by this top global firm. Ref: SIN/4512/RL

Sydney | Construction

Sydney | Corporate

Sydney | Precedents/PSL

5 – 7 years

4 – 6 years

6 years +

A construction lawyer is needed to advise on a wide range of construction and commercial matters including tenders and proposals, risk and litigation matters. Strong front-end or mixed construction law experience and excellent drafting skills required. You will be trained at a major firm but may have now gained in-house experience. You will also be responsible for mentoring a junior lawyer so experience in this area will be beneficial. Ref: SYD/4529/OH

High level transactional and Corporate Advisory work on offer within a major listed company including Corps Act, ASX rules, Corp Governance and M&A. Top-tier corporate law background required including strong corporate advisory experience with top listed clients. Excellent career opportunities and interesting, challenging work available within this major market leader. Ref: SYD/4565/DS

An experienced precedents or professional support lawyer is required to work with this high performing, multi-disciplined in-house legal team on a part-time basis. Experience in corporate/commercial law is preferred though broader experience would also assist your application. This is a rare and exciting in-house opportunity for lawyers with strong experience in this area from a major law firm. Ref: SYD/4566/DS

Private Practice

International

In-house

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: Olivia Harvey, Gail Greener, Ralph Laughton, Daniel Stirling and Alex McIntyre.

Sydney (02) 9231 3022 Melbourne (03) 8637 7317 or email dolman@dolman.com.au

Editor’sNote

Deputy Editor, Clare Chaffey

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4

l aw y E r s w E E k ly 2 5 N o v E m b E r 2 0 11

Last weekend, I participated in the Valley Stampede.

For those of you who don’t know what that is, it’s basically an event in which one is required to run, slide, climb, plunge, swing and scramble through five kilometres of rivers, sludge, hay stacks and more mud than our politicians could ever sling in a lifetime.

I did it for no other reason than to have fun – and lots of it!

As I found myself knee-high in a foul-smelling, sticky quagmire, I began thinking of the interviews I had conducted for this week’s cover feature on Queensland (see page 18).

One of the primary themes that came through from the people I spoke to was the lasting effect of this year’s Queensland floods, from which much of the state is yet to recover.

For many, the mud – and requisite stench – that remains once the flood waters have receded is a memory which will stay with them for years to come.

The other thing that struck me about the Queenslanders was their honesty and willingness to tell it how it is.

Many lawyers are doing it really tough in the sunshine state – so much so that Queensland Law Society CEO Noela L’Estrange said an increasingly important part of their offering is resilience training – but the majority is hopeful that the state’s natural resources, and everything that goes with them, will propel them through these difficult times.

And all signs are that this is indeed what will happen. It seems that things are coming together for Queensland.

International resources companies are moving in, bringing with them billions of dollars, and firms are plumping up their energy and resources teams as quickly as they can. Numerous projects which lingered in the pipeline have come on stream, and there is a definite sense that things are moving.

Much of this has to do with the current State Government, which has invested significant amounts in infrastructure that will facilitate the resources boom. While this, at the moment, seems unlikely to be enough to save Anna Bligh at next year’s state elections, it has put Queensland in good stead to propagate what is arguably Australia’s most rapidly expanding economy.

So, if the weather holds over summer – and we’ve all got our fingers crossed – by all accounts, it’s going to be a bright one for Queensland.

Top Ten sTories online this week 1 Clayton Utz promotes eight to partner 2 Gym-junkie lawyer gets “hangry” 3 No disquiet about Ashurst merger: partner 4 Another firm considers automated time billing 5 Mid-tier firm targets women in business 6 Lawyers going to the extreme 7 Client pulls Squire Sanders from case 8 Perth losing out in trade wars 9 ATO prompts review of practice structures 10 Firm sets up in Brisbane following merger nexT week As the end of 2011 quickly approaches, Lawyers Weekly takes a look at the state of salaries across the country, including the latest trends, state-by state analysis, and insight from members of the legal profession. We’ll reveal which cities are offering the best pay packets, how the mid tier competes with the top tier when it comes to salaries, and where the money is in-house.

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, 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 Publisher: John Nuutinen editor: Justin Whealing Deputy editor: Claire Chaffey senior Journalist: Briana Everett Journalist: Stephanie Quine Designer: Ken McClaren sales executive: Toby Chan subscribe toDay Lawyers Weekly is published weekly and is available by subscription. Please email lawyersweeklycustomerservice@reedbusiness.com.au All subscription payments should be sent to: Locked Bag 2999, Chatswood D/C, Chatswood NSW 2067 aDvertising enquiries: Advertising enquiries: John Nuutinen john.nuutinen@reedbusiness.com.au (02) 9422 8931 (mob) 0402 611 177 Toby Chan toby.chan@reedbusiness.com.au (02) 9422 2545 (mob) 0404 652 800 Stephen Hogan stephen.hogan@reedbusiness.com.au (02) 9422 2290 (mob) 0425 270 832 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

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PARIS

MOSCOW

Banking

Energy

SYDNEY Private Equity

TOKYO

LONDON EC2

PERTH Energy Litigation

NEW YORK IT/Outsourcing

Funds

IT/Outsourcing

BRISBANE

ULAN BATOR

MELBOURNE

SINGAPORE Transactions

Tax

Corporate

E nergy

MARSDEN thinking inside To discuss your next career move in the energy & resources | projects space, please contact: Greg Plummer; tel: 02 8014 9052 email: greg.plummer@marsdengroup.com Samantha Cowling; tel: 02 8014 9053 email: samantha.cowling@marsdengroup.com Jonathan Walmsley; tel: 02 8014 9050; email: jonathan.walmsley@marsdengroup.com

To search Australian and global job opportunities go to www.marsdengroup.com or download our free iPhone App (search iTunes – Marsden Job Search) - legal job searching just got easier.

thisweek

The Web

Anti-bribery proposals follow UK The Federal Government’s proposal to remove the facilitation payments defence from Australia’s anti-bribery laws would align Australia’s laws with those recently introduced in the UK, according to Allens Arthur Robinson (AAR) senior associate Rachel Nicolson. She said the proposal to remove the defence of facilitation payments would increase consistency in terms of what is expected by the different regulatory regimes of Australia and the UK. Cowdery talks death with dignity Former director of public prosecutions Nicholas Cowdery AM QC shared his support for voluntary euthanasia at a New South Wales parliamentary forum on the rights of the terminally ill. Discussing a private member’s bill for assisted suicide in NSW – introduced to parliament by NSW Greens member Cate Faehrmann in August – Cowdery said the law should not be applied to every component of life, referencing the case of a man prosecuted for assisting his wife, who had a debilitating disease, to suicide.

Firm sets up in Brisbane following merger After merging with the Chamber of Commerce and Industry Queensland’s legal services, CCIQ Legal Services, Australian Business Lawyers & Advisors (ABLA) opened a new office in Brisbane. Following the 1 November merger, ABLA now has a team of eight directors, 11 lawyers and nine advisers servicing clients in New South Wales (Sydney and Wollongong) and Queensland. The new Brisbane office is headed by ABLA director Noela Gorey.

6

L AW Y E R S W E E K LY 2 5 N O V E M B E R 2 0 11

Another firm considers automated time billing A MELBOURNE-BASED law firm is contemplating the introduction of automated time billing software – the same software recently adopted by Corrs Chambers Westgarth.

Russell Kennedy announced last week that it has adopted new integration software to streamline its internal processes, including matter intake and new personnel intake, and said it is also contemplating the implementation of automated time billing down the track. “[Time Builder] is something that we’re considering,” said Russell Kennedy’s IT manager Dinesh Rajalingam. “We thought we would address our most immediate need [first] and that was for a workflow replacement program. So we went ahead and did all our research and concentrated our efforts on proofing or vetting this product to see that it can help us, and our experience has been good.

“Once we’ve bedded down this process, we’ll look at things like Time Builder.”

Rajalingam said Russell Kennedy will be monitoring the success of other firms currently using time capture software, such as Corrs Chambers Westgarth, before choosing to adopt it.

Developed by US legal software company IntApp, Time Builder monitors the key applications lawyers actively use throughout the day and provides a report to lawyers in a timesheet format.

“The further you go in time from the day of filling a timesheet out, the harder it gets to be accurate, and it’s really important that [timesheets] are as accurate as they can be,” said Corrs’ chief information officer, Jon Kenton, at the time.

The managing partner of Sydney firm Marque Lawyers, Michael Bradley, criticised the software, labelling it as “beyond funny and into the field of surreal”.

“Of all the steps our profession has been taking, by progressive inches, to dehumanise lawyers over the years, this just screams out for someone to say, ‘Enough!’” he said.

The new Integration Builder software currently

being implemented by Russell Kennedy – the first Australian firm to use such software – will assist the firm with data management.

“We see automating data management as a critical component of workflow – forms and dashboards can coordinate human input and response, but real-time information movement among business applications is key to true process automation,” said Rajalingam.

According to IntApp, Integration Builder provides a simple way for law firms to connect, manage and automate their business applications and processes, and enables firms to address challenges such as new matter intake, new user provisioning and distribution list management.

“We’re delighted to add Russell Kennedy to the expanding list of law firms using IntApp products to enhance new business intake, lateral hire on-boarding and other business processes,” said the head of IntApp’s Integration Practice Group Neal Vora.

R E W IND Indonesia secured a regional free trade commitment with Australia and New Zealand. The agreement was hailed as a launching pad for greater cooperation with Indonesia’s huge economy, representing a significant move forward in what has been a difficult relatinship.

The Left faction of the Australian Labor party met in Canberra on Sunday to discuss the proposed selling of uranium to India. All members, including Minister for Infrastructure and Transport Anthony Albanese and Senator Kim Carr, reportedly opposed the plan, however it remains a contentious issue for the party.

NBN Co appointed former British Telecom executive Ralph Steffens as its chief operating officer. Steffens will be responsible for getting the NBN into gear as a number of agreements between the company, Telstra and the Australian Competition and Consumer Commission near deadline.

Unions are pushing for adult wage increases ahead of a review of the award system by Fair Work Australia, due to commence in early 2012.

Trade unions want the adult wage to start at 18 years of age, rather than the current 20-year mark, and for adult apprentices to be paid at least minimum wage.

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thisweek

Firms combine to launch anZ global bonds Deal name: Establishment of ANZ’s Global Covered Bond Programme and the issue by ANZ of $US1.25 billion in covered bonds Key players: Allen & Overy, Clifford Chance, Blake Dawson, Mallesons Stephen Jaques, Sullivan & Cromwell, Sidley Austin

Six firmS have advised on the establishment of ANZ Bank’s Global Covered Bond Programme.

Global firms Allen & Overy and Clifford Chance, Australian firms Blake Dawson and mallesons Stephen Jaques, and US firms Sullivan & Cromwell and Sidley Austin all acted on the deal. mallesons acted as Australian legal counsel to ANZ and ANZ Capel Court Limited in the successful establishment of ANZ’s $US20 billion Global Covered Bond Programme.

A mallesons team drawn from across the firm’s Brisbane, Canberra, melbourne and Sydney offices also acted on the forthcoming issue by ANZ of $US1.25 billion in covered bonds under the programme, which is the first-ever issue of covered bonds to be priced and sold by an Australian bank.

Covered bonds are dual recourse securities with investors having a claim against both the issuer and a cover pool of high-quality assets held by a special purpose vehicle which guarantees the securities issued by the ADi. The Banking Act 1959 was amended on 17 October 2011 to allow Australian banks and other authorised deposittaking institutions to issue covered bonds.

The mallesons team was led by partners Berkeley Cox and ian

Paterson, and senior associate Chris Trudinger, with the assistance of tax partner David Wood. mallesons senior associate Stuart Courtney and solicitors Briana Cumming, Jimmy Lau, Emily Zhang, Alice Patterson, Alexandra Hunter and Luke Pallaras also assisted.

Blake Dawson acted as advisers to Perpetual (as trustee and security trustee), while Allen & Overy, through its London office, was the English law adviser to ANZ. Teams from Clifford Chance, through its London office, acted as advisers to Deutsche (as the bond trustee) and English law advisers to the arrangers and dealers (ANZ, UBS and Citigroup) respectively.

Sullivan & Cromwell acted as US law advisers to ANZ, while Sidley Austin acted as United States law advisers to the dealers.

DE AL MAKERS

Andrew Kelly

Nicole Green

Rebecca Maslen-Stannage

Firm

Thomsons Lawyers (Mitchell Group), Mallesons Stephen Jaques (Gladstone Port Authority)

Minter Ellison (Roads and Maritime Services)

Russell McVeagh and Freehills (Fairfax Media and Trade Me Group)

Deal name

Construction and operation of the Fitzroy Coal Terminal Project

Design and construction Initial public offering on the contract award to Baulderstone NZSX and ASX for the Pacific Highway upgrade between Tintenbar and Ewingsdale, north of Ballina, New South Wales

Area

Construction

Construction

Corporate

Value

$1.2 billion

$530 million

$NZ1 billion ($759 million)

Key players

Thomsons’ Andrew Kelly

Minters’ Nicole Green

Freehills’ Rebecca Maslen-Stannage

Movers & Shakers

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

TressCox expands property line up TressCox Lawyers has appointed two partners to its property practice in Melbourne. Kristina McGeehan-Hall (pictured) joins with 15 years experience gained at Mallesons Stephen Jaques in Melbourne and Minter Ellison in Adelaide. Dan Flynn joins from Rigby Cooke with over 18 years’ experience in property law.

HWL recruits energy lawyer HWL Ebsworth has appointed Paul O’Donnell to its Sydney energy & resources team as a partner.

O’Donnell’s practice focuses on energy regulation and market reform.Prior to joining HWL he was the general counsel of Novatec Biosol, and a partner at Clayton Utz for eight years.

Top tier appoints eight to partner Clayton Utz promoted eight to its partnership effective 1 January 2012. Senior associates Brett Cohen and Adel van der Walt (pictured) made partner in the firm’s Perth energy and resources group. Brisbane-based special counsels Brett Cook and Majella Pollard will take up partner positions in Brisbane, while senior associates Damien Gardiner and Richard Hoad will do the same in the firm’s Melbourne office. Ross McInnes and Polat Siva were appointed as partners in the Sydney and Darwin offices respectively.

KHQ nabs in-house commercial lawyer Boutique melbourne firm Kelly Hazell Quill has appointed three lawyers to its commercial and litigation groups. Louise braithwaite (pictured), who previously worked as an in-house counsel at Australia Post and Origin Energy, and in Corrs Chambers Westgarth’s IP group, joins as a senior lawyer. James Berman joins the commercial litigation team and Claire Kowarsky will provide support across the practice groups.

l aw y e r s w e e k ly 2 5 n o v e m b e r 2 0 11

7

thisweek

LIV elects country lawyer as new president

The Law Institute of Victoria’s (LIV) new president, Mildura-based commercial lawyer Michael Holcroft, will address issues such as the ageing profession and the recruitment and retention of lawyers in regional and remote areas.

Endorsed as the new president for 2012 at the LIV’s annual general meeting on 16 November, Holcroft will take up the position on 1 January next year, replacing outgoing president Caroline Counsel.

Admitted into practice in Victoria in 1990 and in New South Wales in 1993, Holcroft is a principal lawyer at Holcroft Avery Lawyers – a five-solicitor firm that practices primarily in business and commercial law, property, estates and civil litigation. Holcroft has also practised in the areas of criminal law and personal injuries.

As a lawyer practising on the border of Victoria and NSW, Holcroft has a strong interest in the harmonisation of laws and national profession reform and will serve as the LIV’s representative on the Law Council of Australia in 2012 and 2013.

“As a country practitioner I am particularly interested in recruiting and retaining lawyers in regional and remote areas,” said Holcroft.

“My priorities will be to communicate the work we do and to inspire and benefit our members and the community. I am particularly looking forward to the Law Institute finalising its Aboriginal Reconciliation Action Plan in 2012.”

In 2012, Holcroft said the LIV would also address the issue of an ageing profession, especially in rural and suburban areas, and would roll out a “succession road-show” to assist lawyers in selling, merging and handing on their practices, so that access to justice amongst communities is maintained.

8

l aw y e r s w e e k ly 2 5 n o v e m b e r 2 0 11

aTo prompts review of incorporation Lawyers entering and exiting an incorporated legal practice could be subject to tax on amounts that they will never receive under a series of new determinations recently released by the australian tax Office (atO). according to grant Hornton partner Bill shew, the atO’s Final Determination (tD 2011/26) presents a potential problem for incorporated practices which have a trust as a shareholder, and calls into question the incorporated practice structure. “if one shareholder is a trust or company, all of the shareholders [of a practice] will suffer the fate of the Determination,” shew told Lawyers Weekly. “a number of partnerships have evolved over time and [have] either incorporated or [are] incorporating trusts in a partnership arrangement. i’m aware of a number of corporates that have trusts in them and partnerships that have trusts in them and are no-goodwill practices. we’re actually talking to them now.” according to shew, as a result of the atO’s Final Determination and two draft determinations (tD 2011/D9 and tD 2011/D10), all legal practices should review their structures to ensure they are not adversely affected by the views put forward by the atO. targeted at “no goodwill” incorporated practices, shew said the Determinations have broader implications. “the atO will now only accept that principals coming and going from these practices will be taxed at nominal values for their equity where certain narrow conditions are met. a major condition is that the practice

cannot be owned, even in part, by family companies or trusts,” he said. “if these conditions are not met, incoming principals may be subject to tax on the difference between the market value of their share of the business and what they pay to enter. similarly, on exit, principals will be subject to tax on the market value of their shares despite receiving only a nominal payment on exit.” shew said while legal practices are increasingly using alternative structures, the atO is still applying concepts that it developed in relation to traditional partnerships, and with the new Determinations, is undermining the commercial basis of these new structures, which will limit their effectiveness. “as more practices are incorporating, the tax office is concerned about that and potential leakage of revenues,” he said. “so it has really come down and said, ‘we’re happy for you to be an incorporated practice but we believe that each shareholder needs to be an individual’.”

norton rose recognised for being green nOrtOn rOse won an environment award last week after its sydney office reduced its carbon pollution by 214 tonnes. sydney Lord Mayor Clover Moore presented norton rose with the Cityswitch nsw signatory of the year award for offices over 2000 square metres at a function at town Hall. “norton rose australia developed an internal carbon footprint calculator and invested in video conferencing to replace much of the firm’s interstate flying,” said Moore.

norton rose has installed sensor and zone lighting at its grosvenor Place tenancy in sydney’s CBD, with increased hardware visualisation programs saving energy and improving processing speeds. in addition to reducing its carbon pollution by 214 tonnes, the firm estimates that it has saved $42,000 annually in energy bills.

Knight Frank’s property won the award for buildings under 2000 metres. the Cityswitch scheme is a national project, with over 120 signatories.

Other law firms that have signed up include gilbert + tobin and allens arthur robinson in sydney, gadens and Hunt & Hunt in Melbourne, Herbert geer and Blake Dawson in Queensland and DLa Piper, Lavan Legal and Jackson McDonald in Perth.

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thisweek

The merger between Ashurst and Blake Dawson is going full steam ahead, despite talk of dissatisfaction within partner ranks. Claire Chaffey reports

A

n Ashurst senior partner has rejected the notion that there is disquiet within the firm regarding the impending merger with Blake Dawson.

Speaking to Lawyers Weekly last week, the global firm’s senior partner, Charlie Geffen, said comments made by an Ashurst partner to UK publication Legal Week in September were not indicative of prevailing attitudes.

An anonymous partner was quoted by Legal Week as saying, “The ultimate success of the merger will depend entirely upon whether Blakes can be whipped into shape”.

“I don’t know who said it, but it was utterly ignorant and wrong,” said Geffen.

Geffen and around a dozen other Ashurst partners were in Australia for the Blake Dawson partner conference, at which plans for the merger were discussed with partners and clients.

Geffen said the reaction to the merger has been overwhelmingly positive.

“We have been visiting clients ... to talk to them about what we have done and to get their reactions,” he said.

“The reactions have been very positive. The thing we are really delighted about is that the clients, as well as the partners in both firms, completely understand the rationale for what we have done. Most importantly, people ... who know both firms constantly say, ‘Your cultures are very similar. It’s a fantastic fit from the people side’. That is hugely important.”

Ashurst and Blake Dawson officially announced the merger in September after months of speculation about a tie-up.

Blake Dawson chairman Mary Padbury told Lawyers Weekly that both firms are confident the merger will be a success and also denied rumours about partner disquiet.

“The profitability of Blake Dawson has improved 25 per cent in the last two years,” she said. “We are well ahead of our revenue and profit budget for this year. We are very comparable, in terms of profitability, to Ashurst.

We realise that the statement [in Legal Week] is not reflective of the Ashurst partnership. It

Mary Padbury, Charlie Geffen and John Carrington in Sydney last week

was not something we have had cause to be concerned about.”

Padbury also said the strength of the Blake Dawson brand in Australia – and the prominence of the Ashurst brand in Asia – will make for a powerful combination which will see the firm be able to compete with better-known Magic Circle firms Clifford Chance and Allen & Overy.

“Obviously, the Blake Dawson name is well known ... and we’re very confident we’ll be able to transition the goodwill and the Blake Dawson name to Ashurst,” she said. “Clients understand the inexorable march of globalisation and a number of clients have global businesses, so they immediately see the benefit of having a single firm which can service their needs in more than one jurisdiction.

“They also understand that in consolidating industries, names will change. What really matters is the quality and calibre of the people they have been dealing with ... We are confident we will build up the reputation of the Ashurst brand in Australia fairly quickly.”

The firms will unite under the Ashurst brand in March next year, including a merging of offices across Asia. The firms will then move towards full integration as a single partnership by 2014.

According to Padbury, however, the firms are already beginning to operate as one unit.

“In some ways, I think we are already thinking and acting as one firm,” she said. “Our partners and people at all levels in the firm are making contact with their counterparts in the same practice areas, and chasing down endless opportunities. Things are off and running.”

US/UK Update

No disquiet about Ashurst merger

Macquarie spreads wings Macquarie Group is looking to establish a panel of law firms outside Australia. The Lawyer reports that following the swift expansion of its non-Australian business, the Australian-based bank is preparing to bolster operations in Europe, the Middle East and Africa (EMEA) with the establishment of a dedicated roster of EMEA advisors. The bank plans to come up with a group of 12 firms by January 2012 across all practice areas.

Virgin Money buys bank Freshfields and Allen & Overy are advising on Virgin Money’s $1.18 billion acquisition of UK-based bank Northern Rock from the UK Government, reports AM Law Daily.

Based in Newcastle, Northern Rock has 75 branches and approximately 1 million customers, according to Virgin. A&O advised Virgin Money, led by global corporate head Andrew Ballheimer, while Freshfields advised Northern Rock.

Judge calls for protection of Scottish suspects A review of Scotland’s legal system has recommended greater legal protections for criminal suspects arrested in Scotland, reports The Guardian. Senior judge Lord Carloway proposed 76 recommendations in total, including that suspects be given access to a lawyer immediately after their arrest, have their rights explained in a letter, and have the time of arrest and a formal charge capped at 12 hours.

Solicitors from Hell ordered offline In a win for the Law Society of England and Wales, a website dedicated to naming and shaming lawyers whose clients claim have delivered poor service, has been ordered offline, reports The Lawyer.

Solicitors from Hell, founded by Rick Kordowski, faced Justice Tugendhat’s decision last week after a six-month legal dispute with the Law Society on behalf of all 145,381 solicitors practising in England and Wales.

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Constitution needs clean-up: lawyers The “blatant and obvious racism embedded in the constitution” must be removed, according to a panel of legal professionals. Stephanie Quine reports

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t a seminar hosted in Sydney last week by Allens Arthur Robinson and Reconciliation Australia, a panel of legal professionals examined the prospect of a referendum on constitutional recognition of Australia’s first people, ahead of recommendations by a federally appointed panel on the topic due next month.

According to the moderator of the discussion, the University of Wollongong’s dean of law, Luke McNamara, the panellists agreed that a number of existing provisions in the constitution are “inconsistent with the very notion of recognising the human dignity of Indigenous

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Australians”, and must be addressed before additional clauses are considered.

“The races power in section 51(26) was considered and there was a strong view expressed that it was a provision of the constitution that was due for updating,” said McNamara, adding that section 25, which makes it constitutionally possible for states to disqualify people from voting on the basis of their race, also needs attention.

“Thankfully, states don’t activate this power and use it in a racist way ... The standard reaction to section 25 is, ‘How on earth could we have such a provision?’”

The panel, which included George Williams, the foundation director of the Gilbert + Tobin Centre of Public Law at UNSW’s faculty of law; Graham Bradley AM, a member of the government-appointed panel on Constitutional Recognition of Indigenous Australians; Dr Mark McMillan, a Wiradjuri man from Trangie and senior lecturer at Melbourne Law School; and April Long, the 2011 recipient of the Indigenous Law Student of the Year Award and editor of the Indigenous Law Bulletin, canvassed several options for constitutional recognition of Indigenous Australians.

One was the introduction of a “non-discrimination or equality clause” as a reference point for law making, and another was an explicit “agreement-making power” to allow the Commonwealth to enter into agreements with Indigenous people and communities around particular law and governance issues.

“A strong view amongst the panellists was that there is still an appetite for empowering the Commonwealth to legislate in the interests of Indigenous people,” said McNamara.

With bipartisan support, the Federal Government has committed to holding a national referendum on constitutional recognition of Aboriginal and Torres Strait Islander peoples during the current term of government or at the next federal election.

However, McNamara said an “active awareness campaign” needed to precede any referendum on the issue – especially given Australia’s “fairly poor record of turning referendum proposals into success”.

“There needs to be a significant campaign of awareness-raising around the question of what part the constitution plays in framing the values of a nation,” said McNamara.

“It is important, according to the panellists, to be both aspirational in what is achievable and also realistic in a context where bipartisan support is essential to achieve success.”

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Perth losing out in trade wars As Perth continues to stand strong within a global economy in turmoil, there are significant threats to its prosperity which must be dealt with sooner rather than later. Claire Chaffey reports

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erth is at the centre of an international trade dilemma which is costing the world economy trillions of dollars, according to a US-based partner of a global law firm.

Speaking to Lawyers Weekly during a visit to Australia last week, Shanker Singham, the head of Squire Sanders’ international trade team, said trade barriers are adversely affecting the world economy and Australia is particularly susceptible.

Known as anti-competitive market distortions, Singham said such barriers can include laws and government regulations that affect entry to or exit from a particular market, or other regulations – such as those related to safety and environment – which can result in an artificial distortion of costs.

“For example, many countries have laws that provide that if you terminate your local distributor, you have to pay very high levels of termination indemnity,” he explained. “That decreases competition at the distribution level, which increases the profit margin of the local distributers. They then pass that on to consumers, and it means consumers are paying high prices.”

According to Singham, Australia’s economic structure means it is particularly vulnerable to the negative effects of market distortions – especially when taking into account its key trading partners.

“Australia has a unique make-up, economically.

The big exports out of Australia are obviously things like agriculture and mining products,” he said. “To the extent that those products face anti-competitive distortions around the world – particularly in the key markets which are China, Japan, Korea and South-East Asia – if that is happening, then it is severely damaging the Australian economy and severely damaging Australian companies.”

Singham recently spent several weeks in talks with governments in China, Korea and Australia in an attempt to find solutions to the problem which he said is on an “enormous scale”.

While Washington-based Singham advises on these issues in state capitals across the world, he said Australia’s uniqueness means Perth – and not necessarily Canberra – is the ideal location in which to develop an international trade practice.

“I don’t think you need to be in Canberra to do this type of practice in the way that you might need to be in Washington for this practice in the US,” he said. “What you need more than that is to be close to the people who are most adversely affected by the barriers ...

The advantage of Perth for us – and we have looked at

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“There is a general recognition of the problem and the scale of the problem” Shanker Singham, ParTner, Squire SanderS

Australia for a while – is that you do have here a lot of those mining and energy companies, and big agricultural players, that are directly affected. So you want to be close to them.”

Singham also said Australia has a key role to play in solving many of these issues.

“There is a general recognition of the problem and the scale of the problem. What we are working on now is the policy proposals and policy prescriptions that you can use,” he said.

“One of the things we discussed in Canberra was that the countries that are big stakeholders in solving this problem are all to be stepping up to the plate in terms of finding ... a multi-lateral solution to the problem, as opposed to individual countries taking unilateral actions.”

According to Singham, who is also a leading trade advisor to the US Government, the issue of anticompetitive market distortions is likely to be significant in the 2012 presidential election.

“I think this is going to be a big issue in the 2012 US election campaign. It’s already been floated by Governor Romney in his campaign, and I think you are going to see it as a major issue in the actual election,” he said.

“Trade is rarely an issue on which elections are won or lost, but I think, broadly, the role of government in the economy is going to be a threshold issue in this election.” lw

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practiceprofile

at the whim of the markets While volatility on the world’s share markets has had an impact on the banking and finance practices at law firms, there are still opportunities for work. Justin Whealing reports

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anking and finance lawyers are a pragmatic lot.

Having technical skills comes with the territory of operating in a legal area where you spend as much time looking at balance sheets as you do time sheets.

However, the suite of skills a banking and finance lawyer utilises is also dictated by circumstance. When the economy is humming, everyone wants to be a capital markets lawyer. When the economy is down, the insolvency and restructuring practice groups kick into gear, as Henry Davis York can attest to.

So, with a buoyant M&A market for most of this year (which is worryingly starting to show signs of a slump), a capital market that is more bear than bull and the eurozone debt crisis, which is starting to spark up at a time when the balance sheet repair work that kept lawyers busy during and after the GFC is starting to come to a close, where are the finance and banking lawyers to be found?

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“The current balance of my practice is still roughly split between 50 per cent of my time on equity capital markets work (ECM) and 50 per cent on M&A,” says Tony Sparks, an ECM partner with Allen & Overy in Sydney. “In this market, that is more than I would have expected on the ECM side.”

The even split between Sparks’ M&A and ECM practice is interesting given his former colleague at Freehills, the firm’s ECM co-head Philippa Stone, told Lawyers Weekly a few weeks ago that she is doing more M&A work, compared with two years ago, due to the state of the market.

Sparks says despite the ECM market being sluggish, there are still signs of life that are keeping ECM lawyers looking at a glass half-full rather than half empty.

“I have one IPO on, two underwriter roles, a related party underwriting and a cornerstone investment,” he says.

“That is the suite of work that would be similar to Freehills, but what is different is that much of it is coming offshore.”

Sparks adds that while the ASX is not seeing the volume of large IPOs that were being predicted this time 12 months ago, recent floats such as the $300 million Trade Me IPO is keeping investor interest burning, although it might be a dull flame.

“The Trade Me float clearly illustrates that even in difficult circumstances there is investor interest on the right sort of float,” he says. “There are certainly potential issuers that will need to come to the market at some point soon because there are regulatory requirements for them to do so, and there are a number of private equity funds that haven’t been able to exit their investments because the markets haven’t been in the right space for them to exit.”

While banking and finance lawyers are hoping for those big ticket IPOs to come to the market, in their absence they must expand their skill-sets to get work and keep the billable hours ticking over.

“There is renewed interest in hybrids and convertibles, which is an area where both corporate ECM lawyers and banking lawyers have skills that are relevant,” says Sparks.

“To the extent to which we do see capital raising in that area, that will keep ECM lawyers busy.”

However, at a time when gambling has become a political issue, Sparks wouldn’t bet the house on capital markets turning around any time soon.

“If equity remains expensive and bank debt is hard to come by, then issuers will need to look at other alternatives,” he says.

“My focus now is a very different focus to what I had at Allens” MAtthew Allchurch, pArtner, Johnson, wInter & slAttery

Money staying in pockets The Sentix Investor Confidence rating, which measures investor confidence in the eurozone, alarmingly dropped from a reading of minus 18.5 in September to minus 21.2 in November.

A positive rating above 0 demonstrates consumer optimism, while anything in the negative demonstrates pessimism.

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opinion

a new dawn for discovery Law firms and the courts are both waking up to alternative ways to tackle discovery.

Ben Kennedy takes a look at why a well conceived discovery plan can save time and money

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usinesses today can store too much information. Simply put, too much information dilutes the efficiency of locating relevant documents. The less imprecise the search results the greater the number of documents returned by the search.

In litigation, the greater the number of documents, the greater the number of hours spent by legal teams wading through them, therefore increasing the cost and time required to resolve a dispute. There is tension between conducting a reasonable search for documents and controlling costs.

The search for solutions Innovative solutions from law firms, software companies and the courts are emerging in response to cost management pressures.

Mallesons Stephen Jaques recently announced a deal with Integreon to outsource subjective document review offshore where appropriate. Mallesons anticipates a 30 – 50 per cent cost saving on suitable matters.

Whether or not legal process outsourcing is appropriate for clients will depend on their assessment of the prospective savings and any perceived risks of sending documents and intellectual property overseas for review by legal qualified staff educated in foreign jurisdictions.

David Laing, a partner of Baker & McKenzie, recently detailed his experiences with ‘document prioritisation’, an interesting technology solution for managing too much information. The software orders the documents from the most relevant to the least by learning from an experienced lawyer reviewing a sample of documents.

The technology then ranks all of the documents with surprising accuracy and the lawyers’ task becomes one of confirmation and correction. Laing estimated that the predictive coding technology could cut the cost of document review by as much as 50 per cent. Courts and law reform bodies are also investigating options to tackle the rising costs of discovery. The courts are encouraging review of the effort and expense of litigation against the amount in dispute and the complexity of the issues. The use of the ‘discovery plan’ in electronic discovery is one such solution heralded as enabling such assessment of the proportionality and efficacy of the electronic discovery process.

Planning discovery

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The concept of a discovery plan may seem simple enough. A discovery plan is a managerial tool that details the series of steps intended to fulfil one’s discovery obligations.

At a minimum, a discovery plan translates the pleaded issues into boundaries, cordoning off data for the dispute and documenting the proposed discovery procedure. However, there is limited guidance on what should be covered by a discovery plan from an Australian perspective. Conversely, in the United States, there is heavy guidance on what a discovery plan must contain.

Nevertheless, recent amendments to the Australian Federal Court Rules encourage the use of discovery plans. The Federal Court relies on “the parties to have discussed and agreed upon a practical and cost-effective discovery plan”.

Further guidance may be forthcoming with the Attorney-General’s consideration of the recommendations set out in the Australia Law Reform Commission’s report on managing discovery (the ALRC Report).

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opinion

In summary, the ALRC Report suggests that a discovery plan should include sources of data suspected to hold material relevant to the dispute, including details on those sources excluded from discovery; categories of documents and metadata relevant to the crucial issues in dispute the methods, words, queries, technology and service providers used to search and collect documents and metadata; the technology used to facilitate and streamline document review, such as de-duplication; protocols for handling privileged documents and exchanging lists and inspecting documents between parties; and the anticipated costs and the timeline of discovery.

In practice, the parties agree to a discovery plan with input from practitioners experienced in the electronic discovery process and supporting technology. However, where the parties cannot reach agreement, the agreed and disagreed aspects of the plan assist the court to understand the issues and provide guidance on the reasonableness of costs to resolve the issues in dispute. Two recent

examples demonstrate that courts are capable and willing to do just that.

Justice Edmonds of the Federal Court noted the benefits of using discovery plans in a dispute between two well-resourced litigants in Optus Networks Pty Ltd v Telstra Corporation Ltd (No 4) [2011] FCA 485. Optus sought discovery of documents to assist with calculating damages after a previous ruling in its favour.

Telstra prepared a discovery plan to focus Optus’ pleaded issues and limit the ambit of discovery. His Honour viewed Telstra’s discovery plan as better than not having one. Accordingly, the plan was approved with only slight variations to the parameters of the search.

The Victorian Supreme Court has also recognised the utility of the discovery plan. In Matthews v SPI Electricity Pty Ltd & Ors [2011] VSC 401, Associate Justice Zammit viewed the Federal Court’s encouragement of discovery plans to manage discovery as consistent with Victoria’s Civil Procedure Act 2010. However, the plaintiffs sought amendments to the defendant’s proposed discovery plan, resulting in the Court stepping in to provide guidance.

The proposed plan provided a basis for her Honour to assess the need for the amendments to facilitate the resolution of the issues in dispute in the light of the additional cost and time to implement the changes. Her Honour ordered one further, limited tranche of discovery, after hearing proposals for numerous requests for additional documents, with a corresponding amendment to the discovery plan.

Discovery plans can be a useful tool to manage inefficient approaches to discovery and to defend against oppressive claims for documents. Discovery plans facilitate reaching agreement on discovery processes and provide a mechanism for rejecting others. Importantly, courts are embracing discovery plans and the often technical information they contain.

While the utility of a discovery plan will vary in each matter, parties that understand the guidance a discovery plan provides are well positioned to limit the ambit of discovery and benefit from the emerging solutions to reduce the costs of discovery. LW Ben Kennedy is a manager with NuLegal

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Chasing the sun Between cyclones, floods, the high Australian dollar and the global financial crisis, Queensland has taken more hits than any other state in recent times. But things are looking bright for the sunshine state as it challenges Perth for the title of Australia’s natural resources capital. Claire Chaffey reports

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he hot, dry weather currently gracing Queensland is much like the calm before the storm. So far, it’s been the driest November since 1914 – but that all looks set to change.

Last week, the Australian Bureau of Meteorology (BOM) issued a forecast saying Australia will once again be subject to La Nina weather patterns this summer, and we can expect higher-than-average rainfall. Just like last year.

In December 2010, the flooding that would cause unprecedented death and destruction in Queensland began. It persisted into January, affecting most of the state, and even claimed the capital, Brisbane, as a victim.

Then, in February, Cyclone Yasi bore down on the far north of the state, decimating communities and ensuring that the damage already done to the vital tourism industry would be significantly exacerbated.

People lost their homes, businesses literally floated away, and the damage done – both psychologically and materially – put a crater in Queensland’s economy.

Almost a year later, the state is nowhere near to making a full recovery, and the BOM’s forecast

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Everyone who is trying to develop their practice is also trying to employ our staff” ROSS LANDSBERG, BRISBANE MANAGING PARTNER, MINTER ELLISON

has cast a shadow over the reconstruction effort which is gradually ramping up.

“It is quite a frightening prospect for those people who were very badly affected by the floods at the beginning of the year, many of whom are not yet back in their homes and many of whom are still trying to work through issues with insurance,” says the Queensland Law Society’s CEO, Noela L’Estrange.

“It would be incredibly difficult, if you had been through a very bad experience in February, to suddenly be in bed and have to listen to thundering rain on the roof and wonder whether it was all going to happen again.”

While the recovery process is certainly underway in Queensland, the scale of the disaster has ensured that much of the reconstruction is yet to commence and many people are still battling with insurance claims – which are not proving easy for either insurers or claimants.

Chris Ward, the managing partner of Queensland firm Cooper Grace Ward, says the firm’s work in recent times with a major insurer was an incredibly intense period for which no-one was prepared.

“For all the insurers, it was a huge process. You had the floods and then Cyclone Yasi in the space of a couple of weeks,” he says. “To be fair to insurers, their team levels are pitched at the medium, so to have that number of claims … there was just astronomical pressure upon them. It has been a very intense process.”

Cooper Grace Ward was also one of the firms working on the Queensland Floods Commission of Enquiry, which finished sittings two weeks ago. A final report is due at the end of January.

“It’s been something which has really captured peoples’ imaginations,” says Ward, “because most people were affected in some way, shape or form.”

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They talk about a two-speed economy going on generally in Australia, but my thoughts are that it is three-speed in Queensland” IAn Dhu, DIrecTor, Focus recruITmenT

a three-speed economy Queensland’s natural disasters have managed to differentiate the state in yet another way, with many locals saying it is now subject to a three-speed economy rather than the two-speed economy which generally describes economic activity across the rest of the country.

“I don’t think you could possibly say Queensland has a two-speed economy,” says L’Estrange, with whom Ian Dhu, the director of Brisbane-based Focus Recruitment, agrees.

“They talk about a two-speed economy going on generally in Australia, but my thoughts are that it is three-speed in Queensland,” he says.

“The small and medium enterprise (SME) sector is dead, or certainly subdued … The second speed is the professional services sector, which is cranking along quite comfortably and, in the main, servicing the corporate sector … [Then] the corporate sector – mining, resources, energy, and the spin-off areas related to those, such as infrastructure, capital raisings, regulatory and compliance considerations, IPOs, M&A, associated finance and the inevitable disputes – is ticking along very strongly.”

Accordingly, unless you happen to be a firm working in the energy and resources space, chances are you’re doing it pretty tough.

“We have a mining boom in large parts of the state, but we also have large parts of the state that depend on tourism, and they were very badly affected by the GFC, the rising Australian dollar, and the floods and cyclone earlier this year. And really, they haven’t recovered,” says L’Estrange. “That has a knock-on effect for the community at large, but also for lawyers. Most lawyers operate in local communities; they operate in the suburbs and in regional and rural cities and towns …

There are challenges in running and growing a successful practice in a slow economy.”

And while Dhu is confident the struggling sectors will eventually recover, there is no doubt this will take time.

“There seems to be some green shoots emerging and some renewed confidence, but certainly [the SME sector] is nowhere near where it was,” he says.

“Given the economic activity up here, and given the demographics and the people wanting to come to Queensland for lifestyle and opportunity … it is inevitable that the SME market will pick up but, at the moment, it’s subdued, and hence the demand for legal services in that sector is nowhere near where it was pre-GFC.”

basking in the glow For those firms that have clients in the energy and resources-related fields, however, life is very, very good.

In recent times, numerous significant projects that have been hovering in the pipeline – many of them related to LNG – have come on stream; essential infrastructure projects have been completed or are nearing completion; and investment in the energy sector over the next 12 months is estimated to be upwards of $80 billion.

According to Erin Feros, the head of Allens Arthur Robinson’s Queensland energy and resources practice, Queensland is on par with Western Australia when it comes to growth potential in this space.

“Queensland and Western Australia are really seen as the growth areas for the firms,” she says. “In terms of numbers, we have traditionally had smaller offices there, but given the growth – based on resources, of course – my prediction is that you will see growth in the size of offices in Queensland.

“In the past, a lot of the work was driven out of Sydney or Melbourne, but … there are now a number

It would be incredibly difficult, if you had been through a very bad experience in February, to suddenly be in bed and have to listen to thundering rain on the roof and wonder whether it was all going to happen again” noelA l’esTrAnge, ceo, QueenslAnD lAw socIeTy

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of international resources companies who are basing themselves in Queensland, so that attracts a lot of work, decision-making and the flow-on effects for the legal services providers.”

Minter Ellison, which has the biggest Brisbane office when compared to its top-tier counterparts, is not surprised that other firms are now scrambling to boost numbers in their Brisbane offices.

“We have been growing slowly over the last 10 years, rather than waking up yesterday and saying, ‘Wouldn’t it be a good idea to have a large Brisbane office’,” says Brisbane managing partner Ross Landsberg. “Our numbers of staff haven’t increased dramatically.”

While this strategy has placed the firm in good stead when it comes to being able to service clients with a wellestablished talent base, Landsberg says that holding onto talent is a constant challenge in such a tight market.

“Everyone who is trying to develop their practice is also trying to employ our staff,” he says. “Most of our clients are upping their in-house corporate teams, and most of our lawyers have been offered jobs by our clients on a regular basis. It’s no secret that those areas of work are developing in Queensland, so most firms are trying to increase their strength in that space.”

Not everyone, though, sees global arrivals as an imminent reality.

“Sydney continues to regard itself as the commercial centre of Australia, and it probably is. So, if you are an entrant coming into Australia, you tend to take the view that you can service the east coast out of Sydney,” says Landsberg. “But you realise that it is a hell of a long way to Perth and, if you want to properly service the Western Australian market, it is pretty hard to do that out of Sydney.”

As such, says Landsberg, Brisbane is an unlikely option for global firms setting up small transactional offices dealing in energy and resources.

“There is a hell of a difference between bringing a transaction team into town for six to eight weeks to do a job, and going to the effort of establishing an office,” he says.

Ward, too, says it is unlikely that firms such as Clifford Chance and Allen & Overy will set up shop in Brisbane any time soon – and this, he says, is from the horse’s mouth.

“I was in London only last month and met with the managing partner of Clifford Chance, who I got to know just for a cup of tea,” he says. “I did say to him, ‘What about Brisbane?’ My impression is that those international firms can operate purely out of Sydney or Perth. They don’t need to be in Brisbane, and he made it pretty clear that they don’t see any reason for being in Brisbane.”

Whetting global appetites If Queensland is experiencing such significant growth in the energy and resources sector, are we likely to see global firms seeking to establish offices in Brisbane as well as Perth and Sydney?

Dhu seems to think so.

“There is a sense of inevitability around that. That is what we are hearing,” he says. “For the same reasons they are making their presence felt in Perth, I believe they are the same motivations that will lead them to Queensland. Queensland is geographically and economically proximate to the growing international markets of Asia and Asia Pacific and, specifically, active in the energy and resources sectors where the real corporate action is occurring. The global firms are spreading their risk. There will be a presence in Queensland, maybe not their headquarters, but a presence.”

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Open doors

My impression is that those international firms can operate purely out of Sydney or Perth. They don’t need to be in Brisbane” CHRIS WARD, MANAGING PARTNER, COOPER GRACE WARD

Despite this, however, Feros says Brisbane is becoming an increasingly attractive option for lawyers working in the energy and resources space who might not necessarily want to make the move to Perth.

“Perth is a really nice place, but we were recruiting over in the UK earlier this year to try and get energy and resources lawyers for our region, and a lot of them would consider the east coast, but not the west coast,” she says.

“They have this mindset about Perth being distant.”

According to Dhu, this coincides with an opening up of the Queensland labour market which, by necessity, is looking further afield for legal talent.

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mainfeature

“Here in Queensland, we have traditionally been quite parochial and fiercely patriotic. But, ultimately, necessity is requiring a mindset towards looking at legal talent that can not only be derived from interstate, but also from abroad,” he says.

“Lawyers with the right skills should keep an open mind about using their skills and qualifications to seize opportunities that exist up here, and not think that it is a closed shop anymore. For a long time, there was a belief that if you weren’t a Queensland lawyer, you may be behind the eight-ball. But organisations are now open to that fact that you don’t have to be attached to a Queensland practising certificate.”

Interestingly, this emerging “open market” has created a growing demand for Minter Ellison’s services in a previously quiet practice area: migration law.

As clients begin to realise just how much labour they will need to complete projects, says Landsberg, it is throwing up challenges not seen before in the sunshine state – and clients are asking for help.

“When we speak to a lot of our resources clients, they are starting to get their heads around the fact there is not enough skilled and unskilled labour available in Australia to do the level of work required in the resources sector over the next 10 years,” he says.

“It is a real challenge, in terms of how you manage both the migration process and the deployment and use of immigrant labour without creating a whole raft of social issues.

“This is going to be a significant issue for Queensland and Australia over the next 10 years.”

Hope and pray While Queensland is still facing its fair share of hardship – and everyone is keeping their fingers crossed that the state is not hit with yet more natural disasters over summer – there is a general consensus that the outlook for the next 12 months is largely positive.

“I am very optimistic about what is happening in Queensland,” says Feros. “More and more international investors are looking at Queensland, and there is a whole lot of infrastructure and new projects coming on stream.

So, based on the resources sector and things that flow from that, I have an optimistic outlook for Queensland, irrespective of what’s happening in the rest of the world.”

Landsberg agrees, and says it would take some kind of economic disaster to stall the numerous projects which are kicking off and which will provide a much-needed boon for the state.

“It would require a significant financial meltdown to derail most of the significant projects in Queensland, because they are at a stage where the corporates involved have spent a lot of money, and they are all looking at long-run arrangements,” he says.

“If you spend $8 billion on an LNG plant, you’re really not worried about next year’s revenue. You are really projecting the next 30 years of revenue.”

Despite this, though, Landsberg predicts that the

imminent state election, which will take place before the middle of next year, could potentially slow the economy – albeit briefly.

“At the moment, all of the polls suggest there will be a change in government. People are trying to get their head around what that might mean,” he says.

“For most of the larger projects, I think there is a bipartisan level of support. [But] if you have a change of government, there is a period of time in which the new government has to [adjust] … so you would expect a hiatus in government-related work for a period of three to six months.

“That tends to create a bit of a dip in the economy, but I think the fact that the major energy and resources projects are coming on stream will probably help smooth that through.”

As for Ward, while he says he is optimistic about Queensland’s future, focusing on what he can actually control is taking priority in such uncertain times.

“I can’t control what happens in Europe or America, or what happens in the Australian economy, but I can control what happens here,” he says. “So we can take control of our own systems, business development, profile, brand, client service imperatives, values and culture. They’re the things we can control. You have got to look outwards but, at the moment, I am making sure we work well within our own four walls.

“After that, there is a degree of hope and pray.” LW

Based on the resources sector and things that flow from that, I have an optimistic outlook for Queensland, irrespective of what’s happening in the rest of the world” ERIN FEROS, PARTNER, ALLENS ARTHUR ROBINSON

Gas is a big deal By 2020, Queensland will produce more liquefied natural gas (LNG) than Australia’s total current output By 2020, Queensland LNG capacity will reach at least 25 million tonnes Origin Energy and ConocoPhilips’ Australia Pacific LNG this year signed a $35 billion joint venture for Curtis Island/Gladstone LNG In the 12 months to 30 June 2011, Australia produced 20.8 million tonnes of LNG China Petroleum & Chemical (Sinopec) signed a 20-year, $85 billion supply contract to take LNG from the Surat and Bowen Basins Source: EnergyQuest

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23

career

counsel

Career progression still top priority Despite workplace pressures and slow growth in salaries, greater opportunity for advancement is still the number one priority sought by employees in their next position. Briana Everett reports ACCORDING TO a survey conducted in September and October by talent and career management experts Right Management, 27 per cent of respondents said greater opportunity for advancement was their top priority in their next role.

Career progression was followed by calls for a better management team (21 per cent), a more flexible work environment (21 per cent), a better salary (17 per cent) and less work pressure (14 per cent).

“We wondered if higher compensation would top the list, or perhaps less workplace stress, but we found that opportunity for advancement is number one,” said Michael Haid, Right Management’s senior vice

president for talent management.

“That tells us that despite all the workplace complaints we hear, most employees are still highly motivated about their own development and careers.”

Noting that career advancement is a factor lawyers, at all levels, will always focus on, JLegal private practice manager Jenny Bermheden says salary is becoming less of a reason for lawyers to move as most firms pay competitively and in line with the market.

“In this market, and more so than last year, lawyers are overall thinking a lot more about their reason for wanting to make a move,” she says. “They are a lot more aware of what is happening around them and are therefore

being careful to make a move unless there is a real reason.

Career advancement has always been an important factor.”

Bermheden added that while career advancement is important to a lawyer’s career, it is also important as to their development as a lawyer.

“Some lawyers consider moving from the larger firms to the boutique/smaller firms because they believe that moving up the career ladder there is easier, which is not always the case,” she says. “They need to be aware of the structure in the firm and the particular team they are going to. And if the team is already top heavy, moving to a smaller firm does not necessarily always help.”

Wasting the day

18 %

{

my of the working day is spent on work that wastes time and effort

{

54 %

of respondents who rated the influences on individual productivity said people management issues have the biggest impact on productivity

Source: The Ernst & Young Australian Productivity Pulse, Edition one - October

24

L AW Y E R S W E E K LY 2 5 N O V E M B E R 2 0 11

next move

My Next Move Sian Harwood, legal consultant, Randstad

Q A

I’m unhappy with my current salary. Should I change jobs?

There can be a lot of frustration surrounding apparent salary inequity within firms. We often receive reports from unhappy lawyers who feel as though loyal employees are disadvantaged compared to new employees that have been lured in with higher salaries.

While changing roles might allow you the opportunity to negotiate a higher base salary from the outset, in circumstances where you are otherwise happy in your position, there are probably alternative steps that should be taken first.

Do your research. Talk to a specialist

recruitment agency that understands your market and your likely value within it. You should also establish how your firm structures its remuneration packages i.e. internal, external or performance-based.

If your research indicates your current compensation is not fair, you are then in a credible position to negotiate an increase with your employer.

There is nothing wrong with changing positions if you feel you are not receiving fair treatment. However, you should be careful to ensure any move is the right one for your overall career and life circumstances. You should also bear in mind that future employers often take a dim view of those who “job hop” to the next high-paying position.

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R E A D T H E L AT E S T FOLKLAW ONLINE

law Gym-junkie lawyer gets “hangry” www.lawyersweekly.com.au/folklaw

A New York lawyer has developed a clear case of the ‘hangries’, launching a $US730,000 ($708,411) lawsuit over his breakfast – or lack thereof.

As Above the Law reports, personal injury lawyer Richard J Katz is suing his luxurious gym, the Setai Club & Spa Wall Street, which offers “exclusive fitness and wellness with a membership roster of the who’s who of the Manhattan financial capital”.

For just $US5000 a year, the Setai Club and Spa offers members, like Katz, unlimited daily access to workout gear, personal grooming equipment, fresh towels, robes and slippers; access to a private members cocktail lounge with Wi-Fi and a widescreen television; as well as a “complimentary breakfast” Monday to Friday at Michelin Star restaurant SHO (this sounds like Folklaw’s kind of gym).

According to the New York Daily News, Katz, who is 53 years old and lives in the West Village with his wife, really enjoyed his breakfasts at the Setai Club.

“It was a full-blown hotel breakfast. I’d go to the gym in the morning, have a spa and a nice quiet breakfast and do some work – they mucked it all up,” Katz told the New York Daily News.

Unfortunately, it appears Katz got a little too used to his daily, post-workout feasts and is now pretty furious after they were taken away from him. Apparently, his ‘hangry’ complaints about the missing complimentary breakfasts he was promised got so bad that Katz was

This is the mough-watering brekky Katz didn’t get...

kicked out of the exclusive club.

Above the Law says Katz is suing the gym for each meal he missed out on, based on the allegation that the Setai Club knew it would be unable to deliver on its promise of a “full complimentary breakfast”, however Katz nonetheless relied on that promise to his detriment.

According to The New York Times, in a case filed in the New York Supreme Court on 8 November, Katz is claiming $230,000 in damages in relation to the breakfasts and $500,000 for an alleged libellous comment by a Setai Club employee.

Folklaw can totally relate to Katz’s ‘hanger’ over his breakfast, particularly after an intense gym workout.

Although in Folklaw's world, as a journalist, the grievances are on a slightly lesser scale and usually involve the measly takeaway toast and coffee order which often goes missing.

Lawyer gets cranky over free booze This coupon is about as valuable as the drachma

A LIMIT placed on free drink coupons offered by Southwest Airlines Co has left a thirsty Chicago-based lawyer fuming.

As reported by the ABA Journal, the US airline recently revised its drinks policy so that free drink coupons offered to its premium “Business Select” customers would only be honoured on the same day as travel – a decision frequent flyer Adam Levitt is not too happy about.

According to Reuters, Levitt had

26

been diligently collecting his coupons and was owed 45 drinks at the time of Southwest’s decision to impose expiration dates on its drink coupons.

After years of receiving free drinks (which would normally cost $5 each) as a premium Southwest customer, Levitt is now suing Southwest for its change in policy, claiming that it amounts to a breach of contract, leaving his 45 coupons worthless.

“Southwest decided that it would make more money – and improve its bottom line – by choosing not to honour the coupons that consumers had already paid and bargained for,” claimed Levitt in his complaint filed in the Chicago Federal Court, in which he is seeking compensatory damages and class action status

L AW Y E R S W E E K LY 2 5 N O V E M B E R 2 0 11

for other Southwest customers with worthless coupons (yep, you guessed it, Levitt is a class action litigation lawyer).

Levitt is represented by Joseph Siprut of law firm Siprut SC who told the ABA Journal: “This is where a class action lawsuit really is the appropriate mechanism to deal with this issue ... It only makes sense to do this as a class action on an aggregate basis.”

Neither Southwest nor Levitt’s legal team provided comment when contacted by Reuters and the ABA Journal.

Folklaw can understand Levitt’s frustration with the cost-cutting exercises of airlines these days and we’re certainly not surprised that a decision to take free alcohol away from an over-worked, class action lawyer is causing some grief.

Client pulls Squire Sanders from case SOME CLIENTS just don’t want to share the love they have with their law firm.

The Texas Foreclosure Defense Network reports that last month JP Morgan Chase Bank successfully took court action to stop Squire Sanders & Dempsey (SSD) acting for a development company.

JP Morgan Chase is a client of SSD in the United States and to say they were not happy the firm was acting for Meritage Homes Corp in bankruptcy proceedings over a housing development project gone wrong, would be an understatement.

JP Morgan’s beef was that SSD had a conflict of interest in acting for both Meritage and JP Morgan, given the companies had been involved in lawsuits related to the same development.

Initially, JP Morgan was a real gentleman about the dilemma, asking SSD very nicely if it would withdraw from the case. SSD listened, nodded its head, and said it would. It then went to Meritage to ask to be relieved of its duties but Meritage refused and said it would ask JP Morgan to drop its request to take SSD off the case.

JP Morgan was angry. So angry, it went to the Federal Court.

The Federal Court agreed with JP Morgan and ruled there was a conflict with the firm acting for both parties, and ordered that SSD disqualify itself from the bankruptcy proceedings.

Folklaw can’t wait to see which law firm JP Morgan appoints when it next puts its legal panel to tender.

JP Morgan told Meritage to talk to the hand w w w.law yersweekly.com.au

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