The Buzz
* The excitement being generated by the news of Australian law firm
Slater & Gordon’s stockmarket flotation and the possibility
that Dickinson Dees will spin-off its volume banking business will sharpen
again the debate about the potential impact of the Clementi reforms
and the Legal Services Bill. On the face of it, there is a pretty
simple calculation so far. Where commodity legal work would benefit from an
injection of cash to grow the business, be able to process more matters and
earn larger profits then law firms will consider the idea. But for the
higher value, customised work it is hard to see a financial argument – other
than a short-term injection of money into the current partners’ pockets. Of
course, there is no underestimating the power of individual avarice
but British law firms have long been based on the notions of legacy and
collegiality. Once that goes then they may lose out on the magic factor that
has ensured their success. After all, how many British corporates rate as
high in the world as London law firms? Once a law firms floats then watch
out for solicitors turning into reluctant galley slaves.
* Judge John Altman, a designated family judge for Milton Keynes and
Oxford, has been appointed to the same role in London. He succeeds
Judge Valerie Pearlman who stood down in April.
* Linklaters has appointed two new heads of litigation and arbitration
in London and Belgium. Michael Bennett, a Linklaters man for 18
years, succeeds John Turnbull as litigation chief in London while Joost
Verlinden run things in Brussels. Mr Verlinden takes over from Johan
Verbist who is returning to fulltime client work. Elsewhere, the firm
advised on two major Russian flotations last week: the $8 billion IPO of JSC
VTB Bank, the largest this year and the $2.2 billion IPO of OAO
Pharmastandard, the first pharmaceutical company to float in Russian.
Linklaters advised the arranging banks on both deals.
* Linklaters trainees who thought they were joining a big, rich law
firm where they would get to work on lots of fancy corporate deals are
in for a nasty surprise next week when they will be downing pens to
clean up their “filthy” Silk Street HQ. The “mass group Spring clean” will
involve all current trainees – who are allowed to wear jeans for the
occasion – and aims to restore a “shiny, sparkling and clutter free
environment!” says a military style instruction email from a scary sounding
corporate partner. Be warned. Any trainees who think they can get away with
a little bit of filing are in for a shock. The troops will be armed with
“general purpose wipes and marigold gloves for those really filthy areas!”
But it's not all doom and gloom, trainees who successfully complete the task
– checkers with lists will be keeping tabs – will be rewarded with “an extra
special food and drink trolley.” Sound good? “Expect chocolate fountains and
other delicacies.”
* Beachcroft has always distinguished itself for being a high quality,
nice firm with a strong public service affiliation – not surprising really
given that Lord Hunt, the former Conservative cabinet minister, was its
senior partner for a number of years. But its profits have not kept
up with some of its peers. That is now starting to change. Under the focused
leadership of Simon Hodson as senior partner things are "starting to
get better" and the financial results just announced have shown a 20
per cent increase in overall profit compared with last year. With its
network of regional offices and strong links to the NHS Beachcroft is never
going to be ahead of the pack in terms of earnings but its potential for
growth is good - and In Hodson they have a man who knows where he wants the
firm to go.
* A group of financial services lawyers has got together to launch a new club
called - rather unimaginatively - the Financial Services Lawyers
Association. As well a bit of networking and gossip swapping, the FSLA
aims to “provide a forum for the open exchange of views and to facilitate
the dissemination of knowledge and ideas and training in financial services
law and regulation.” Interested? The good news is you don’t even have to be
a lawyer to join. Law students – can’t be bad for securing a training
contract – and any “non-lawyers with an interest in
financial services” are welcome to come along. The inaugural event (6:30pm,
June 7, Clifford Chance) features a panel discussion called: "Is
principles based regulation an affront to the principle of legal certainty?"
For more info visit the FLSA’s website
.
* Love them or loathe them, you have to admit they are good. Class action
kings Grant & Eisenhofer, Schiffrin Barroway Topaz & Kessler and
Milberg Weiss & Bershad, have secured the largest securities class
action settlement against a single business with a $3 billion settlement
from Tyco, the US conglomerate whose previous chief executive had a thing
for expensive shower curtains. Jay Eisenhofer, of G&F, best known over
here for getting more than $200m out of Shell last month, called the
result “fantastic”. His fee will be too.
* A New York doorman is suing a couple for $2 million, alleging they
humiliated him by wrongly accusing him of stealing a Christmas bonus
intended for another employee. Viorel Cincu was fired from his job at a
plush apartment complex on East 52nd Street after Stephanie and Ralph
Asadorian made the accusation in a letter to the building's management,
reports the New York Post.
* Roy Pearson, the Washington DC-based judge suing his drycleaner for
$65 million over a pair of missing trousers, has drawn fire from The
American Association for Justice (which used to be called the Association of
Trial Lawyers of America.) The group has filed an ethics complaint
criticising his behaviour.
* Never mind how Tony Blair will occupy himself after June 27 – what about Cherie?
It’s decision time for the PM’s wife: will she now apply to be a judge?
Or will it be the lecture circuit? She does at least have the option,
now that High Court judges are appointed by the independent Judicial
Appointments Commission and no finger of favouritism can be pointed at the
Lord Chancellor.
* An embarrassing launch for the first policy initiative by the new Ministry
of Justice. Five hours after unveiling plans to put a 28-day cap on the
length of time offenders released on licence could be returned to jail for
committing a minor offence, a “clarifying” statement had to be issued, after
much to-ing and fro-ing, that the cap would not apply to murderers or those
given indeterminate sentences for public protection. Perhaps the reason for
this confusion was that the document was still being worked on in the
early hours before its launch. But the damage was done, with The Sun calling
for “this warbling clot” to be sacked. Hardly the most auspicious start for
our Justice Secretary.
* 1 Pump Court chambers raised £1,000 for a school in Libode,
South Africa, with a film night at the South African High Commission
last week. The elder statesman of the Bar was there – Sir Sydney Kentridge,
QC – to introduce a viewing of Long Night’s Journey into Day on the Truth
and Reconciliation Commission.
* Bloggers unite: the first conference on law blogs takes place on
Friday in London. It is organised by the IP barrister-led Geeklawyer.blog.
Details from the Law Society Gazette, which is backing the event, 020-7841
5555
* The Wall Street Journal’s Law Blog has devoted much of the last few days to
coverage of America’s top moustachioed lawyers. There are more
than you might think. Click here
the top 15.
* Allen & Overy has established a foothold in Saudi Arabia through
a tie up with a local firm Abdulaziz AlGasim making it one of only a handful
of western law firms in the Riyadh market. Julian Johansen, an
Islamic finance and banking partner in Dubai, is moving to Riyadh as part of
the venture.
* Jeremy Phillips, IP lawyer, academic and founder of the IPKat
blog is leaving Slaughter & May for Olswang, where he will work
alongside former S&M colleague Nigel Swycher.
* Jane Kola, a partner at Sacker & Partners, the specialist
pensions firm, is joining Wragge & Co’s pensions team as a
director.
To read last week's Water Cooler click here
