NZ Lawyer issue 7.02 by Key Media

nzlawyermagazine.co.nz

Issue 7.2

DOUBLE ACT Chapman Tripp’s joint managing partners Mark Reese and Andrew Poole on sharing the reins at one of the nation’s biggest law firms HOT LIST MEET THE WHO’S WHO IN NEW ZEALAND LAW FOR 2015

A TALE OF TWO CITIES AUCKLAND AND CHRISTCHURCH LEAD THE PROPERTY AND CONSTRUCTION BOOM

RISKS DRIVE ROBUST ACTIVITY WHAT’S BEHIND THE NEW WAVE OF WORK FOR INSURANCE LAWYERS

ISSUE 7.2

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CONTENTS

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UPFRONT 02 Editorial 04 Appointments

FEATURE

A TALE OF TWO CITIES

Auckland and Christchurch lead the property and construction boom

THE TRUSTED ADVISER

ANZ Bank New Zealand general counsel Craig Mulholland on advising one of the country’s biggest organisations against the backdrop of a rapidly digitising sector

Generation next

10 Legal insight In-house evolution

FEATURES 50 Women at the top

54 Thinking outside the square How can creativity be funnelled into innovative outcomes for business?

DOUBLE ACT

PEOPLE

09 News analysis

The issues they encounter getting there, and staying there

COVER STORY

Chapman Tripp’s joint managing partners, Mark Reese and Andrew Poole, on sharing the reins at one of the nation’s biggest law firms

06 Deals round-up

FEATURE

INSURANCE RISKS DRIVE ROBUST LEGAL ACTIVITY

PEOPLE 44 Keeping it in the family

Fourth-generation lawyer Julian Spring on life in a legal family

46 On the international stage

Ashurst chairman Ben Tidswell on the trends shaping the international legal market

Reclassified earthquake cases and maritime and regulatory risks catalyse new work for insurance lawyers

FEATURE

HOT LIST

The who’s who in law for 2015

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UPFRONT

EDITORIAL

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Sitting up and taking notice Kathryn Crossley

ew Zealand’s legal market is sometimes overlooked on the international legal stage. Perhaps it comes down to remoteness or fewer billion-dollar deals. Although it may be a significantly smaller market than the major international legal centres of London, Hong Kong and New York, New Zealand’s legal sector is not to be underestimated. The depth of skill in New Zealand’s legal market easily rivals that of other centres, as the lawyers featured in our Hot List (page 22) effortlessly demonstrate. Talented home-grown lawyers are also making their mark overseas. Ashurst

Although it may be a significantly smaller market than the major international legal centres of London, Hong Kong and New York, New Zealand’s legal sector is not to be underestimated chairman Ben Tidswell is a case in point. He talks to NZLawyer about his career and the trends shaping the international legal market on page 46. Yes, New Zealand is a country that has long punched above its weight in the law, but with the dawning of a $100bn construction boom and an influx of significant foreign investment into property and a number of other sectors, it is certainly starting to get some attention. Read more about the surge in activity in the property and construction sectors from page 16. Growing international investment may not see foreign firms follow their clients into the New Zealand legal market like they did in Australia, but the secret about this competitive yet opportunity-filled market is definitely out.

JUNE 2O15 EDITORIAL Editor Kathryn Crossley Production Editors Roslyn Meredith Moira Daniels Carolin Wun

CONTRIBUTORS Samantha Woodhill Hannah Norton Iain Hopkins Karen Gately

ART & PRODUCTION Design Manager Daniel Williams Designer Kat Vargas

SALES & MARKETING Sales Manager Paul Ferris Marketing and Communications Manager Lisa Narroway Traffic Coordinator Lou Gonzales

CORPORATE Chief Executive Officer Mike Shipley Chief Operating Officer George Walmsley Managing Director Justin Kennedy Chief Information Officer Colin Chan Human Resources Manager Julia Bookallil

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Australasian Lawyer is part of an international family of B2B publications and websites for the legal industry AUSTRALASIAN LAWYER kathryn.crossley@keymedia.com.au T +61 2 8437 4702 samantha.woodhill@keymedia.com.au T +61 2 8437 4704

Kathryn Crossley, editor NZLAWYER kathryn.crossley@keymedia.com.au T +61 2 8437 4702 hannah.norton@keymedia.co.nz T +64 9 973 5195 Copyright is reserved throughout. No part of this publication can be reproduced in whole or part without the express permission of the editor. Contributions are invited, but copies of work should be kept, as NZLawyer magazine can accept no responsibility for loss

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UPFRONT

MARKET MOVEMENTS

Appointments AJ PARK’S FIRST EVER FEMALE PARTNER RETURNS The first female partner of one of New Zealand’s oldest firms has returned to its helm 16 years later. Colleen Cavanagh has re-joined the partnership at IP firm AJ Park, where she was first appointed partner 25 years ago. She was the first female partner at the firm, appointed in 1990; where she stayed for nine years before leaving to spend time with her young family. In the intervening years, Cavanagh has kept up to date with the latest intellectual property developments, and has worked part-time at a boutique firm and held a job-sharing role at Bell Gully, before managing full-time the firm’s non-contentious IP practice. Last year she returned to AJ Park in a consultancy role, before re-joining the partnership. The firm has also recently promoted patent and design law specialist Hadleigh Brown to the partnership. Brown, who works with AJ Park’s ICT and electrical technology patents team in Auckland, has been with the firm for 13 years.

DLA PIPER NAMES NEW NZ CEO DLA Piper New Zealand has announced the appointment of Kevin Hall as the firm’s new CEO. Hall has returned to New Zealand after working as the chief operating officer of Dubai-based law firm Al Tamimi & Company, which he led through significant growth and development to become the largest law firm in the Middle East. “I am looking forward to working closely with the New Zealand team to build DLA Piper’s regional and global footprint and share my industry knowledge and expertise to further the success of the firm,” Hall said. He replaces Hugh Caughley, who is retiring after nearly five years with the firm and over 42 years in business.

PARTNER PROMOTIONS FIRM

LAWYERS PROMOTED

AJ Park

Hadleigh Brown, Colleen Cavanagh

BlackmanSpargo Rural Law

Rachel Petterson, Sandy Van Den Heuvel

Buddle Findlay

David Allen, David Randal, Susan Rowe, Allan Yeoman

DLA Piper New Zealand

Laura Scampion

Gillespie Young Watson

Fleur Rowe, Samuel Walker

Holland Beckett Lawyers

Ken Hawkes

SENIOR ASSOCIATE APPOINTMENTS FIRM

LAWYERS PROMOTED OR LATERALLYHIRED

AJ Park

Katherine Bowker, Craig Rothwell

Anderson Lloyd

Alex Booker, Rachel Brooking, Emma Burke, Anton Trixl

Buddle Findlay

Bridie McKinnon

Chapman Tripp

Simon Akozu, Lauren Curtayne, Laura Fraser, Colin Fife, Greer Fredricson, Jeremy Gray, Chris Green, Jill Gregory, Lucy Hare, Nick Letham, Jai Nario, Shalindri Silva, Prue Tyler,

DLA Piper New Zealand

Anna Priaulx

Gillespie Young Watson

Joanne Davies

LATERAL PARTNER APPOINTMENTS NAME

PRACTICE AREA

Chris Dann

Corporate advisory

Dan Hughes Litigation Karen Kemp Litigation Jennifer Mills 4

Employment

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LEAVING

GOING TO

Chapman Tripp Kensington Swan Chapman Tripp Minter Ellison Rudd Watts

Anthony Harper Anthony Harper Anthony Harper Anthony Harper

Hudson Gavin Martin Mark Heine Lowndes

Bethany Frowein

OTHER

Daniel Kenyon

Chapman Tripp

Senior solicitor

NAME

FIRM/COMPANY

TITLE

Bede Maher

Anderson Lloyd

Associate

Anthony Harper

Solicitor

Matthew Minnema Buddle Findlay

Solicitor

Judith Bassett

Wynn Williams

Solicitor

Steph Brown

Anderson Lloyd

Associate

Charlotte McLoughlin

Hudson Gavin Martin

Special counsel

Ronni Cabraal

Anthony Harper

Special counsel

Simon Peart

Chapman Tripp

Senior legal advisor

Cici Cui

AJ Park

Associate

Jay Pierce

Anthony Harper

Solicitor

Jade Cummings

Anthony Harper

Solicitor

Anand Ranchhod

Anthony Harper

Associate

Theresa Dabuli

Wynn Williams

Associate

Catherine Reid

Gibson Sheat Lawyers

Special counsel

Heida Donegan

Kensington Swan

Head of China Business Group

Tania Te Whenua

Holland Beckett

Solicitor

Sarah Duncraft

Anthony Harper

Solicitor

Grace ThomasEdmond

AJ Park

Associate

Catherine Fry

AJ Park

Associate

Karen Towt

Wynn Williams

Solicitor

Kevin Hall

DLA Piper New Zealand

CEO

Jeremy Upson

Chapman Tripp

Senior solicitor

Jessica Hanning

Anthony Harper

Associate

Lynne Van

Anthony Harper

Special counsel

Jordan Hopkins

Anthony Harper

Solicitor

Lydia Wallis

AJ Park

Associate

Joey James

Anthony Harper

Associate

Amy Watson

Buddle Findlay

Senior solicitor

Helen Johnson

Chapman Tripp

Senior legal advisor

Jessica Wilsher

Lowndes

Associate

Nikki Kahn

AJ Park

Associate

Stephanie Woods

Wynn Williams

Associate

Emily Kempkers

Anthony Harper

Solicitor

Kate Yesberg

Chapman Tripp

Senior solicitor

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UPFRONT

TRANSACTIONS

Deals round-up $298m

New Zealand Schools II PPP The New Zealand government has signed a $298m contract with the Future Schools Partners consortium to build and maintain four schools as part of a Public Private Partnership. Bell Gully acted for the New Zealand government, Anderson Lloyd acted for FSP, and DLA Piper Australia advised Hawkins Group Limited, who will design and construct the new facilities. Herbert Smith Freehills also advised Programmed FM, while Minter Ellison Rudd Watts advised the banks in the deal. Bell Gully partner Hugh Kettle and his team also acted for the Ministry of Education on its first PPP – the Hobsonville Schools transaction – and has acted for the Ministry of Education, Department of Corrections and the Transport Agency on all the Government’s PPP projects to date. This will be the largest schools-based PPP to date and the first in New Zealand to involve a number of facilities spread across the country.

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Transaction

Value (NZ$)

Adviser

Client

Lead lawyer(s)

Additional firms involved

New Zealand Schools II PPP

$298m

Anderson Lloyd

Future Schools David Holden, Partners Geoff Busch

Bell Gully, DLA Piper Australia, Herbert Smith Freehills, Minter Ellison Rudd Watts

Martin Aircraft IPO and ASX listing

A$27m

Bell Gully

Martin Aircraft Company Limited

Mark Forman

Minter Ellison, Minter Ellison Rudd Watts, Norton Rose Fulbright

New Zealand Schools II PPP

$298m

Bell Gully

NZ Government

Hugh Kettle

Anderson Lloyd, DLA Piper Australia, Herbert Smith Freehills, Minter Ellison Rudd Watts

Affinity Equity Partners acquisition of Nine Live from Nine Entertainment Co

A$640m

Buddle Findlay

Affinity Equity Partners

Grant Dunn

King & Wood Mallesons

Anton Capital acquisition of Eden Business Park

Confidential Buddle Findlay

Anton Capital

Grant Dunn, Daniel Meredith Connell Kelleher, Miriam Andrews

Daifuku Co acquisition of 80% of BCS Group

Confidential Buddle Findlay

BCS Group and its shareholders

David Thomson, Lisette Hood

NZX

Simon Vodanovich, Steve Nightingale

Pacific Aerospace equity Confidential Buddle investment and China joint venture Findlay

Pacific Aerospace

Grant Dunn, Montie Baskett

Chapman Tripp

PSP Investments acquisition of Kaingaroa Forest

Confidential Buddle Findlay

Public Sector Pension Investment Board

Grant Dunn, Montie Baskett

Russell McVeagh, Webb Henderson

Singapore Post acquisition of Famous Pacific Shipping

Confidential Buddle Findlay

Singapore Post David Thomson, and Famous Sarah Fitzgerald Holdings

McVeagh Fleming

Smartshares launch of new funds

OpenBuddle ended fund Findlay

Smartshares Limited

DLA Piper New Zealand

NZX acquisition of Superlife Limited $35m

Buddle Findlay

Adam Jackson

Simpson Grierson, Nishimura & Asahi

MAKE SURE YOUR FIRM’S WORK IS RECOGNISED To ensure your firm and its lawyers get the recognition they deserve for their fantastic work, send all your deal details to kathryn.crossley@keymedia.com.au

Transaction

Value (NZ$)

Adviser

Client

Lead lawyer(s)

Additional firms involved

Accident Compensation Corporation investment in PartsTrader

Confidential Chapman Tripp

Accident John Strowger Compensation Corporation

Acquisition and syndication of Southgate shopping centre

$58.5m

Chapman Tripp

Augusta Capital

GIC Real Estate acquisition of 49% of five Westfield shopping centres

$1bn

Chapman Tripp

GIC Real Estate Matt Carroll, John Strowger

Just Eat acquisition of Menulog Group

A$855m

Chapman Tripp

Just Eat

Tim Tubman

Spark sale of Telecom Rentals to FlexiGroup

$106m

Chapman Tripp

Spark

Tim Tubman

QIC Strategy Timber No. 1 acquisition of Te Rata forest

Confidential DLA Piper New Zealand

QIC Strategy Timber No. 1 Limited

Martin Thomson

Waterlogic purchase of Just Water International’s Australian business

$11m

Waterlogic

Martin Wiseman

DLA Piper Australia, Harmos Horton Lusk

Wirecard Technologies GmbH

Kirsty Keating, Sinead Hart

Anthony Harper, DLA Piper New Zealand, EY Law Germany DLA Piper Australia

DLA Piper New Zealand

Wirecard Technologies acquisition €30m plus EY Law of 100% of shares and other earnout convertible securities in GFG Group

Mark Nicholson, Pip England

Allens

Wilson, Barber & Co

A$2bn

Just Water International sale of $11.8m Australian water cooler business to Waterlogic Australia Holdings

Harmos Just Water Horton Lusk International Limited

Andrew Harmos, Kelvin Preston, Georgina Toomey

Pushpay Holdings 1:14 underwritten non-renounceable entitlement offer

$13.8m

Harmos Pushpay Horton Lusk Holdings Limited

Nathanael Starrenburg, Wook Jin Lee

Sale of all of the shares in Aotea Pathology

Undisclosed Harmos Abano Horton Lusk Healthcare Group Limited

Nathanael Starrenburg

Russell McVeagh

Sale of all of the shares in Crown Castle Australia Holdings

A$2bn

Nathanael Starrenburg

Chapman Tripp, Herbert Smith Freehills, Allen & Overy, Cravath Swaine & Moore, Norton Rose Fulbright

Harmos Minority Horton Lusk shareholders

Sale of all of the shares in Crown Castle Australia Holdings A Macquarie Infrastructure and Real assets-led consortium has acquired Crown Castle from its US-based parent and majority shareholder, Crown International, and from Todd Corporation in New Zealand. Crown Castle, the largest independent telecommunications tower operator in Australia, owns and operates around 1,800 sites nationwide, leasing them to major telecommunications companies including Telstra and- Optus. The $2bn acquisition marks the largest telecommunications infrastructure deal since Telstra leased pits, pipes and copper lines to build the national broadband network in a deal worth over $11bn.

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UPFRONT

TRANSACTIONS A$27m

Martin Aircraft IPO and ASX listing Firms on either side of the Tasman joined forces to advise on the IPO and ASX listing of the world’s first jetpack company. Martin Aircraft Company received advice from Bell Gully in New Zealand and Norton Rose Fulbright in Australia. Rather than dual listing on the NZSX and the ASX, the company opted to list only on the ASX. The launch attracted a A$50m investment from Hong Kong-based KuangChi Science Limited, which is developing lighter, stronger metals and anticipates a strong relationship with the jetpack brand. The two companies are set to launch a joint venture company to market the jetpack for the Asian marketplace. Minter Ellison and Minter Ellison Rudd Watts advised KuangChi Science.

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Transaction

Value (NZ$)

Adviser

Client

Lead lawyer(s)

Additional firms involved

Takeover offer and compulsory acquisition by Southern Travel Holdings Joint Venture, of all shares in Southern Travel Holdings not already held by joint venture members

$3.7m

Harmos Southern Nathanael Horton Lusk Travel Starrenburg, Holdings Joint Kelvin Preston Venture

Buddle Findlay

Port of Tauranga and Kotahi amalgamation of logistics businesses

$90m

Holland Beckett Lawyers

Qube Ports acquisition of ISO

$80m plus Kensington earnout Swan

Martin Aircraft IPO and ASX listing

Port of Tauranga Limited

Mark Tingey, Ken Hawkes

Chapman Tripp

Qube Ports

Chris Parke

Simpson Grierson

A$27m

Minter KuangChi Ellison Science Rudd Watts Limited

Mark Forman

Bell Gully, Minter Ellison, Norton Rose Fulbright

The a2 Milk Company's ASX listing

$376m

Simpson Grierson

The a2 Milk Company Limited

Peter Hinton, Richard Watts, Jaron McVicar

DLA Piper Australia

Accel Partners' investment in Xero

$132.9m

Simpson Grierson

Accel Partners Michael Pollard, Bell Gully, Clayton Utz Andrew Matthews

Graymont purchase of McDonalds Confidential Simpson Lime from Holcim New Zealand and Grierson New Zealand Steel and purchase of Taylors Lime from Holcim

Graymont Limited

Michael Pollard, Mark Tan

Chapman Tripp

Health Benefits national infrastructure platform

Confidential Simpson Grierson

Health Benefits Limited

Simon Vannini, Kevin Jaffe, Marc Cropper, Victoria Anderson

ISO sale to Qube

$80m plus Simpson earnout Grierson

FIGG Investments Limited

Michael Pollard, Kensington Swan Andrew Matthews

Japan Post Co acquisition of all shares in Toll Holdings

A$6.5bn

Simpson Grierson

Japan Post Co Limited

Kevin Jaffe, Nick Wilson

Clayton Utz

RMD Industries sale of Brio sliding and folding door hardware business to Allegion

A$24m

Simpson Grierson

RMD (NZ) Limited

Don Holborow

Ashurst, Clayton Utz

Telstra Corporation cornerstone investment in Orion Health

$20m

Simpson Grierson

Telstra Corporation

Michael Pollard, James Hawes

Gilbert + Tobin

Trade Me investment in Harmoney series A preferred shares

Confidential Simpson Grierson

Harmoney Limited

Simon Vannini, James Hawes

Minter Ellison Rudd Watts

UPFRONT

NEWS ANALYSIS

Generation next As many baby boomers delay retirement while the next generation of leaders knocks on the partnership door, succession planning has never been more crucial for law firms THE IMPENDING retirement of baby boomer lawyers has brought on a renewed focus on succession planning and partnership composition within New Zealand’s law firms. On average, baby boomer lawyers are working longer than previous generations, and not all firms have been consistently promoting new talent through the ranks. Those that have neglected to do so face a looming succession crisis. “Some firms are struggling to retain their next generation of talent as they see entrenched partners above them giving no indication of go,” says Minter Ellison Rudd Watts managing partner Mark Weenink. “I think some senior practitioners are reluctant to give up the control of being a part-owner of the firm,” says Sam Bassett, director at Moore Stephens Markhams, who

NEW ZEALAND’S LEGAL PROFESSION BY EXPERIENCE LEVELS Years since admission

0–9 37% 10–19 26%

All about diversity

20–29 17% 30–39 13% 40–49 5.9% 50+ 0.9% 0%

consults to small and medium-sized firms in Auckland. “I think there is a perception that there will be less money by bringing in new blood. But, in my experience, increasing the size of the cake rather than worrying about how the existing cake is going to be sliced up works every time,” he says. In Bassett’s experience, it is easier for a partner in their ’30s or ’40s to build new client relationships than it is for older partners. “Clients will tend not to refer new clients to a senior practitioner who is in their mid-sixties, generally because there is a perception that that individual is just by their nature not going to be a practitioner for too much longer,” he says. At Minter Ellison Rudd Watts, the average partner age is 46. While the firm did not have a specific strategy to make its partnership younger, Weenink says that during the GFC it saw an opportunity to do things differently to some of the more traditional top-tier firms. “Part of that was ensuring our partnership attracted new talent, and recruiting partners so that across our partnership we have partners that reflect the age and stage of our clients,” he says.

20%

Proportion of lawyers

40% Source: New Zealand Law Society

Although the impending retirement of baby boomer solicitors has brought the succession question to the fore, Bassett emphasises that the discussion is about having a mix of ages around the partnership table. “[It’s] healthy and good that practitioners stay involved at firms, but I am dead against them continuing to hold equity slots into their late sixties. I just see that time and time again and that does not assist with the overall growth and development of a small to medium-sized

firm,” he says. “You do not want a situation in a firm where everyone is within a year or two in age amongst the partner mix – it is useful to a firm to have a range of ages.” Weenink agrees. “More important is diversity of thought,” he observes. Although bringing through the next generation of talent to partnership is important, retaining the experience of older partners is also crucial. Consultant roles are becoming an increasingly common way for firms to retain the skills and experience of senior lawyers when they are no longer partners. “These ex-partners add huge value to our offering for clients in a way that suits their changing personal ambitions,” says Weenink. “They maintain relationships and provide confidence to long-standing clients.”

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UPFRONT

IN-HOUSE LEGAL TEAMS

In-house evolution

A new Australasian study offers insights into the changing nature of in-house practice IN-HOUSE legal teams the world over are undergoing a dramatic shift in terms of both their composition and roles in their organisations. The in-house teams of today are more sophisticated than ever before, and are usually much larger. Combined with greater pressure on companies’ budgets following the GFC, external legal spending is down and the

number of legal team heads taking on additional responsibilities continues to rise. The 2015 In-house Report: Benchmarks and Leading Practices, produced jointly by the Australian Corporate Lawyers Association and the Corporate Lawyers Association of New Zealand, offers an in-depth look into the current make-up and responsibilities of evolving in-house legal functions.

In-house lawyers have identified the most essential general counsel attributes as:

99% Strategic thinking 97% Ability to translate complex information 97% into simple communications Broad business understanding 94% Commercial nous 92% Specific legal knowledge related 88% to the organisation’s operations Active listening skills 87% Commitment to being a frank and fearless adviser 80% Excellent technical legal skills 80% Leadership training 64% Complete independence 64% Financial acumen 47% Education and/or experience in non-legal fields 35% www.nzlawyermagazine.co.nz

13%

49%

of organisations have a contracted or seconded senior lawyer

of in-house teams have administrative support

When it comes to making the switch from a firm to a company, all in-house counsel reported that it takes time for private practice lawyers to gain the necessary in-house skills.

Influencing skills

91% of organisations have staff on flexible work arrangements

TIME TO TRANSITION FROM PRIVATE PRACTICE TO IN-HOUSE

LAWYERS IDENTIFY ESSENTIAL IN-HOUSE SKILLS

33.3 hours of average unpaid overtime is worked by general counsel each month

8% 24 months

8% 3 months

18 months

47% 20

100

12 months

30% 6 months

HEADS OF LEGAL TAKING ON ADDITIONAL FUNCTIONS General counsel have been assuming additional responsibilities in their organisations for some time, and the number continues to grow. In 2015, only 11% of GCs have no responsibilities outside their legal role, and 16% have taken on one additional role. Close to three-quarters of GCs have two or more additional areas of responsibility. Likelihood of GCs having additional responsibilities 60

52% 50% 49% 43% 36% 27% 17% 15% 14% 11% 10% 9% 9% Governance

Compliance

Company secretary

Privacy officer

Risk

Insurance

Government relations

Corporate Knowledgeservices and sharing and administration management

THE NUMBER OF FEMALE HEADS OF LEGAL IS GROWING

Business and other services

50%

Energy and resources

31%

Financial/insurance services

46%

Wholesale/consumer services

29%

Information/media/ telecommunications

45%

Transport/warehousing

15%

Internal audit

In-house legal team sizes vary considerably. Large teams are more likely to be found in government departments and organisations with more than 2,000 local employees.

12%

SECTORS WHERE IMBALANCE IS MORE LIKELY

Strategic planning

IN-HOUSE TEAM SIZE

When the survey was last conducted in 2012, women accounted for 38% of general counsel; that number now stands at 42%. This graph indicates the best- and worst-performing sectors for women GCs. TOP SECTORS

Public/ corporate affairs

more than 10 lawyers

88% 40

10 or less lawyers

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PEOPLE

CRAIG MULHOLLAND

THE TRUSTED ADVISER ANZ Bank New Zealand general counsel and company secretary Craig Mulholland talks to Samantha Woodhill about advising one of the country’s biggest organisations against the backdrop of the rapidly digitising banking sector and the evolving role of in-house teams THE NEW Zealand market represents a quarter of ANZ Bank’s net global profit and is home to two million customers and 8,000 staff locally. The scale of the bank’s local footprint and the diversity of its business means that its New Zealand general counsel and company secretary Craig Mulholland and his legal team have a significant remit. The work undertaken by the ANZ legal group ranges from meeting small business requirements such as loans and insurance, to specialised work like funds management, commercial lending and security, property finance, structured and asset-based lending, and multinational transactions. Alongside that sits the contractual, regulatory, dispute resolution, small- and large-scale litigation, and M&A work that are a mainstay for legal teams in most large organisations. Among the many significant projects that Mulholland has worked on in his time with the bank, he says bringing ANZ and National Bank together under a single operating system and brand in 2012 stands out. “This involved a transformational change for the bank, its staff and, importantly, our customers. There were a significant number of people across ANZ that were involved, and the focus and commitment to achieve the ‘new ANZ’ was a galvanising event.” He also nominates as another rewarding project the legal team’s involvement in updating the bank’s document suite across all sectors so that the documents are customer focused and written in plain English. “This commenced with our core documents used

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for our retail, small business and wealth customers. It is now extending to documents used by our commercial and, in time, our institutional and multinational customers,” Mulholland says. The project has been recognised with a number of WriteMark awards for plain English drafting.

cognisant of cultural and language differences.” Constantly engaging with ANZ’s lawyers in other jurisdictions, he says the primary focus of his legal team is to provide legal support to the business with consideration given to the internal workings of the company. “As most decisions will require consideration of a wide

“The next challenge for the industry at large becomes how the law should be reformed to align it with a digital world yet still offer the necessary level of consumer protection” Of the 220 people working in ANZ’s legal teams across 34 countries, 25 of them are working in the New Zealand market, meaning his team’s work has a significant international component. “With our customers operating in most of these markets and many of the international regulatory obligations and reforms also existing in New Zealand or applying extraterritorially, there is engagement, often on a daily basis, with ANZ counterparts in Australia and around the world,” he says. “New Zealanders and New Zealand businesses are very outward-looking, so there are many opportunities and benefits to ANZ NZ and our customers from multijurisdictional operations,” says Mulholland. “With this exposure and experience, there are also personal challenges, including doing business in multiple time zones and being

range of factors – not just legal – it is important to have an in-depth understanding of ANZ’s business and a strong relationship and genuine consultation with internal and external stakeholders and customers,” he says. “Having a wide-angled lens is fundamental.” With this intrinsic understanding of the business, his role as general counsel dovetails nicely into his work as ANZ Bank’s company secretary. “As lawyers, we must also remember that even though we do not have commercial experience, we can add a lot of value in business roles,” he says. “We are trained to be structured thinkers, can assimilate a lot of information in a short timeframe, identify additional information required to make decisions, exercise judgment, and be decisive in our decision-making,” he says of his role, which involves working closely with the bank’s board and also includes governance

PROFILE Name: Craig Mulholland Company: ANZ Bank New Zealand Title: General counsel and company secretary Years in the industry: 22 Career highlights: Working on the project to bring ANZ and National Bank together under a single operating system and brand; updating the bank’s document suite across all sectors so that documents are customer focused and written in plain English

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PEOPLE

CRAIG MULHOLLAND oversight of subsidiary boards. “ANZ NZ has an extremely high-calibre board with wideranging governance experience across a broad range of industries and professions. It is both a challenge and a pleasure to work with our directors. Every interaction is rewarding – and you never stop learning.” Beginning his career in the Army Reserve gave Mulholland a unique outlook on his role as a lawyer. He believes the ability to quickly identify the strengths and weaknesses of people and learn to identify his own limits has benefited his legal career. “There is no room for complacency, the margin for error is very fine, and as a team you are only as strong as your weakest member,” he says. “Whilst legal practice does not confront you with physical or life-threatening dangers, all these skills are relevant to the practice of law and business generally.”

that New Zealand remains competitive in the global banking market. “If we fast-forward, the next challenge for the industry at large becomes how the law should be reformed to align it with a digital world yet still offer the necessary level of consumer protection,” he says. “This becomes more challenging given the sophistication and speed at which cybercrime and online fraud is developing. It is important that the industry as a whole is considering these issues right now.”

The changing relationship with external firms As the role of a general counsel increasingly moves towards being a trusted adviser to the business, Mulholland observes that the way external firms work with companies is also evolving. “Consistent with other jurisdictions, in-house counsel have taken the place, in

“We must find ways to work smarter not harder and move away from the historic notion that being a lawyer removes many life choices” Banking in the digital age The most challenging part of Mulholland’s complex role is balancing the business’s need to digitalise with the legal issues and uncertainty that come with digital disruption. For Mulholland and his team, the speed at which banks are expected to digitise and the need to anticipate changes is a monumental task. “The face of banking is rapidly changing, and an increasing number of customers want to do their day-to-day banking, for the most part, using a digital device,” he says. “The challenge for banks is how (or if) to deliver these services digitally whilst being a responsible lender, meeting disclosure requirements, accepting digital authentication and at the same time mitigating fraud and cybercrime. This is a conundrum that is soluble, but it will take time, possible legislative reform, and both industry and regulators working together to navigate the way through.” Technological progress means that cybercrime is a growing challenge for the sector. Mulholland says staying on top of cybercrime is an important aspect of ensuring

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many cases, of external firms as the ‘trusted adviser’, ” he observes. “What this has meant for law firms is that instead of partners in the firm being rainmakers that deal directly with an organisation’s senior executives, they are now being instructed by members of the in-house team, so have reduced the opportunity to build relationships with executives,” he says. Provided these partners have strong relationships with the in-house lawyers, Mulholland says this does not make a real difference to instructions and workflow, but he says this new state of affairs is not without risk. “It is great recognition of the in-house lawyer’s role and capability, but the disintermediation between external counsel and the strategic decision-makers in a business can result in external counsel not having an in-depth understanding of an organisation, which can then result in external counsel’s advice not being as strategic as it once was,” he says. “The onus is on both the in-house lawyers and external counsel to offset this risk.”

CAREER TIMELINE

1989–1994 New Zealand Army – Territorial Forces (Army Reserve)

1993 Admitted as a barrister and solicitor in New Zealand

1995–1999 Senior solicitor, Chapman Tripp, Wellington

2000–2011 Telecom Corporation of New Zealand, which included a range of roles in New Zealand and Australia: group company secretary, head of technology and capability planning, general counsel strategic projects, general manager customer services Australia, general counsel Australia, and senior counsel (finance and transactions)

2011-present General counsel and company secretary, ANZ Bank New Zealand

Staying nimble In the evolving world of banking and finance, being agile is one of the most important traits an in-house lawyer should have. Embracing diversity and flexible working are two trends that Mulholland points to as shaping in-house legal practice. “With over 60% of law graduates in New Zealand being female and many being high achievers, it is critical that we employ and retain this talent. Having a balanced and engaged workforce with the right skills, expertise and intellectual property makes such a difference,” says Mulholland. “We must find ways to work smarter not harder and move away from the historic notion that being a lawyer removes many life choices,” he adds. “If you make the effort for your employees to meet their needs, they will be loyal and put in discretionary effort when required.” He also singles out the changing role of lawyers in-house as an important aspect of the management of a legal team. “I am a

big advocate for lawyers having increased involvement in the business, with customers and the industry,” he says. “It provides important context for their legal work. Internally, many of our stakeholders know they have detailed knowledge of their area of the business and rely on the legal team having an end-to-end view of the business to assist in advice and decision-making.” Mulholland is a strong supporter of internal secondments as a way of upskilling lawyers and training them on other aspects of the business, and says working in large organisations provides a unique opportunity for lawyers. “If our lawyers have an interest in moving out of the legal team and into the business, we will work with them to identify the right timing and opportunity,” he says. “We encourage the team to undertake one or more secondments into the business to see if the role is something they enjoy and want to do permanently.”

Knowing the customer Having spent part of his career working in commercial roles has been hugely influential for Mulholland, particularly in relation to being customer focused. “In a commercial role, if decisions don’t revolve around the customer, then you may not be in that business for long – or you may not be in that job for long,” he says. “The most important [skill] is being customer focused in everything you do. This does not mean the customer is always right, but you have to look at everything from a customer’s perspective – as that is why you are in business, and what will keep you in business,” he explains. “Some in-house teams consider that their internal colleagues that they are working with are their customers. I am a strong advocate that these are your colleagues and internal stakeholders, and there is only one customer, being the end user of your product or service.”

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FEATURE

PROPERTY AND CONSTRUCTION

A tale of two cities Property and construction lawyers have enjoyed a year of strong workflows across the board, but the hot spots are undoubtedly Auckland and Christchurch

OVER THE past 12 months good economic conditions, low interest rates, high demand and limited supply of residential and commercial properties, a new wave of PPP projects and an influx of foreign investment have converged to create ideal conditions for New Zealand’s property and construction sector. Lawyers working in this area have enjoyed an extremely robust year, but it seems that the activity has really only just begun. New Zealand is poised to experience a $100bn construction boom over the next three years, and property and construction practitioners are reporting healthy and

and Christchurch are the centres that are really grabbing headlines.

Christchurch: The rebuild continues The scale of the Christchurch rebuild means that construction work will be a feature of the city for many years to come. A number of anchor projects are yet to be finalised, and some housing is still to become available. The process of rebuilding the city has itself created even greater demand for new residential properties. “What we’re starting to see happen is people who have gone there for the work decide to stay down there, so

“There’s only something like one or two per cent of available space in the premium and A-grade office buildings” Edward Dunphy, ANTHONY HARPER growing levels of activity across most parts of the market. Wellington has remained steady, and some of the city’s lawyers have been busy working on the PPP pipeline, but Auckland

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that puts increased pressure on the housing situation,” Anthony Harper partner Edward Dunphy says. In relation to commercial space, Dunphy has observed a growing trend of building

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FEATURE

PROPERTY AND CONSTRUCTION

NEW ZEALAND’S CONSTRUCTION BOOM

$100bn

Boom to peak in Christchurch

Value of construction boom over the next three years

10%

Minimum increase in activity every year to 2017

2017

2018 Boom to peak in Auckland

24,046

Building consents issued in New Zealand in year to September 2014

7,320

Building consents issued in Auckland in year to September 2014

23%

3,954 Building consents issued in Christchurch in year to September 2014

Increase in building consents issued in previous year

on spec, with offices going up with only one anchor tenant secured. He expects that the additional space in these buildings will soon start to be filled. “If you’ve got a three-storey or four-storey office building, you need a commitment to at least 50% of that, but a lot of firms can’t commit to taking that kind of space… they need to wait until things are developed,” he says. Practitioners do not expect that reforms to health and safety legislation will mean significant changes for construction clients, as construction companies already have very strict worksite safety rules. “I’ve always observed that our clients have been careful to manage their health and safety obligations properly, and so the nature of the legislation, as I understand it, is unlikely to give rise to a change in what’s being done to manage health and safety, but it obviously

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Source: National Construction Pipeline Report (2014); press release from Building and Housing Minister Nick Smith, dated 31 October 2014.

increases the importance of getting it right,” says Russell McVeagh partner Ed Crook. “I think most prudent developers and contractors would be doing what they’re required to do, anyway.” However, the Canterbury earthquakes have brought about a new perspective on those laws. The seismic strength of buildings and the implications of the Health and Safety in Employment Act 1992 for owners and occupiers has been thrown into sharp relief, says Thompson Blackie Biddles director Joe Biddles. “Since the Christchurch earthquakes, we have seen a significant focus placed on this area, and this continues to be a focus for investors/occupiers,” Biddles says. “This issue has added another element to transactions, making it a factor to be considered/addressed in many investment decisions.”

Auckland: Cranes on the skyline The continued migration of corporate head offices to Auckland has drawn attention to the city’s tight commercial rental market. “There’s only something like one or two per cent of available space in the premium and A-grade office buildings, and I think it’s impossible in the Auckland CBD to get two floors one on top of the other,” Dunphy says. As a result, a number of large office or mixed office and residential developments are in the planning stages or already underway. When these projects are completed and their anchor tenants move in, this will free up space behind them and is expected to lead to considerable movement of office tenants around the Auckland CBD. “Because the stock is quite old in Auckland at the moment, we’re going to see some new buildings come to market, and it’s going to

see a whole shifting and turnover of a large number of major tenants moving between buildings,” predicts Greenwood Roche Chisnall partner Barry Walker. At the same time, strong demand for commercial space in Auckland is also driving refurbishment activities in existing office towers. “Landlords now consider it worthwhile to upgrade premises in order to get the benefit of the uplift in rentals,” Bell Gully partner Tom Bennett says. New Zealand’s positive economic outlook, coupled with the prospect of strong returns from Auckland’s commercial property sector, has also served to attract high levels of foreign investment, particularly from the Asian market, as well as from Canadian

and German pension funds. To date, those foreign investors have predominantly been interested in adding core CBD assets to their property portfolios. “While the focus is not solely limited to Auckland, it does appear to remain the centre of choice for many overseas investors,” Biddles says. Walker observes: “The stock in New Zealand is a bit older than you’ ll find elsewhere. In particular, I remember from my time in Sydney, there is a stock of premium-grade buildings – and there just really isn’t that here, so most of them are A-grade buildings but with great tenants, and the vacancy rate here is ridiculously low at the moment as well, so they’re very

comfortable paying top dollar for those.” Infrastructure work is also proving to be a strong driver of activity for the sector. In Auckland, work on the $2.5bn City Rail Link development is scheduled to begin later this year, and roading projects around Auckland and the Hamilton region are also taking place. RESIDENTIAL DEMAND SKYROCKETS

Lawyers point out that high migration rates have exacerbated Auckland’s already-tight residential market. “There’s been a bit of a situation where people from Christchurch are taking insurance money and coming up to Auckland,” Dunphy says. “In Auckland, a lot

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FEATURE

PROPERTY AND CONSTRUCTION

of work has been driven by net migration, so there’s a lot of people either immigrating to New Zealand or just moving back home – there’s a lot of Kiwis moving back, particularly from Australia. The economy over here is a bit more stable, there’s more jobs around, so we are starting to see quite a lot of them coming back, and obviously as there’s people looking for jobs, there’s people looking for houses.” Demand in Auckland’s housing market has brought on a flurry of residential development and subdivision activity. Despite the prosperous times for Auckland’s

might not have otherwise been available for development, but I think the sector overall will continue to be capital- and confidencedriven,” Crook says. However, in Dunphy’s view, the unitary planning process may be prompting landowners to put lots of land on the market, with more vacant land having gone on sale over the last six to eight months. “People are finding that land is becoming zoned in quite an attractive way, so rather than trying to do any work or subdivision or development, they’ve started selling the bare land,” he says.

“While the focus is not solely limited to Auckland, it does appear to remain the centre of choice for many overseas investors” Joe Biddles, THOMPSON BLACKIE BIDDLES residential sector, industry players will be keeping a close eye on the Reserve Bank’s proposed lending restrictions, which are intended to take the heat out of the active market. In its current form, the proposal would require investors who are borrowing to acquire an existing residential property to have at least a 30% deposit. THE UNITARY PLAN

The new Auckland Unitary Plan is expected to have some impact on development, but most practitioners we spoke to were doubtful that it would be extensive. “To the extent that people are able to get the zoning that they wish to have to allow for future development as a consequence of the Unitary Plan process, that will likely make it easier and might remove some of the barriers that may otherwise have existed in terms of being able to get the necessary consents… it will open up some land that

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Regulatory changes Lawyers noted that a few regulatory changes on the horizon might impact on clients, but they do not expect that new rules will have any significant impact on the market. Amendments to the Construction Contracts Act will change how retentions are managed and paid out. The Act is also being widened to cover consultants, but practitioners do not anticipate any major implications to arise from the change. “It will be interesting to see what happens with design, engineering and quantity surveying services, which are now going to be brought into the construction contracts adjudication regime,” Bennett says. Meanwhile, minor changes to the Building Act are expected to clarify some of the obligations and the operation of the Building Code. Resource Management Act amendments may also help encourage activity. “The

current government’s proposal to amend the Act to continue to unlock land supply and encourage development should have an impact,” Biddles predicts.

Coming challenges Although insolvency events have been increasingly rare, the sector is not without its challenges. Lawyers were unanimous in their assessment that the biggest obstacle facing the sector in the year ahead was that of supply and the flow-on impact it would have on building costs. Shortages of land and human capital were top of mind. “There’s not a lot of land out there, so the prices people have got to pay to obtain land are getting higher, and the construction industry is starting to get stretched, both in terms of physical resources and people, so construction costs are going up,” observes Dunphy. Interest from overseas players may also see an increase in market competition. “One of the things I’m really interested to see is how the instability in Australia, in particular in Victoria and Queensland, is going to shake through in New Zealand. There could potentially be a number of Australian contractors or even overseas contractors… who are now looking for a new market to put their people in whilst that instability and sovereign risk beds down again,” says Walker. “Potentially, and it’s quite strongly rumoured, there may be new entrants into the market over here, and also I think we’re going to see a number of players in the New Zealand market teaming up in one way, shape or form with overseas entities as well to try and get ahead of the competition,” he predicts. Despite some of the challenges, the future for the sector is a largely positive one. “Ultimately, there is an unsatisfied demand for good product in New Zealand, and as long as this remains it should continue to underpin the activity we have seen to date,” Biddles says.

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FEATURE

2015 HOT LIST

HOT LIST Find out who’s who in law for 2015 NEW ZEALAND is not short on legal talent and compiling this annual list of the nation’s top lawyers is never an easy task. This list showcases the breadth and depth of talent working in the legal profession, and highlights many of the lawyers who are making their mark through innovative work, leadership, community contributions or playing a key role in some of the country’s most significant cases or deals.

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HOT LIST INDEX NAME

PILLARS OF THE COMMUNITY PAGE

Jonathan Aumonier-Ward

Jania Baigent

Mark Beech

Anna Buchly

Hayley Buckley

Dr Andrew Butler

Linda Clark

Chris Curran

Rachel Dunne

Ed Dunphy

Ian Finch

Greg Horton

Malcolm Hurley

Paul Johns

Hugh Kettle

Edwin Lim

Philip Maw

Frank Porter

Jason Rudkin-Binks

Neil Russ

Tristan Sage

Laura Scampion

Stacey Shortall

Sarah Sinclair

Nathanael Starrenburg

Mark Tingey

Lynell Tuffery Huria

Simon Vannini

Roger Wallis

Martin Wiseman

Dr Andrew Butler Russell McVeagh, Partner

Frank Porter Buddle Findlay, Partner Frank Porter has been a partner at Buddle Findlay for 29 years. He was instrumental in the creation of the Buddle Findlay Child Health Foundation which was set up in 2005. Porter currently chairs the Foundation, a charitable trust, which supports children receiving residential medical care in New Zealand. The Foundation considers urgent applications for funding, to provide immediate and direct benefit to children. Each year the partnership makes a significant donation to the hospital from staff donations throughout the year. Partners and staff also volunteer their time to help the children with their hospital stay.

Andrew Butler is a commercial and public law litigator. His recent work includes representing key clients on ground-breaking or high profile litigation including advising Kiwibank on the ‘Fair Play on Fees’ litigation and Vector Limited on the Input Methodologies appeal and judicial review. Active in the local community and the global legal community, Butler chairs Russell McVeagh’s Ethics and pro bono committees and is active in pro bono law. He is an expert on human rights and constitutional law. He is currently representing Lecretia Seales in a high-profile litigation under the Human Rights Act, and also advised disability support provider IDEA Services on a multi-million dollar claim for damages due to age discrimination against its client group. Butler is the co-author of LexisNexis’ New Zealand Bill of Rights Act: A commentary, and is much in demand as a presenter of professional seminars and conferences.

Stacey Shortall Minter Ellison Rudd Watts, Partner Stacey Shortall is a former Wall Street lawyer, who upon returning to New Zealand has thrown herself into a number of endeavours to help others. Aside from her impressive legal career and the demands that puts on her time, she has developed a program helping incarcerated mothers see their children and assist families upon release. Shortall started up a weekly homework club at a decile one school where the firm assists children with their homework and provides access to different role models. She is also developing other initiatives to seek to stop violence against children in their homes. An advocate for preventing violence against women, she seeks to provide thought leadership by regularly writing and speaking on topics such as diversity and women’s rights.

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FEATURE

2015 HOT LIST FUTURE LEADERS Jonathan Aumonier-Ward AJ Park, Senior Associate Trademark lawyer Jonathan Aumonier-Ward wanted to be a lawyer from the age of six, because he loves arguing, helping people and thrives on overcoming conflict. Joining AJ Park in 2001, AumonierWard sits on the Trademark Association’s Bulletin committee, and is a member of the Sustainable Business Network and the International Trademark Association (INTA). He is an author of the International Trademark Association’s Country Guides: Essential Information on Trademark Protection Worldwide and Trademarks Throughout the World. In his spare time, Aumonier-Ward travels the world representing New Zealand at Ultimate FrisbeeTM, focusing on competitive fair play. He has won numerous ‘Spirit of the Game’ awards at the World Ultimate and Guts Championships in Japan and Italy. With a passion for supporting a sustainable business community, he has helped to implement green initiatives in the workplace and helping to put innovative New Zealand companies on the world stage.

Tristan Sage Duncan Cotterill, Solicitor Tristan Sage exemplifies the young talent that Duncan Cotterill nurtures through its graduate program. He is an integral member of their litigation team and has been with the firm since 2012. At a junior level, Sage already exhibits outstanding leadership qualities. He was involved with the Aspiring Leaders’ Forum (ALF) in New Zealand for three years, where he guided delegates to think more deeply about the values that underpin their leadership roles. He has subsequently been instrumental in encouraging an active ALF community in Christchurch, including helping to organise various networking events.

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LEADING THE PROFESSION

Nathanael Starrenburg Harmos Horton Lusk Limited, Director

Laura Scampion DLA Piper New Zealand, Partner Laura Scampion was promoted to partner in January 2015, whilst working parttime. As a global employment lawyer, she works across Asia-Pac, the US and UK. Scampion challenges common perceptions that women can’t take parental leave, work part-time and still be a leader. These perceptions can account for the low percentages of females in big partnerships. As part of DLA Piper’s Leadership Alliance for Women (LAW) initiative, Scampion is working with fee earners on leadership, career options and is mentoring younger female lawyers. She feels that it is an exciting time for younger women because they have got an audience with senior employees and partners, and they can talk about and ask about anything they choose, combatting the low number of women who transition into partnerships.

Nathanael Starrenburg has over 12 years of experience as a corporate lawyer and advises on a wide range of corporate transactions, including capital raisings and mergers & acquisitions. He has particular expertise in takeovers under the Takeovers Code, having advised on five of the nine takeovers that were announced or completed in 2014. Starrenburg also advises on corporate advisory matters, including secondary market compliance matters (listing rules, insider trading, etc), corporate governance and foreign investment into New Zealand. In addition to his work for clients, Starrenburg has presented for the New Zealand Law Society on takeovers and financial markets regulation and wrote the chapter on takeovers in the recent book Financial Markets Conduct Regulation: A Practitioner’s Guide.

Ed Dunphy Anthony Harper, Partner Ed Dunphy is a leading lawyer in New Zealand’s real estate and construction arena. Since becoming partner at Anthony Harper just two years ago, Dunphy has achieved considerable success in building a practice working with New Zealand’s largest real estate and construction companies. He has a unique ability to pair his excellent technical legal knowledge with real world, pragmatic, commercial acumen. Advising some of the largest property companies in New Zealand, including several listed entities, he is highly regarded for the quality of his advice. In a construction industry which is mindful of incurring costs, it is a testament to Dunphy’s value that he is often called in at the very earliest stages of a project. He is able to thoughtfully consider the potential pitfalls and offer pertinent and constructive advice – often saving the client from incurring greater costs and potential delays.

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FEATURE

2015 HOT LIST Malcolm Hurley Anthony Harper, Managing Partner

Philip Maw Wynn Williams, Partner Philip Maw leads the Environmental Law Team at Wynn Williams. He is an environmental law expert, with particular expertise in freshwater planning. Maw is a skilled advocate who regularly appears in the Environment Court and the appellate courts on a wide range of environmental law cases. The lead legal advisor to one of New Zealand’s largest regional councils, Environment Canterbury, he is adept at managing client relationships and understands the complexities associated with achieving strategic outcomes within the confines of the law. He led the development of the proposed Canterbury Land and Water Regional Plan, and is the lead legal adviser for each of the sub-regional catchment plans being developed throughout the Canterbury region. He also advises other regional councils on their freshwater planning obligations.

Greg Horton Harmos Horton Lusk Limited, Director Greg Horton is a founding director of Harmos Horton Lusk Limited, a law firm specialising in corporate and transactional advice. He has broad experience in advising on a range of corporate transactions, and is one of New Zealand’s leading mergers & acquisitions lawyers. He has particular expertise in private equity sponsored transactions, and has advised domestic and international private equity and venture capital firms on numerous leveraged buyouts, growth investments and bolt-on secondary acquisitions. Horton advised the board of Synlait Farms on its response to a $223m full takeover offer.

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As managing partner, Malcolm Hurley has overseen, directed and contributed to the firm’s considerable success over the last three years. Prior to 2010, Anthony Harper was a well-established Christchurch practice with an enviable reputation as one of the city’s premiere law firms, with a long history stretching back nearly 150 years. Hurley was key to the firm’s vision to transform into a leading national practice focused around key specialty areas. The first step was the opening of their Auckland office in 2010. From small beginnings, the firm’s Auckland team now numbers 45, with 23 partners nationally. Hurley has managed this change by focusing on the firm’s strengths, combined with a partner-led approach and working seamlessly across the specialty areas to provide a full service to clients.

Roger Wallis Chapman Tripp, Partner & Chairman of the Board Roger Wallis is a leading corporate and securities law expert. He was extensively involved in the recent Financial Markets Conduct Act reforms, including appearing at the Select Committee, advising the MBIE and the Financial Markets Authority on targeted aspects of the change. Wallis has worked on many innovative equity market offers, including Moa’s high profile IPO which featured paid advertising and other innovative prospectus content Wallis is a member of the Takeovers Panel, the Listed Companies Association and is Chairman of Chapman Tripp’s Board.

Ian Finch James & Wells, Partner

Edwin Lim Hudson Gavin Martin, Partner Edwin Lim has specialised in technology, media and IP law for over 15 years. He acts for start-ups right through to large multinationals, including Foodstuffs, Fisher & Paykel Healthcare, Duco Events, Microsoft in New Zealand; and Dubai Government, Emirates, Jumeriah, Dell and Accenture when he was practising in the Middle East. In 2006, Lim joined Clyde & Co in Dubai, where he advised government, local and international clients on technology and telecommunications projects, as well as establishing and conducting businesses in the Middle East. He now sits on the boards of the New Zealand Software Association, New Zealand Middle East Business Council and the New Zealand Game Developers Association. Lim is also on the Technology Law committees of the Auckland District Law Society and New Zealand Law Society. Lim is a mentor for the IBM SmartCamp Regional Finalists, and actively mentors other technology start-ups, and is a judge for SPARK (the University of Auckland’s Entrepreneurship Programme).

As a partner of national intellectual property firm James & Wells, head of the firm’s litigation division and a registered patent attorney in New Zealand and Australia, Ian Finch specialises in the enforcement of intellectual property rights. Finch is the General Editor of New Zealand’s leading text on intellectual property law, James & Wells Intellectual Property Law in New Zealand, writing the majority of content for it, and is the immediate pastPresident of the New Zealand Institute of Patent Attorneys. He represented G-Star Raw in a landmark copyright case against Jeanswest Corporation where the Court of Appeal ordered Jeanswest to pay additional damages for infringing the copyright in client G-Star Raw’s iconic Elwood denim jean design, which was the most damages awarded by a New Zealand court in a civil case involving a breach of intellectual property rights. Finch is ranked in the top 1,000 patent attorneys in the world in the IAM Patent 1000 and is recommended by the World Trade Mark Review 1000 for enforcement and litigation, with one judge describing him as a ‘superstar’. Finch also restores classic cars, his current project being a 1955 Buick Riviera Special.

Mark Beech Holland Beckett, Partner Mark Beech is the head of the litigation team at Holland Beckett. He is an experienced civil litigator practising at all court levels, with additional experience in employment law and medico legal work. He is an experienced mediator and arbitrator, and has recently been elected as the deputy chair of the dispute resolution organisation LEADR & IAMA. Beech has been a board member of LEADR for 14 years. Whilst he was the New Zealand chairman, LEADR NZ integrated with LEADR to become the primary dispute resolution service in Australasia. He was a driving force behind LEADR’s integration with the Institute of Arbitrators and Mediators Australia (IAMA) in 2015, making it the largest dispute resolution organisation in the Southern Hemisphere.

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FEATURE

2015 HOT LIST CHANGE MAKERS Lynell Tuffery Huria AJ Park, Special Counsel Lynell Tuffery Huria is dedicated to protecting the rights of Indigenous IP and helping the Maori economy thrive and leverage their IP rights. She is a member of the International Trademark Association (INTA), and Chairperson of the INTA Indigenous Rights Sub-committee – responsible for educating the wider INTA organisation on policies around traditional knowledge and conflict with trade mark owner rights, helping INTA co-write a best practice guideline. She has helped draft submissions on legislative developments for the recognition/protection of traditional knowledge world wide including submissions at the World Intellectual Property Organization (WIPO) and in South Africa. She is currently working on developing a database of countries that recognise/protect traditional knowledge around the world. She works closely with the Maori community as an active member of Te Awe Maori Business Network, and assists a number of iwi and organisations to protect their IP – regularly advising on the conflict between traditional knowledge and IP. When not working on cases, she’s focusing on the development of a Maori engagement strategy internally and externally for AJ Park.

Martin Wiseman DLA Piper New Zealand, Chairman

Hugh Kettle Bell Gully, Partner Hugh Kettle has had a leading role on many of New Zealand’s major infrastructure projects in recent years, in particular advising government departments and agencies on PPP projects. He assisted the Treasury with the establishment of its model PPP terms and framework in 2010, and since then has advised the Department of Corrections, Ministry of Education and the Transport Agency on their PPP procurements. Of the four projects closed to date, two (the Department of Corrections’ Auckland South Corrections Facility Project, and the Transport Agency’s Transmission Gully project) have won multiple international awards, recognising the innovative nature of the New Zealand PPP model and its focus on the delivery of improved outcomes. Kettle is the Chairperson of Bell Gully’s Pro Bono committee that has a fee target equivalent of NZ$1m per year, and is also a member of the Audit committee.

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Martin Wiseman is chairman of DLA Piper New Zealand. He leads the corporate practice and has been a partner at the firm since 1987. Wiseman has played a key role in the evolution of the firm into DLA Piper New Zealand. He was an elected board member of the Australasian firm for several years from 2005 and was instrumental in the initial Australasian alliance with DLA Piper. As chairman of the Australasian firm, he was at the forefront of negotiations to fully merge the Australian business into DLA Piper in 2011. Following the merger, he continued as chair of the NZ business. In addition to his leadership responsibilities, Wiseman has always maintained a full client-facing, feeproducing role.

Jania Baigent Simpson Grierson, Partner Despite a busy dispute resolution practice, Jania Baigent still manages to find the time to assist a high profile legal NGO based in China. Beijing Zhongze Women’s Legal Centre is looking at the legal framework for national criminal compensation systems in different countries. It aims to produce a report for the Chinese government in the hope it will introduce a national compensation system for victims of crime in that country. This work is indicative of Baigent’s ability to create positive change whether resolving commercial disputes for her clients or assisting organisations on a pro bono basis. She is a role model within the legal profession.

Linda Clark Kensington Swan, Special Counsel Formerly one of New Zealand’s leading political journalists, Linda Clark’s combination of political, strategic and legal experience is unique, and her networks in Wellington and across New Zealand are extensive. She channels her legal, government relations, and strategic communications skills to deliver practical solutions to public law and regulatory issues. Having forged a successful second career in the law, Clark has an extraordinary range of skills that strengthen the firm’s ability to find practical and rigorous solutions to any client problem.

Sarah Sinclair Minter Ellison Rudd Watts, Partner Over her career, Sarah Sinclair has worked on Energy and Infrastructure projects that have shaped both the country and the infrastructure industry. Her prolific projects have included energy regulation, thermal and geothermal, wind and hydro renewable energy projects, and government infrastructure concessions. Since the Canterbury Earthquakes, Sinclair has been working on all the anchor projects for CERA, including the Conventions Centre and Avon Centre projects. Sinclair was previously corporate legal counsel at Genesis Energy which included managing the recent government mandated electricity industry reform. She is also on the board of the New Zealand Council for Infrastructure Development (NZCID) and is ranked as a Band 1 lawyer by Chambers Asia Pacific for her Energy expertise.

Hayley Buckley Wynn Williams, Partner Hayley Buckley is a partner in the Wynn Williams corporate practice. She has been actively involved in all aspects of equity crowdfunding and the Financial Markets Conduct Act 2013, including significant consultation and lobbying on the detail (legal and financial) of the final framework for equity crowdfunding in New Zealand. Buckley works with business incubators, start-ups and crowdfunding platforms as well as with significant corporate entities where she advises in the governance and corporate structuring of their companies and any M&A work they require. She recently spoke alongside Hon. Bruce Billson, MP for Small Business in Australia on crowdfunding in light of the pending legislative change. Buckley has also spoken at a number of crowdfunding conferences around New Zealand and is recognised as the thought leader on this piece of important legislation.

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FEATURE

2015 HOT LIST LANDMARK ACHIEVEMENTS Simon Vannini Simpson Grierson, Partner Simon Vannini is a partner in Simpson Grierson’s corporate and commercial group. Alongside his practice working on significant technology and infrastructure projects, he has built a name for himself advising clients in the early stage/venture capital space. Late last year, Vannini led Simpson Grierson’s team advising Harmoney on its pioneering application for the first peer-to-peer lending service licence in New Zealand. Harmoney operates an online platform matching individual borrowers with lenders. Licensing peer-to-peer lending services was part of the FMA’s brief to facilitate new capital-raising opportunities in New Zealand as well as part of the government’s business growth agenda. Since helping to get Harmoney up and running, Vannini has also acted for Harmoney on its recent deal with Trade Me, as part of which Trade Me acquired a 15% shareholding in Harmoney.

Neil Russ Buddle Findlay, Partner Neil Russ leads Buddle Findlay’s tax practice, and also serves the profession in New Zealand and internationally through his involvement in professional bodies. He has been a long-standing member of the Inter-Pacific Bar Association and is currently New Zealand Jurisdictional Council Member. Russ is also Vice-chair of the Organising Committee for the Annual Meeting and Conference of the IPBA in Auckland and was instrumental in the Committee’s successful bid to host this prestigious event which will gather more than 600 lawyers from the Asia-Pacific region. It is expected to yield substantial benefits for the legal profession, Auckland and the country. He is currently serving as Convenor of the New Zealand Law Society’s Taxation Committee and is a member of the International Fiscal Association, LawAsia and the Taxation Institute of Australia.

Paul Johns Baldwins, Partner Paul Johns has been in IP practice since 2001 in New Zealand and the United Kingdom. His experience is largely in commercial litigation with extensive experience in intellectual property and consumer protection work. Johns joined Baldwins Intellectual Property as Head of Dispute Resolution this year, and he leads a team specialising in representing and advising clients involved in legal disputes, particularly those relating to registration and enforcement of intellectual property rights. Johns’ practice has included matters involving consumer and advertising law, medicines and food regulation, and supply and distribution contracts. Recently, Johns has been involved with a complex copyright infringement case involving alleged infringement of multiple industrial CAD/CAM design files. He is advising an international household goods supplier in respect of its trans-Tasman anti-counterfeiting and border protection strategy. He has also advised a local innovative manufacturer in respect of a competitor seeking to use similar get-up for a similar product line.

Chris Curran Russell McVeagh, Partner Chris Curran joined Russell McVeagh’s partnership at the end of 2014 after joining the firm in 2011. In 2014 he acted for Credit Suisse in its successful defence of the $200m representative action arising from the 2004 IPO of Feltex. The matter represented a unique moment in New Zealand class action litigation. He presently acts for Lecretia Seales in a proceeding designed to clarify the legality of her end of life decision-making, which has attracted significant public interest. Curran serves on Russell McVeagh’s social committee and mental block committee. As a partner in the firm’s smaller Wellington office, he is frequently involved in mentoring younger lawyers and assisting with the firm’s recruitment program.

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Rachel Dunne Chapman Tripp, Partner Rachel Dunne is a new Chapman Tripp corporate partner with particular expertise in mergers & acquisitions and equity capital markets. She has been involved in developing recent market practice for New Zealand securities law disclosures, having taken a lead role in developing a new investment statement format with the Financial Markets Authority for the Genesis Energy IPO. Dunne has acted on many of New Zealand’s most significant recent IPOs and NZX listings including a lead role advising on the IPOs of Genesis Energy, Scales Corporation, EROAD, Mighty River Power and Summerset. She also regularly acts for underwriters and lead managers on ECM transactions such as The Warehouse Group’s capital raising and Orion Health’s IPO.

Jason Rudkin-Binks Hudson Gavin Martin, Partner

Anna Buchly Bell Gully, Partner

Since beginning his career in London, Jason Rudkin-Binks has specialised in intellectual property. His broad experience covers all aspects of contentious and non-contentious IP issues, including commercialisation. The pervasive nature of IP has also afforded him experience in many related legal and commercial issues, such as licensing, sponsorship, passing off, media, domain names, anticounterfeiting and due diligence. Rudkin-Binks has held a number of intellectual property-related positions in the UK before joining Russell McVeagh in Auckland in 2005, and then the newly-founded practice of Hudson Gavin Martin in 2007. In his career, Rudkin-Binks has been fortunate to work with many leading national and global brands.

Anna Buchly was appointed to the Bell Gully board in January 2015. She is on the firm’s international strategy committee and previously oversaw the firm’s university recruitment. She has advised on a range of significant public and private M&A transactions, including private equity transactions and securities offerings including the Medibank IPO and a sale and an acquisition for Air New Zealand. Buchly has advised global investment firm Blackstone on the acquisition of Orica Limited’s Australasian chemicals business to funds advised by Blackstone for A$750m, and she is the lead partner advising Crown Fibre Holdings Limited on its various contracts to the New Zealand government’s $1.35bn Ultra-Fast Broadband project, aimed at getting UFB to 75 per cent of New Zealand by 2019. This is one of the largest infrastructure projects in New Zealand’s recent history and is very high profile.

Mark Tingey Holland Beckett, Partner The recently completed alliance between Port of Tauranga, Kotahi Logistics and Maersk Shipping Line was not only a landmark deal in the shipping industry, it has been described as “revolutionary”. The 10-year deal is without precedent in New Zealand and could be a world first in the ports sector. Holland Beckett partner Mark Tingey led the legal team for the Port of Tauranga in the documentation and completion of these arrangements. The overall deal was complex and included the acquisition and subsequent sell down of the container terminal at Port of Timaru and the $90m merger of the Port’s and Kotahi’s operating subsidiaries into a complex limited partnership structure.

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PEOPLE

MARK REESE AND ANDREW POOLE

Double act Chapman Tripp’s Mark Reese and Andrew Poole were initially appointed joint managing partners for an 18-month term – that was 10 years ago. The pair talk to Kathryn Crossley about sharing the reins at one of the nation’s biggest law firms

“IT WAS an experiment, if we’re completely honest,” says Chapman Tripp’s Mark Reese of his and Andrew Poole’s appointment as the firm’s first joint managing partners. Initially intended as an 18-month appointment, the pair have been joint managing partners for a decade. “It was an experiment to see how Andrew and I would get on, how the role would develop. We’d both said no to the role a couple of times before we actually said yes, because we were both happy being full-time lawyers,” he recalls. “Neither Andrew nor I wanted to give up our practices.” With Reese based in Wellington and Poole in Auckland, having two managing partners able to move between the firm’s three offices has been a point of difference for the firm. “I think Wellington is probably more important to Chapman Tripp than the Wellington office of our main competitors,” Reese observes. “We’re probably twice the size of our main competitors in Wellington, and in terms of the firm’s history, Wellington has played a very important part. That underpins why there are two of us, because Wellington is not a branch and it was important to recognise that,” he says. Poole agrees. “I think it is an advantage to our clients to have a managing partner

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in each of the two main markets, and one or the other of us is frequently in our Christchurch office as well,” he says. T he shared managing par tner experiment, although somewhat unusual for the New Zealand market, appears to have succeeded. While both are soon to step down from their roles, based on the feedback that he and Poole have received, Reese says the firm’s partners want to continue with the model. “It has definitely worked having two of us facing the market locally and internationally; it spreads the load a little bit being able to manage conflicts, being able to manage client relationships; being able to help partners get on and do their job. It’s more of an investment by the firm in a leadership-type role, but I think based on the feedback that we’ve had partners want to continue with that model, because they think the benefits they get from it more than outweigh the notional cost,” he says. According to both managing partners, the key to the success of the joint leadership approach has been how well they’ve got on with each other. “It has mattered enormously that we have got on like a house on fire,” Poole says. “There’s the occasional knotty problem that comes along, and it’s been good to have the

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PEOPLE

MARK REESE AND ANDREW POOLE

other one alongside in the role to bounce ideas off.” Reese agrees. “We’re probably pretty complementary in terms of how we operate, what we like to do. We haven’t always agreed on everything, but most of the time we do, and where we don’t, I can’t even think of one issue where there has been anything close to awkwardness or anything like a problem,” he says.

No regrets Reese describes his path to joint managing partner at Chapman Tripp as “very boring”, having joined the firm in its Wellington office as a graduate. Apart from three years spent overseas working with Freshfields on asset and project financing, he has spent his entire career with the one firm. Much like Reese, Poole began his career at a New Zealand firm and then made the move across to London, where he worked in insolvency at what is now CMS Cameron McKenna. Returning to Kensington Swan in New Zealand, he made the switch to corporate and began to focus on IP and TMT work. Within a few years he was headhunted by his current firm. “I was approached by Chapman Tripp in 1999 and have had no regrets at all. I was immediately impressed by the

NEW ZEALAND IN THE INTERNATIONAL LEGAL MARKET Having both spent time working in London, Reese and Poole believe the experience of working overseas has imbued them with a strong sense of confidence in the New Zealand legal market – a confidence they have brought to their work as managing partners. “One of the things that I came back [from overseas] with was a confidence that we can match what other firms can do anywhere in the world,” Reese says. “In terms of what we do and how we do it, we’re just as good as anyone else.” Poole agrees and says that outlook has been reinforced during his time in the role. “I’m always reminded wherever I am in the world when you’re dealing with best-in-class firms, that the best-in-class firms, no matter how big or small the jurisdiction, have a number of core elements that are identical,” he observes. “It does make you feel that although we’re down here in this little jurisdiction at the bottom of the world, we’re still able to practise in an environment that has exactly the same quality and standards, that commitment to clients, and everything you will find in the biggest firms in the largest jurisdictions in the world.” Although New Zealand fares strongly on the international stage, Poole believes it is valuable for firms to regularly benchmark themselves against their international peers. “It would be wrong to say we don’t learn anything [from overseas firms], but I never come back feeling like our firm or our competitor firms are second class, in any sense.” After a decade of leading the firm together, Poole and Reese are preparing for the next stages of their careers. The transition to the firm’s next duo of managing partners will be staggered, with Reese’s replacement to be announced shortly, and Poole to step down in a year. While Reese will be returning to full-time practice, Poole will be finishing up in his role at the firm in the middle of 2016.

“Against a very tough market, we’ve managed to regenerate, continue the work we’re doing with clients, and improve the resilience and financial performance of the firm” Mark Reese, CHAPMAN TRIPP professionalism and absolute commitment to clients, and what a decent bunch of people they were,” Poole recalls. “I was very lucky to be invited into this partnership almost 17 years ago.”

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“I have spent the bulk of my time over the last few years in the managing partner role as opposed to the traditional lawyer role, although until very recently I still had a pretty meaningful client diet. I’ve decided

that the right thing for me and the right thing for the firm is that I will retire from the partnership at the same time that I finish as managing partner, and I will be looking for another leadership role,” Poole says. At this stage, he anticipates that his next opportunity will be in New Zealand but outside of the legal profession. “I genuinely believe that this is the best firm in New Zealand, and there’s not a huge attraction elsewhere – I’ve had a couple of approaches, but there’s not a huge attraction to moving to become the managing partner of another law firm in New Zealand,” Poole says. “If there was a seriously good equivalent role offshore, perhaps in Australia, that would be in the mix. But from a family perspective, which has always been important to me, my preference is to remain in New Zealand, so it’s most likely going to be a role outside the law.”

Shared success Looking back on their tenure, the duo say they are incredibly proud of the growing sense of success and momentum within

“It’s been good to have the other one alongside in the role to bounce ideas off ” Andrew Poole, CHAPMAN TRIPP the firm. Of the many achievements Chapman Tripp has had to celebrate, Poole points to the matters the firm has been entrusted with. “We have been privileged to have clients trust us over the last several years with some of their most demanding projects, corporate transactions, property transactions, pieces of litigation, arbitration – the works,” he says. The firm’s performance in an increasingly tight market post-GFC is another source of satisfaction for the managing partners.

“Against a very tough market, we’ve managed to regenerate, continue the work we’re doing with clients, and improve the resilience and financial performance of the firm,” Reese says. Despite the difficult conditions, Poole believes there are always opportunities to be found in the market, and he credits the firm’s long-term view and willingness to invest in future opportunities with placing it in good stead. “We have done some things differently that I do think set us apart, and one of those

has been a commitment to taking a much more long-term view and very consciously avoiding knee-jerk reactions to changes in the market where we sense they may not be permanent shifts. At the same time, we’re prepared to respond very rapidly where we detect a permanent shift,” he says, citing the creation of Chapman Tripp’s China desk and the decision not to downsize certain practice areas post-GFC. Although the market that Chapman Tripp’s next joint managing partners will steer the firm through is an increasingly competitive one, the firm’s current leaders see the positives. “Those of us in that market are better for having great competitors,” Poole says. “It gives you no choice but to get up in the morning and want to and have to be better.”

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FEATURE

INSURANCE LAW

Insurance risks drive robust legal activity Almost half a decade after the first powerful quake shook the Canterbury region in 2010, we might expect earthquake-related legal insurance work to be tailing off. The opposite is in fact true – 3,000 reclassified cases is just one of many catalysts for new work. There are also a number of other maritime and regulatory risks driving insurance activity in the legal industry. Sarah Megginson reports

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IT’S BEEN almost five years since Canterbury was struck by a 7.1 magnitude earthquake, the first of many powerful quakes to hit the region from September 2010. The following February, 185 people lost their lives as a deadly 6.3 magnitude quake struck closer to Christchurch. It changed the city and its residents forever, and several years on, many of them are still dealing with the aftershocks as they attempt to rebuild their lives. From a legal perspective, one might have anticipated that the Canterbury earthquake would be a diminishing source of work for lawyers in this area. But that’s not the case, says Andrew Horne, partner at Minter Ellison Rudd Watts. In fact, the opposite is occurring. “You might have expected that, as increasing numbers of claims were resolved, the disputes would die down, but we’re seeing the opposite occur,” he explains. “There’s an increasing number of intractable cases that insurers haven’t been able to settle that are ending up in court. This is perhaps owing to a greater willingness by private individuals to take matters further, many of whom are encouraged by claims management companies operating on a contingency fee basis. There are also people who have been waiting patiently to resolve quite difficult issues, who decide that they can’t resolve matters any other way.” These cases often involve insurance issues where “there are multiple dwellings involved in the same building, so there are a number of insurers and owners all having to come to an agreement”, Horne says. “I’ve got tremendous sympathy for people who are dependent on others to come to a resolution. “We’re dealing with lots of disputes that are being resolved in different ways that don’t involve going to court, such as mediation, or by submitting issues to an independent expert to decide. Some of the cases we’re dealing with present particularly difficult issues that may be better resolved by industry experts than by the courts,” Horne says. There’s another big driver of Canterbury activity that has emerged in recent months,

says Richard Johnstone, partner at Wynn Williams. “There is actually a bubble of new claims that have come about, as the Earthquake Commission [EQC] has resolved to push these claims over cap,” Johnstone says. “These are claims that have been sitting within EQC’s responsibility for some years, but in the course of this year the Commission has identified them as being over cap – so there’s a dump of nearly 3,000 claims that were, until now, virtually unknown to insurers. That’s a significant change, and for homeowners who have been dealing with EQC for many years, they now have to almost start again with their insurer.”

Other key changes Reclassification of cases isn’t the only major change impacting on the industry. Johnstone reports that a number of house repair programs have come (or are coming) to a close, which is adding complexity to alreadycomplicated cases. “EQC closed their repair program earlier in the year, and a couple of the other large insurers have also done so, officially or unofficially,” Johnstone explains. “They’re trying to encourage homeowners to cash out rather than repair, and that’s raising significant issues about the scope of works, coverage under the policy, and finding building contractors to actually do the work. Ultimately, a homeowner who is not a repeat client will pay a different figure to an insurer who brings them a lot of business. The last few months has seen a lot of new disputes.” Elsewhere in the insurance legal landscape, lawyers are guiding their clients through significant changes to three major Acts. “The key regulatory changes over the last year in insurance law are the amendment of the Fair Trading Act 1986, to prohibit unfair contract terms, and the amendment of the Sentencing Act 2002 to allow reparation sentences to top up ACC payments,” explains Crossley Gates, insurance partner, DLA Piper New Zealand. “The amendment of the Fair Trading Act

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FEATURE

INSURANCE LAW 1986 led to most insurers reviewing their policy wordings and making some changes. The industry is generally taking a ‘wait and see’ approach to the amendment to the Sentencing Act 2002.” There’s also the Financial Markets Conduct Act (FMCA), which came into force in two stages, in April and December 2014. “Insurance brokers now fall under the jurisdiction of the Financial Markets Authority [FMA] rather than the Commerce Commission, and the FMA are likely to be a tougher regulator,” says Horne. “We’re seeing increasing activity in that area already. Brokers need to be aware that they’re in a new era, and they need to understand their duties to clients and make sure they perform them.”

Insurance law on the high seas It’s not just earthquake-related claims and regulatory change driving legal insurance activity in 2015. With its relatively isolated geographical position, New Zealand is exposed to some unique and noteworthy maritime insurance risks. There are, of course, the usual risks associated with marine industries – namely, that a ship could sink or leak. Such was the case when the Rena ran aground on the Astrolabe Reef, off the port of Tauranga, in 2011. It was described by then-environment minister Nick Smith as “New Zealand’s most significant maritime environmental disaster”, as the fuel on board consisted of 1,700 tonnes of heavy oil and 200 tonnes of diesel fuel. The New Zealand government estimates that the clean-up bill was in the vicinity of $130m, but marine insurance law expert Matthew Flynn, partner at McElroys, says the financial and safety ramifications of that event have continued to impact on the shipping and marine industries in the years since then. “There is an increase in concerns over navigational safety around the New Zealand coastline, following incidences such as the Rena, which has become the second-most expensive salvage of any vessel in the world,” Flynn says. “There also continues to be a high degree of interest internationally in the salvage

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PREDICTIONS FOR THE YEAR AHEAD: IN 2015 AND BEYOND An increasing appetite to litigate “Historically, New Zealand has gone from being one of the lighter regulatory environments to now one that is becoming increasingly regulated, with a much more active regulator. With increasing activity from the New Zealand Exchange and other regulators, we’re seeing a surge in the amount of work in directors and officers liability insurance. We’re also seeing more insurance claims where people are brought in for questioning and proceedings are issued against them, with an uptick in professional negligence, and increasing instructions from insurers and the insured with an appetite to litigate.” – Andrew Horne, partner, Minter Ellison Rudd Watts Ongoing challenges for all participants “Changes to the Health and Safety in Work legislation are expected to have a significant impact on the local marine industries, with relatively risky operations such as fishing and heavy equipment handling required to make changes to meet the more stringent requirements. Another interesting trend going forward is that ships are slowing down, resulting in large fuel savings and less environmental impact, but slower transit times. These trends are being managed by both the shipping companies and the New Zealand exporters, and represent an ongoing challenge for all participants.” – Matthew Flynn, partner, McElroys Core changes on the horizon for some years “The Canterbury earthquakes created a huge demand for legal work. The issues they raised were unprecedented on a global scale, because of the succession of separate events and the level of underinsurance. That work is still driving activity, although it is mostly the difficult claims that are left. Meanwhile, regulation is on the increase and core changes to insurance law have been on the horizon for some years now. The UK Parliament has recently passed a new Insurance Contracts Act, and we expect New Zealand will follow suit in the near future. This will be a step change for the insurance industry in New Zealand.” – Crossley Gates, insurance partner, DLA Piper New Zealand Building disputes in Canterbury: 10 years to resolve “We’re involved in both the insurance side and the wider construction aspect in Christchurch, in building disputes related to unsatisfactory repairs and inadequate new construction jobs. I think we’re going to see more building disputes coming out of Canterbury; that is literally another 10 years’ [worth of work]. We’re also seeing more desperate homeowners, if only because the claims are getting harder. Legally, the work is still complex, still challenging, and it’s a significant load, but the diverse work coming out of our Auckland practice – including general liability instructions, and life and health insurance work – gives us something to think about other than earthquakes.” – Richard Johnstone, partner, Wynn Williams

“There’s an increasing number of intractable cases that insurers haven’t been able to settle, which is perhaps owing to a greater willingness by private individuals to take matters further” Andrew Horne, MINTER ELLISON RUDD WATTS of vessels, safe navigation, and the regulatory prescriptions for limitation of liability, given the high value of a large number of maritime claims.” At McElroys, Flynn says they are “regularly working on a number of matters where cargos involved in international trade are damaged or delayed in transit from New Zealand”.

“A number of issues [have arisen], caused by political and labour unrest at various New Zealand export destinations, all of which have a flow-on impact to the arrival of goods in time and in good condition, and there are challenges arising due to the vagrancies of the weather conditions encountered at sea, as well as differing methods of carriage of our primary

products out of New Zealand,” Flynn explains. “As New Zealand is so distant from any markets, there can also be issues to do with sourcing the right type of ships, and for many ship owners it is a long way to bring a vessel to New Zealand with no cargo. “New Zealand has 10 export ports, which is a large number for a country of this size. The industry faces continuing issues over the logistic requirements to get its export goods from the place of production to its final markets, and our work revolves around some of those issues.” A “marked increased” in the amount of new construction work has been a recent development, with buyers coming to New Zealand to purchase vessels and construct new ones. “This seems to bode well for New Zealand’s marine manufacturing industry,” Flynn says.

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FEATURE

INSURANCE LAW

Cyber insurance: The next frontier Across the Tasman, Australian insurance lawyers share their perspectives on an emerging area of opportunity: cyber insurance A GREATER regulation of data protection and privacy, as well as a rise in cyber attacks, is generating increased interest in cyber policies. “Brokers tell me that cyber insurance is the most talked about but least purchased insurance product,” Holman Webb partner John Van de Poll says.

“Cyber losses globally are now reported to be costing approximately US$700bn per annum”

begun. “The move in the US, Europe, and Australia now for reporting means that people are becoming more and more aware of the number of breaches that are occurring and the number of attacks that are occurring,” she says. “Until recently a lot of those claims were able to be covered by other policies, for example under your liability policy, but those policies are now writing to exclude cyber attacks, cyber breaches and the cost of dealing with those attacks out of their policies, so I think more and more people are turning to the bespoke cyber liability policies.” Carter Newell senior partner Paul Hopkins agrees. “We have seen insureds without

cyber cover trying to ‘massage’ cyber claims under their existing cover, such as a professional indemnity policy, with little success,” he says. In his view, the reputational damage that can accompany a cyber attack is an area in which cyber-risk policies are distinguishing themselves. “As well as providing cover for losses, cyber-risk policies can provide cover for assistance in dealing with a breach or attack, such as forensic accounting support and credit monitoring services and PR or crisis management assistance.” According to Sparke Helmore national managing partner Jesse Webb, the potential of cyber insurance is huge. “Cyber losses globally are now reported to be costing approximately US$700bn per annum, compared to catastrophe events, which cost on average about US$200bn per annum. When you compare those two, you can see why that’s becoming quite an emerging area,” he says. Despite the opportunities, for now firms must wait for claims work to come through. “From an insurer’s perspective, that’s something that they’re actively marketing, and it’s only a matter of time before the claims come,” Wotton + Kearney partner Raisa Conchin says.

CYBER CRIME: A THREAT TO BUSINESSES, AN OPPORTUNITY FOR INSURERS

Jesse Webb, SPARKE HELMORE As most cyber breaches are kept under wraps, the need for cyber insurance policies has been slow to penetrate the market. “Because risks that a cyber policy would cover are not becoming public, it’s a much harder sell I think to insureds ... It’s not easy to persuade people why you need this new style of cover,” Van de Poll says. He anticipates that a high-profile cyber issue for a small to medium-sized business may be all the market needs to spur on greater uptake of cyber policies. However, from the perspective of Clyde & Co partner Jenny Thornton, the widespread uptake of policies in this area has already

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$2.1 trn

predicted global cost of data breaches by 2019 – this is almost four times the predicted cost of breaches in 2015

60%

of 2015 data breaches are expected to occur in North America – this is expected to decrease as other regions increasingly take up new technologies

$150 m

predicted average cost of a data breach in 2020

Source: The Future of Cybercrime & Security: Financial and Corporate Threats & Mitigation, Juniper Research (2015)

Cybercrime: A new issue for law firms Technology is changing the legal market worldwide at an unprecedented rate. It is providing sophisticated firms with a competitive advantage through the efficiencies they create and ultimately pass on to clients. We are seeing a raft of technologies commonly being implemented in firms including cloud storage of data, users having multiple connected devices, firms with a significant social media presence, and firms with savvy client relationship management tools allowing much greater capability for storing sensitive client information. These trends allow for a new issue for law firms to deal with – cybercrime. WHAT IS CYBERCRIME? The Australian Cybercrime Online Reporting Network (ACORN) defines cybercrime as crimes directed at computers or other devices, and where computers or other devices are integral to the offence; for example, online fraud or identity theft. Common types of cybercrime include hacking, online scams, phishing, fraud, identity theft, money laundering and attacks on computer systems. Cyber criminals can be looking for any kind of personal information or intelligence that has economic value. They are often very sophisticated and well funded. Their systems are constantly improving, and their ability to penetrate a law firm’s secure technology is high. Cyber related attacks on business are increasing. A recent PwC report suggested that in Australia, cyber incidents have increased 48% in the last 12 months and cyber risk is now rated as the second

highest threat to organisational growth. Law firm leaders and managers must be aware of the potential for a cyber attack against their firms. One of the main drivers of cyber attacks on law firms is to steal client information. It can have drastic consequences and the attack can happen in a matter of minutes. Those firms that pitch for work through the RFP process are well aware that information security is becoming a priority. Most RFPs now contain extensive enquiry about a firm’s ability to keep data secure. While the incidence of cyber crime is difficult to quantify, it often goes unreported. However, don’t think small firms are immune. In fact, in some ways they are easier targets. Their defenses are generally not as sophisticated as the larger firms. At the end of the day, smaller firms still store data in electronic form and this is potentially valuable. PROTECTING YOUR FIRM There are a number of actions firms can take to reduce the likelihood of a cyber attack or mitigate the circumstances should one occur. Some of these include:

• Frequently backing up critical data • Ensuring all appropriate antiviruses are in place and spam filters are updated • Thoroughly managing the use of non-corporate devices • Ensuring the use of complex passwords and changing them regularly • Encrypting critical data • Keeping private information safe on social networking sites by, for example, activating privacy settings • Regularly reviewing cyber security policies and developing a response policy and procedure Protection initiatives often concern the individual. This is because end users are often the weakest link in the firm’s system. Many attackers will focus on an individual hoping, for example, that they will open an infected email. Once the attacker is inside the firm’s system, they can stay there for long periods, often without detection, accessing sensitive information. Law firm managers must be aware of the importance of cyber crime, the prevalence, and the need to protect their firm. Awareness is a priority. In 2014, the average cost for a data breach for affected organisations in Australia was $3.5 million per breach. All firms should now be considering cyber insurance cover. The cost of a breach to your firm could be diabolical financially, not to mention the reputational damage. ANDREW PRICE Andrew is the Director of Inspire Management Consulting and Inspire Insurance. He has more than 15 years experience working within professional services both as a lawyer and as a multi award winning manager of law firms. He is also a Foundation level Accredited Change Manager with the Change Management Institute. Andrew presents at many industry events both in Australia and internationally. He has also written many articles and provided commentary for a range of legal and insurance publications – to contact Andrew see www.inspiremanagement. com.au

• Creating standardised processes around induction of new people and separation of departing people • Managing authority internally and ensuring a high level of security control around risk factors

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You’re invited to the 2015 New Zealand Law Awards Nominations for the 2015 New Zealand Law Awards are now open Now in its 11th year, there are 26 award categories open for entry, recognising outstanding firms and in-house legal teams, leading individuals and landmark deals. You may nominate yourself and there is no limit on the number of categories firms can enter.

Nominations close on Monday 20 July 2015 Winners will be announced at a black-tie event on Thursday 19 November 2015 at the Pullman Hotel in Auckland. For more information visit www.lawawards.co.nz. For information about sponsorship opportunities for the 2015 New Zealand Law Awards, please contact: Paul Ferris P: 61 2 8437 4703 E: paul.ferris@keymedia.com.au

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AWARD CATEGORIES DEALS New Zealand Deal of the Year International Deal of the Year Capital Markets Deal of the Year M&A Deal of the Year Consumer, Media and Tech Deal of the Year Mid-market Deal of the Year FIRMS Managing Partner of the Year Young Private Practice Lawyer of the Year Mediator of the Year Large Law Firm of the Year Mid-size Law Firm of the Year Regional/Suburban Law Firm of the Year Boutique Law Firm of the Year Employer of Choice (1-50 employees) Employer of Choice (51-100 employees) Employer of Choice (more than 100 employees) Insurance Specialist Law Firm of the Year Property and Construction Specialist Law Firm of the Year Intellectual Property Specialist Law Firm of the Year Litigation and Dispute Resolution Specialist Law Firm of the Year Employment Law Specialist Firm of the Year IN-HOUSE In-house Team of the Year In-house Lawyer of the Year Young In-house Lawyer of the Year Insurance In-house Team of the Year Banking and Finance In-house Team of the Year

Thursday 19 th november 2015 Pullma n Hotel, Aucklan d

Nominations open now Event Partner

Sponsors

www.lawawards.co.nz

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PROFILE

JULIAN SPRING

Keeping it in the family Fourth-generation lawyer Julian Spring tells Hannah Norton about life in a legal family

SPRING IS a surname almost synonymous with the legal profession in Auckland. And for good reason – there have been Springs practising in Auckland since 1926. And it appears to be a trend that will long continue, with 24-year-old Julian Spring – the fourthgeneration lawyer in the family – being admitted to the bar last month. After clerking at top-tier firm Minter Ellison Rudd Watts for the 2012/13 summer, Julian has joined the dispute resolution practice as a first-year solicitor. Speaking to NZLawyer, the fresh-faced and articulate young lawyer says it is a great place to start your career as a junior. “It’s really good. You get involved with a couple of big files and then you can start to be useful.”

Julian’s father is Peter Spring, the senior litigation partner at Keegan Alexander. Interestingly, his father met his mother while she was working at the predecessor firm to Minter Ellison Rudd Watts. Minter Ellison Rudd Watts is also the firm that Julian’s younger brother, Hartley, 22, will join as a clerk after completing his law studies next year. In fact, there are so many ties to law within the Spring family that it would be impossible to fit them all within the confines of one magazine article. Julian says he was compelled to enrol in law school after completing his studies at King’s College. “I really liked English and history at school, and it just seemed like the right thing to do. I also had a great

“I definitely look up to Dad. He’s been hugely important in helping me to get to where I am today” Julian comes from a long lineage of vast legal knowledge, spanning both practice and academia. His great-grandfather is William John Spring, who was admitted as a barrister and solicitor of the High Court of New Zealand in 1926, and who practised as a lawyer in Auckland until he died in 1971 and his practice was merged with Chapman Tripp.

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group of friends that did law following school.” He spent five years at the University of Auckland studying conjoint Bachelor of Arts (majoring in criminology) and Bachelor of Laws degrees, both with honours. And in the future, Julian hopes to complete a master’s overseas. “University was good for me. Law school is good preparation for life in general. It’s

not so much what you learn, but it also teaches you how to manage time and think critically about issues. It teaches you about the right way to approach things, rather than just what the law is. Anyone can go and look up the law online.” While his father has never influenced him to take up law as a career path, he has inspired him, Julian says. “I definitely look up to Dad. He’s been hugely important in helping me to get to where I am today – not just the financial support but all the kindness and the advice.” Other inspirational figures include his godfather, non-practising lawyer Rod Newman, as well as the dispute resolution partners at Minter. “There is a great partner base,” he says. “They are quite young, and the practice is quite varied.” Julian describes working at the firm his mother once worked at as “nice”. “She still knows a lot of the partners that have been here for 30 years. It’s nice having that link.” It was a very proud moment for Peter Spring when his eldest son was admitted to the bar, with several generations of the Spring family present. “I felt their presence in the courtroom, because it was a courtroom which both my father and grandfather had argued cases in, that number one court,” Peter says. “When my father was in practice in

FOUR GENERATIONS IN THE LAW

“Law school is good preparation for life in general… It teaches you about the right way to approach things, rather than just what the law is”

William John Spring Great-grandfather Admitted as a barrister and solicitor in the High Court of New Zealand in 1926. He practised law continuously until 1971, when his practice was merged with Chapman Tripp.

Barrie Charles Spring Grandfather Admitted to the bar in 1947. He practised on his own in Whangarei until 1966, when he merged his practice with Chapman Tripp also. From 1966 to 1972, Barrie was the Chief Justice of Western Samoa. He returned to Auckland as partner at Chapman Tripp in 1972, where he stayed until he passed away in 1983. He was also a Judge of the Fiji Court of Appeal from 1968 to 1983.

Peter John Kennedy Spring Father

Whangarei in the 1950s and 60s, there was no High Court. There wasn’t a High Court in Whangarei until the late 1960s, after he’d left for Samoa. All of his High Court cases would have been in the Auckland High Court. “There have been Springs practising in Auckland since 1926. And we’re now on both sides of the bridge, because we’ve got Bill Spring in Takapuna – he’s a descendant of my grandfather; we’ve got myself and Julian; and then of course there’s the academic side. Professor Craig Elliffe at the

University of Auckland law school is also the grandson of WJ Spring.” So what are conversations like around the Springs’ dinner table? “We talk about law quite often, but other things as well,” Peter says. “I never pushed Julian and Hartley; sometimes there’s heavy parental pressure. But I suppose you unconsciously influence by your own example. One might even say, given the hours you have to work sometimes, that that was a negative example, rather than a positive one.”

Admitted to the bar in 1985. Peter was a senior solicitor at Chapman Tripp before becoming the senior litigation partner at Keegan Alexander. He argued the first case in the New Zealand Supreme Court.

Julian Spring Graduate lawyer, Minter Ellison Rudd Watts in Auckland.

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PEOPLE

BEN TIDSWELL

On the international stage NZ-trained lawyer and Ashurst chairman Ben Tidswell talks to Kathryn Crossley about his career path and the trends shaping the international legal market

“I SUPPOSE it’s been quite a long journey, but it seems to have gone in a flash,” says Ben Tidswell of his path from law graduate to Ashurst chairman. Against the backdrop of the aftermath of the 1987 stock market crash, Tidswell stepped into a graduate role at Bell Gully in Wellington. Many legal practice areas were under pressure at the time, but for the new litigation lawyer, it was the perfect moment to begin his career. “There were some pretty extraordinary things going on in the economy, but it was fantastic for litigation;

of practice. “It was an absolute dream come true to walk into all of that, and I spent most of those four years working on those sorts of things,” he says. With a few years of practice under his belt, Tidswell took some time off for travel and spent time in South and Central America and New York. After more than a year on the road, he made his way to London, where he secured a role at Ashurst. Aside from a six-month stint at Brick Court Chambers, and a brief return to Bell Gully, he has spent most of his career in this firm and in this city.

“I think American firms are going through a phase of being more conscious of global opportunity” it was sort of a golden age of litigation,” he recalls. The Development Finance Corporation collapse was among the major matters he worked on during his early years

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“The thing that really struck me about arriving in London was just the size of the market. The legal market is enormous, and the litigation market is so deep and so broad

and intricate,” Tidswell says. “The whole system was so much more complicated than anything in New Zealand. The rule book in New Zealand was maybe two inches thick; the rule book in England is more like 12 inches thick.” The Ashurst that Tidswell first joined in 1993 looks very different to what it is now. “In those days, it was a relatively small firm. I think it had about 40 partners, and it had offices in Brussels, Paris and Tokyo,” he recalls. Having spent a few years working in London, Tidswell married and relocated with his wife back to Wellington, where he worked at Bell Gully on the Kapuni gas field case, among others.

Then London beckoned again and he was welcomed back to Ashurst in 1998 and almost immediately seconded to the government’s BSE inquiry into how ‘mad cow’ disease had made its way into humans as Creutzfeldt-Jakob disease. The Ashurst that Tidswell had returned to after a few years in New Zealand was a very different one. “By that stage, the firm had changed quite a lot. It had internationalised, and so it now had offices across Western Europe and opened an office in Singapore – it was a different place; it was a much more outward-looking business,” he recalls. He was made a partner in 2000, and in 2013 when the firm merged with Australian

Big Six practice Blake Dawson, he successfully ran for chairman on a platform of focusing on the firm’s market position and running the firm more efficiently to unlock its full potential. Today, the firm has a considerably larger global footprint. The key challenge of being chairman of such a large firm is a very practical one, Tidswell says. “Because we’ve got 28 offices in 16 countries, there is an awful lot of travel… in the 18 months I’ve been in this job, I’ve been to 25 of those offices.” He is yet to visit the firm’s offices in Jeddah, Shanghai and Papua New Guinea, but expects to make it to at least two of those locations before the year is out.

Bringing two firms together In the 18 months since the Blake Dawson merger went live, Tidswell has intently watched the integration of the two firms. “The cultures have turned out to be really similar, and you sort of guess that beforehand and you have a pretty good sense of how it’s going to work, but you never really know until you start putting people in rooms together… I can genuinely say there is a strong sense of a single firm,” he says. “We quite quickly got out of any sort of mentality of ‘the European business thinks this’ or ‘the Australian business thinks that’, and we banned the use of any of the legacy terms for firms, and we just started talking

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PEOPLE

BEN TIDSWELL

ASHURST’S GLOBAL NETWORK

28 offices

Global legal trends

16 countries

1 best-friend referral relationship with an Indian firm

1,700 lawyers

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about the business as a whole business and thinking about how we could work together as partners, and that I think has been very successful.” Although the crucial cultural match was already there, Tidswell explains that laying a solid groundwork before the merger went through was also an important factor in the deal’s success. “One of the things we did, which I think was a bit different to what other people did, was spend quite a lot of time getting the structures right beforehand,” he says. “What it meant was the moment that we started, we could concentrate on the real bit of integration, which was trying to get partners talking to each other and cooperating and understanding each other’s businesses, and that of course is a lifelong project.”

400+ partners

The international legal market is undergoing dramatic changes, and it is difficult to name an aspect of legal practice that is not in a state of flux. To Tidswell, the increasing use of credit funds is one of the trends that will have a significant impact on law firms. With banks facing constraints on their lending, he observes that the role they play in ordinary financing around the London market has diminished. The partial shift in international finance from banking towards credit funds is pronounced in the UK, and a trend that Tidswell expects will become more prominent in Asia, Australia and New Zealand. In his view, the changing approach to financing is an issue for law firms broadly, not just a focus for finance lawyers. “It starts to change the way in which our clients operate, and therefore affects the whole business,” he says. Another trend Tidswell points to is a potential new wave of internationalisation on the part of US firms. “I think American firms are going through a phase of being more conscious of global opportunity; I think they are also tentative about it

… they know that they need to be more international to compete, and they’ve seen some of their own become very strong in terms of international platforms, and they worry about keeping up with that. “At the same time, they’re also finding it difficult to grow outside the US, because the US is such a profitable market and everywhere else they go is potentially dilutive for their partners, and it’s very difficult to convince their partners why they should do it,” he says. “That’s a really interesting dynamic for the rest of the world as the American firms decide just how much investment they want to make internationally, how much they’re prepared to make, and where they want to make it,” he says. In Tidswell’s view, the answers to those questions could have an impact for legal markets worldwide; as already demonstrated by the Australian experience, the arrival of quality competitors can affect market dynamics considerably.

The future of international firms in Australasia “I think most people would accept that probably there’s been a little bit of a gold rush mentality in Australia, as there tends to be pretty much anywhere where people start to invest,” Tidswell says of the influx of international firms into the local market. In his view, Australia is an interesting market, and a strong Australian offering can be a significant benefit for firms, but the next phase for the now very competitive marketplace is differentiation. “People have to think really hard about their offerings – do you become more of a boutique, or do you focus more on particular industries or particular clients, or do you build your offering around a particular type of practice?” Although Australia has been a popular destination for international law firms, Tidswell does not expect that its neighbour across the Tasman will see a similar influx

“For us, a lot of the strategy behind the merger was about the ability to deploy a large-scale resource in a proximate time zone to China, Tokyo, South-east Asia, and Indonesia and so on” of international firms in the foreseeable future. He cites global firms’ already significant presence in Australia as a key reason for this. “For us, a lot of the strategy behind the merger was about the ability to deploy a large-scale resource in a proximate time zone to China, Tokyo, South-east Asia, and

Indonesia and so on. Having done that successfully in Australia, I’m not sure we need any further incremental capability, so I struggle to see what the rationale would be for thinking about a New Zealand merger partner,” he says. “Which is not to diminish New Zealand – it’s a fabulous place that’s obviously doing very well, but I actually

think its characteristics are such that the best model for everyone at the moment, and probably for the foreseeable future, would be [referring work to] those strong local firms.” For now, the only thing that may increase the prospect of more international firms entering New Zealand is demand from international firms’ major clients. “If we did a huge amount of work for an existing client that wanted to be in New Zealand, we might think about it, but frankly I can’t think of a client who is likely to be doing that. Of course, we’ve got clients who do deals there but not on a really consistent basis, and we’re delighted of course to pick up the phone to a firm like Bell Gully or one of the other quality firms in New Zealand.”

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BUSINESS STRATEGY

WOMEN IN THE WORKPLACE

Women on top For any of us, getting to the top of our chosen profession and staying there can be tough. For many women, that journey can be especially difficult to navigate, as Karen Gately explains OVERCOMING PREJUDICE and juggling the demands of family and career are among the most common reasons women are so poorly represented in senior leadership positions across most industries. The fact is that far too many business decisions continue to be made for reasons entirely unrelated to qualifications, capability or work performance. It’s an unfortunate reality that discrimination continues to be a serious issue experienced by many working Australians. Despite the number of talented female law graduates and experienced women in the profession, barriers to their advancement continue to exist. In late 2010, the Law Society Council of NSW made identifying those barriers and developing strategies to address them the focus of its major thought leadership initiative for 2011. According to its report published in June 2013, women made up 23% of principals in large firms. The numbers are worse in mid-tier and small firms, with only 18% and 17% of senior roles held by women, respectively.

Challenges faced by female lawyers While being appointed to a senior role is the first challenge, meeting the demands of the position is another. It’s a well-known reality, for example, that many mothers in the workforce face enormous pressure in meeting the demands of their roles at home while dedicating the time and focus needed to managing their careers. One firm we work with has recognised and is working to address these three common challenges for female lawyers:

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Flexible work practices

The demands of many legal roles can be unpredictable and at times intense. Being available to meet these demands can be difficult with children to raise and care for. A growing concern for Australian women in the later stages of their careers is also the need to care for ageing parents while at the same time maintaining the careers they have worked hard to build. Access to flexible work hours, light duties, and part-time work are needs that many women struggle to negotiate.

Workload demands

For many women, little real benefit is gained from part-time arrangements beyond the flexibility to do some of their work at home. All too often, employers continue to demand a level of contribution that can only reasonably be expected of a full-time resource. When employers are inconsiderate of the impacts of their demands, it’s not surprising that some woman opt out of leadership roles to place greater priority on their families.

Career transition

Managing time in and out of the workforce is a challenge that many women struggle with. For those who choose to have children, going on maternity leave and returning to work can create their own complexities. When you consider that for some women this means leaving and re-entering the workforce on numerous occasions throughout their working lives, the potential impact on their ability to advance their careers becomes evident.

The solutions Partners, managers and individuals all have a role to play if we are to see any real improvement in the number of women in leadership roles. Critical priorities include the need for senior leaders to:

Create a workplace culture based on trust and respect

Unconscious bias and blatant discrimination

continue to impact on far too many women in the workplace. Attitudes regarding the right of all employees to be treated with respect have the most powerful influence on the way organisations behave. A woman’s ability to build her career and reach the top, while having a family, is profoundly impacted by the culture of the organisation she is a part of. When leaders value and respect the role women play, HR policies, programs and practices are typically more balanced between the needs of the business and the individual.

Creating better workplaces Every woman has an important role to play in ensuring that she is able to create the career she wants. The most important first step is to have a clear vision. Knowing what we want to achieve is an essential prerequisite to making it happen. Knowing why we want to reach our goals will better enable anyone to maintain focus and invest the energy they need to. There is no magic wand that can altogether remove the pressure of being a working parent. Knowing why you are prepared to juggle and

Partners, managers and individuals all have a role to play if we are to see any real improvement in the number of women in leadership roles

Make gender diversity matter

Senior leaders need to educate themselves and their teams on how diverse teams can drive better outcomes. Often, little consideration is given to the benefits of bringing diverse groups of people together to get a job done. When diversity is valued, so too will having women in law, particularly in leadership roles. Managers need to be aware of and understand the value of flexible working, different types of arrangements, and what they can do to put them in place.

Have an open think creatively

mind

and

It can be undeniably challenging for some employers to provide the level of flexibility some woman need to balance their work and family life. All too often, however, employers apply blanket policies that restrict the possibility for innovative solutions to be found. For example, many continue to hold the view that professional roles require full-time focus. Closed-mindedness to the possibilities of job-share arrangements, for example, continues to be prevalent in the legal profession and certainly across other industries as well.

sacrifice will help you find the energy you need to keep striving. While leaders must drive the battle against discrimination across any business, every woman can also influence change. Being prepared to challenge prejudicial thinking and decision-making can take enormous courage but is essential. What we accept and allow to go unchallenged in life is ultimately reflected in the reality of our circumstances. Look for and choose to work for fair and open-minded people. Walk away from roles and leaders who fail to demonstrate integrity, including as that relates to discrimination.

Karen Gately is a leadership and peoplemanagement specialist and a founder of Ryan Gately. Karen works with leaders and HR teams to drive business results through the talent and energy of people. She is the author of The People Manager’s Toolkit: A Practical Guide to Getting the Best from People, and The Corporate Dojo: Driving Extraordinary Results Through Spirited People. For more information, visit www.karengately.com.au or contact info@ryangately.com.au

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DOUBLE ACT partners Chapman Tripp’s joint managing on sharing the Mark Reese and Andrew Poole t law firms reins at one of the nation’s bigges

HOT LIST MEET THE WHO’S WHO IN NEW ZEALAND LAW FOR 2015

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RISKS DRIVE ROBUST ACTIVITY WHAT’S BEHIND THE NEW WAVE OF WORK FOR INSURANCE LAWYERS

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BUSINESS STRATEGY

INNOVATION

THINKING OUTSIDE THE SQUARE How can creativity be funnelled into innovative outcomes for business? Iain Hopkins asks where our childhood creativity goes and how we can bring it back INNOVATION CAN come from anyone,

Creativity and innovation

anywhere – that’s because all human beings are creative. We lose sight of that fact as we progress from childhood through to adulthood and it gets buried, especially when we hit the workforce. Yet, there are countless examples of everyday workers using creative thinking to resolve business issues.

First, it’s important to recognise the close, interconnected realms of creativity and innovation. Clarke suggests the relationship is similar to the one between bread and toast; in other words, the two are one and the same. “Creativity is one of the fundamental mindsets you need – you cannot have

Why are we so busy in the first place? Why are we working so hard? The answer is simple: the old ideas don’t work anymore The three biggest innovations at McDonald’s came from people who were flipping burgers. The Big Mac, the Egg McMuffin and the Filet-o-Fish all came from the front line, not the head office. The worker who invented the Filet-o-Fish realised that Catholics would not eat hamburgers on Fridays. He suggested an alternative might be a burger containing fish. The idea went up the chain, and a new product line was born. “Ideas come from where problems exist,” suggests Jason Clarke, founder and lead ‘mind worker’ at Minds at Work. “Go where the problems are. You need to empower people who are where the problem is and say to them, ‘What would you like to do about this?’ ”

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innovation without creativity. Innovation is simply when you say, ‘Let’s take those ideas and turn them into things which will deliver outcomes or progress or whatever else’. Innovation is the application of creativity.” Clarke confirms that everyone is born creative, but this particular trait “goes into hiding” as we get older. “If you think about people who are anxious, they are actually expressing creativity; they are imagining something that might not even be a problem. And when we dream – dreams are a form of creativity while we’re asleep. It’s there. Our ability to invent and create is hardwired into us – you can’t stop it.”

THIS IS YOU

THIS IS WHERE YOU SHOULD BE

Even empathy, he notes, is a form of creativity. Whenever we’ve felt for someone or wondered how it would be to be someone else, we have been using our imagination and creativity.

So, what happens to that creativity? “I think part of the problem is people aren’t given the confidence to be creative,” Clarke says. “A lot of that happens in early childhood. It’s a bit like sport. When kids are encouraged to be sporty when they are little, they become comfortable with that as part of their personality. But if you’re one of those kids who was never picked out at sport, you eventually tune that part of you out.”

What goes wrong? Most businesses, consciously or not, then proceed to squash that creativity even further. But it must be remembered that, like McDonald’s, creativity can actually be used to enhance and improve business outcomes. It’s just a matter of drawing it out of people. “Organisations will ask, ‘Have you got any ideas?’ People will generate ideas and the organisation will say, ‘That doesn’t address any of the problems we’re dealing with. I was hoping someone would come up with an idea to solve problem F, not A, B, C’, ” Clarke says. The first step is to identify whatever the organisation is not happy with, something that isn’t working as best it could. It could be a loss of market share, or bad customer experiences, or too much time being wasted in meetings. Once the problem is established, it’s time to tap into the minds of employees. “This is where creativity becomes innovation – it becomes targeted. Very often the creativity doesn’t have a target,” Clarke says. The concept of the ‘lightning rod’ is handy to keep in mind. The problem with the traditional ‘ideas box’ is that people will submit ideas but very few can actually be used. A lightning rod, on the other hand, is staked to the ground to bring sparks to where you want them. “Organisations should say, ‘Let’s have a dozen suggestion boxes. Suggestion box one is how do we improve the customer experience? Box two is how do we cut our

TOP TIPS Define what innovation means to your organisation. Ensure members of your executive team understand and are aligned in terms of what good innovation looks like for your business. Engage your broader leadership group to think-tank innovative concepts regularly, and build a bottom-up culture of idea generation. Leverage your strategy teams and business experts to work with your high-potential leaders to turn concepts into strong business cases. Prioritise practical, ROI-focused ideas and gain executive agreement on value-based investing. Create a culture that supports the continual flow of new ideas and strong feedback loops. operating costs? Box three is how can we boost staff morale? So the ideas are going into something useful,” says Clarke. To cite just one example, on 25 May 1961 President John F. Kennedy announced before a special joint session of Congress the ambitious goal of sending an American safely to the moon before the end of the decade. He didn’t specify how it should be done, but he planted the seed. The announcement kick-started a period of incredible invention and innovation – people had a clear goal to work towards, and it would take their own creative ingenuity to make it happen.

Funnelling the ideas A second key tip is to create some form of creativity process so the wonderful ideas have a direction and pathway to eventually end up as an innovative product, service or ‘thing’. “The trick is making it simple and straight enough so that ideas can actually get up,” says Clarke. “You can get people fired up

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BUSINESS STRATEGY

INNOVATION about creativity and innovation – that’s very easy. People are waiting for someone to invite them to have this discussion. So it’s about getting on a train, filling it up with coal, and getting people really excited. But if there’s no track for the train, it will just plough into the dirt. No one knows what happens next.” The alternative is that there are tracks, but they run like the roller coaster at Disneyland: complicated, twisty, double-backing. Clarke cites a recent client that had an innovation process in place, but it was long, with many layers and steps, because it had been put together by the legal department, the finance department and the rest, to ensure nothing dangerous or risky happened. “All they succeeded in guaranteeing is that nothing ever happens,” he comments. “Waiting years for approval is just going to kill everyone’s enthusiasm.” Each of those stages requires different thinking. You start off naive, then you become more practical, then critical, then pragmatic. You may need different people at different stages. “This means that, if I say to John, ‘You’ve got this great idea; you’re now in charge of making the whole thing work’, it will probably fail – we don’t have the mindset that can do all of those things. I don’t think anyone does. What we say to clients is this: great minds don’t think alike – you need a diverse set of characters, skills and egos to do it all,” Clarke says. Importantly, innovation needs cynicism as much as it needs optimism. It isn’t just about believing in things and hoping for the best; you need someone to say, “Is this really going to work?” “However, if you get the sequence wrong, if you are negative too early, or optimistic too late, it won’t happen,” Clarke warns.

Further tips There are two further critical pieces to consider: organisational culture, and the role of leaders. Clarke notes that clients often approach him and talk about their fear of failure, yet this is not a human condition. When a child walks for the first time, they are not afraid to fall. “What we’re afraid of is blame and ridicule,” Clarke says. “We’re afraid of being

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accused of screwing up. It’s not the failure that we have a problem with; it’s the way people respond to us having tried to do something new and it didn’t go exactly the way we thought it would.” Clarke’s recommendation to organisations is to get past the narrow definition of ‘failure’. “We use the word failure to describe a range of things. Let’s imagine I’m a pilot and I didn’t put the wheels down when I landed the plane because I was too busy texting. That’s a failure, a potentially very serious failure. We shouldn’t be using the same word when describing, ‘Well, John wanted to try

THE INNOVATION PROCESS The innovation process goes through several stages or progressions. Each stage is vital to an idea moving through to an executed reality. Here’s a basic four-step plan: At the first stage, you want open, free and unbounded ideas. Fill the bucket with ideas. Be playful, imaginative, creative. “This thinking will get you started, but it won’t get you to the end,” says Clarke. The second stage is about designing, planning and engineering. This is where you say, let’s think creatively but within the constraints of the thing we’re trying to fix. “Putting some KPIs around things might inhibit the creative people, but it will inspire the more practically minded people,” says Clarke. The third stage is when you start to get more critically minded. “Let’s test it in terms of its politics, its legality, the finances and the rest. A lot of organisations apply this third phase at the beginning. It’s what we call premature evaluation, where we kill the idea before it has a chance to grow,” says Clarke. The fourth is the pragmatic stage. “If you make a decision, what are the next steps, how do we break it down, what’s the budget, and what are the KPIs that will track success?” asks Clarke.

something new and it didn’t work quite the way we thought it would work’. I don’t think John should be punished for trying something new, because he could potentially figure out the way forwards for the rest of us.” The most important contribution leaders can make is their influence on culture, one that fosters innovation. A leader’s job is not necessarily to be the innovator – you don’t have to be the genius; you have to find the genius. Richard Branson is the prime example of this. Virgin consists of around 250 companies. Branson didn’t come up with every single idea within those companies. But he’ll be the guy who had the idea, or the guy who supports the guy who had the idea, or the guy who turns up at the launch and makes a big fuss about the guy who had the great idea. He’s quite happy to put his ego aside and step back and let other people step forward. “That’s the hardest challenge for leaders – they get excited about being a leader and their egos get too big. If you’re a boss with 1,600 brains working for you, you’re just another one. Get out of the way and encourage people to put their ideas forward,” Clarke says.

No time? No excuse Not surprisingly, Clarke scoffs at the suggestion that there is no time to be innovative today, to take the time to think outside the accepted square. He flips this concept on its head: Why are we so busy in the first place? Why are we working so hard? The answer is simple: the old ideas don’t work anymore. Yet the whole idea of innovation is not to invent new work. It’s to simplify and make better use of our resources. “We invented the wheel not to make ourselves busy but because we couldn’t be bothered walking,” says Clarke. “The commute time in Sydney is, on average, 15 hours per week. At what point do we say, ‘OK, this is ridiculous. We need to find a better way. Could we work from home? Could we use flexi-days or alternate start/ finish work times?’ I don’t buy the idea we don’t have time – the time we have is going into old ideas that don’t work anymore.”

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