Napthens in:brief magazine

in:brief napthens.co.uk

WINTER 2009 ISSUE TWO

THE NEWSLETTER OF NAPTHENS SOLICITORS

Business roundup Andrew Taylorson head of agency at Eckersley gives his view on the property market page 2

Showing carbon the red light UK Carline launches ground breaking CO2 offset initiative page 2

Forging ahead

Jane Haymes, chief executive Ian Leigh, Keith Melling and Victoria Bromiley

in:brief profiles Chorley based engineering firm, GDW Engineering page 3

Six of the Best Napthens has swelled its numbers recently with six major appointments boosting the Corporate, Commercial Property, Litigation and Residential Property departments.

The moves, which importantly see a significant increase to the numbers in the Corporate team, demonstrate Napthens’ continuing commitment to client service and providing the best legal advice, locally.

The six staff – new head of Corporate Keith Melling, partner Jane Haymes and solicitor Victoria Bromiley (Corporate), solicitor Sarah Barnes (Residential Property), and trainees Daniel Fallows (Commercial Property) and Melissa Taylor (Litigation) have been brought on board to deal with continuing high levels of work.

Key to the firm’s ongoing plans for the future are the appointments of Keith and Jane, who joined from the Preston office of rival North West firm, DWF. Keith and Jane were head of corporate and business recovery specialist respectively.

Keith, one of the most respected corporate solicitors in the region, will look to build Napthens’ profile in central Lancashire and the Fylde, while Jane, who has 20 years’ experience in the insolvency field,

Advice Jane Haymes, business recovery partner, clarifies the approach to pre-packs page 6

Opinion Sarah Barnes

will provide specialist expertise to the corporate team as a partner.

Sarah Barnes’ appointment to the Residential Property team reflects the level of new instructions the department has been receiving in recent months as the property market begins to recover.

Chief executive Ian Leigh believes that it is necessary to invest in the future.

He said: “We are beginning to hear positive economic reports for the first time in more than 12 months, and here at Napthens we are seeing this reflected in increasing levels of

Partner Allan Sumner with trainees, Daniel Fallows and Melissa Taylor

new instructions across the board.

“It is important to look forward, towards recovery, and to do this it is clear we need the right people in place to offer our clients the highest level of service possible.

“Appointing Keith and his team demonstrates that Napthens is committed to offering a high level of resources and expertise, and the appointment of two trainees demonstrates the importance we place on looking to the future.

“This move is one that will place us in the best possible position going forward.”

Food Production: Special report page 4 & 5

Simon Gledhill, head of Family, asks if we are qualified for marriage page 7

Keith added: “I am delighted to be joining Napthens at this pivotal time in the firm’s history.

“The Corporate team has been responsible for advising on some of the highest profile deals in the region, and has been recognised with a number of awards to this effect. It’s a great department to be part of and I am enjoying working alongside partner Andrew Clare who is focusing on building our profile in East Lancs.

“I have been made very welcome at Napthens and I look forward to working with the firm’s existing and new clients.”

The car’s the star in:brief talks to Andrew Ferguson, property partner, about his motor sport passion page 8

welcome / round up / showing carbon the red light :

in:brief

Business roundup

welcome

Andrew Taylorson, head of agency, Eckersley Another annus horribilis?

When the Queen uttered these words back in 1992 in her Christmas speech, stating that it was not a year of undiluted pleasure for her, the quote stuck in my mind and I have no doubt that many more people will use it to describe 2009.

Martin Beardsworth, commerical property partner

Welcome to the winter edition of in:brief, which brings you a range of articles featuring some of the diverse sectors in which Napthens operates.

In this edition we hear from some of the biggest food producers in the region about how they are playing a vital role in relation to national food security for the future, and we gauge the opinion of movers and shakers in the leisure trade about how the Great British pub is fairing.

We also have our legal update from one of the firm’s newest recruits, business recovery partner Jane Haymes, which focuses on guidance for landlords on ‘pre-pack’ administrations – an insolvency procedure which has come under a great deal of scrutiny from the press as the economy has suffered.

An area that has particularly struggled over the past two years is the property sector and head of agency at Eckersley, Andrew Taylorson, gives his thoughts for 2010 and considers if those elusive green shoots of recovery are showing.

We also take a look at how two of the firm’s clients are succeeding in very tough sectors by adapting to change. Leading car leasing business UK Carline has launched a CO2 offset programme for motorists and Chorley-based GDW Engineering is exploiting opportunities in the sustainable energy sector.

The recession is still very much on everyone’s mind but speaking to clients and contacts alike, the majority have said that it can prove helpful to ‘reset’ the business and get it back on track, focusing on the factors that have made it a success in the first place.

Enjoy the winter edition of in:brief.

2 in:brief WINTER 2009

It’s not been the best of years for the property sector and I’ll be glad to see the back of it. Although I have the pleasure of working for some of the UK’s biggest brands, this doesn’t mean Eckersley has been insulated from the recession.

Throughout 2009, a day hasn’t gone by without news of organisations reviewing their property portfolios because of financial pressure or bankruptcies, which has inevitably resulted in a high volume of property coming on the market. Combine that with the fact that the banks are imposing strict lending criteria on property isn’t conducive to helping the market.

There are some glimmers of light though. Blackpool has a number of regeneration initiatives including Talbot Gateway, Blackburn is also benefiting from smaller scale projects and its retail offering will be dramatically improved with the £66 million redevelopment of the Mall.

In Preston, the news that Grosvenor has pulled out of the £700 million Tithebarn scheme is disappointing

and we hope that Lend Lease will carry on with the project. One scheme that I am involved in is Cottam Hall Properties’ £80 million major regeneration project that is set to transform a derelict 28 acre site in Preston. The development could generate over 700 jobs and answers comprehensively issues associated with public transport and ecology whilst providing leisure, business and residential opportunities.

We are also noticing that some residential developers are now growing their land banks, which confirms that they are gearing up their building programmes once again. Moreover, intermediaries in the legal and architectural sectors are seeing the number of instructions rise (though not to the extent of three or four years ago) which all helps to put confidence back into the marketplace, something that is in dire need at the moment.

Many in the property industry believe that the low interest rate we’ve witnessed in 2009 is set to stay - perhaps well into 2011 and according to the Centre for Economics and Business Research (CEBR) rates could stay as low as 2 per cent until 2014. Until lenders are released from their shackles and finance is flowing for the right projects, only then will an increase in activity happen, but it’s unlikely to be at the same levels we have been used to or would like!

Andrew Taylorson

The other factor to take into consideration is what a change in government would do.

Regardless of each party’s policies, we are undoubtedly going to see a cut in public spending that could prompt a review of the public sector’s property portfolio and the number of new projects that could happen regionally.

outlets, is that units are now being re-occupied – and this breeds optimism. However, these retailers will only be there as long as consumers continue to spend. This coming Christmas will no doubt answer that question and hopefully it will not prompt Her Majesty to use ‘that’ term again.

What is good to see though, in relation to the high street after the demise of Woolworths and other retailers shrinking the number of

Contact: at@eckersleyproperty.co.uk 01772 883388

Innovative scheme helps cut carbon A unique CO2 offset initiative to help manage carbon emissions has been launched by Preston-based UK Carline. It has been working with carbon offset business CO2 Balance to research initiatives that will absorb or prevent the release of carbon emissions.

Some £50,000 will be invested by the company annually and the new scheme will apply to all its lease vehicles.

“Our initiative sets us apart from our competitors by establishing sound green credentials,” said general manager Simon Booth. “We have calculated the CO2 output that cars and vans will produce during the period of the contract and will reinvest that cost into ethical projects that will offset the carbon produced.

This is a bold statement not only of our commitment to the environment but also as a commitment to our customers to help them achieve their own specific carbon targets.

“I believe that carbon free, or at least carbon balanced motoring, is the most sensible option we can offer until the technology is available to support non-fossil fuel motoring.”

UK Carline leased over 3,500 cars in 2008 and has a sales turnover of £39 million.

“Our clients’ most expensive commodity is their time and we ensure they don’t use up any more than necessary by providing a service that handles almost every aspect of vehicle management,” said Simon.

Present trading conditions mean funding is the main challenge facing the vehicle leasing industry.

“The issues people now face are finding the car they want, and obtaining funding. A wide portfolio of finance providers means UK Carline can always find a solution,” added Simon.

James Allison, corporate partner, who advises UK Carline on a wide range of issues from general

Darren Godbert, national sales manager, Simon Booth, general manager, David Culshaw, managing director

corporate advice, dispute resolution to risk management, commented: “UK Carline is a prime example of a business that whilst it is in a very competitive marketplace, researches key trends and developments in its sector and delivers an innovative service. This is a business that will

ensure its longevity by adapting to consumer wants and needs, particularly as green issues play a big part in consumer purchases.”

For more information about the initiative, visit www.ukcarline.com

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GDW Engineering / talking heads / business bites:

Engineering a green future Rising demand for sustainable energy solutions is opening up fresh growth opportunities for North West steel fabrication company GDW Engineering.

The business is involved in a number of major ‘green’ engineering projects, including an ultra-low emission incineration plant near Heathrow airport.

GDW’s contract with Japanese company Takuma involves manufacturing and installing fabric filters that filter the waste gases from the combustion process, along with an Air Condensing Plant that condenses steam back into hot water, enabling it to be reused in the steam generation process, with minimum heat wastage.

Managing director Graham Watkinson believes environmental drivers bode well for the future of the engineering firm which was founded in the 1950s.

“Takuma is a very large business and there are several others in this rapidly growing market for largescale sustainable energy projects, which represents a rich seam of opportunity for GDW in the future.” said Graham.

Dublin’s Millennium Spire, one of GDW’s most high profile projects

Another major environmental sector contract is the construction of ten large storage tanks for Veolia Environmental Services at Garston in Liverpool, which is nearing completion. Meanwhile, GDW engineers are at an earlier stage in manufacturing platforms and conveyor supports for a bakery in Kuwait.

whereas a lot of manufacturers have shied away from installation due to health and safety factors,” said Graham. “We took the opposite view. By investing in a properly trained workforce we can operate efficiently within the health and safety framework and create a strong competitive advantage by offering an end-to-end service.”

With a turnover of £4 million, GDW employs 35 skilled workers at its workshop in Chorley which incorporates a 1,000m2 fabricating floor and a similar-sized yard area that allows trial assembly and the inspection of units.

While the weak pound currently works in favour of GDW by levelling the playing field against cheap products from eastern Europe, there is a danger that the pendulum may eventually swing the other way.

In recent years GDW has erected the Millennium Spire in Dublin’s O’Connell Street, aerodynamic wind tunnels for Williams F1, Honda Racing F1, and Spyker F1 (now Force India F1), along with jig work for BAE Systems’ Tornado fighter and improvements to upgrade the Airbus wind tunnel.

“What sets us apart from our competitors is that we install a large proportion of the items we fabricate,

Nonetheless, Graham remains resolutely optimistic. “We are a business that can adapt because we have no fixed product. We make things that are similar to what we have done previously, but in some subtle way every order is a one-off and I believe this inbuilt agility augurs well for the future.”

For more information about the initiative, visit www.gdwengineering.co.uk

business bites:

Talking Heads

Barclays chief warns on regulation Barclays’ chairman says Britain’s banks will be damaged if regulators are too strict in their implementation of a global crackdown on bonuses and capital requirements.

What is the future of the Great British pub?

Construction boost According to Deloitte, the construction and property sector is stabilising, with administrations dropping by 14 per cent in the third quarter of 2009 compared with the same period in 2008.

Delay for employment directive The UK Government is to delay implementing the European Union’s Agency Workers Directive for two years, which is expected to save billions of pounds for businesses by putting off extra regulation.

Green shoots growing, says KPMG Malcolm Ireland

Malcolm Ireland, head of Licensing, Napthens solicitors: "There are many reporting that the traditional wet-led community boozer is not as profitable as it was.

That ties in with stories of gastrostyle pubs leading the way.

However, I know a number of extremely busy and profitable pubs that do no food, music or entertainment - just a good selection of quality ales, and there is certainly room for more of them."

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Andrew Buchanan

Andrew Buchanan, operations director, Thwaites: “For well run, well presented pubs with great beer and a warm welcome the future is really bright. There is still nothing better than a great pub atmosphere for people who want to socialise.

The difference in today’s market is that the divergence in performance between these great pubs and the rest has accelerated. The good publican will survive and prosper.”

David Bremner

David Bremner, business development director, MDA Limited: “The research from big brand owners is that Great British pubs will have to change their focus and market themselves on ‘pub unique’ visits such as cask ales, high quality pub food and sporting events. The traditional ‘regular’ will become a thing of the past as pubs will need to cater to consumers who want variety. Pick an offering, carve out a niche and those pubs that do will have a long and successful future.”

56 per cent of senior executives claim they are witnessing signs of recovery in the economy, according to a survey commissioned by KPMG, with confidence among North West businesses reaching its highest level in 18 months.

Christmas We spent £115 million on seasonal cakes last year and mince pies make up 44 per cent of that figure which means we spent £50.6 million just on mince pies. We ate on average 27 mince pies each!

Contact us: We welcome your feedback and comments on the articles in this issue of in:brief. Feel free to drop us a line at Marketing@napthens.co.uk or visit our in:brief page on our website, www.napthens.co.uk/inbrief. Alternatively, if you want to contact any of the Napthens team mentioned in this issue, please email them at Firstname.Surname@napthens.co.uk.

We look forward to hearing from you.

WINTER 2009 in:brief 3

special report: food production

North West farmers can rise to future challenges Farmers are critically important to maintaining the region’s beautiful countryside, yet in a very real sense our rural landscape is the product of a more fundamental activity – growing the food we eat.

The North West has some of the best dairy farms in the country; large swathes of the region support beef and sheep farming; significant areas of combinable crops are grown in the south and west of Lancashire; and the west of the county is also home to some of the UK’s best grade 1 farming land.

Yet farming is a sector facing some stern challenges: burgeoning regulation, food security, developing more entrepreneurial attitudes, encouraging young people to enter the industry, and a raft of environmental issues.

“Whether politicians recognise it or not, national food security for the future has never been more important and the farming community in the North West has a vital role to play,” said Geoff Tomlinson, head of the Rural team at Napthens solicitors.

“The region’s farmers are very well placed to increase home production of top quality, locally sourced food of all kinds. But for that to happen, the next generation of farmers must know that they have a viable and profitable future ahead of them.”

Farming industry insiders agree that politicians in the past have paid scant regard to food security.

However, many now accept that attitudes in Whitehall are changing for the better.

“Of late, Defra and senior ministers are taking the notion of food security

seriously, as are the main political parties,” commented Kathryn Wright, of Hesketh Bank-based growers and produce merchants Wright Farm Produce.

payments for non-market ‘goods’ such as landscape and biodiversity.

We must not be put at a competitive disadvantage to our European neighbours, which in

“Persuading young people that farming is a good career option is a substantial issue facing the industry” “We have not seen politicians so fired up about food security for a long time, and now we need to make sure that we point them in the right direction. The food policy work at Defra is important and is certainly an impressive piece of work. The task ahead is to ensure that British agriculture is strongly positioned as a large part of the answer to food security concerns.”

Nonetheless, regional farmers want to see further policy developments and commitments at European level.

“The Government needs to be arguing for sufficient European funding post-2013,” said Douglas Chalmers, regional director of the Country Land and Business Association.

“Policy should emphasise market orientation for food and other products, together with public

the North West region includes Scotland and Wales.”

Persuading young people that farming is a good career option is a substantial issue facing the industry.

A significant concern shared by many members of the regional farming community is overregulation, combined with the large scale nature of modern food production which means fewer people are entering the industry.

“Start-up costs are prohibitive across all farming sectors. There are very few entry points into an industry where size is more and more important,” said Reg Johnson, farmer and producer of Goosnargh Chicken.

“There will always be farmers, but a smaller proportion of them will come from outside existing farming communities. Gone are the days when you could start up with 30 or 40 cattle. To be viable, you need 200 cattle with automatic everything, and supplying to the elite band of supermarkets.”

Reg continued: “Another major issue is the increasing burden of regulation. Every time you create another piece of legislation, you create another ‘Jobsworth’ and make the industry less profitable and less appealing to people who might otherwise have seen a future in it.”

Douglas Chalmers

4 in:brief WINTER 2009

Geoff Tomlinson

However, Douglas Chalmers is keen to point out that young people must be shown a positive and rewarding career path into farming.

“It doesn’t help when the industry as a whole constantly talks about how tough everything is,” he said. “How does that make it attractive as a career? Like all mums and dads, farming mums and dads need to recognise that the next generation lives differently to theirs. Even making it clear that farmers can take holidays and can get time off the farm would help.

“The next generation needs a channel to today’s policy makers to ensure that their opinions are heard by those who matter. They are the ones who will have to farm under the conditions we set today,” added Douglas.

The environment is a crucial issue and the balance between safeguarding it and maximising food production is as wide-ranging as it is far-reaching. Climate change, urban encroachment, green energy, and the increasing size of modern food businesses are all key to shaping the future.

“Climate change is perhaps the greatest unknown,” said Chris Molyneux, of large-scale field vegetable grower Charles Molyneux, based in Scarisbrick. “How it will affect food production across the world, and particularly the North West, is impossible to gauge, but it’s fair to say that the more adaptable we are, the better we will fare.

“Urban encroachment is another issue and with a growing UK population, it is not going away.

Consumers wanting convenience and good value food, combined with the explosion in food regulation means businesses of all types have had to get bigger to maintain profitability. Unfortunately, this can lead to an inability to change quickly to meet new challenges and exploit fresh opportunities.”

Entrepreneurial vision and innovation are vital if farming businesses are to prosper in an increasingly volatile global economy.

“As farmers we must understand that we are actually food producers and need customers to repeat-buy

our products, not somebody else’s,” commented Adrian Rhodes, of Inglewhite-based dairy farmers and cheese makers Carron Lodge.

“If we fail to do this, all the hard work can be lost to competitors, possibly in other countries. Producers must advertise source of origin, add value to their product and individualise it.”

Adrian believes the development of entrepreneurial flair in the industry has been hampered by a historical marketing board system in which volume translated into profit.

“This mentality still exists,” he said.

“For example, a farmer may have a nice new tractor sitting in the yard and complains about his milk price.

This tractor probably never moves for six months of the year. Why not buy some processing machinery, produce less, add value to his raw material and sell for more under his

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special report: food production

Environmental issues will shape the future of farming

own brand? In other words, go to the market.”

is to change the way the debate on sustainability is developing.

There is no shortage of commercial opportunities for the North West farming sector which is among the most varied in the country.

“Farming will come to be seen very much as one of the cornerstones of any plan this country has to tackle global warming,” he said. “We can grow fuel as well as food and this will become an increasingly important part of farming over the next 20 years, whether it’s growing bio-fuels or building anaerobic digestion plants.

“We have virtually every farming system in this region, from vegetable growers in west Lancashire, to hill sheep farmers in the Lake District,” commented Adam Briggs, senior food and farming adviser at the National Farmers’ Union in the North West.

“There are opportunities for all these systems, depending where you farm.

For those farmers who have suitable farms, tourism still represents a massive opportunity, particularly as people look to holiday in this country as the pound continues to weaken.”

Adam is convinced the North West farming industry’s main opportunity

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“In the North West we can produce the food people need, maintain an environment for them to enjoy and potentially provide green energy.

So, I believe the prospects for farming in the long-term are very positive given that it has so much to offer the country.”

Reg Johnson

WINTER 2009 in:brief 5

Alexander Young / legal update / ask the expert: ask the expert:

Lasting Powers of Attorney Eve Austin, based in Chorley, is a solicitor in the Wills and Estate Planning department.

Q: I am a businessman, married with young children. I have substantial personal assets that I want to preserve for my family. I’ve recently had a health scare and I’m concerned who’d manage my private and business affairs after death. I have adult children from my first marriage who are directors in the business but are abroad frequently.

A: Your situation requires a Lasting Power of Attorney (LPA), which means you appoint an attorney who’ll manage your financial affairs with legal authority and will do so should you lose mental capacity. It’s flexible and can be tailored to particular circumstances.

Restrictions can be inserted limiting the attorney’s powers.

Your wife should be appointed as an attorney, but her powers can be restricted to only dealing with personal bank accounts and assets in your name. If you don’t want a family member to deal with these, a professional can be appointed.

Your children could be attorneys in relation to business affairs. If the two of them are appointed ‘together and independently’ either one can make decisions so there’ll be no difficulty when one is unavailable. LPAs allow for guidance to be included so attorneys can be asked to refer to particular financial advisers or solicitors when making decisions.

As LPAs must be registered, all family members will be notified.

If you don’t make a LPA and lose mental capacity, the Court of Protection will take over your affairs, appointing one member of your family to deal with all matters. A Court of Protection application is long-winded, extremely expensive and stressful. You should also review your Will to minimise inheritance tax and look at a trust as a vehicle to preserve assets.

Contact: Eve.Austin@napthens.co.uk 01257 479623

Landlords welcome guidance issued in relation to “pre-packs” by administrators Jane Haymes, business recovery partner in the Corporate team, looks at a court decision which has clarified the approach to pre-pack administrations.

Many landlords will be aware of the decision in Innovate Logistics Ltd v Sunberry Properties Ltd [2008] which was one of concern to them. In this case administrators negotiated a “pre-pack” sale, where the buyer was lined up for the struggling business before it went into administration. As part of the sale, administrators granted the purchaser an occupational licence of Sunberry’s property for six months, without Sunberry’s consent. Sunberry applied for permission to commence proceedings against the company in administration, alleging the licence was in breach of the lease.

Sunberry’s application was dismissed by the court on appeal.

However, the High Court has recently issued guidance on the approach to pre-packs and the information to be provided to creditors in the matter of Kayley Vending Ltd [2009].

In this case, between the application for an administration order and the hearing of the application, the directors of the company, along with the proposed administrator, negotiated the sale of the business and assets to a third party.

Evidence was filed by the administrator to support the application explaining that it would best serve the creditors for a sale to be completed immediately following his appointment.

The company supplied and serviced cigarette vending machines which were more valuable if they remained where they were, rather than being removed if the company stopped trading. If the machines remained, the business could continue as a going concern thus achieving greater realisations for the creditors. Additionally, sale negotiations were held with two competitors as they were interested in acquiring the business to strengthen their market position.

“It was crucial that sufficient evidence was provided so the court could make a decision” In deciding whether to make the administration order, the Court considered whether the pre-pack would put the creditors at a disadvantage. It was crucial that sufficient evidence was provided so the court could make a decision.

In making the decision, the court said the evidence must include similar to that which an administrator must provide to creditors under the Statement of Insolvency Practice 16 (“SIP 16”).

SIP 16 was introduced earlier this year as a guideline for insolvency practitioners to encourage transparency in the practice of selling businesses in distress.

6 in:brief WINTER 2009

b) the benefit to the creditors outweighs the benefit to any other party, e.g. where the sale is to the former management.

Whilst Kayley is not a property related case, in view of the decision in Innovate Logistics Ltd v Sunberry Properties Ltd, it is welcome guidance for landlords (and other creditors) on what information should be provided in relation to applications for administration orders, so that they can put questions to the administrators and make an informed decision as to the likely outcome for their property and assets.

Contact: Jane.Haymes@napthens.co.uk 01772 904358

the purchaser and the directors of the insolvent company; how the administrators came about their appointment; whether efforts were made to consult with major creditors and what marketing activities have taken place.

In the Kayley case, the court also issued guidance on whether pre-appointment costs in negotiating the pre-pack can be paid as an administration expense. The court held that it is only appropriate for pre-appointment costs to rank as an expense where: a) the pre-pack deal is for the benefit of the creditors; and

Jane Haymes

Napthens’ experts help in Alexander Young sale Document storage company Alexander Young has been sold in a high profile deal advised on by Napthens’ Corporate team. offering tailored storage and management solutions for businesses in the region.

Eve Austin

Following SIP 16, officeholders have to demonstrate that they have considered the nature and extent of their role in taking the appointment and that there has been sufficient disclosure to creditors. SIP 16 requires officeholders to set out in black and white to creditors their thought process and methodology, with a view to creating a clearer understanding of the transaction.

Disclosures to be made by them include: the identity of the purchaser; any connection between

The Essex Street, Preston, business provides one of the largest facilities of its type in the North of England,

to the company, which was founded in 1997.

Directors of Alexander Young, Brian Young and Lorraine Birch, have sold the company to IBEX Information Management, a company backed by a group of investors. Andrew Clare led the team at Napthens.

Andrew said: “Since the business was founded more than a decade ago, Alexander Young has become a respected company in the sector and I am delighted to help secure a long and healthy future for the business.”

Lorraine will stay on as managing director, and Brian will retire but continue to provide ongoing support

Tomas Gronager, chief executive of IBEX, said: “Alexander Young is a high quality company that is known

as a customer service leader in the North West market. We are committed to building on that foundation while providing additional services to help our clients improve their information management programs.”

Contact: Andrew.Clare@napthens.co.uk 01254 686208

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a day in the life of / employment ruling / opinion:

A day in the life of…

John Woosnam As head of the Commercial and Civil Litigation team at Napthens, John plays a key management role as well as specialising in resolving company and commercial and landlord and tenant disputes.

8.00: Arriving in our Preston office an hour before the phone starts to ring gives me a chance to sort out some tasks I need to focus on.

However, some clients – especially farmers – have learned that I’m in before nine and calls start to come through around 8.30.

9.00: As head of department I’m responsible for opening the post, which also gives me a useful feel for what is going on in my team. By this time the lawyers in my team will have been in for a good half an hour.

emails which I deal with before lunch. Before leaving the building I am approached by a colleague from the Wills & Estate Planning team who needs my opinion as a litigator.

She tells me that a client has contacted her about a relative's Will.

The client had been an intended beneficiary under a Will but the solicitors who had been instructed to draw it up had not done so quickly enough and the testator had died before executing it. I explain to my colleague what can be done in terms of litigation.

John Woosnam

He became a partner in the firm in 1989 after gaining wide-ranging experience in many areas of litigious law including family, crime and personal injury through to commercial property, and landlord and tenant disputes. John qualified as a solicitor in 1985, having read politics, philosophy and economics at Oxford University.

7 .30: I leave my home in Weeton on the Fylde after spending half an hour walking our black Labrador, Bollinger, and answering various text and email messages on my mobile phone.

10.00: I often attend court, but today I’m office-based. My first meeting concerns a dispute over a partnership dissolution agreement in which my client is defending a £35,000 claim for allegedly breaching the conditions of the agreement.

However, my client says this doesn’t cover many of the activities for which damages are being claimed, and where it does, the other side haven’t provided evidence of any loss. The meeting is complex, involving the sifting and collation of a small mountain of documents.

12.00: I return to my office to find a pile of notes, voice messages and

1.30: Lunch consists of a 20-minute walk round Preston city centre during which I pick up a sandwich and a light bulb from Wilkinsons, on the instructions of senior management at home – my wife, Lynne.

2.00: I interview a celebrity client regarding a defamation action in which he is the claimant. The nub of the issue is that he was the guest speaker at a charity event and has been accused of promoting another charity at the expense of the one for which the event had been staged.

We have now received a response from the other side in which they deny my client’s allegation of

defamation, but make a ‘without prejudice’ proposal to settle via an apology. We decide to accept a compromise. However, our counterproposal requires a more strongly worded apology and a modest donation to a charity of my client’s choice.

3.30: I sign the outgoing mail, which must be done before 4.00 and spend some time catching up on voice messages, emails and dictating letters to my secretary from notes taken during my meetings.

5.00: I attend a team meeting at our Blackpool office. This involves reviewing ongoing and upcoming activity and is part of a series of monthly and quarterly meetings with individuals and teams at all our offices.

6.30: I leave Blackpool and head for my squash club where a few rigorous matches help me to relax.

9.00: I arrive home and we have supper before I take Bollinger for an evening walk.

Contact: John.Woosnam@napthens.co.uk 01772 904209

Are we qualified for marriage?

The underlying basis of the ‘Every Family Matters’ report was a conservative and traditional view that marriage should be promoted as the most stable form of relationship and that the increase in cohabiting couples is leading to

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many more children spending significant parts of their lives with only one parent due to the instability of such relationships.

It may be possible to promote marriage by providing incentives such as tax breaks but can the law really instil commitment in couples from the outset and discourage separation when times get tough?

What is clearly required is a change to the law in order to regulate relationship breakdown for unmarried couples. The law as it stands is a mess. If cohabiting

Employment ruling UK employers may have to rethink their holiday policies after a European Court of Justice (ECJ) decision which means employers should give replacement leave to workers who have fallen ill while on holiday.

The court ruled that if a worker falls ill while on leave, or is ill through a prebooked period of leave, the worker is entitled to take the holiday at a later date once recovered.

The decision is the result of a Spanish case – Pereda v Madrid Movilidad SA – where an employee was involved in an accident shortly before a holiday period and was unable to work. He requested replacement leave which was denied by his employers.

opinion piece: Simon Gledhill, head of Family

A recent report from the Centre for Social Justice, an independent think-tank founded by Iain DuncanSmith, put forward a number of interesting proposals for the reform of family law. The most eye-catching was a suggestion that couples could pre-qualify themselves for marriage by attending "preparation classes".

Roger Spence

The ECJ ruled that this decision was contrary to the Working Time Directive, the key piece of EC legislation which governs hours and holidays.

This ruling will directly apply to public sector workers in the UK, although workers in the private sector may not be able to benefit from this decision until the Government amends the UK’s Working Time Regulations.

couples were subject to legal obligations it is likely that couples would exercise more caution before entering into those relationships and it is possible that marriage would be the more attractive option.

Critics fear the decision will mean leave is open to abuse by workers who return from leave and claim to have spent the last week ill in bed.

Employers are therefore recommended to have reporting systems in place to minimise the risk of receiving fabricated requests.

Family law must adapt to meet the needs of society. It should not be used as a blunt instrument for social engineering.

Contact: Simon.Gledhill@napthens.co.uk 01253 754871

Contact: Roger.Spence@napthens.co.uk 01772 904242 Simon Gledhill

WINTER 2009 in:brief 7

and finally:

Napthens supports key local events Napthens has thrown its support behind a number of key Lancashire business events during the last quarter of 2009.

The firm is sponsoring the main award, for Top Accountancy Firm, in the North West Society of Chartered Accountants Accountancy and Business Awards 2009, due to take place in November.

These awards are one of the top regional business events and this year is honouring just four businesses, in an event labelled The Big Four.

Andrew’s Lancia Stratos

Me and my… Cars Partner Andrew Ferguson has for many years had a passion for motor sports. After starting with a Lotus Elite and then a Porsche Carrera in the late 70s he managed to acquire a Lancia Stratos in 1980 and since then it has led him to some interesting motor sports experiences.

He emphasises that it is the car (which has a Ferrari engine and gearbox and is one of a small number produced by the Lancia works for competition purposes; winning a series of major international victories in the 1970s) rather than the driver that attracts attention.

“It was originally built in 1975 and bought by a Sheikh in Qatar. After I acquired it we added a number of competition modifications and started using the car in competition.

I remember competing at Barbon in the 1980s where a certain Graham Booth (now property director of our clients E. H. Booth & Co. Limited) was also entered in a souped up VW Beetle. More recently he has been racing a Porsche and we still meet at sprints and hill climbs in addition to our regular business encounters during the week”.

Speed and this year appeared at the Pageant of Power at Cholmondley Castle in Cheshire – a northern version of the Goodwood event with a very fast and (in the wet) challenging circuit.

Andrew says: “Historic racing cars are so much more fun for an ageing lawyer who could never compete with young drivers in the latest state-of-the-art machinery!”

from the property and media legal work which he continues to enjoy doing during the week.

Contact: Andrew.Ferguson@napthens.co.uk 01772 904231

In addition to other meetings the Stratos has twice been invited to appear at the Goodwood Festival of

Preston: 7 Winckley Square, Preston, PR1 3JD DX 714572 Preston 14 Tel: 01772 888 444 Fax: 01772 257 805 Email: Preston@napthens.co.uk

Blackburn: St Andrew’s House, Wellington Street (St John’s), Blackburn BB1 8DB DX 17964 Blackburn 1 Tel: 01254 667 733 Fax: 01254 681 166 Email: Blackburn@napthens.co.uk

Charity support Napthens is supporting the Rosemere Cancer Foundation as its chosen charity during 2009/10 and will take part in a variety of fundraising events.

Napthens’ charity committee will be organising a range of events for staff including dress down days, quiz nights, raffles and plans are in the pipeline for a Napthens’ Got Talent.

The firm will also be sponsors of the Rosemere Family 5k Fun Run & Sponsored Walk in Witton Park, Blackburn in May 2010.

“The car is amazingly quick for a 75 year old vehicle yet it is easy to drive and I really enjoyed that”.

Partner Kathryn Harwood presented the award at school assembly to an audience of around 700 students and teachers and said: “Napthens and Westholme have so much in common; we never stop seeking to improve and our records of success are testament to that. We are very pleased to have Victoria Green as our Napthens’ Scholar.”

The Lancashire Telegraph awards are a highlight of the East Lancashire business calendar, honouring businesses in the area for their work. Napthens’ partner David Hill is on this year’s judging panel.

The charity exists to support those with cancer – in Lancashire and Cumbria alone more than 8,000 people are diagnosed each year.

Andrew recently acquired a 1932 Riley Special which was built specially for racing and in June this year the car broke the record and won its class at Vintage Sports Car Club meeting at Harewood.

With the Stratos, the Riley and a Lancia Fulvia Rally Coupe (driven by son Morgan at Cholmondley this year) Andrew has assembled an interesting collection which provides a welcome change at the weekends

Napthens is also sponsoring the Social and Community Development Award for the Lancashire Telegraph Business Awards – also taking place in November.

Finally, Napthens is supporting Westholme School in Blackburn with a new, two year 'scholarship' scheme. The Napthens Scholarship was presented to Victoria Green for the best performance in GCSE Mathematics.

added: “Wherever people with cancer are treated in Lancashire and South Cumbria there are projects funded by the Rosemere Cancer Foundation to support them.

“Napthens has a considerable presence right across central Lancashire and we are delighted to have the opportunity to work with the firm for the benefit of local cancer patients."

To help log on to www.justgiving.com/napthens

Kay Jackson-Leigh, HR manager at Napthens, said: “Rosemere does a fantastic job, and all Napthens’ staff and clients are invited to help in any way they can.”

Andrew Ferguson

Blackpool: 41-43 Springfield Road, Blackpool, FY1 1PZ DX 714350 Blackpool 5 Tel: 01253 622 305 Fax: 01253 295 591 Email: Blackpool@napthens.co.uk

Sue Thompson, chief officer for the Rosemere Cancer Foundation,

Chorley: 10-12 St Thomas's Road, Chorley, PR7 1HR DX 18412 Chorley Tel: 0845 260 2111 Fax: 01257 260 096 Email: Chorley@napthens.co.uk

n a pth en s.co.uk www.n Napthens LLP, registered office: 7 Winckley Square, Preston, Lancashire PR1 3JD. Napthens LLP is a limited liability partnership registered in England and Wales: OC325775. The term “Partner” indicates a member of Napthens LLP who is not in partnership for the purpose of the Partnership Act 1890. A list of members is available from our registered office.

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