Law Times

PAGE 4 NEWS December 13, 2010 • Law Times More global firms to set up here: Baker & McKenzie O BY JULIUS MELNITZER For Law Times n June 1, Ogilvy Re- nault LLP will be the fi rst Canadian law fi rm to go global by joining the international legal practice known as Norton Rose Group. Interestingly, the group is structured on the Swiss Verein model, which means there's no fi nancial integration between its components; local partners are subject to regulation only in their own jurisdiction; and liability does not cross jurisdic- tional borders. It's no surprise, then, that the initial reaction of many observ- ers turned to Baker & McKen- zie LLP, the Chicago-based law fi rm that was the fi rst to create an international network using the Verein model. "Baker & McKenzie were certainly trendsetters for the profession," says Norm Stein- berg, Ogilvys' Montreal-based chairman. "Th ey conceived the global fi rm when the world wasn't global, when there was no Internet, and at a time when jets were not landing ev- erywhere every few seconds." Today, Baker & McKenzie boasts 3,750 lawyers in 68 offi c- es around the world. Th e fi rm's revenues exceed US$2 billion, and its lawyers serve more than half of the Forbes Global 2000 companies and virtually all of the Forbes Global 100. Baker & McKenzie was also the fi rst foreign fi rm to set up in Canada by establishing a To- ronto offi ce in 1962. It would be a serious understatement to say that the move didn't herald a trend. Before a recent growth spurt, Baker & McKenzie's crop of lawyers here went about their business under the radar for the most part. Almost 50 years af- ter Baker & McKenzie came to Canada, the only other global fi rms with a domestic presence were Shearman & Sterling LLP and Skadden Arps Slate Meagher & Flom LLP, both with tiny representative offi ces in Toronto. Still, apart from the Verein structure, it would be folly to base any predictions about Ogilvys' future on the history of Baker & McKenzie's Toron- to experience. Th ere are at least three key diff erences: Baker & McKenzie was an international fi rm es- tablishing a greenfi eld offi ce in Canada, whereas Ogilvys is an established national fi rm join- ing an international enterprise; the 1962 marketplace wasn't a very global economy compared to today; and Canada's legal landscape in 1962 still featured a host of regional fi rms with prospects for national growth, whereas today's market com- prises numerous large entities with limited prospects for fur- ther domestic growth. Perhaps most importantly, however, Baker & McKenzie and Ogilvys have approached their international connections with very diff erent strategies. "Rightly or wrongly, our strategy was never dramatic local growth or a high local profi le, and when we opened in Toronto, we focused pri- marily on discharging inbound work from global fi rm clients," says Jim Holloway, Baker & McKenzie's managing partner in Toronto. "If we measured our success by that strategy, I would say we were wildly suc- cessful." But in the last six or seven years, the strategy changed. "Canada was never irrel- evant in the global legal mar- ketplace," Holloway says. "But until recently, it was never very important." However, Canada is cur- rently the 10th most signifi cant economy in the world while Toronto has been ranked 11th among world centres as a place to do business. "When you get past the ob- vious, which is London, New York, Hong Kong, and To- kyo, and past the BRIC [Bra- zil, Russia, India, and China] countries, Canada makes it onto the A list as an attractive and even a necessary place for global law fi rms," Holloway says. "For that, you can thank our strong energy and min- ing sector, our strong fi nancial institutions, the modest eff ect of the economic crisis, a lot of inbound investment, and a strong dollar." In this environment, Bak- er & McKenzie developed a consensus that the fi rm could achieve more in Canada. "We looked at the success of offi ces in places that were simi- lar to Canada, like Australia where we are very prominent, and decided to take a more ambitious approach to local growth," Holloway says. "Th e days of hiding our light under a bushel are over." Th e Toronto offi ce, which Ontario Lawyer's Phone Book 2011 Your most complete directory of Ontario lawyers, law firms, judges and courts With more than 1,400 pages of essential legal references, Ontario Lawyer's Phone Book is your best connection to legal services in Ontario. Subscribers can depend on the credibility, accuracy and currency of this directory year after year. More detail and a wider scope of legal contact information for Ontario than any other source: • More than 26,000 lawyers • More than 9,300 law firms and corporate offices • Fax and telephone numbers, e-mail addresses, office locations and postal codes Lists of: • Federal and provincial judges • Federal courts, including a section for federal government departments, boards and commissions • Ontario courts and services, including a section for provincial government ministries, boards and commissions • The Institute of Law Clerks of Ontario • Small claims courts • Miscellaneous services for lawyers Contact information that is current, up to date and easy to find: • Alphabetical tabs on every page for quick reference • Complete address information in every lawyer's listing • Special binding that allows the directory to lay flat when opened and stay flat • " Blue pages" to highlight government listings ORDER your copy today Perfectbound • December 2010 On subscription $66 P/C 0514140999 One time purchase $69 P/C 0514010999 • ISSN 0845-4832 (Please add 13% HST) has grown about 50 per cent in the last fi ve years and about 30 per cent in the last three, now has about 70 lawyers. "I believe we can replicate that growth pattern in the next fi ve years," Holloway says, not- ing he's in talks about lateral moves with 17 partners from signifi cant fi rms in downtown Toronto. Th e fi rm is prioritiz- ing lawyers with transactional practices featuring post-acqui- sition integration capabilities, tax practitioners, intellectual property counsel, and interna- tional trade specialists. "For the past two years, there has been an unprecedent- ed surge of interest in joining global fi rms," Holloway says. "I believe that we could get half of those lawyers if they turned out to be a good fi t for us." Th is month, the fi rm an- nounced that intellectual property star Bill Richardson had left McCarthy Tétrault LLP to join Baker & McKen- zie. Other recent high-profi le hires include Jim Rossiter, a mergers-and-acquisitions law- yer, and Chris Besant, an insol- vency practitioner. Both were formerly at Cassels Brock & Blackwell LLP. Th e upshot, then, is that Baker & McKenzie, with a sol- id inbound practice in place, is attempting to build a local focus that will feed into its established international op- erations. By contrast, Ogilvys, with a solid domestic practice in place, aims to grow both its inbound business and feed its local clientele into an evolving international presence. But whatever the model, Hol- For a 30-day, no-risk evaluation call: 1.800.565.6967 Canada Law Book, A Thomson Reuters business. Prices subject to change without notice, to applicable taxes and shipping & handling. www.lawtimesnews.com OLPB_2011 LT-1/2pg 4X.indd 1 11/9/10 3:41:59 PM HA1210 loway is certain Canada hasn't seen the last of the global fi rm. "In the fullness of time, and not too much time, we'll be seeing many more international fi rms kicking the tires in this coun- try," he says. "It's happened ev- erywhere else, so why shouldn't it happen here?" LT Multiple copy discounts available

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