Law Times

PAGE 14 FOCUS Class actions a growth area for law firms Changing dynamics C BY JULIUS MELNITZER For Law Times firms. "Class actions have been a important in a legal marketplace that as a whole is not growing at a fast rate, corporate and securities lawyer at Osler Hoskin & Harcourt LLP. "What that means internally " says Doug Bryce, a is that the people doing that work have the wind in their sails and are achieving a certain level of success." The upshot is that the notion of a large law firm with a corpo- rate hub feeding work to various lass actions, it seems, have changed the dy- namics of litigation departments and law real growth area for our firm and for most of our competi- tors for the last decade, and that' specialty spokes, including liti- gation, is no longer as relevant. "The corporate hub model is becoming less and less relevant," says Larry Lowenstein, Bryce' s colleague and a senior member of Oslers' national class action team. "When we opened our greenfield office in Quebec, for example, litigation services were not top of mind, but here we are now, acting on the tobacco case. Who would have thought that Osler, a relatively recent arrival in Quebec, would be front and centre with a Montreal-based client like Imperial Tobacco?" There' s tions have been a major fee in- jection for all of the large firms. By way of example, Fasken Mar- tineau DuMoulin LLP' s no doubt that class ac- from class actions at the Toronto office alone lion annually and are growing, exceed $25 mil- HOW WILL KEY LABOUR DECISIONS INFLUENCE THE WORKPLACE? WILLIS & WINKLER ON LEADING LABOUR CASES, 2012 ELAINE B. WILLIS AND THE HONOURABLE WARREN K. WINKLER, CHIEF JUSTICE OF ONTARIO ALSO AVAILABLE ONLINE IN LABOUR SPECTRUM Identify the cases and trends that are important to your organization with Willis & Winkler on Leading Labour Cases, 2012. You'll find expert analytical review of key decisions and trends from across Canada and get clarification of the significance of these recent developments. RECENT DECISIONS OR CHALLENGES CONCERNING: • • Freedom of Expression Freedom of Association • Equality and Legal Rights • Due Deference post Dunsmuir • • Sufficiency of Reasons Disciplinary Trends: Unethical Conduct Willis & Winkler on Leading Labour Cases, 2012 gives you the big picture of the key decisions influencing labour law and arbitration to help you understand the impact on your organization. ON SUBSCRIPTION ORDER # 804602-65203 $77 Hardcover approx. 130 pages August 2012 978-0-88804-602-4 ONE TIME PURCHASE ORDER # 804602-65203 $87 Hardcover approx. 130 pages August 2012 978-0-88804-602-4 Shipping and handling are extra. Prices subject to change without notice and subject to applicable taxes. AVAILABLE RISK-FREE FOR 30 DAYS Order online at www.carswell.com Call Toll-Free: 1-800-387-5164 In Toronto: 416-609-3800 CANADA LAW BOOK® Untitled-3 1 www.lawtimesnews.com Absolute professionalism and respect for you and your client relationships, and the tenacity required to go the distance in pursuit of the best possible outcome. For proven experience in class actions, count on Lerners. Contact our London or Toronto office today and turn our experience to your advantage s billings sources say. Sources at Baker & McKenzie LLP say the growth in Cana- dian class action activity at the firm' that the threat class ac- tions pose is viscer- ally corporate in nature. Even if the prospect of a large class action doesn't endanger the very exis- tence of a corporation, it frequently drives down the share price, muddies up balance sheets, and complicates mergers, acquisitions, restructur- ings, and financing. Mere rumours of a pending class action have in some cases driven share prices down by as much as 20 per cent in North Ameri- can markets. As well, the very scope of class actions means that a company' has been exponential. There' s s Toronto office no denying reputation could be at stake, a disastrous prospect in an age of global branding. In other words, the fallout s from class actions can affect the business community in spades. Still, there' any quarter that the phenome- non has peaked. Indeed, observ- ers might wonder how long it will be before Canada produces its own version of the American asbestos litigation that bank- rupted a slew of prominent corporate defendants, brought Lloyd' s no suggestion from s of London to its knees, department to monitor the case exclusively, has vaulted counsel into the corridors of power identified mostly with cor- porate lawyers. In doing so, class actions have changed the internal politics in the major firms by raising the profile of litigation depart- ments. Whatever seriously affects clients, aſter all, is a matter of great concern to corporate partners. "Our litigation depart- Morrison of McCarthy Tétrault LLP. The attention from up high is indicative of what Morrison calls the "preventative, be prepared, siege mentality" that class actions have brought to corporate Canada. It' " says Paul s this mentality that 'The corporate hub model is becoming less and less relevant,' says Larry Lowenstein. ness strategy is at the heart of class action litigation. It' and cost businesses tens of bil- lions of dollars. So far, the tobac- co litigation could come close. With so much at risk, busi- prise, then, that class actions are a process in which the highest levels of management, includ- ing chief executive officers, chief financial officers, and general counsel, are deeply interested. "Class actions are almost in- s no sur- variably on the screen of gen- eral counsel and very senior executives and they frequently designate a member of the legal unify the major firms' litigation departments on a nationwide basis, contributing further to their internal profile. "Integration is particularly difficult for litigation depart- ments because litigation tends to be localized, " says Morrison. See Team, page 15 heavily on corporate clients and large transactional business," says Morrison. "The attention class actions attract, however, goes a long way to keeping our department front and centre. Class actions have also helped ment has always had a considerable profile, but we can get overlooked in a firm that concentrates so " September 3, 2012 • Law timeS London: 519 672 4510 Toronto: 416 867 3076 www.lerners.ca 12-08-28 3:41 PM

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