A MOVE by 15 partners from what was the local office of Minter Ellison to start the Australia arm of US-based Squire Sanders & Dempsey marks another major shift in Western Australia’s commercial law sector.
Minter Ellison, which has had a considerable period of notice from those departing, has vowed to respond to the mass exodus and rebuild its presence in Perth to at least 10 partners and about 40 staff by October.
Four of the Perth-based partners will join the nationally integrated firm, and it hoped to recruit the remainder from other firms’ WA offices or its own staff.
If successful, both the rebuilt Minter Ellison and the new Squire Sanders will sit comfortably within the top 20 Perth law firms by size – further intensifying competition at the top end as boutiques disappear within local and multinational brands.
In recent weeks, Perth-based independent player Jackson McDonald has consolidated its position as the number two law firm in Perth by size by announcing a merger with McKenzie Moncrieff. In addition, resources-focused Blakiston & Crabb has merged with national player Gilbert + Tobin, which did not previously have a Perth presence.
The other significant move in that space recently was WA-based boutique Cochrane Lishman Carson Luscombe’s merger with Clifford Chance as the UK giant established bases in Perth and Sydney.
Further recent moves include DLA Phillips Fox’s full national merger with UK-based DLA Piper after a long alliance, and last year’s decision by national player Deacons to merge with another British firm, Norton Rose. More than a year ago, UK giant Allen & Overy also established a presence in Perth by poaching several partners from national firms.
Much of the movement is seen as positioning among global players for a platform to better penetrate Asia, with the added lure of significant foreign investment into WA’s resources sector.
The rumour mill continues unabated in this area, with top-tier national firm Blake Dawson being the subject of speculation regarding a link-up with UK firm Ashurst, while another Australian major player, Mallesons Stephen Jacques, continues to be the subject of similar talk, the latest being with Chinese player King & Wood.
Minter Ellison chief executive partner John Weber said he was confident the firm could restore its WA presence based on four existing partners – Leith Ayres in insolvency, Ben Cockerill in banking and finance, Andrew Thompson in energy and infrastructure, and John Prevost in property – along with some lateral shifts from other law firms and interstate relocations.
“We have got a lot of interest from staff in the east since we made the announcement,” Mr Weber told WA Business News.
In some ways, Mr Weber said the split by the former Perth partners had its benefits.
“In some respects it is a bit of a bonus to start again,” he said.
“You get to build rather than reshape.”
However, Mr Weber acknowledged that Perth was important to the national firm due to its energy and resources focus, a sector in which WA business and transactions played a significant role.
The Perth partnership bearing the Minter Ellison name had never been financially integrated into the national business. Only during talks started a year ago to make that transition did the WA partnership start looking at alternatives such as an overseas link-up.
It is understood that the Perth partnership, which was Northmore Hale Davey & Leake prior to its modern guise, has held discussions with several overseas groups before talks with Squire Sanders began in earnest a few months ago.
The Squire Sanders Australia partnership will operate within a Swiss Verein structure, which is common across multinational law firms.
Squire Sanders, established in the US city of Cleveland in 1890, has lawyers in 46 offices and 16 countries around the world and describes itself as a top 25 global law firm. It recently merged with UK-based firm Hammonds, adding 500 people and a significant Eastern European presence to its business.
