Law firm highlights – June 2022

• Kennedys has reported its highest ever revenue of £286m, up 8% from £264m* the previous year. The most significant growth came in North America, where revenue was up 24% to £55m, following a continued growth period fed by work from new and existing clients, a series of lateral hires and the opening of a new office in Delaware. UK revenue was up to £153m, up £1.4m from last year. Latin America saw a 20% increase up to £8m, EMEA a 15.5 per cent increase to £27m and APAC an 11% increase to £42m. In particular, the firm has continued to see strong growth in Australia and in France. In the past year, headcount has increased to 2,400 people, including 18 partner hires. In May the firm announced a record round of partner promotions, with 22 promoted. The firm also introduced a new legal director role, with 44 legal directors and 2 special counsels promoted. Two new business services directors also joined, with Alan Demirkaya appointed as global HR director and Karen Peskett-Hall, appointed as the firm’s first global transformation director. Nick Thomas, senior partner, Kennedys says: “I am very pleased that we have built upon last year’s record figures with further growth. The figures reflect our continued growth into a significant global player and are a testament to the way our teams have continued to respond to and exceed client expectations. We continue to look to the future with real confidence and I expect to make further announcements regarding new offices and hires throughout the year. I want to thank Kennedys’ colleagues around the globe for their unwavering commitment to provide the very best service to clients and for all they do to make Kennedys a great place to work.” In the last 12 months Kennedys opened three new offices in Perth, Oman and Delaware, doubled its footprint in Madrid and announced the next major phase of its ‘WorkWise’ global transformation programme, which will see its London team move into new office space in the city’s iconic Walkie-Talkie building and its Sydney team move into 25 Martin Place. Elsewhere the firm formed three new associations in Turkey, Bolivia and Ecuador.

• A recent judgment by the Dubai Courts in favor of a major real estate developer has shed light on how the courts interpret the termination of a sale and purchase agreement (SPA) entered into by an investor for a hotel apartment specifically for investment purposes. The Court of Cassation recently handed down a distinct judgment: the purpose behind the purchase of a hotel flat or hotel unit is critical for determining the right to terminate the SPA and claim for a breach of contract. In this particular case, the purchaser had claimed for a breach of contract and a refund of the purchase price after the developer made modifications to the hotel apartment’s executive unit, which was therefore, not consistent with the specifications of the unit as indicated in the SPA. The developer argued that the modifications were made to make the unit more conducive to rent out and thus, to generate more profits for the purchaser, which was consistent with the ultimate purpose of the hotel unit purchase. The Court of First Instance and the Court of Appeal had previously ruled in favor of the purchaser and determined a breach of contract arising from the changes to the specifications of the executive unit. Habib Al Mulla & Partners, a member firm of Baker McKenzie International (on behalf of the developer) appealed to the Court of Cassation, which after reviewing the documentation and evidence, rejected the initial judgment of the Court of First Instance and Court of Appeal. It determined that the lower courts failed to examine and consider the purpose of the contract entered between the purchaser and the developer, which was for investment purposes, not for personal purposes or to reside in the unit. In addition, the Court of Cassation held that the parties had agreed that the developer had a right to make any changes to the specifications of the unit, and so accordingly, the purchaser had no right to claim for a breach of contract or demand termination of the SPA on these grounds. The Court of Cassation concluded by alluding to the initial judgment as flawed by deficiency in reasoning and by violation of the developer’s right to defense, in so far as the lower courts should have included in their judgment a clear indication that they had reviewed and responded to all the evidence presented as well as the rightful defense of the developer.

• The Cambridge Institute for Sustainability Leadership (CISL) and global law firm DLA Piper has announced the launch of a two-year, global research collaboration to study the Future of Boards. The Future of Boards study aims to understand the shifts in governance and leadership which enable organisations to align business success with sustainability. This will combine existing academic and practitioner research with insights from board directors and key stakeholders across a range of jurisdictions. The aim is to produce practical, evidence-based, internationally relevant recommendations to prepare businesses and their leadership  for the future. Boards across the world are facing growing pressure and scrutiny by investors as the businesses they lead face new disclosure requirements and performance expectations about how they serve society and manage climate and nature-related risks and opportunities. These changes, alongside evolving debates about the purpose of business and stakeholder capitalism, appear to create an opportunity for a reappraisal of the role, structure, composition and behaviour of boards.  However, the speed and nature of these changes, and how they might unfold is little understood. This leaves boards in a difficult position regarding how to prepare for the emerging future. This study aims to address this challenge. Gillian Secrett, director of leadership programs at the University of Cambridge Institute for Sustainability Leadership comments: “The Future of Boards research seeks to understand the trends in obstacles and solutions to boards helping organisations drive sustainability. It aims to identify the most promising enablers of progress for boards to deliver business success and thriving societies while, protecting our environment for future generations”. Jean Pierre Douglas-Henry, managing director, Sustainability and Resilience at DLA Piper comments: “The growing need to align purpose and profit has brought about a seismic shift in how we think about organisations and the structure of their leadership.  Although corporate governance codes and interpretations of fiduciary responsibility are evolving, there is a need for informed discourse around the individual, organisational and systemic barriers to progress and a set of practical recommendations to address them.” Both CISL and DLA Piper are actively leveraging their extensive international networks of senior business leaders to invite participants into this global study. We particularly welcome  contributions from executive and non-executive board members as well as stakeholders who have an interest in boards, such as advisors, recruiters and other experts from all jurisdictions.