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Brexit means Brexit … but when?

Leaving the EU may not happen soon given the UK government does not know what it wants and is not yet equipped to ask for it.

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Two months ago on Tuesday, Britain voted to leave the European Union. The shock was immense; the fallout dramatic. But then summer came. The early turbulence subsided and normality (more or less) returned.

Brexit, though, has not yet begun to happen.

The government does not know what it wants and is not yet equipped to ask for it. Britain and the EU, it is increasingly clear, are far more intimately enmeshed than the leave camp had claimed. For all the leavers’ assurances, extricating the UK from the bloc, negotiating new relationships with Europe and the rest of the world – and ensuring that Britain’s laws and practices adapt – is a gargantuan undertaking.

The referendum result, however, is a political reality. The 52% of leave voters – and the politicians who represented them – expect it to be acted upon. So two months on, where does Brexit stand?

The legal challenges

The most immediate obstacle to Brexit is judicial. There is a substantial school of thought which says the government is not constitutionally entitled to pull the trigger on article 50 without the specific approval of parliament.

At least seven private actions have been grouped together and will be heard by the high court starting in October in what judges have said is a “matter of great constitutional importance”, with a decision possible by the end of the year.

Separately, cases have been launched in Northern Ireland arguing that Brexit would breach the Good Friday agreement by reinstating a physical border with the Republic of Ireland and undermining the legal basis for the 1998 peace deal.

So, while we may be two months in, you might want to get used to the waiting. Brexit may not happen quite yet.

Rio De Janeiro

DLA Piper’s Brazil Affiliate Campos Mello Boosts Energy

DLA Piper Brazil affiliate Campos Mello Advogados has added 11 new lawyers, including four new partners, most of whom come from an arm of Mayer Brown.

The attorneys join Campos Mello’s oil and gas, employment and benefits, and judicial recovery practices.

Christ the Redeemer on Corcovado mountain overlooking Rio De Janeiro. Photo: Wikimedia Commons.

Ten of the 11 attorneys are coming over from Tauil & Chequer Advogados, an affiliate of Mayer Brown in Brazil. The 11th new hire, partner Leandro Rinaldi, has had a solo practice.

The three new partners from Tauil & Chequer are Leonardo Costa, Maurício Tanabe and Sandoval Amui. Costa and Amui, along with associates Fernando Xavier, André Lemos and Anna Carolina Joppert will work in the firm’s energy, oil and gas section. Flavio Luduvice, Daniel Estrela, Loan Reis and Caio Gomes,will work in employment and benefits, along with Tanabe.

“While Tauil & Chequer is a great firm, we were very enthusiastic about the opportunity and challenge to expand CMA’s energy, oil & gas, and employment & benefits offering, with all the support of the great platform of DLA Piper,” the attorneys leaving Tauil & Chequer said in a joint statement.

Mayer Brown said it appreciates the contributions of the departing group and wishes them well in their new endeavors.

“With strong capabilities in the oil and gas sectors, as well as in employment and benefits, our service to Brazilian clients in those areas is unchanged,” said John D. Tuerck, a spokesman for Mayer Brown.

Tauil & Chequer and Mayer Brown announced their affiliation in 2009, noting that the relationship would allow Mayer Brown to offer global clients legal counsel on Brazilian domestic matters governed by Brazilian law, while increasing Tauil & Chequer’s resources for advising clients with respect to investments in Africa, notably Angola, where many of the Brazilian firm’s clients had been active.

DLA Piper and Campos Mello announced their affiliation in 2010, with the firms remaining independent. The firm recently moved from downtown Rio to new office space in southern Rio de Janeiro.

Campos Mello said in a statement that its four new partners bring the firm extensive experience: Amui, who worked for 30 years for Petrobras, focuses his practice on the technical, economic, strategic and legal aspects of the energy business. Costa advises and represents clients in energy, oil and gas projects, mergers and acquisitions and transactions, as well as in international arbitration. Rinaldi, a former professor of bankruptcy law, is a partner in the firm’s insolvency and restructuring practice. Tanabe, a partner in the employment and benefits practice, focuses on labor consultancy and union negotiations.

Campos Mello lost several partners in 2015, including Guido Vinci and Ana Luiza Martins, who departed for Tauil & Chequer and its affiliate Mayer Brown. Vinci and Martins took the bulk of the tax team with them, including four associates, and their departure was accompanied by that of corporate partner Daniella Raigorodsky.

Campos Mello is strengthening nontransactional practice areas, as economic and political turmoil has created a sharp decline in transactional work. It’s a tactic many firms have taken, with several having chosen to prioritize their tax practices.

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EY Legal unveils Americas expansion with key hires

EY launches legal offering in Chile and Argentina.

Big Four accountant expands its legal offering to Chile and Argentina as it hires Norton Rose Fulbright partner in Canada.

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EY set itself a target of expanding to 75 jurisdictions by the end of 2015, but with the addition of Argentina and Chile it now has offices in 73 countries.

hong kong

Sidley Austin HK litigation head moves to Orrick

Orrick, Herrington & Sutcliffe has hired Charles Allen as litigation and dispute resolution partner in Hong Kong from Sidley Austin, where he led the firm’s commercial litigation practice.

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Allen’s practice focuses on commercial litigation, arbitration and investigations. He has represented clients on contractual and tortious disputes, as well as regulatory and other investigations. Allen joined Sidley in 2002 from Simmons & Simmons and became a partner in 2007.

Orrick’s global litigation practice includes 450 lawyers, but Allen is the only litigation partner in the Hong Kong office. In February last year, the firm lost litigator Andrew Dale to Ropes & Gray.

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Brexit faces new legal challenge from NI

 

A victims’ campaigner has launched the first legal challenge in Northern Ireland to the UK leaving the European Union.

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Raymond McCord lodged papers at the High Court in Belfast yesterday seeking a judicial review of the British Government’s move towards Brexit

His lawyers claim it would be unlawful to trigger Article 50 of the Lisbon Treaty without Parliament voting on the move.

They also contend it would undermine the UK’s domestic and international treaty obligations under the Good Friday Agreement, and inflict damage on the peace process. With similar legal action under way in England, efforts are being made to secure an initial court hearing in Belfast next week.

Mr McCord, whose son Raymond jnr was murdered by the UVF in north Belfast in 1997, is believed to be the first person in Northern Ireland to issue proceedings over Brexit. He is taking the case amid concerns that European peace money that goes towards victims of the Troubles may be discontinued.

The challenge centres on the Government’s response to the June 23 referendum result.

His legal team claim they were not given assurances that Article 50, the mechanism under which the UK begins the formal process of leaving the EU, will not be invoked without first securing a Parliamentary mandate. Any attempt to use Royal Prerogative powers instead cannot be justified, they contend.

Mr McCord’s lawyer Ciaran O’Hare, of McIvor Farrell Solicitors, said his client fears Brexit could impact on his fundamental rights. “As a victim of the most recent conflict in Northern Ireland, Mr McCord is very concerned about the profoundly damaging effect that a unilateral withdrawal of the UK from the EU will have upon the ongoing relative stability in Northern Ireland,” he added.

“He is concerned that any withdrawal would be contrary to the UK’s international law obligations pursuant to the Good Friday Agreement.”

Insisting any notification under Article 50 must be done lawfully and constitutionally, Mr O’Hare described the legal challenge as “an important constitutional case which engages the Northern Irish public interest in a way that no other case has or is likely to for many decades”.

India parlement

India Aims To Be The World’s Newest International Arbitration Hub

India is seeking to become the world’s newest international arbitration hub by establishing a new arbitral center in Mumbai. The Mumbai Centre for International Arbitration (MCIA), which begins proceedings this month, will be India’s very first arbitration tribunal. Its supporters hope it will help bring the industry’s best practices to the country. The unveiling of the MCIA underscores the significant growth of India-related arbitration cases in recent years. It also highlights the government’s desire to make India an attractive destination for international arbitration and make it a more compelling destination for business by bringing more reliable adjudication to India’s corporate sector.

Arbitration remains the preferred option for multinational firms conducting business in the country, but India is not the preferred venue to arbitrate claims. The majority of arbitrations currently taking place within India occur on an ad hoc basis. This has resulted in a lack of uniform standards and predictability with respect to the cost-effectiveness, efficiency and outcome of many arbitral proceedings.

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These issues have generated serious inconsistencies with global best practices regarding arbitration, eroding the international legal community’s trust and confidence in the current Indian system. It has also been, plainly speaking, bad for business. Many of the most prominent arbitration cases, including those involving multinational giants Deutsche Telekom and Vodaphone, have moved outside of India because of the absence of institutionalized capacity and expertise in the country.

Can India develop a more popular arbitration venue?

Indian officials are betting that the MCIA will help change this, and the rules governing the MCIA have been drafted specifically to address these shortcomings. These rules provide for an expedited timeline for inexpensive disputes, mechanisms that cater to multi-party and multi-contract scenarios, the availability of an emergency arbitrator, and a deadline for the tribunal to render its final award, among others. Released in June 2016, the MCIA rules were designed by a committee comprised of leading arbitration practitioners both in India and abroad.

The Indian government is hoping the MCIA will help fill an important need that has been created by India’s recent booming economic growth, occurring at more than 7% by some estimates. The robust rise has resulted in a surge of foreign investment into the country, and with it, the need for access to alternate dispute resolution mechanisms.

The key question is whether these measures will succeed in making India a more popular arbitration venue. The MCIA’s success will depend largely on the willingness of companies operating in India to seek redress in the new tribunal. For both foreign and domestic companies, foreign-seated arbitration centers in Paris, London, Geneva, Hong Kong and Singapore remain the favored locales and have captured a significant share of India-related arbitration cases.

london skyline

Kennedys and Waltons & Morse merge in London

Kennedys is merging with marine boutique Waltons & Morse to boost its City presence.

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The tie-up will increase Kennedys’ London headcount by 28 lawyers including five partners, and follows a number of mergers made by the firm to expand internationally, particularly in Latin America.

Kennedys’ turnover will also grow to an estimated £150m after the combination. The firm reported an uplift in revenue of 7 per cent to £139m for the 2015/16 financial year.

All of Waltons & Morse’s lawyers will sit in Kennedys’ new international marine team, headed up by the boutique’s managing partner Chris Dunn.

The new additions will expand Kennedys offering in the marine and shipping sector, with lawyers advising on insurance, and casualty and liability issues, as well as political risk.

The merger will go live in November and all staff from Waltons & Morse will move over to Kennedys’ London office by the end of the year.

Kennedys has been pushing for significant expansion across Latin America and Europe this year, with the firm opening four new offices in recent months.

It launched new offices in Brazil and Peru as well as Chile and Columbia, while also merging with its Danish associated firm Erritzøe and signing up firms in Norway and Sweden as new associates.

singapore

Nixon Peabody opens representative office in Singapore

The US firm has made its first foray into Singapore via an alliance with local boutique firm Angeline Suparto Law Corp.

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With a focus on expanding its presence in Asia, Nixon Peabody LLP has opened a representative office in Singapore. This is the firm’s third office in Asia. Nixon Peabody has offices in both Hong Kong and Shanghai, China.

“Singapore is a vibrant market and a business capital for Southeast Asia,” said Andrew I. Glincher, CEO and managing partner of Nixon Peabody LLP. “It’s an important gateway for our Asian clients who are investing and doing business in the U.S.”

“We are seeing an increase of activity from clients based in Singapore and surrounding countries looking to expand internationally,” added David Cheng, chair and managing partner of Nixon Peabody’s China & Asia-Pacific practice. “This addition aligns nicely with our current practices in Hong Kong and mainland China.”

Nixon Peabody is leasing space and associating with local Singaporean firm Angeline Suparto Law Corporation (ASLC), which provides a comprehensive range of legal services in Singapore. The firm, which has eight lawyers and legal professionals in the office, was founded in 2001 by Angeline Suparto, who previously worked for international firms in both Hong Kong and Singapore.

Since launching in Shanghai in 2008, Nixon Peabody has seen a steady expansion of its Asia Pacific practice. In 2015, after being formally associated with a local Hong Kong firm for several years, the two firms combined in Hong Kong to create Nixon Peabody CWL. This association dramatically expanded Nixon Peabody’s presence in Asia.

Nixon Peabody’s Asia-Pacific practice works with U.S. clients expanding into the region and also collaborates with lawyers in the U.S. representing the increasing number of investors and businesses from Asia doing business in the U.S.

pakistan strike

Pakistan lawyers strike in protest after Quetta attack

Lawyers across Pakistan are boycotting court to mourn the loss of some 70 people, many of them lawyers, killed in a bomb attack in Quetta.

In Balochistan – Quetta is the provincial capital – markets and schools have been closed.

The bomber targeted crowds who had gathered outside a hospital to mourn prominent lawyer Bilal Kasi who had been murdered earlier on Monday.

Taliban faction Jamaat-ul-Ahrar says it was behind both the attack and murder.

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The Supreme Court Bar Association (SCBA) and the Pakistan Bar Council (PBC) said its lawyers would be boycotting court proceedings, and observing a week of mourning.

Many lawyers are expected to take part in rallies across Pakistan on Tuesday.

“We [lawyers] have been targeted because we always raise our voice for people’s rights and for democracy,” SCBA President Ali Zafar told reporters in Lahore.

“Lawyers will not just protest this attack, but also prepare a long-term plan of action.”

Monday’s bombing targeted lawyers and journalists who had crammed into the emergency department of Quetta’s Civil Hospital where the body of Mr Kasi had been brought.

Former provincial bar president Baz Muhammad Kakar was one of at least 25 lawyers killed. TV news cameramen Shahzad Khan and Mehmood Khan were also among the dead.

At least 120 people were injured.

Bilal Kasi, who was head of the Balochistan province bar association, had earlier been shot while on his way to the court complex in Quetta.

He had strongly condemned the recent murders – including those of fellow lawyers – in Quetta in recent weeks, and had announced a two-day boycott of court sessions in protest at the killing of a colleague last week.

airbus enquiry

Serious Fraud Office starts Airbus inquiry

UK opens investigation into fraud, bribery and corruption allegations in connection with aircraft sales

The UK’s Serious Fraud Office has confirmed that it has opened a criminal investigation into allegations of fraud, bribery and corruption in the commercial airline business of Airbus, the defence and aviation firm. The investigation into potential criminal dealings in the sale of commercial planes was launched in July but revealed at the weekend by the European manufacturer.

The SFO said that the allegations related to irregularities with third party consultants. Airbus said it had flagged up the suspect activity itself, effectively self-reporting to the SFO via UK export agencies, and was cooperating fully with the investigation.

In a statement issued on Sunday, Airbus said: “Airbus Group has been informed by the SFO that it has opened a criminal investigation into allegations of fraud, bribery and corruption in the civil aviation business of Airbus Group relating to irregularities concerning third party consultants. Airbus Group continues to cooperate with the SFO.” Neither Airbus nor the SFO would comment further on the details.

Earlier this year, a UK government agency suspended the issue of export credits to Airbus, due to discrepancies in declarations by the manufacturer on the use of outside intermediaries during jet sale negotiations. Airbus said it had flagged up the mistakes and omissions relating to applications for export credit financing for its customers.

The agency, UK Export Finance, had said it was referring the discrepancies to the SFO, which would decide whether to launch a criminal investigation. French and German agencies have also halted the plane-maker’s export credits, which support deliveries to airlines with limited access to commercial funds.

This month, Airbus’s group CEO Tom Enders said they were hopeful that export credits would be restored by the end of the year. Airbus itself has extended credit worth €587m to customers in the first half of 2016 – a tenfold increase on 2015 – to maintain sales.

Airbus notified investors of the potential issues in April, saying that the discovery of irregularities had emerged “in the context of its internal compliance improvement programme”. Offshoots and companies jointly owned by Airbus had come under investigation in the last two years in Germany, Greece and Turkey.

The Toulouse-headquartered aeroplane manufacturer’s global business sees contracts of staggering proportions, with its current order book valued at just under $1tn (£764bn) at the start of 2016. It claims in recent years to have edged US giant and great rival Boeing in the market for the biggest jets, although its flagship doubledecker superjumbo, the A380, has failed to find many new customers outside the Middle East.

While it has subsidiaries in the US, China, Japan, India and the Middle East, Airbus’s major aircraft design and manufacturing facilities are based in France, Germany, Spain and the UK, where wings are engineered.