Eight HSF partners joining White & Case for Australia launch face six-month client restrictions
Australian court rules HSF partners joining White & Case cannot solicit clients until September
March 02, 2017 at 05:18 AM
3 minute read
Eight partners who quit Herbert Smith Freehills (HSF) last year to launch White & Case's new Australia practice will be unable to solicit clients or staff from their former firm until September, according to a decision handed down in the Australian courts earlier today.
New South Wales Supreme Court Justice Robert McDougall agreed with HSF that the eight former partners joining White & Case should be prohibited from poaching clients for a six-month restraint period, the Australian Financial Review reported earlier today.
However he stopped short of preventing the group – Melbourne partners Andrew Clark, Brendan Quinn, Alan Rosengarten, Josh Sgro, Tim Power, Jared Muller and Joanne Draper and Sydney partner Joel Rennie – from joining the US firm until September.
They will formally join White & Case today but are unable to join as partners as a result of today's ruling and will not be able to have any dealings with their former HSF clients until 2 September, in accordance with the terms of their partnership deed.
The partners all resigned from HSF on 1 September 2016, with their six-month notice ending yesterday.
HSF said in a statement that it was "happy" with the decision.
In a statement, it said: "Today's decision prevents the departing partners from joining White & Case as partners, and from soliciting our clients for a six-month period. These proceedings had the objectives of protecting the firm's interests, including protecting our valued relationships with clients."
A White & Case spokesperson said the firm was glad that the eight lawyers were able to join the firm. "The firm's Melbourne office has been active since 1 December 2016 and will continue to operate as normal. The Sydney office will open very shortly and it, too, will be fully operational upon its opening," said the spokesperson.
The decision does not apply to the other HSF partners hired by White & Case at the same time – former Hong Kong partner Fergus Smith and former Singapore partner Matthew Osborne.
The partners instructed Seyfarth Shaw to represent them in the case brought against them by their former firm, which could have seen them blocked from working until September.
HSF commercial litigation partner Michael Pryse took the lead for his firm on the dispute, which claimed that the departing partners breached seven clauses of the HSF partnership record and seven clauses of the global LLP members' agreement. The firm also sought a court order to restrict the new White & Case partners from dealings with former clients.
White & Case has been ambitious in its growth plans globally. Earlier this week, the firm's new co-head of London M&A, former Clifford Chance partner Patrick Sarch, set out the firm's plans to take on the magic circle for UK M&A.
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