Hogan Lovells pulls out of Venezuela amid political and economic upheaval
Hogan Lovells has exited the reeling Latin American nation after 12 years, while other firms, including Baker McKenzie, are staying put
May 22, 2018 at 12:00 AM
4 minute read
The original version of this story was published on The American Lawyer
Hogan Lovells has confirmed that it has closed its office in the Venezuelan capital of Caracas, amid an economy in freefall and an election viewed by many critics as rigged.
The ongoing instability has prompted the global firm to reassess its operations in the country, where it has had a base since 2005.
"Earlier this year we closed our formal office, but we have a strong commitment to our clients and we continue to have a presence there to provide on-the-ground support as necessary, and six Venezuela-qualified lawyers in other offices," a firm spokesman said.
As of June 2016, the firm had 11 lawyers in its Caracas office.
Meanwhile, Baker McKenzie has confirmed it remains committed to Venezuela, where it has had a presence since 1955, when Caracas became the first office outside of the US for the firm as it started to grow beyond its Chicago origins.
"While the country's current political and economic environment have created a host of new and unexpected challenges, we remain steadfast in our commitment to helping our clients navigate through them," said Bakers Venezuela managing partner Ronald Evans. "Just last week, we celebrated our 63rd anniversary in Caracas with a series of client events, in which we discussed some of the most pressing legal issues affecting the business community."
The backdrop to the firm's operations in Venezuela is increasingly grim. While President Nicolas Maduro (pictured top) won a second term on Sunday night, turnout was low and opposition parties pledged to push for new elections later this year.
Meanwhile, the country's economy is struggling, with the International Monetary Fund estimating the inflation rate at more than 13,000%, and migrants streaming across the borders to Colombia and Brazil.
Still, Evans said that in the last year, the firm has hired a lateral partner in its tax group, continued to add talent in strategic areas, and moved to a new office in Valencia, the third largest city in the country.
"Through it all, we remain a dedicated team of locally-based lawyers who thrive on providing best-in-class legal advice to leading multinationals and local clients in the Venezuelan market," Evans added.
Bakers' website lists 10 lawyers in Caracas and one more in Valencia, down from 32 lawyers in June 2016.
Norton Rose Fulbright, which has been serving clients in Venezuela since 1996, lists 27 lawyers in Caracas, down from 37 in 2016. A spokesman for the firm did not respond to a request for comment.
Employment law firm Littler Mendelson is a relatively recent arrival, entering the country through its Littler Global verein in 2010 and opening offices in both Caracas and Valencia. According to a spokeswoman, the Caracas office currently has 12 lawyers, four paralegals and a full administrative staff. The firm listed 17 lawyers two years ago.
"We are helping our global clients doing business in Venezuela to navigate the political/economic crisis and protect their assets in the country," office managing partner Juan Carlos Varela, who also boasts a Miami phone number, said in a statement. "Our clients are dealing with extremely difficult labour and employment issues, and we are working side by side with employers to help them with very complex legal needs in these trying times."
Other firms have exited Venezuela earlier. DLA Piper, for example, abandoned its presence in the country in 2016, ending a five-year-old formal alliance with local firm InterJuris Abogados. That firm's Venezuelan leader, Juan Jose Delgado, is now a DLA Piper partner listed in Miami.
Squire Patton Boggs predecessor firm Squire Sanders & Dempsey had a booming practice in Caracas for several years after its 2005 opening in the city. Squire eventually pulled out of Caracas after restructuring its relationship with a local firm and before becoming Squire Patton Boggs two years ago.
- Hogan Lovells is nominated for the International Law Firm Innovation award at the Legal Week Innovation Awards this Friday 25 May – click here to find out more and click here to book your place.
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