There are nine new coronavirus cases in New Zealand and one additional death. The death brings the total toll to 12 and is of a man in Invercargill who died at home and who was linked to the Bluff wedding cluster.
COMMENT:
After much speculation Auckland's mystery Covid-19 cluster was in fact the result of a stag do. While many were celebrating in groups right up until the week lockdown kicked off - myself included - it's interesting to note that the Law Society went ahead with the Friday March 20admission ceremonies, despite official calls to avoid social gatherings where possible.
But according to MinterEllisonRuddWatts chief executive Andrew Poole, the ceremony was held under the Health and Safety at Work Act guidelines, which included social distancing, a reduction in numbers attending, and using one's own pen to sign the relevant documents.
After touching base with the 10 largest law firms, Bell Gully, DLA Piper, Duncan Cotterill, and Kensington Swan lawyers didn't have any employees in attendance. Buddle Findlay, Chapman Tripp, and Russell McVeagh cancelled their respective events, while Meredith Connell and MinterEllisonRuddWatts held small celebrations at their offices, as per Ministry of Health guidelines.
Simpson Grierson failed to answer my questions, but on a related note it appears that some of the 10 firms have opted for the wage subsidy, with Simpson Grierson taking the cake - receiving a total of $2,335,108.80 for 335 employees as of 14 April, 2020.
But how are law firms doing otherwise? It's all business as usual for the firms, where the only major change relates to working remotely, which has been made possible thanks to IT infrastructure. It's meant that firms now touch base with clients via video conferencing. The same goes for internal processes where management across the board has been updating and checking in with staff regularly.
Flexible working and wellbeing are also in vogue, with all law firms providing support and relaxed monitoring - especially to parents. Chapman Tripp went so far as to give each staff member $300 to help them prepare for the lockdown period.
Meanwhile, DLA Piper has set up a virtual national quiz night, haiku competition, a Spotify playlist, a Strava exercise group, and an online choir, "Lean on Me". How about that!
Let's look at how the firms are really faring:
Bell Gully
Wage subsidy?
Yes, 260 employees have been paid, to the total amount of $1,810,718.40.
Any restructures, redundancies or pay cuts?
No.
Practice areas most affected?
Bell Gully communications advisor Ben Parsons says the firm has seen a spike in employment matters - particularly relating to wage subsidy issues and providing clients with how they can best protect their businesses during the various alert levels.
"While it is too early to predict long term trends, we can consider what the market experienced during the GFC. Clients will be seeking experienced advisers on a range of issues, including capital raising, employee relations and valuable discussions with suppliers, customers and other business partners. We may even see, as there was in the GFC, an increase in innovative start up industries."
Buddle Findlay
Wage subsidy?
No.
Any restructures, pay cuts, redundancies?
No.
Practice areas most affected?
People and culture national manager Fiona Tribe says employment and property teams are assisting many clients to deal with Covid-19 specific related legal advice. Their financial services teams are also involved in advising various banks and clients, and their RMA teams continue to be busy.
Any predictions following Covid-19?
"As a full service firm, we are as well placed as anyone to provide clients with the advice and support they need."
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Chapman Tripp
Wage subsidy?
No.
Any restructures, redundancies or pay cuts?
No.
Officially closed
Chief executive partner Nick Wells says prior to the lockdown, they had stopped meetings, functions and all travel.
"Several teams had begun trial periods working from home, and we tested our business continuity plan – including asking all of our people to log in from home within a short window of time and perform a series of work tasks.
"Our planning and execution of that plan worked as well as we could have hoped for and we are really pleased by the way we collectively pulled together at all levels of the firm."
DLA Piper
Wage subsidy?
No.
Any restructures, redundancies or pay cuts?
Head of marketing and business development Amy Knightley says the firm "committed to making every effort to continue to look after our people and continue to provide employment and remuneration to them".
Practice areas most affected?
The firm has seen a spike in employment issues; rent abatement issues, force majeure; ability to access government packages lawfully; directors' duties; bank covenant issues; continuous disclosure issues; cyber security; privacy; restructuring; accelerated mergers and acquisitions beginning with distressed vendor targets; and health and safety issues with essential services continuing.
Any predictions following Covid-19?
"We will probably initially see legal work for insolvency, recapitalisation, litigation and insurance work."
Duncan Cotterill
Wage subsidy?
Yes, 215 employees have been paid to the total amount of $1,488,727.20.
Any restructures, redundancies or pay cuts?
No.
Practice areas most affected?
Chief executive Pete Boyle says due diligence and merger and acquisition matters have been quieter while the firm has seen a spike in commercial advice on matters such as leases and financial structuring.
Any predictions following Covid-19?
"I am sure that there will be changes to how we work and spend our leisure time. This will undoubtedly encourage start-ups and entrepreneurs to create businesses and tools that will be novel.
"The basics of having clear definitions and terms in contracts will remain. There will be insolvencies and there may be litigation relating to commercial rental disputes. Changes in taxation will see an increase in this area also."
Dentons/Kensington Swan
Wage subsidy?
No.
Any restructures, redundancies or pay cuts?
No.
Practice areas most affected?
Chief executive Charles Spillane says the firm has seen a growth in their employment, construction, and public law teams.
Any predictions following Covid-19?
"At Dentons Kensington Swan we have a strong focus on the infrastructure work which has already been indicated by Government to be a significant lever it will use to bolster the economy."
Meredith Connell
Wage subsidy?
Yes, 236 employees have been paid to the total amount of $1,639,178.40.
Any restructures, redundancies or pay cuts?
No.
Practice areas most affected?
According to chief executive Kylie Mooney, "We are seeing our clients having to adapt to a level 4 working environment and the impact this is having it still being established."
Point of interest: Meredith Connell has had no reported cases of Covid-19.
MinterEllisonRuddWatts
Wage subsidy?
Yes, 300 employees have been paid to the total amount of $2,069,265.60.
Practice areas most affected?
According to chief executive Andrew Poole, the firm has seen an increase in employment, property, banking and financial services, insurance corporate, and construction work.
Any predictions following Covid-19?
"We are expecting additional restructuring and insolvency, and litigation work in the coming months as businesses seek to recover and manage the economic downturn created by the Covid-19 pandemic.
"We have seen merger and acquisition activity reduce, and expect this trend to continue until business confidence here in New Zealand, and globally, increases. We also expect more distressed asset sales and capital raising activity."
Russell McVeagh
Wage subsidy?
No.
Any restructures, redundancies or pay cuts?
No.
Any predictions following Covid-19?
According to CEO Jo Avenell, she expects that all areas of the firm will continue to seek work.
"Some areas of our firm may be busier than others, such as our finance, restructuring and insolvency, construction and employment teams, but the extent of the economic downturn and the impact on our clients remains to be seen."
