Herbert Smith Freehills is reducing partner profit distributions as part of cost-cutting measures in the face of uncertainty wrought by the coronavirus pandemic, and staff salary reviews have been postponed by six months.
While law firms turn to cost-cutting measures to manage shrinking revenues and uncertain cash flow during the coronavirus pandemic, including reducing staff pay and hours, partners may be last in line for a share of what’s left, a legal industry expert tells Lawyerly.
Bracing for a slowdown in work as a result of the coronavirus pandemic and calling on its staff to “face this situation together”, Norton Rose Fulbright is reducing pay and hours by up to 20 per cent for the majority of its 1000 lawyers and support staff in Australia.
The coronavirus has forged changes in the legal profession that will outlast the pandemic itself, leading to greater flexibility and efficiencies in an industry steeped in tradition and notably slow to adopt new technologies, sources told Lawyerly.
Johnson & Johnson has appealed a ruling awarding the three lead applicants in a class action over its pelvic mesh products a combined $2.6 million in damages, after a judge found the company failed to adequately warn women of the implants’ risks.
The Australian Institute of Company Directors is calling on the Federal Government to bar lawsuits over coronavirus-related disclosures, including class actions, but some lawyers warned the proposal would leave companies free to mislead and deceive shareholders.
Noting the challenge of searching for documentary evidence while employees are working from home, a judge overseeing two consumer class actions against ANZ and Westpac has directed the banks to hand over only a limited number of documents to the applicants, and given them extra time to do it.
Sparke Helmore has admitted that legal advice it provided to IOOF subsidiary Australian Executor Trustees was inadequate but has argued it should be responsible only for up to 10 per cent of the $76.6 million judgment against AET over the sale of a timber plantation by collapsed forestry giant Gunns Group.
As law firms and funders scramble to keep up with COVID-19’s impact on the legal landscape, some have gone above and beyond in creating new technological and service solutions for clients in these unprecedented times.
A judge has approved a notice in a class action against Westpac alerting group members that an “expense sharing order” will be sought by the applicants if or when the case settles, the first ruling of its kind since the High Court struck down common fund orders.