Baker & McKenzie

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Baker & McKenzie
Type Private
Industry Corporate law
Founded 1949
Headquarters Chicago, Illinois
Key people Eduardo Leite (Chairman of the Executive Committee)
Revenue US $2.27 billion(2011)[1]
Employees 10,000
Website http://www.bakermckenzie.com

Baker & McKenzie is an international law firm, founded in Chicago in 1949 by Russell Baker and John McKenzie. It is home to more than[2] 3,800 lawyers spread over 70 offices in 42 different countries.[3][4]

As a transnational operation, no single nationality dominates the firm, and more than 80 percent of its lawyers practice outside the United States. The lawyers come from 60 countries and speak more than 75 languages, with English in common.

The firm saw US$2.27 billion [5] in revenue in fiscal year 2011.[6] Among U.S. firms, it was ranked the second largest by number of attorneys as of 2008[7] and, as of 2011,[8] the largest by revenue.[9] It is also the largest international law firm in Asia, with 14 offices, and in Latin America, with 16 offices.[10]

Contents

[edit] History

[edit] Chicago Origins

Baker & McKenzie was founded in 1949 but it has its origins in Russell Baker's practice opened in 1925 upon his graduation from the University of Chicago School of Law. Russell Baker, though born in Wisconsin, was raised in New Mexico. From an early age he was exposed to the Spanish language and other cultures. The early firm, Baker & Simpson provided legal services to Chicago's growing Mexican American community. The firm soon positioned itself to advise US companies investing in Latin America. Abbott Laboratories became a chief client in 1934 as it expanded overseas. In 1949, the firm relaunched with John McKenzie, an experienced litigator who had graduated from Loyola University Chicago School of Law. McKenzie took charge of the flourishing litigation practice, and Baker was able to devote his energies to building an international practice. Through the 1950s, the firm's client roster expanded to include Eli Lilly and Company (still a valued client today), G. D. Searle & Company, Wm. Wrigley Jr. Company and Honeywell.

[edit] Early expansion and the Baker & McKenzie model

The firm became an international firm after 1955 when a lawyer in Venezuela contacted Baker & McKenzie about opening a joint venture office in Caracas. Donald Baker, the name partner's son, soon moved to Caracas to launch a practice for the firm. In the next three years, flags were planted in Washington, D.C., Brussels, Zurich, New York and São Paulo. Unlike fellow American firms that often practiced US law abroad, Baker & McKenzie made a decision to train local lawyers, often bringing them to the Chicago base for an initial period or temporarily relocating US attorneys to the foreign office to oversee the establishment of the practice. By 1978 Baker & McKenzie had 26 offices in 20 countries.

[edit] Consolidation and further expansion

The firm's management made a series of predictions that yielded greater profits and more legal mandates. In 1986, the firm established offices in Northern Mexico to facilitate legal transactions connected to industrial development in that region. Baker & McKenzie was one of the first firms to go East and open offices after the Iron Curtain fell.[11] To achieve critical mass in California, the firm merged with MacDonald, Halsted, and Laybourne to start offices in Los Angeles and San Diego. Further growth resulted such that the firm operated some 49 offices on 6 continents by 1990, employing some 1500 attorneys generating $404 million in revenues.

[edit] 1999–present

The firm celebrated its 50th anniversary in 1999. That same year, Christine Lagarde — then-Paris managing partner and an antitrust and labor lawyer — was elected Chairman of the Global Executive Committee, the first woman to lead Baker & McKenzie. She was Chairman for five years. In 2004, Forbes listed Lagarde as No. 76 in its list of “Most Powerful Women in the World."[12] She then served as France’s Minister of Finance. In June 2011, she was elected as the first woman to become Managing Director of the International Monetary Fund.[13]

In 2001 the firm employed 3000 attorneys and had $1 billion in revenues.[14] Baker & McKenzie adopted a Swiss Verein structure on July 1, 2004. In 2005, the firm received a large boost when some 70 partners and other legal staff from the New York office of the disbanding international firm Coudert Brothers joined Baker & McKenzie.

In October 2006, Unilever chose the firm to manage its global trademark portfolio, the largest in the world with over 160,000 registrations. It was the first time a multinational company outsourced its trademark management to a law firm on such a large scale.[15]

In September 2007, BTI Consulting rated the firm as one of the world's top 10 transaction law firms in its recent survey on corporate transactions, which was reported by National Law Journal.[16]

John Conroy was re-elected to a second term as Chairman of the firm in October 2007.[17] The firm’s profit per partner (PPP) broke US$1 million for the first time during his first term.[18]

In early 2009, Baker & McKenzie opened an office in Abu Dhabi, its fourth office in the Middle East, having received a professional license from the Abu Dhabi Department of Planning & Economy.[19]

In October 2010 the firm opened an office in Luxembourg, its 68th office worldwide.[20]

Eduardo Leite was elected Chairman in October 2010, the Firm's first chairman from Latin America.[21]

In October 2011, the Firm opened its 70th office in its 42nd country when it established partnership with Istanbul-based, Esin.[3]

[edit] Transactional focus

In recent years, Baker & McKenzie has been involved in some of the most complex transactions for clients. Recent matters include:

  • Cargill on its binding offer to acquire Provimi, the global animal nutrition company, for an enterprise value of EUR1.5 billion from Permira funds, the private equity firm which owns Provimi.[22]
  • Fresenius Medical Care AG & Co. KGaA on its acquisition of Liberty Dialysis Holdings, Inc., the holding company for Liberty Dialysis and Renal Advantage for a purchase price of USD 1.7 billion [23]
  • Ecolab Inc., in connection with its USD 8 billion merger with Nalco Holding Company [24]
  • Ensco Plc’s acquisition of Pride International Inc. for USD 7.3 billion in a deal that will create the world's second-largest offshore drilling company.[25]
  • Abbott Laboratories' acquisition of Solvay Pharmaceuticals SA from Solvay SA, the Belgium-based chemicals and pharmaceuticals company, for EUR4.5 billion, and their USD 3.7 billion acquisition of the domestic health care business of [26] Piramal Healthcare Ltd.
  • Novatek's sale of a 12% stake in the company to Total SA, the listed French oil and gas company, for USD 4 billion [27]
  • China National Offshore Oil Corporation's (CNOOC) USD 3.1 billion joint venture with Bridas Energy Holding Company [28]
  • Veolia Transport on its merger with Transdev, creating the first worldwide public urban transportation group with an annual turnover of EUR8.3 billion and a major player in the French public transportation market [29]
  • Bemis Company Inc. on the acquisition of the Food Americas division of Alcan Packaging Inc., a business unit of Rio Tinto plc, for USD1.2 billion [30]
  • Saudi Arabian Mining Company (Ma'aden) and Alcoa on their $7.5bn aluminium smelter and rolling mill project at Ras Az Zawr in the Kingdom of Saudi Arabia.[31]
  • Gas Natural Group on its USD1.448bn energy acquisition, the largest mergers and acquisitions deal in Mexico in 2007.[32]
  • American Standard in 2007 on the US$1.745bn sale of its bath and kitchen products business and the wider separation of the company’s operations.[33]

[edit] Notable cases tried

Baker & McKenzie represented five leading luxury goods and fashion brands in 2005 in an action against the landlord of the infamous Silk Market Shopping mall where counterfeit goods were sold.[34] The Intermediate and Higher People’s Courts both confirmed that the landlord was jointly and severally liable for failing to stop infringements by vendors after being notified of them, making this the first time a landlord is held responsible for the illegal activities of their tenants in the judicial history of China.[35] This case was also recognized as a “Top Ten” case by the Beijing Higher People’s Court.[35]

In 2006, Baker & McKenzie wrote the amicus brief of the Council of Parent Attorneys & Advocates (COPAA) in support of the petition for a writ of certiorari in Winkelman v. Parma City School District, and later, COPAA's amicus brief on the merits.[36] It argued that parents have the right to represent themselves in court to enforce their IDEA rights and protect their children's access to a free appropriate public education. This led to a unanimous Supreme Court decision in June 2007 granting parents the right to proceed without counsel on behalf of children with disabilities.[37]

In December 2009, Baker & McKenzie won a landmark tax case against the U.S. Internal Revenue Service for Symantec Corporation. The IRS had claimed that the VERITAS Software Corporation, which Symantec had subsequently acquired in 2005, owed over $1 billion in back taxes, penalties and interest as a result of VERITAS non-U.S. operations. Symantec took the case to the U.S. Tax Court where Baker & McKenzie argued that the IRS position was arbitrary, capricious and unreasonable. In an opinion by Judge Maurice Foley, the U.S. Tax Court decided in favor of Symantec.[38]

[edit] Awards

  • Ranked #1 by gross revenue in the 2011 Am Law 100 list of the top grossing firms in the US [39]
  • Topped the National Law Journal’s NLJ250 rankings, an annual list of the largest US law firms by number of lawyers [39]
  • Named the world's strongest law firm brand in the sharplegal® Global Elite Brand Index, a survey of more than 2,000 of the world's largest law firm clients by Acritas, an independent research firm [40]
  • Ranked #2 in Law360's Global 20, a ranking of law firms that stand out as pre-eminent global outfits [41]
  • Selected by the International Law Office 2011 Client Choice Firm – International Award for excellence in client care and quality of service [42]
  • Selected by BTI Consulting’s 2011 Client Service A-Team list, for the fourth time in five years [43]
  • No. 1 in PLC Which Lawyer?’s Global 50 each of the past five years; Asia Law Firm of the Year, 2005–2009; Latin America Law Firm of the Year, three of the past five years; Middle East Law Firm of the Year, 2008 and 2009; Central & Eastern Europe Law Firm of the Year, 2008.[44]
  • Ranked in the top tier for its global climate change, data protection, employment, immigration, private client, outsourcing and technology & communications practices in the Chambers Global 2009 guide.[45]
  • Recipient of the Starbucks Excellence in Diversity Award for 2009[49]
  • Recipient of the International Tax Review ITR award for European Indirect Tax firm of the year 2009

[edit] Diversity

Baker & McKenzie is among the law firms in the US recognized by MultiCultural Law Magazine as one of its "Top 100 Law Firms for Diversity."[50]

The firm was recognized in 2008[51] for the second year in a row by Working Mother magazine as one of the Best Law Firms for Women.[52]

Since 2005, Baker & McKenzie has been one of seven law firms[53] who are members of Diversity Champions,[54] a 'good practices' program for blue-chip and major public sector employers. Diversity Champions is an effort of Stonewall,[55] a UK-based lobbying group dedicated to the rights of lesbians, gay men and bisexuals.

In 2009, the firm joined the Leadership Council on Legal Diversity,[56] a group focused on developing strategies to increase diversity in the legal profession.

[edit] In the news

In 1986, Geoffrey Bowers, then a New York attorney, filed a complaint with the New York State Division of Human Rights, charging that he had been fired from his job at the Manhattan branch of Baker & McKenzie law firm after AIDS-related lesions appeared on his face. The firm maintained that he was fired purely for his performance.[57] Two months after testifying at a hearing on the complaint, he died at age 33. The case was resolved in his favor in late December, when Baker & McKenzie was ordered to pay $500,000 to Bowers' estate. It was one of the first AIDS discrimination cases to go to a public hearing. Baker & McKenzie appealed but subsequently withdrew the appeal after they negotiated a confidential settlement in 1995 with Bowers' family forbidding parties from ever discussing the case or the terms of the agreement. These events were one inspiration for the film Philadelphia, starring Tom Hanks and Denzel Washington (the script of which was derived from numerous sources).[58] The film's credits include the following message: "This motion picture was inspired in part by Geoffrey Bowers’ AIDS discrimination lawsuit, the courage and love of the Angius family and the struggles of the many others who, along with their loved ones, have experienced discrimination because of AIDS."

In 1994, in a seminal case, a legal secretary, Rena Weeks, successfully sued the law firm for sexual harassment.[59] The trial court ordered the law firm to pay $6.9 million in punitive damages, making it one of the largest damage awards in history for this type of action.[60] On May 4, 1998, the California Court of Appeal for the First District upheld the trial court's judgment in full, and the Supreme Court of California denied review.[61] A subsequent dispute among Weeks' victorious attorneys as to the division of fees among them (she had signed a contingent fee agreement for 40% of her recovery) did reach the Supreme Court of California in 2002; the court held that the later-associated co-counsel could not recover the full amount he sought because Weeks' attorneys had not obtained her consent to an agreement to split fees among co-counsel from different firms as required by California court rules.[62] Martin R. Greenstein, the partner whose actions resulted in Weeks' successful lawsuit, was given a public reproval by the State Bar of California on March 26, 1998, and for obvious reasons, is no longer with Baker & McKenzie (the Court of Appeal decision noted that he was terminated by the firm in August 1993).[63]

In June 2005, a senior associate in the firm's London office, Richard Phillips, drew a considerable amount of media attention after it was revealed that the highly paid lawyer had been making a determined effort to have GBP4 dry cleaning bill paid by a secretary who had accidentally splashed tomato ketchup on his trousers. In an open email, the secretary explained that she had been slow in attending to the matter due to the recent death and funeral of her mother. Before long, the story had been widely circulated throughout the City of London and beyond.[64]

Baker & McKenzie is one of the first law firms to have adopted a functional outsourcing operation, which is now being emulated by other firms.[65] Its offshore operations in Manila, which include marketing, business research, and IT and computer maintenance support, was profiled in January 2006 by BusinessWeek magazine.[66]

[edit] Offices

Baker & McKenzie is organized as a Swiss Verein in which each office is a largely autonomous component of a loose international organization.

[edit] North America

The firm's office at One Prudential Plaza.
Baker & McKenzie's New York office is located in the W. R. Grace Building.

[edit] Latin America

[edit] Europe

Amsterdam

[edit] Middle East

[edit] Asia/Pacific

[edit] References

  1. ^ "The 2011 Global 100: Most Profits Per Partner". http://www.law.com/jsp/tal/PubArticleTAL.jsp?id=1202514395169. Retrieved 2012-01-31. 
  2. ^ . http://www.bakermckenzie.com/news/BMA nnouncesRecordResults. 
  3. ^ a b http://www.thelawyer.com/baker-and-mckenzie-signs-up-to-exclusive-turkish-alliance-with-esin/1009986.article
  4. ^ Baker & McKenzie Firm Facts
  5. ^ http://www.thelawyer.com/bakers-usurps-skadden-as-worlds-largest-firm-with-$227bn-turnover/1008967.article
  6. ^ At Baker & McKenzie, Profits and Revenues Up in 2011
  7. ^ "National Law Journal". http://www.law.com/jsp/nlj/PubArticleNLJ.jsp?id=1194602646502. Retrieved 2008-09-12. 
  8. ^ "Bakers usurps Skadden as world's largest firm with $2.27bn turnover". http://www.thelawyer.com/bakers-usurps-skadden-as-worlds-largest-firm-with-$227bn-turnover/1008967.article. 
  9. ^ Spence, ALex (April 30, 2010). "Baker & Mackenzie becomes biggest US law firm". The Times (London). http://business.timesonline.co.uk/tol/business/law/article7112202.ece. 
  10. ^ "Baker & Mckenzie". The Lawyer.com. http://www.thelawyer.com/global100/2006/bakermckenzie.html. 
  11. ^ "In 1989 it became one of the first international law firms in Moscow. The Soviet government retained the firm to handle what was the largest privatisation in the nation’s history – Volga Automobile Associated Works." 'From small beginnings to global giant,' Chambers Student Guide 2011
  12. ^ Forbes. http://www.forbes.com/finance/lists/11/2004/LIR.jhtml?passListId=11&passYear=2004&passListType=Person&uniqueId=24M5&datatype=Person. 
  13. ^ http://www.imf.org/external/np/sec/pr/2011/pr11259.htm
  14. ^ Firm Facts | Firm History | Baker & McKenzie
  15. ^ Baker & McKenzie Awarded Unilever Trade Mark Operations and Administration Outsourcing Contract October 11, 2006
  16. ^ Law.com - Skadden tops list of corporate counsel's go-to firms
  17. ^ [1], Law.com
  18. ^ [2], The Australian
  19. ^ [3], Baker & McKenzie
  20. ^ [4], Baker & McKenzie
  21. ^ [5], Baker & McKenzie
  22. ^ Caroline Butcher (2011-08-18). "Bakers and Freshfields advise on Cargill's €1.5bn Provimi deal". The Lawyer. http://www.thelawyer.com/bakers-and-freshfields-advise-on-cargills-%E2%82%AC15bn-provimi-deal/1008975.article. Retrieved 2011-08-26. 
  23. ^ "Four Firms Advise as Fresenius Spends $2 Billion on Dialysis Centers". http://amlawdaily.typepad.com/amlawdaily/2011/08/fresenius.html. 
  24. ^ "Baker & McKenzie Guides Ecolab In $5.4B Nalco Buy". http://www.law360.com/articles/259202/baker-mckenzie-guides-ecolab-in-5-4b-nalco-buy. 
  25. ^ "Bakers leads Ensco bid to buy rival US driller Pride". http://www.thelawyer.com/bakers-leads-ensco-bid-to-buy-rival-us-driller-pride/1006963.article. 
  26. ^ "Ho-Hum: Baker & McKenzie on Another Abbott Megadeal". http://amlawdaily.typepad.com/amlawdaily/2010/05/abbottmegadeal.html. 
  27. ^ "Linklaters and Bakers win roles as Total signs energy partnership in Russia". http://www.legalweek.com/legal-week/news/2042992/linklaters-bakers-win-roles-total-signs-energy-partnership-russia?WT.rss_f=Baker+%26+mckenzie+-+Law+firms&WT.rss_a=Linklaters+and+Bakers+win+roles+as+Total+signs+energy+partnership+in+Russia. 
  28. ^ "Akin Gump, Baker & McKenzie Tapped for $3 Billion Chinese Joint Venture". http://amlawdaily.typepad.com/amlawdaily/2010/03/chineseventure.html. 
  29. ^ "Baker & McKenzie Advises on €8 Billion Veolia Transport - Transdev Merger". http://www.lawyerpress.com/news/2010_06/01062010_005.html. 
  30. ^ "$1.2 billion acquisition Alcan Packaging Ltd, Bemis Company Inc, Rio Tinto plc". http://www.internationallawoffice.com/deals/Detail.aspx?g=23f438a9-f8f8-44ca-81dd-f01ab7c2baab. 
  31. ^ "Baker and McKenzie advises Ma'aden and Alcoa on aluminium smelter and rolling mill project in Ras Az Zawr". http://www.ameinfo.com/251397.html. 
  32. ^ "Baker McKenzie". http://www.lawcrossing.com/article/6035/Baker-McKenzie/. 
  33. ^ "Baker & McKenzie". http://top-100-largest-law-firms-globally.blogspot.com/2009/11/baker-mckenzie-world-rank-4.html. 
  34. ^ Silk Street divides and conquers foreign brands
  35. ^ a b LawFuel - The Law News Network
  36. ^ [6], COPAA
  37. ^ Baker & McKenzie || News || Press Release Archive
  38. ^ http://www.marketwatch.com/story/symantec-wins-545-million-opinion-in-tax-case-2009-12-10; http://www.symantec.com/about/news/release/article.jsp?prid=20091214_01; http://www.bakermckenzie.com/news/BMLitigatedVeritasTaxCaseforSymantec/
  39. ^ a b http://amlawdaily.typepad.com/amlawdaily/2011/04/bakermckenzienlj250.html
  40. ^ http://www.acritas.com/news-events/news/acritas-study-recognized-across-globe
  41. ^ http://www.law360.com/topnews/articles/245194/law360-global-20-firms-blaze-trails-abroad
  42. ^ http://www.internationallawoffice.com/digitaled/ILOCH/2011/edition.htm
  43. ^ http://www.bticlientserviceateam.com/
  44. ^ [7], PLC Which lawyer?
  45. ^ [8], Chambers & Partners
  46. ^ Foreign Policy Association: Homepage
  47. ^ [9], Law Fuel.com
  48. ^ Abbott Laboratories, Baker & McKenzie, and Midwest Immigrant & Human Rights Center Honored with First Ever 'Pro Bono Partner Award'. - PR Newswire | HighBeam Research: Online ...
  49. ^ San Diego Source > Law > Baker & McKenzie honored for diversity by Starbucks
  50. ^ Top 100 Law Firms for Diversity 2006, MultiCultural Law Magazine
  51. ^ [10]
  52. ^ [11], Working Mother
  53. ^ Out and about, The Lawyer
  54. ^ [12], Diversity Champions
  55. ^ [13], Stonewall.org
  56. ^ Leadership Council on Legal Diversity
  57. ^ Lawyer With AIDS Charges Job Discrimination
  58. ^ Philadelphia' Screenplay Suit To Reach Court
  59. ^ The Baker & McKenzie Sexual Discrimination Case,[dead link] Georgia Trial Lawyers Association.
  60. ^ Sexual Harassment Laws: How a Six Million Dollar Man Became a Six Million Dollar Liability, The Payroll Factory.
  61. ^ Weeks v. Baker & McKenzie, 63 Cal. App. 4th 1128 (1998).
  62. ^ Chambers v. Kay, 29 Cal. 4th 142 (2002).
  63. ^ See State Bar of California public record for Martin Richard Greenstein, State Bar Number 106789.
  64. ^ Ketchup Trousers, Snopes.com. Also in 2005 Heidi Gritt was employed.
  65. ^ [14], The Guardian
  66. ^ Online Extra: The Cost-Killer in Manila, Businessweek.com
  67. ^ Singapore | Locations | Baker & McKenzie

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