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LEGAL REPORT: INSOLVENCY "We're really focusing on selling our services not as bankruptcy-insolvency lawyers but as business-solutions lawyers." — JUSTIN FOGARTY, DAVIS LLP The blurring of international borders for commerce has also meant lawyers have had to familiarize themselves with the appropriate laws in other countries and search out stra- tegic partnerships with counterparts. "Because economies are so interlinked and commerce isn't bilateral anymore, when businesses get into trouble, there are touch points in so many jurisdictions. Which laws apply? How can you make sure there's international co-operation? How can you make sure the administration of the creditors is equal in all jurisdictions?" says Fogarty, noting Davis has cultivated relationships in the U.S., Europe, and South America. Leonard Gilbert, a Florida-based insolvency and restructur- ing partner at Holland & Knight LLP, agrees. He says because the world is a much smaller place than it used to be for busi- ness and finance, lawyers are trying to find a better system for handling their problems. "We spend most of our time trying to resolve the problems and work with the existing lender if we can. Finding a new one is often impossible and the existing lenders don't want to take over the companies if they can avoid it. Everybody — the lawyers, lenders, and business people Subscribe today to Canadian Lawyer Canadian Lawyer is the ultimate source for today's legal professional. Keep up to date and informed by subscribing today for only $65 a year! Along with 11 issues packed with insights, trends and analysis, you'll also receive access to Canadian Lawyer's exclusive digital edition and digital edition archives, available only to registered subscribers. You'll stay up to date on breaking news between issues with Canadian Legal Newswire, our free weekly enewsletter that is edited by our legal reporting team. canadianlawyermag.com Subscribe online at at SubscriSubscribe on online canadianlawyermag.com 1 year of Canadian Lawyer for only $65.00 (Total with GST: $68.25) 2 years of Canadian Lawyer for only $130.00 (Total with GST: $136.50) Sub_CL_June_10 - 1/4.indd 1 48 JUNE 2010 www. C ANADIAN Law ye rmag.com Sharing knowledge is power • Mentoring Afghan lawyers • Pension plans February 2009 $7.00 S t . John ' s city re view • Wild , wild web • Carria ge ba ttles July 2009 July 2009 $7.00 $7.00 Paying it f orward • A supreme misstep • A lot of wine-ing Louis Pasquin is appealing the conviction that gives him the dubious honour of being the first lawyer in Canada guilty of gangsterism. GANGST ASIA BUSINESS IN Be it the Pacific Rim, Southeast Asia, or elsewhere in the world's largest continent, Canadian law firms are taking advantage of opportunities. RIDING THE PACIFIC WAVE P.30 INDIA: A MODERN DAY SILK ROUTE P.36 DOING S b see page 48 Save35% Subscription SpiSubscription Specialieciall summe umme ummer umm ti S grinding wheels of justice stice GANGSTA RAP RAP $7.00 September 2009 0 eptember 2009 g T e ng The g No one and everyone is to blame for chaos and backlogs that are now endemic in the criminal justice system. for chaos and backlo riminal justice system mmeerr have to be more creative to keep the businesses alive," he says. "There's a lot more working together between lawyers. Cross- border problems are being dealt with much more efficiently. A big case in Canada will have ramifications in the U.S. and Europe with subsidiaries and related companies." Gilbert says if a problem arises between two international partners, such as a manufacturer in Tampa, Fla., and a dis- tributor in Canada, the easiest thing for him to do is contact a Canadian lawyer in whom he has confidence and see if it can be worked out. Most of the international relationships are lawyer- to-lawyer rather than firm-to-firm, he says. "If you're the best, I'm going to call you. Or it's, 'I know somebody in Vancouver or Montreal.' It's a necessity." He adds one of the most influential organizations in the world has become increasingly involved in the issue, too. The United Nations created the United Nations Commission on International Trade Law to develop laws to help both countries and companies and promote the harmonization and unification of international trade law. If a firm in Canada has a proceeding that is partly in the U.S., for example, these new laws facilitate the situation and make it easier for lawyers and trustees on both sides of the border to take action. "Many countries have adopted these laws, including the U.S.," says Gilbert. "We've all learned a lot about each other's laws and I think as a result, the laws around the world have changed. We've learned from the Canadian side, the U.K. side, and they've learned from us." Since Fogarty started Davis' new practice last summer along with Shelley Fitzpatrick, it has grown steadily. It has four lawyers dedicated to it in Toronto, seven in Vancouver, two in Edmonton, one in Calgary, and it recently added six lawyers in Montreal. But it's not just lawyers and business people who are increas- gwheels t s ingly busy in the solutions business. Fogarty says judges have been acting in an advisory role to help restructuring as well. "Instead of sitting there listening to people making arguments, they've been assisting in building consensus towards the reso- lution of complicated problems," he says. Gilbert has noticed this development, too. "Judges working together was almost unheard of 20 years ago," he says. Fogarty says this new breed of lawyer is just scratching the surface of the business opportunity that lies ahead. It doesn't necessarily lend itself to the traditional hourly rate model either. "If you're able to develop a strategy, you could bill it on a value basis. You might get a cut or a bigger bonus based on performance. You have to be flexible," he says. The other good news is the practice area is essentially recession-proof. Companies fail in down markets because their revenues dry up but they fail during boom times, too, because of superior competition. "It's the circle of life," says Fogarty. 5/20/10 4:01:43 PM C r e i g h t o n o n t h e b e n c h • J u r y t amp e r i n g • Pa r e n t a l a l i e n a t i o n s y n dr ome August 2009 $7.00 ASSEM Hundreds involved in the complex remodelling of Canada's automotive industry. s off awye comple comp m lawyerrswy s are mp e remod tomotivomottive ndus ers em in AS EMB LINE NE ASSEMBLY LINE