Canadian Lawyer

30 M A R C H 2 0 1 6 w w w . C A N A D I A N L a w y e r m a g . c o m TOP 10 QUEBEC REGIONAL FIRMS LASER Canadian Lawyer asked lawyers, in-house counsel, and clients from across Canada to vote on the top full-service regional firms in Quebec. They were asked to rank their top 10 firms from a preliminary list, with a chance to nominate a firm that was not included on the list. Respondents' rankings were based on firms' regional service coverage, client base, notable mandates, service excellence, and legal expertise. To be considered in the vote, firms were required to be primarily based in Quebec and offer a wide range of legal services. The final rankings were determined through a points system, in which firms were rewarded on a sliding scale for the number of first- to 10th-place votes received. HOW WE DID IT FOCUS B ig, national firms are firmly implanted in Quebec's legal mar- ket, but if you ask regional law firms in that province about their fiercest competition, they will not point to the mega firms, but rath- er their biggest rivals are their own clients' internal legal departments. Companies that traditionally turned to external counsel for routine work are now equipping them- selves with increasingly sophisticated in-house law- yers who are able to cover more of their own needs. "What we're seeing, in Quebec anyway, is an overall increase in the volume of legal work that needs to be done. I think the issue is how much is being done in-house and how much is being done outside," says Don McCarty, the managing partner of Lavery de Billy LLP, the top vote-getter in this year's Canadian Lawyer top Quebec regional law firms survey. "When work is referred to private practice, it is often work that's complicated, more specialized, or more bet-the-bank. Law firms are being used for more complex issues, more complex transactions, and more complex litigation." To respond to clients' complex needs, the Que- bec regional law firms on this year's top 10 list say their lawyers have had to become more specialized in their areas of practice. Many have also boosted their teams with the addition of lawyers from the now-defunct Heenan Blaikie LLP's Quebec offices. "Always having an ear to the ground allows us to anticipate trends. It keeps us on our toes. We cannot change the future but we can certainly adapt nimbly to change," says Jean-François Gagnon, managing partner at Langlois lawyers LLP. "The legal market is evolving rapidly and in-house counsel teams are FIRMS IN THE CANADIAN LAWYER TOP 10 QUEBEC REGIONAL FIRMS ARE BECOMING MORE SPECIALIZED AS IN-HOUSE DEPARTMENTS GROW. BY YAMRI TADDESE now broader and more sophisticated. A law firm must adjust to this shift and posi- tion themselves as added-value if not cutting-edge partners." Gagnon argues regional firms with a strategic focus are optimally poised to meet the needs of an ever-demanding and savvy clientele. "Langlois offers all the advan- tages of a large firm in terms of the quality and range of legal services, along with the benefits of mid-sized firms in terms of affordability and accessibility," he says. "For instance, we're unfettered by a rigid national structure, yet our reach nonethe- less extends beyond Québec's borders, as we have strong working relationships with firms all across Canada and in the U.S." The law firms say a tepid Canadian economy hasn't seriously damaged their busi- ness — at least not yet. McCarty reports he's seen no "dramatic short-term effect" of the tumbling loonie, which may actually be driving European and American inves- tors' interest in Canada. However, while mining is still doing well in terms of securi- ties transactions, there's a decline in investment in new mining facilities, he says. At Cain Lamarre LLP, some areas have seen a boon. Partner François Tremblay says his firm recruited lawyers from big firms to grow its labour, environmental, and aboriginal law practices. He says the firm's success is dependent on knowing its market and serving it well. "We're not trying to be another Airbus or Boeing. We're working with clients that are mainly involved in the Quebec scene. We're still mak- ing money because our client base isn't the same as the big national firms'." According to McCarty, clients' expectations "continue to shift towards greater emphasis on price, service, and relationship." There is a steady stream of requests for proposal, he says, but they are looking for more than the best providers for the best price. "Interestingly enough . . . they're also becoming a tool for some clients in furthering their own corporate social responsibility agendas," he says. "Whether it be on the issue of diversity, whether it be on environmental policy, I think clients are using the relationship [with] law firms to push their CSR agenda. They don't want to hire someone who doesn't have a diversity policy or things like that." For law firms, then, there's more incentive to implementing diversity and environment policies. "Like most large firms in Quebec and Canada, we are as far advanced on these issues as our clients — whether it be on diversity, environmental policies, or equality," says McCarty.

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