Legal Leaders: Andrew Grech and the firm that just keeps growing

With 34 offices and six service centres, Slater & Gordon is one of the largest law firms in Australia. Cashed up after becoming the world's first law firm to list on the stock exchange,…

Promoted by Lawyers Weekly 19 July 2010 Big Law
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With 34 offices and six service centres, Slater & Gordon is one of the largest law firms in Australia. Cashed up after becoming the world's first law firm to list on the stock exchange, managing director Andrew Grech tells Justin Whealing that the firm's rapid expansion isn't over yet.

Leonard Cohen once memorably warbled that first we take Manhattan, then we take Berlin. For Slater & Gordon, before taking Brisbane with its planned acquisition of Trilby Misso Lawyers in June, it took Albury and Dubbo by acquiring the offices of Adams Leyland in late 2009. While its expansion plans might not be as grand as that of the famous Mr Cohen (not yet, anyway), its strategy in becoming Australian's largest law firm - with 264 lawyers and 784 staff spread across 34 offices and six visiting services - has been built on the back of conquering regional and rural Australia.

The Melbourne-based plaintiff firm, with a history steeped in Victoria's union movement, has offices in places as far afield as Ballarat, Broken Hill and Bunbury, as well as an office in the capital city of each Australian state. In late June, it announced its intention to acquire Queensland personal injury firm Trilby Misso Lawyers for $57 million, which will be funded by a $40 million capital raising.

In 2007, Slater & Gordon became the world's first publicly listed law firm when it was listed on the Australian Stock Exchange (ASX).

Even though it might be the battler's friend taking on the big end of town in high profile class action cases, its size and cash reserves are starting to resemble the corporate heavyweights it meets in the courtroom.

"Listing wasn't an end in itself," says Slaters managing director Andrew Grech. "Listing was a way of enabling us to achieve the strategy of growing the practice."

Grech, the son of Maltese immigrants, was raised in the Melbourne suburb of Broadmeadows. After joining Slater & Gordon from Maurice Blackburn Lawyers in 1994, Grech has been the managing director of the firm since 2000, presiding over an unprecedented period of growth.

In addition to listing on the ASX, Slater & Gordon has merged with or acquired over one dozen firms over the last two years, and over the course of Grech's stewardship, it has grown from being a seven office firm to one now boasting over 40 offices or service centres. Grech proudly remarks that it is the only national, full service consumer legal services firm in Australia.

Class actions

The firm's reputation has been built on the back of notable cases, including the first asbestos cancer claim in Australia in 1984 and in late 2005, the negotiation of a $4.5 billion settlement with James Hardie on behalf of former employees suffering from asbestos-related diseases.

Grech himself was involved in negotiating a $32 million settlement on behalf of 3100 women affected by defective breast implants manufactured by the Dow Corning Company, as well as the OK Tedi class action in which Slaters represented 30,000 Papua New Guinean landowners affected by waste from a BHP mine.

However, its meat and drink is concentrated on much more mundane and less high profile matters.

"We believe we will continue to grow in our key practice areas, personal injury litigation, wills, estate planning, estate litigation, commercial and project litigation, family law and wills and trust," Grech says. "The law that touches the life of every day Australians is expanding and we continue to grow in line with that and continue winning market share."

Slings and arrows

Slaters still runs high profile class action cases, such as the recent settlement with the Commonwealth Bank on behalf of investors who lost money after the collapse of Storm Financial, with regular success in similar cases over many years creating a high profile for the firm. While the firm has attracted the plaudits, it has also worn some blows along the way.

In 2007, the high profile media commentator Andrew Bolt castigated Slaters for being filled with "left wing lawyers" making large bonuses on the back of its "no win no fee" payment structure.

With the type of cases that Slater & Gordon often act on attracting media attention, lawyers at the firm receive media training and instruction on how to handle press inquiries.

"Media coverage goes with the territory," Grech says. "There is a strong awareness at Slater & Gordon that there is a court of law and a court of public opinion, and you have to win both."

In 2007, Paul Mulvany, a former partner at Slaters, dropped Federal Court action against the firm that included a claim that his final payout on leaving Slaters was deficient.

Mulvany wrote a letter of apology to the firm that also contained an apology to Peter Gordon, who he had previoulsy accused of gaining an excessive win bonus from the Dow Corning class action.

Slaters has also been taking a hit from competitors within the legal profession.

This month the class action lawyer, Stewart Levitt, filed a class action in the Federal Court on behalf of disgruntled Storm Financial investors. Levitt criticised the settlement Slaters negotiated with the Commonwealth Bank in February, describing it as "leaving a shelter for the banks, with too many investors left exposed".

With lawyers notoriously reluctant to criticise other firms, Robinson's remarks certainly raised a few eyebrows.

"To be frank, the criticisms he has chosen to make are misdirected and unfortunate," Grech retorts. "Generally it is better for lawyers to focus on is how they can get results for clients, and if he can get results for clients, we will be the first to congratulate him, but I would rather wait until he actually does as opposed to just talking about it."

The Gillard factor

The recent election of Julia Gillard as Prime Minister saw the media light shine on the firm once more.

Gillard was a former partner at Slater & Gordon, and Grech says that while everyone associated with the firm took pride in her elevation to Prime Minister, he wasn't planning to run posters with the line "Join the firm that spawned a PM" in any future recruitment or marketing drives.

"It is too early to say what impact [Gillard's appointment] will have on recruitment," Grech says. "We certainly don't have any trouble attracting high quality graduates presently, receiving between 400 and 500 applications for graduate positions every year."

While Grech might not be planning to cash in on Gillard's association with the firm, the expansion strategy of the firm looks set to continue apace.

And the prospect of overseas offices?

"You never say never," Grech laughs.

It might just be possible that Andrew Grech is also a fan of Leonard Cohen.

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