The Legal 500

Overview

The Kingdom of Belgium is Europe’s political and legal epicentre attracting major law firms from the EU and the US as a result of its regulatory, anti-trust, and transactional appeal. The capital city Brussels effectively serves as an embryonic ‘capital’ of the European Union (EU), being the home of the European Commission, and most sessions of the European Parliament.

Another distinguishing characteristic of Belgium is its division of languages. Flemish is the language of Flanders to the north, whilst the inhabitants of Wallonia in the south speak French, and in the east, there is a German-speaking minority. The 29 Bars of Belgium maintains a list system relating to the standing of individual lawyers and their rights of audience, setting out which individuals can advise on Belgian law, and whether they are members of the French, German, or Flemish-speaking Bars. Many lawyers, of course, are bilingual or trilingual. But the issue of language is important in the Kingdom, as some firms lean naturally towards the Francophone, or Flemish communities.

Brussels and Antwerp lawyers generally have to adhere to both the French and Belgian Bar rules, which restrict all forms of active marketing. Brochures and websites have to be approved by the local Bar, and lawyers are prohibited from mentioning client names in response to press enquiries. As a consequence, where a law firm has adhered to this prohibition, our text may reflect more general statements about a law firm’s ability. Full supporting information has been supplied on a confidential basis to verify this evidence.

Belgium certainly has a thriving legal market, into which international interlopers have integrated more or less successfully, with some developing full-service domestic practices of their own. The ‘full-service’ distinction is important, and can be defined here by the level of integration that a law firm has with the host nation, or by the number of competencies it offers in European law. Many law firms maintain no domestic legal presence, whereas others are defined more by their national competencies than any great interest in EU matters. The best law firms maintain an excellent presence in both markets. If one adds to this public affairs and lobbying, it is clear there are a number of important legal markets that are disproportionately influenced by the presence of the EU’s policymakers.

In EU terms, the most significant case of the year involved the Court of First Instance’s verdict of upholding the EU Commission’s decision of Microsoft’s Article 82 abuse of dominance, imposing a fine of more than €497m. Microsoft’s decision not to appeal the decision was seen by many as a comprehensive victory for the EU Commission, and possibly the sign of things to come. One partner at a leading law firm commented: ‘ The law has been clarified in relation to both technical ties and refusals to license, both of which are hot competition law topics in the IT sector. Arguably it will impact on innovation and design choices in the IT industry, although I doubt the judgement will be as relevant to “old economy” sectors where innovation through integration of new functions is not such a central part of the dynamic business environment.’ Whatever the consequences, firms like Clifford Chance, Van Bael & Bellis, White & Case LLP Avocats Advocaten and Covington & Burling LLP amongst others have all learnt from, and will profit from, the experience.

A common theme from clients about the Belgian legal market was the importance attached to the level of service provided by younger lawyers alongside more established names. A lack of regular partnership opportunities at the largest firms, aligned to a desire to maintain global profitability, coupled with a squeeze on doing purely domestic work, has led to tighter promotion opportunities at the Magic Circle firms. As a result, young associates have found themselves moving to find partnership opportunities elsewhere, and it has been firms outside the first or second tiers which have benefited. The move of Ivan Peeters from Freshfields Bruckhaus Deringer to Stibbe or the move of Jean Christophe Troussel to Bird & Bird from Linklaters, indicates that the scope for competition in the Belgian market from ambitious, assertive firms like Stibbe remains strong. Whether established for 40 years, like Cleary Gottlieb Steen & Hamilton LLP, or part of the Magic Circle like Freshfields Bruckhaus Deringer and Linklaters, no firm can rest on its laurels.

Two Belgian firms are ones to watch in future. Stibbe, under the likeable and effective Olivier Clevenburgh, has been transformed into one of Belgium’s leading full-service firms with an enviable alliance with Herbert Smith LLP and Gleiss Lutz, and now inhabits smart new offices in the city centre.

Loyens & Loeff is also sure to progress with the highly praised Peter Callens now at the helm as managing partner. The change of name - with the addition of the Loeff title used in the Netherlands - is more than symbolic of a desire to increase the synergies between the various wings of the Benelux firm. Callens’ formidable management skills, aligned to the deep respect in which he is held for his corporate and litigation expertise, mark him out as the coming man of the corporate deal. Both Clevenburgh and Callens look set, in time, to rival longtstanding dealmakers like Jean-Pierre Blumberg of Linklaters or Koen Geens of Eubelius.

The presence of Cleary Gottlieb Steen & Hamilton LLP in Brussels as one of the founding fathers of European law, aligned to the excellent Belgian work done on the corporate and financial side, makes the firm a well-respected US name and a pillar of the Belgian legal establishment. Others however aspire to follow where Cleary Gottlieb Steen & Hamilton LLP treads. One such firm is White & Case LLP Avocats Advocaten with its burgeoning domestic law practice, strong EU litigation and competition law expertise, presence in international trade, and relentless focus on quality.

High-profile partner moves in 2007 included the departure of the legendary corporate rainmaker Koen Geens from Eubelius to the Flemish Government. One peer commented: ‘ Geens was the father figure of corporate law for many - he had the confidence of many clients.’ Another said: ‘ Eubelius may suffer as a result of Koen Geens' decision to take up a post as head of the Economic Secretariat of the Flemish Prime Minister, as a result of which he will not be active as a lawyer for the next 18 months.’ There was, though, a perception also that his colleague, Marieke Wyckaert, was capable of inheriting the mantle.

Another departure was that of Dirk Lontings from what was previously called Lontings & Partners and has now become Lydian. The parting was described as amicable, with partner Vincent Dirckx commenting: ‘ Dirk's move will not mark a big change, having stepped down as managing partner four years ago.’ The firm’s hire of Peter De Ryck to cover corporate work indicates that the firm remains settled on ascending up the corporate and commercial tiers of the Legal 500.

One exit from the stage entirely was the brutal collapse of Lawfort. Having seen a number of departures to rivals, the closure of its Antwerp office, and the departure of over 40 lawyers, a continued lack of confidence within the firm contributed to the dissolution of the partnership - with former managing partner Marc Vandemeulebroeke leaving for Luxembourg. Many suggested that the demise of the firm was an object lesson in the consequences of over-expansion and a conservative market. In the same year, US firms like Weil, Gotshal & Manges, and Akin Gump Strauss Hauer & Feld also withdrew their Brussels presence, confirming a perception of a brutally competitive market that is hard to crack.

One final change worth noting was Linklaters’s decision to drop the De Bandt from its title. This step is perhaps symbolic of the global ambitions held for the firm by new senior partner David Cheyne, and also marked the fullest integration of the Brussels and Antwerp offices into the firm’s global practice under the wise aegis of managing partner Jean-Pierre Blumberg.