Japan > Legal market overview
Mirroring the dignified stoicism that the Japanese population as a whole showed in the aftermath of the devastating earthquake and tsunami that struck in March 2011, the business and legal markets in Japan, for the most part, continued to operate business as usual.
Some trends have emerged over the last 18 months. On a regional level, energy and natural resource projects continue to lead the way in Asia with focus and competition among Japanese, Chinese, Korean and Indian companies to secure long-term access to natural resources. The disaster has raised concerns over nuclear power and has forced greater LNG activity that looks set to increase further.
There has also been greater interest in the Japanese real estate market, particularly from foreign buyers, and it is anticipated that this sector will strengthen as reconstruction money makes its way through the economy. In particular there has been a steady increase in foreign real estate investments for distressed loans involving prime real estate.
Largely due to a strong Japanese yen, low interest rates and limited domestic growth opportunities, M&A in the last 18 months has seen an increase in outbound cross-jurisdictional transactions.
The legal market in Tokyo, particularly among the international firms and joint ventures has been volatile. When their joint venture came to an end in April 2011, a team of 10 bengoshi transactional lawyers transferred their allegiance from Clifford Chance Law Office to K&L Gates. K&L Gates also welcomed a smaller finance team from Orrick, Herrington & Sutcliffe LLP. Orrick, Herrington & Sutcliffe LLP in turn welcomed a group of litigators from Paul Hastings LLP who took another hit with the departure of two corporate bengoshi partners to White & Case LLP- White & Case Law Offices (Registered Association). White & Case LLP- White & Case Law Offices (Registered Association) however suffered a blow when Morrison & Foerster Ito & Mitomi took over its transactional tax team.
With regard to local firms, ‘The Big Four’ - Anderson Mori & Tomotsune, Mori Hamada & Matsumoto, Nagashima Ohno & Tsunematsu and Nishimura & Asahi continue to dominate the market, but there can be no room for complacency, particularly this year as firms clamour to strengthen their practices. In a major coup, ambitious local firm Atsumi & Sakai hired an eight-lawyer team from local rival TMI Associates in October 2010. In particular, the arrival of structured finance specialist Yutaka Sakai was significant enough to warrant a new addition to the firm’s masthead, which saw the firm change it’s name from Atsumi & Partners. Then in early 2011 Davis & Takahashi, the only full service Canadian law firm in Japan, hired a seven strong team from Atsumi & Sakai.
Senior corporate and structured finance lawyer Hiroaki Takahashi was among the arrivals – notably Takahashi was vice-managing partner at his former firm.