On Balance Spring-Summer 2015

Spring/Summer 2015 Issue 7
Weighing the issues of commercial law
EVOLUTION
NOT REVOLUTION
Why the full effect of Alternative Business
Structures (ABS) will take time.
FIRST CLASS SERVICE
GETS MAAIKE’S STAMP
OF APPROVAL
Transforming Royal Mail Group from a
nationalised service to a top-performing
corporate is no small challenge. Deputy
General Counsel Maaike de Bie explains how
her team is delivering in style.
A NEW LITIGATION
LANDSCAPE
How increased court fees will change
businesses’ approach to litigation.
STAYING AHEAD
OF THE
PROPERTY GAME
Property View – Weightmans’ online
estate management tool delivers
control, transparency and faster
decision-making capabilities.

2 On Balance Weighing the issues of commercial law
Issue 7 Spring/Summer 2015 3
CONTENTS
3
6-7
8
9
4-5
INTRODUCTION
A NEW
LITIGATION
LANDSCAPE
How increased court fees will
change businesses’ approach
to litigation.
10-11
EVOLUTION NOT REVOLUTION
Why the full effect of Alternative Business
Structures (ABS) will take time.
FUTURE IS UNCERTAIN FOR
‘EXEMPT’ INSOLVENCY CASES
How long is the government’s decision to delay
legal restrictions on insolvency cases likely to last?
THE WAITING GAME
Late payment continues to blight the construction
industry but legislative help is on the way.
STAYING AHEAD
OF THE
PROPERTY GAME
Property View - Weightmans’
online estate management
tool delivers control,
transparency and faster
decision-making capabilities.
14-15
18
19
16-17
FIRST CLASS SERVICE
GETS MAAIKE’S STAMP
OF APPROVAL
Transforming Royal Mail Group from a nationalised
service to a top-performing corporate is no small
challenge. Deputy General Counsel Maaike de Bie
explains how her team is delivering in style.
FAST-MOVING
TECHNOLOGY
REQUIRES
QUICK-THINKING
LAWYERS
How cyber-related issues can
quickly spiral out of control.
20-21
SOCIAL MEDIA IN THE DOCK
Facebook and Twitter blamed for driving up
the divorce rate.
SACRIFICE NOW TO SAVE LATER
With the most turbulent years seemingly behind us,
is it time to start reviewing reward strategies
for your team?
HAPPY FAMILIES
The pros and cons of shared
parental leave.
INTRODUCTION
Change is sweeping through the business world
and in today’s highly competitive marketplace it
is crucial for organisations to be flexible enough
to adapt.
Many factors are changing the way in which
we operate: the growing pace of innovation,
technology and, of course, new laws
and legislation.
Changes do not come any bigger than Royal Mail
Group’s switch from a state-owned monopoly to
a FTSE 100 plc and we are particularly grateful to
Deputy Counsel, Maaike de Bie for sharing her
thoughts on the challenges of becoming a topperforming
corporate.
A range of new laws are also keeping businesses
on their toes.
Civil court fees to recover amounts over £10,000
have now risen to five per cent of the value of
the claim.
The increase came into force in March 2015 despite
a series of objections. As Richard Corran explains,
it seems inevitable that the increased fees will
transform businesses’ approach to litigation.
Every year brings with it numerous new
employment laws and the implementation of
shared parental leave and pay, which provides
greater flexibility for parents to care for a child
throughout its first year, will dominate the year
ahead. Thanks to Steve Peacock for providing his
thoughts on the way forward.
Other articles in this issue cover the far reaching
implications of the EU’s ‘circular economy’ reforms,
the impact of Alternative Business Structures
on legal service providers, how late payment
continues to blight the construction industry and
why the speed of internet-based technology can
cause major legal problems for organisations, and
individuals, when things go wrong.
It is widely accepted that the most successful
organisations are those that can effectively
anticipate change. We hope that this issue of
On Balance will help you to do so. If you have
any feedback please get in touch.
12-13
WASTE NOT, WANT NOT
The far-reaching implications of the EU’s
‘circular economy’ reforms.
22-23
OFF THE SCALE
Get the very latest news and views from
across Weightmans.
Tim Lang, Commercial Director
0121 200 8111
tim.lang@weightmans.com
© Copyright. Weightmans 2015. All rights reserved.

4 On Balance Weighing the issues of commercial law
Issue 7 Spring/Summer 2015 5
A NEW LITIGATION
LANDSCAPE
Increased court fees will change businesses’
approach to litigation says Richard Corran.
In a major - and much criticised - change, civil
court fees to recover amounts over £10,000 have
now risen to five per cent of the value of the claim.
The controversial increase - of up to 600 per
cent in some cases - came into force on 9 March
2015 despite a series of objections from parties
including the Law Society, which claimed the new
fees are tantamount to “selling justice.”
The changes are certainly significant, with many
believing they spell disaster for access to justice
by deterring small and medium sized enterprises
(SMEs) from taking valid cases forward.
Deep concerns
Senior judges have also expressed deep concerns about
dramatic increases which will raise £120 million for the
Government. The Lord Chief Justice and his colleagues
told the Ministry of Justice that fees of £7,500 on a claim of
£150,000 were likely to have a disproportionately adverse
impact on SMEs and litigants in person. There are also fears
that the inflation-busting hikes could lead to higher premiums
for employers’ liability insurance.
The aim of the increase is to ensure that the courts are
adequately resourced, at reduced levels of taxpayer subsidy, and
to invest in the modernisation and improvement of the court
system. On this issue however, the jury is most definitely out.
Previously, and in many cases, just the issuing of proceedings
was enough for another party to settle. Denying individuals
and businesses even the possibility of issuing proceedings by
this huge rise in fees means that the other party will be less
likely to admit liability and will not settle.
A new approach
It seems inevitable that the increased fees will transform
businesses’ approach to litigation, with many turning to
alternative dispute resolution (ADR) procedures.
If successful, ADR removes many of the risks associated
with litigation. Mediation is a common form of ADR where
a neutral, independent mediator is appointed by the parties
to facilitate discussion in order to achieve a settlement of the
dispute. Expect even greater take up in the coming months.
It should also be remembered that disputes can be settled
at any time without involving the courts, ADR or other
processes such as arbitration. A simple commercial
settlement can often be a cost effective solution -
but only with the right legal advice.
Richard Corran, Partner
0161 214 0509
richard.corran@weightmans.com
■■
■■
■■
■■
■■
Arguments against
the fee increases
It is wrong in principle for the court
service to be treated as a profit centre
or self funding - the courts have a vital
social function which is for the State to
provide and should not be treated
as commercial activity to subsidise
other work.
The government’s decision will
discourage people from bringing
legitimate cases, thus reducing
access to justice.
The effect on London as a centre
for international dispute resolution
will be considerable if international
clients choose to litigate in cheaper
jurisdictions.
The proposals are not supported by
any evidence or concrete proposals
to indicate how the Government will
use the money gained to improve the
court service.
There was insufficient consultation
with stakeholders on the effects of
the increases.
Example fee increases
■■
■■
■■
■■
■■
Arguments in favour
of the fee increases
Access to justice is a fundamental
principle of our legal system and this
will help preserve our court system.
90% of the claims will be unaffected
by these changes and waivers will
also be available for those who
cannot afford to pay.
Our courts play a critical role
and it is important that they
are properly funded.
It is only fair that businesses and
individuals who can afford to pay
and are fighting legal battles should
contribute more in fees to ease the
burden on hardworking taxpayers.
Court fees are a small fraction of the
overall cost of litigation and Britain’s
reputation for having the best justice
system in the world remains intact.
Value of claim £ Fee now £ (paper) New fee £ Increase in fee £ % increase
20,000 610 1,000 390 64%
40,000 610 2,000 1,390 228%
90,000 910 4,500 3,590 395%
150,000 1,315 7,500 6,185 470%
190,000 1,315 9,500 8,185 622%
200,000 1,515 10,000 8,725 576%
250,000 1,720 10,000 8,280 481%
© Copyright. Weightmans 2015. All rights reserved.

6 On Balance Weighing the issues of commercial law
Issue 7 Spring/Summer 2015 7
ABS MEANS
NOT
EVOLUTION
REVOLUTION
Alternative business structures (ABS)
are a game-changer in the legal services
market, although their full effect may take
time. Michelle Garlick and Adam Entwistle
examine the main issues.
Michelle Garlick, Partner
0161 233 7426
michelle.garlick@weightmans.com
Adam Entwistle, Paralegal
0161 214 0642
adam.entwistle@weightmans.com
The introduction of alternative business structures (ABS)
may not have sparked a legal services revolution, but it
has opened up exciting options for evolution.
Latest figures show that just over 350 ABS licences
have been granted (out of over 500 applications),
roughly three per cent of legal practices in England
and Wales. However, the legal services industry is
in such a state of flux at the moment that any law
firm refusing to consider ABS as an option is at
risk of missing an opportunity.
Opening up legal services
The ABS reforms were introduced to open up the legal
services market to competition from professional service
providers owned by non-lawyers. At the same time, the
changes mean traditional law firms can broaden their own
offering by bringing in experts from a non-legal background,
as well as attracting funding, for example from banks and
private equity houses.
The Jackson reforms of 2013, which effectively banned referral
fees, have meant law firms specialising in claimant personal
injury (PI) have had to take a close look at how they attract
new business. As a result, the PI sector has seen the greatest
proportion of law firms switching to the ABS model.
Some competition has come from ‘Big 4’ accountancy firms,
which are marketing legal services as part of their wider
portfolio. The scale of these operations means only large law
firms face competition and a recent study by Winmark in
conjunction with Thomson Reuters and Mayer Brown revealed
that such firms were particularly concerned about the intrusion
of ABS and accountancy firms into the legal services market.
Even so, there is little appetite among the larger firms to
address this threat via the ABS system. One reason for this
could be that, as stated recently by the Chief Executive of
the City of London Law Society, non-reserved work accounts
for approximately 85 per cent of legal services. Since the
vast majority of work carried out by the Society’s member
firms falls into this category, these firms are arguably already
operating outside the conventional legal services market.
Moreover, large firms can often raise capital more easily than
smaller practices, so their need of ABS funding solutions may
be less relevant.
Innovative approach
All the same, these larger firms could be missing out on the
advantages of ABS.
Non-executive directors have a long-standing reputation for
bringing external expertise to the boardroom and many law
firms are taking the view that these top-level specialists can
also help drive the business forward as owners and managers.
Of course, there will always be firms seeking to break the
mould as front-runners, as well as others who prefer to watch
and wait – and this is very relevant to the impact of ABS. We
have no doubt the reforms will prove to be a game-changer,
but the impact is likely to be slow-burn rather than explosive.
As more practices succeed by taking the ABS route, the
greater its appeal may become.
Being an ABS allows you to access external funding quickly
and flexibly, appoint gifted non-lawyers to senior positions,
We have many legal clients who are
taking an innovative approach to
entering new areas of the professional
services market, frequently by using
an ABS.
and offer a multi-disciplinary service range. It also means you
can be commercially agile, and take advantage of commercial
opportunities before they pass you by.
Moreover, being investment-ready enables you to implement
an exit or succession strategy, or to initiate a strategic
growth programme more effectively than under a traditional
partnership structure.
In summary, the challenges facing the broader industry
mean every practice must be fit for purpose. So, even if
you eventually decide to rule out the ABS route, it should
at least be taken into consideration as part of a
fully informed decision-making process.
© Copyright. Weightmans 2015. All rights reserved.

8 On Balance Weighing the issues of commercial law
Issue 7 Spring/Summer 2015
9
The government’s
decision to delay the
introduction of new legal
restrictions on insolvency cases
has been welcomed by insolvency
practitioners and solicitors.
One of the main aims of LASPO (Legal Aid,
Sentencing and Punishment of Offenders Act 2012)
is to prevent the recovery of ‘no win no fee’ success
fees, as well as after-the-event (‘ATE’) insurance
premiums from unsuccessful parties in litigation.
The LASPO prohibitions came into effect in April 2013
for most litigation cases. However, in February 2015 the
Government delayed the introduction of restrictions for
insolvency proceedings “for the time being”. A further
announcement is expected later this year.
Whether this decision represents a sensible commercial
approach hinges on which side of the insolvency debate
you support.
FUTURE IS UNCERTAIN
FOR ‘EXEMPT’
INSOLVENCY CASES
Restrictions on legal claims for people who lose out due to
insolvency remain on ice, but for how long? Dominic Vincent
and James Whittaker explore the issues.
A central theme of the Jackson reforms – including LASPO –
was to control escalating litigation costs. The reforms aimed to
stop the recovery of success fees and ATE premiums, which in
some cases more than doubled the costs unsuccessful litigants
had to pay.
A success fee of 100% was common, which effectively meant
a doubling in the hourly rate payable by an unsuccessful party,
who also faced paying the hefty ATE premium taken out by the
other side.
These arrangements resulted in costs that were
disproportionate to the value of routine personal injury cases.
However, insolvency litigation differs from general commercial
litigation as it is a class action brought on behalf of any
number of unsecured creditors to recover funds lost to them
as a result of an insolvency event.
It is estimated that CFA-backed insolvency litigation recovers
up to £160 million a year for these creditors – cash that would
otherwise never have been returned to them. In addition, the
Insolvency Act 1986 means insolvency practitioners can take
legal action for creditors when the funding is not available due
to a lack of estate assets.
It remains to be seen whether the insolvency exemption is
made permanent. The insolvency profession certainly hopes
so, but it is by no means certain and we will keep a close eye
on developments.
Dominic Vincent, Partner
0161 214 0503
dominic.vincent@weightmans.com
James Whittaker, Solicitor
0161 233 3293
james.whittaker@weightmans.com
Article originally published in New Law Journal, 10 April 2015:
http://bit.ly/1KtUGe5
THE
WAITING GAME
Late payment of invoices has long
been the bane of many construction
firms. Tom Collins says legislative
change is on the way but will it
make a difference?
Late payment continues to blight the construction
industry with sub-contractors particularly squeezed.
In a survey of small construction companies by
StreetwiseSubbie, 97% said that they felt unfairly
treated by main contractors.
There is, of course, nothing new in this – late
payment was identified as a major problem
during Sir Michael Latham’s review in the 1990s.
The Latham Report led to the Housing Grants,
Construction and Regeneration Act (Construction Act) in
1996, which had several aims including improving cash
flow in the construction industry.
The Government is concerned that if companies are to
survive, and achieve sustainable growth, they need to be
paid on time. With this in mind, it is bringing in new laws
and bulking up existing codes of practice to tackle the
issues of late payment. Its consultation - Late Payment:
challenging ‘grossly unfair’ terms and practices - closed
on 9 March 2015 seeking views as to what terms and
practices may be considered to be ‘grossly unfair’ and
what can be done about it.
The Government is concerned that
if companies are to survive, and
achieve sustainable growth, they
need to be paid on time.
Under consideration is extending the ability of
representative bodies to challenge what may be
considered to be ‘grossly unfair’ terms on behalf
of its members, including the length of payment
terms over 60 days. Whilst sub-contractors
may welcome such an approach, removing the
reluctance to speak out against main contractors
who themselves will argue that parties should
be free to contract as they wish.
In its response the National Specialist
Contractor’s Council has identified several
potential ‘grossly unfair’ terms and
practices including payment terms of up to
120 days. However, it questions whether
representative claims are the most effective
method of challenge. Taking into account the expense of such
challenges and issues of anonymity it suggests instead setting
up a body similar to the Groceries Code Adjudicator, the UK’s
first independent adjudicator to oversee the relationship
between supermarkets and their suppliers.
The Government itself acknowledges that terms which may
be considered grossly unfair in the retail industry may not be
so in the construction industry. If the changes are brought in
it would still take a challenge and then a series of decisions
over time before a clearer view as to what is ‘grossly unfair’
can emerge. So whilst the Government’s intention is to
be applauded, whether its reforms will have a real impact
remains to be seen.
Tom Collins, Associate
0151 242 6939
tom.collins@weightmans.com
© Copyright. Weightmans 2015. All rights reserved.

10 On Balance Weighing the issues of commercial law
Issue 7 Spring/Summer 2015 11
STAYING AHEAD
OF THE
PROPERTY GAME
many have a full repairing obligation with no schedule of
condition and that will inform analysis around potential
dilapidations costs.
Feedback suggests this sort of information is very useful in
helping clients to operate efficiently. If you are a tenant, you
might look at the numbers and decide that you want to secure
your position sooner rather than later - or alternatively look at
other property options for the business going forward.
Weightmans’ online estate management
tool helps firms in the property market to
maintain their competitive edge. Head of Real
Estate, Karl Jackson, explains how it works.
Businesses in the commercial property sector can
significantly improve efficiency and productivity thanks
to an internet-based estate management tool developed
by Weightmans.
Designed to help landlords and tenants handle their property
portfolios more effectively, Property View is a sophisticated but
user-friendly system that delivers control, transparency and
faster decision-making capabilities.
Delivering control, transparency and
faster decision-making capabilities.
One of the system’s key benefits is a facility that provides
clients with key dates relating to the life-cycle of properties
and leases, such as lease breaks, rent reviews, lease expiries,
rent payments and service charge payments.
In addition, the sophisticated software produces email alerts
for clients ahead of significant dates so they know well in
advance what action needs to be taken.
Data analytics
For clients who already have their own estate management
systems, Property View adds value by giving them access to
advanced data analytics that unlock extensive management
information. This yields high volumes of useful data, generated
from the transactions Weightmans have carried out for
the client, and enables businesses to make swift and
well-informed decisions about their business and the
management of their portfolio.
Although data analytics is a
relatively new innovation in the
real estate sector, the system
has already been successfully
tried and tested via a similar
product used by Weightmans‘
insurance team.
Ease of use is vital to the success of any online
management tool and Property View features a
user-friendly dashboard, plus graphical and visual
representations of information, such as pie charts
and bar diagrams.
As a result, businesses get a clear
and unambiguous picture of what
their activity involves during a
specific timescale. For example,
they can see at a glance the
number of leases expiring and
rent reviews due in 2016, which
enables them to tailor activities and
Unlocking
extensive
management
information.
budgets accordingly – whether they are landlords or tenants.
Extranet
Another important aspect of Property View is an extranet
facility that means clients can track the progress of their cases
using a filter system to
produce concise summaries.
In this way, they can look
at our case plans, or access
present-position reports on
all their matters in order to
establish whether any
action is required by them, Weightmans, or solicitors
on the other side.
Equally important is the ability to see financial
summaries detailing bills already raised, or in the
pipeline, and the level of work in progress. This means
clients know what bills they are going to be receiving over
a given period and can make appropriate arrangements.
The complete transparency provided by Property View adds
value to client businesses because they can properly evaluate
the progress Weightmans are making on their behalf in terms
of costs and time frames.
Macro Analysis
The system also features a sophisticated macro analysis
product that employs multiple filters to identify properties
matched by the client’s selection criteria. For instance, you
could see at a glance how many leases will be expiring in the
next three years, and add to this another filter showing how
Helping clients to operate efficiently.
The property industry is increasingly diverse so systems
have been developed within Property View for a variety of
market sectors including retail, education, and housebuilding.
Additionally, a bespoke aftercare facility allows services to
be adapted or innovated for the highly specialised needs of
a particular business.
Property View has been up and running for around three years
and its track record among users remains impressive. Looking
ahead, Weightmans will continue to refine and develop the
service so that clients stay at the cutting edge of their markets.
“
By providing real time, live data on every file, Property
View quickens up the whole completion process.
The cumbersome back and forth process of emails and
telephone calls is avoided and is instead replaced by
the ability to securely communicate in a controlled
online environment.
The delivery of legal services is changing and Property
View demonstrates that Weightmans understand the
commercial drivers of a transaction.
”
Andrew Butterworth, Sales Director, Bruntwood
Karl Jackson, Partner, Head of Real Estate
0161 214 0524
karl.jackson@weightmans.com
© Copyright. Weightmans 2015. All rights reserved.

12 On Balance Weighing the issues of commercial law
Issue 7 Spring/Summer 2015 13
WASTE NOT,
WANT NOT
The EU’s ‘circular economy’ reforms have
far-reaching implications for all businesses.
Weightmans’ head of environmental law,
Simon Colvin, discusses the main issues.
Going round in circles may not seem like change, but the EU’s
‘circular economy’ reforms will mean a major legislative shift
aimed at reducing the environmental impact of waste.
The EU is determined to replace the current ‘linear’ approach
to environmental waste policy with a new regulatory system
that will promote much greater circulation of material that
would otherwise have been incinerated or gone to landfill.
Although the new controls will not come into effect for at least
two years, businesses have a stark choice: act now and reap
significant commercial benefits; or sit back and wait to be
overtaken by events - possibly at great cost.
The figures
Official figures speak for themselves. In Europe, we account
for six tonnes of material per year, per head and generate
a total of 2.5 billion tonnes of waste. Of this, 40 per cent is
recycled and reused and the rest is burned or buried. Studies
by the EU suggest that 30 per cent of this waste - representing
around 500 million tonnes - could be recycled rather than
written off as lost resources.
In Europe, we account for six tonnes
of material per year, per head and
generate a total of 2.5 billion tonnes
of waste.
IS THE WAY
FORWARD
The EU believes current
legislation is ineffective
in terms of reducing the
amount of material being
incinerated or put in the
ground. Instead, it wants to
create a waste prevention,
reuse and recycling culture
that stimulates economic
growth, creates jobs, reduces
greenhouse gases
and conserves virgin
material to promote
broader social benefits.
The strategic framework driving these circular economy
reforms is the Seventh Environmental Action Programme
(7th EAP), which runs until 2020.
However, policymakers are determined to take a little longer
to get things right, rather than implement hurried measures
for the sake of sticking to a timetable. As a result, the EU
announced in July 2014 that it will revisit waste regulation
across the board in order to turn more waste into productive
resources, with a partial focus on legally binding targets.
The goals
The EU’s six overarching waste related goals are: revising
existing legislation to ensure a level playing across EU
member states; cutting back on the generation of waste to
stop people producing it in the first place; implementing a
programme to reduce food waste; encouraging higher quality
recycling through better separation techniques; minimising the
proportion of material that is burned; and preventing landfill
altogether unless there really is no viable option.
The EU review is still ongoing, fuelling considerable debate
on what sort of measures will emerge. However, we expect
extensive new legislation will be brought forward by the EU
by 2017/18, with member states needing to implement the
changes shortly after that.
Conversely, organisations that bury
their heads in the sand face the risk
of having to spend a great deal of
time and money to comply with the
new legislation.
This may seem like a good way into the future, but our
experience at Weightmans is that businesses cannot act soon
enough. An early initiative means you can create significant
competitive advantages by developing new solutions and
entering fresh markets with fresh products and services. This is
not to mention benefiting from major cost reductions, income
generation and reputational enhancement.
Forward-thinking businesses should be looking into
environmental management systems – a set of processes and
procedures that raise your environmental performance, while
boosting operating efficiency.
Just as importantly, environmental management systems
enable companies to consider what they should be doing
to avoid falling foul of environmental offences. Waste
management compliance is not going to go away, and the
day will soon arrive when all businesses – not just the major
players – will have to account for their environmental impact
in their annual reports.
So the sooner all businesses start to develop and refine their
environmental policies, the brighter their future – and the
greater their profits – will be.
Simon Colvin, Partner
0161 233 7356
simon.colvin@weightmans.com
© Copyright. Weightmans 2015. All rights reserved.

14 On Balance Weighing the issues of commercial law
Issue 7 Spring/Summer 2015 15
FIRST CLASS SERVICE
GETS MAAIKE’S
STAMP OF APPROVAL
“I was lucky enough to be trained in both civil law and common
law in two very different countries. This prepared me for
looking at things from different perspectives,“ she continues.
“My civil law training was in the Netherlands with a
‘rule-book’ (code) approach and exam questions that focused
on getting to the ‘right’ answer. My common law training
was in Canada, with a jurisprudence approach and exam
questions that concentrated on taking or defending a
side. I realised that both systems often came to the same
answers but used very different roads to get there.”
Maaike de Bie,
Deputy General Counsel,
Royal Mail Group
“
Changes do not come any bigger than Royal Mail
Group’s switch from a state-owned monopoly to a
FTSE 100 plc, operating in an intensely competitive
market. On Balance spoke to Deputy General
Counsel, Maaike de Bie, on the challenges ahead
for an iconic British institution.
“There’s a huge difference between the role of a senior legal
adviser to a public service and a FTSE 100 business,” explains
Maaike, who joined Royal Mail Group in January 2014.
As well as adopting a commercially-focused
mindset, we now have enormous responsibilities
to our shareholders. Just as crucially, the safety net
that came with government ownership has been
completely removed.
”
Nowhere in the company have these changes had greater
implications than for the leadership of Royal Mail Group’s
(RMG’s) 70-strong legal team, which includes 27 lawyers, 12
compliance officers, 23 claim handlers and eight support staff.
As deputy to General Counsel Neil Harnby, Maaike’s remit
covers commercial transactions, along with corporate
governance and regulatory issues. She also has a firm grasp
on all the legal team’s activities.
“Neil and I are building a progressive and highly commercial
team of legal partners that consistently add value to RMG’s
bottom line – from managing our legal panel and risk registers
to delivering effective business solutions and efficient new
processes,” says Maaike, who has worked both in house
and in private practice in a number of locations, including
New York.
“Part of the reason why I was recruited by RMG is that I had experience of
working for high-performing corporates and I am working closely with Neil
to develop a vision of where our legal team needs to go.”
It is clear that RMG is making giant strides – both as a legal team and a
competitive business.
“If you go to our mail centres and sorting offices, you will see slick, efficient
operations. We are modernising all the time and are one of the biggest
players in our sector. We deliver for Amazon and eBay and online delivery
is integral to our business operations.”
The legal team is also undergoing extensive change.
“We are moving our legal function from being concerned with completing
transactions and drafting contracts to being strategic business advisers,
which is what in-house lawyers really enjoy doing,” says Maaike. “Our
goal going forward is to be seen not just as legal advisers but also as key
business partners to our senior management colleagues.”
The team’s success has not gone unnoticed. It was named as In-House Team
of the Year at the 2015 Legal Business Awards, having collected the In-House
Commerce & Industry Team of the Year accolade at the 2014 Lawyer Awards.
“
On a personal level, I am learning all the time,” concludes
Maaike. “Bringing all my experience together helps me
to be a better business partner. You don’t need to always
have all the answers. Often what matters is knowing what
questions to ask.
”
© Copyright. Weightmans 2015. All rights reserved.

16 On Balance Weighing the issues of commercial law
Issue 7 Spring/Summer 2015 17
FAST-MOVING
TECHNOLOGY
REQUIRES
QUICK-THINKING LAWYERS
The speed of internet-based technology can
cause major legal problems for organisations
when things go wrong. Rob Jones, Angela Cahill
and Euros Jones explore the issues and look at
some interesting solutions.
Law in the age of Google often means taking innovative,
‘outside the box’ action that delivers superfast solutions.
Today’s lawyers must be increasingly light on their feet when
confronted with cyber-related issues that can spiral quickly out
of control before traditional legal remedies can
be implemented.
Weightmans’ Commercial Dispute Resolution (“CDR”)
team and the firm’s Regulatory and Business Crime unit
(“Regulatory”) have been working collaboratively to
develop effective strategies to deal with fast-moving
technology-based issues.
Rogue app
One of our most recent cases involved
a rogue app developer hacking into a
client’s database in order to access and
reproduce data. The issue was serious and
gave rise to civil and potentially criminal
consequences for the hacker. The rogue
developer created an app that enabled
the information to be used for a range of
other, unauthorised purposes and was
selling the app online without our client’s
permission or license.
As the database contained confidential information concerning
members of the public, our client was a data controller
under the Data Protection Act 1998. Furthermore, the rogue
developer had breached our client’s intellectual property rights
by misusing private information.
Today’s news is no
longer ‘tomorrow’s chip
paper’ when online
content remains
available and
searchable indefinitely.
Applying for an injunction
can be a time-consuming
and costly process with the
risk that the app developer
would likely “go to ground” or
be unable to meet the client’s costs
following successful proceedings.
Naturally, our client required a speedy
resolution. We quickly identified that
the rogue developer had breached both
Android and Apple’s terms of use.
Accordingly we made a swift complaint
to the Android and Apple stores that
resulted in the apps being removed,
thwarting the developer’s ability to
profit from the database and allowing
the client time to update its security
measures. This resolved the issue for our
client efficiently and inexpensively and achieved all that
they might have hoped to have achieved from costly
injunctive proceedings.
Internet defamation
In another fast-moving technologybased
matter, we helped a client to
find an effective solution to an internet
defamation issue. Conventionally,
libel actions take time to reach court,
which is a particular problem in an age
when information spreads like wildfire
while people who have been libelled
continue to suffer.
In the case in question we advised the client on how an
application to Google may be made under the new ‘right to be
forgotten’ concept, which allows a search result to be removed
in a way that prevents anyone finding the defamatory material
through its search engine. Whilst this does not remove the
defamatory matter entirely, it takes the sting out of its tail.
Copyright infringement
Lawyers must also be ready to think on their feet where
internet copyright infringements are alleged. Our client,
a large not-for-profit organisation, was approached by an
alleged copyright holder who claimed that he was entitled
to a substantial damage as a result of our client’s allegedly
unauthorised use of an image on their website over a six
week period.
We responded to the prospective claimant, pointing out that
there was no ‘watermark’ on the online image and asked for
evidence of when the photograph in question had been taken.
When he gave us this information, we conducted an advanced
Google image search and identified that the photograph in
question had been used commercially before the date upon
which the prospective claimant claimed to have taken it. This
threw into considerable question the veracity of his claim. We
also discovered that there had not been a watermark on the
image at any time.
After pointing this out to the copyright
holder, and informing him that we
believed the level of damages he was
seeking was out of proportion to the alleged
copyright infringement, he dropped his claim.
This was an especially pleasing outcome as any
liability would be paid from public funds.
The pace of technological change
presents varied and exciting
opportunities for business. Inevitably
this also leads to some challenging and
evolving legal issues.
Weightmans regularly works with its clients to find timely and
innovative legal solutions to those problems and members of
the CDR and Regulatory team are always available to help.
Rob Jones, Partner, Head of Commercial
Dispute Resolution
0161 233 7358
robert.jones@weightmans.com
Euros Jones, Partner
020 7822 1928
euros.jones@weightmans.com
Angela Cahill, Solicitor
0161 233 7457
angela.cahill@weightmans.com
© Copyright. Weightmans 2015. All rights reserved.

18 On Balance Weighing the issues of commercial law
Issue 7 Spring/Summer 2015
19
SOCIAL
MEDIA
IS IN THE DOCK AS THE
DIVORCE RATE RISES
As social media continues to attract blame for driving up
the divorce rate, Emma Collins warns of the risks people run
when using Twitter, Facebook and other platforms.
SACRIFICE
NOW TO
SAVE LATER
Michael Ryley, Partner, Employment
0207 822 7158
michael.ryley@weightmans.com
Mark Poulston, Partner, Pensions
0151 242 9473
mark.poulston@weightmans.com
Haydn Rogan, Partner, Tax
0161 214 0517
haydn.rogan@weightmans.com
Research has shown how social media can lead to
relationship problems.
A recent study suggests people who use social media are
32 per cent more likely to think about leaving their spouses.
The research from Boston University established a clear link
between social media use, marriage problems and divorce.
Of all the social media platforms, Facebook is most frequently
referred to as a reason for, or as evidence when, filing for
divorce. For many people it has become their primary tool
for communication, taking over from text messaging and
e-mail. Hundreds of millions of people use it to connect
on varying levels.
Permanent and published
Social media is dangerous because it tends to make you feel
relaxed about what you’re saying. What people frequently fail
to realise, though, is that others can access their social media
output and link it with information that may have
been revealed in other situations. People
get into difficulties when inconsistencies
occur, or when one piece of
information contradicts another.
It’s crucial to keep in mind that, unlike face-to-face or
telephone conversations, social media posts are permanent
and published.
It’s astonishing how foolhardy people become where social
media is concerned. In an extreme case, a wife discovered
her husband was committing bigamy after he posted a
photograph album of his wedding to another woman.
Part of the problem is that social media technology enhances
your ability to communicate with people you would not
otherwise have contact with. Old flames in particular can find
you, and you them, in a way that simply wouldn’t have been
possible in the recent past.
Discretion
So what should you do to protect your interests while
enjoying social media? Firstly, make discretion your
watchword and consider ‘consequences’ whenever you make
a post. Secondly, think about who has access to your social
media accounts and adjust your privacy settings accordingly.
Finally, keep in mind that the social media phenomenon
is constantly evolving. New platforms are being developed all
the time, so look beyond Facebook, LinkedIn and Twitter and
think carefully about the implications of what you are posting.
After the turbulent economic times of the last
few years, many companies would welcome a
period of stability. Michael Ryley, Mark Poulston
and Haydn Rogan explore one area that may be
worth starting to review - reward strategies for
key executives and staff.
There has never been a more advantageous legislative and
tax regime for employee equity participation, with EMI option
schemes and Employee Shareholder Status arrangements
providing extremely flexible and tax efficient ways of aligning
the interests of employees with those of the shareholders and
creating an ‘all in it together’ ethos.
The use of equity incentives is likely to increase in popularity,
particularly if there is any increase in income tax and NIC rates
or reintroduction of the 50% top rate of income tax. Evidence
suggests that a 50% tax rate ultimately raises little further
tax and represents something of a psychological Rubicon.
Attracting key talent however is essential so, aside from equity
incentives (which are designed to provide a capital rather than
income return at lower capital gains tax rates), what else can
businesses legitimately do?
When a 50% income tax rate was last introduced back in
2010, this led to many of those affected transferring income to
spouses, reducing salary and increasing dividends (in ownermanaged
companies), taking loans (taxed at lower benefit in
kind rates) instead of salary and deferring bonuses.
One other idea, which may now be even more attractive
following recent reforms to the pensions sector and
importantly, is not just relevant to those taxed at the highest
rate of tax, could be to look to make enhanced pension
contributions by way of a salary sacrifice scheme. Under
a salary sacrifice scheme a proportion of salary/bonus is
contractually given up in return for receiving another benefit,
in this case enhanced employer pension contributions.
This can provide tax savings for both the employer and the
employee in the form of reduced NIC contributions (pension
contributions, as opposed to salary/bonuses not attracting
NICs). There can be other advantages for the employee
including simplifying their tax affairs and avoiding the need to
claim higher rate tax relief on employee contributions.
Putting in place a salary sacrifice arrangement involves having
regard to pensions, tax and employment law issues. The
arrangement can only be made, of course, where employer
and employee cooperate.
If you are interested in a salary sacrifice arrangement, we are
able to provide integrated solutions and advice with dedicated
experts in employment, pensions and
tax working closely together to ensure
that the design and implementation
of the arrangements achieves the
desired objectives.
Emma Collins, Partner
0161 214 0530
emma.collins@weightmans.com
© Copyright. Weightmans 2015. All rights reserved.

20 On Balance Weighing the issues of commercial law
Issue 7 Spring/Summer 2015 21
The principle of SPL is simple; a new approach to allow
families more choice and flexibility over how they look after
children in the first year. The government has estimated that
around 2% of the 285,000 working couples eligible to share
their leave under the new rules are likely to take up the right.
However, the rules are complex and employers have been
grappling with a number of questions in order to decide their
approach on a policy level.
How the new system works
Provided various qualifying criteria are met, a mother can
convert up to 50 weeks of her Maternity Leave into SPL and
share it with her partner. They do not need to work for the
same employer and can take the time off together, separately,
in one continuous period, or discontinuously. In another
radical change from the previous regime, mothers and
partners can move in and out of SPL over the 50 week period.
HAPPY
FAMILIES
The Children & Families Act 2014 provides a new entitlement for employees
who are parents by birth or adoption to take Shared Parental Leave (SPL)
and Shared Parental Pay (ShPP) during the first year after their child’s birth.
Employment partner Steve Peacock weighs up the pros and cons.
ShPP is at the same statutory rate as Statutory Maternity Pay
(SMP); £139.58 per week for 39 weeks. There is, however, one
major difference: ShPP is capped at £139.58 for every week,
while SMP is payable at 90% of actual salary (with no cap) for
the first six weeks of Maternity Leave.
A new approach to allow families more
choice and flexibility over how they
look after children in the first year.
In practice, this is likely to result in most mothers taking
Maternity Leave and pay for at least six weeks in order to
take advantage of the higher rate, if their employer does
not offer enhanced Maternity or ShPP. If the employer does
offer enhanced pay, it will be in the employers’ interests to
ensure the mother is still on SMP rather than ShPP for the
first six weeks, as this means it will recover the higher rate
from HMRC.
Operational and policy issues for employers
Weightmans held a series of workshops earlier this year where
we discussed with a range of different sized employers their
approach to the new regime.
The majority supported the move away from a gender-based
and less flexible approach to childcare, but expressed concern
over potential resourcing issues, particularly where both
parents work for the same employer, in some cases, in the
same team, and could be off at the same time or dip in and
out of work.
The complexity of the scheme, requiring a series of Notices
at specific time points, was something employers and
employees found challenging.
Most employers see the new regime as an opportunity to
promote themselves as a family-friendly organisation
seeking to facilitate a new approach to childcare.
The key issue remains the decision on whether to offer
enhanced pay for parents taking SPL.
Inevitably, an employer offering an enhancement to the
statutory ShPP rate is likely to have a higher take up with the
associated increase in cost and potential disruption.
Take, for example, the employer that offers mothers enhanced
Maternity Pay at six months full pay. If the mother decides
to curtail her Maternity Leave after three months, will the
employer allow her to convert the ‘unused’ three months of
enhanced Maternity Pay into ShPP? If so, to avoid a potential
claim of discrimination, the employer must then offer to the
partner, typically the father, an equivalent right to full pay
during any period of SPL he wishes to take.
In this example, what the employer might consider is allowing
a mother to use up to a maximum of three months of the
total six months full pay entitlement for SPL if she choses.
Any parents, for example the father of the child, will then have
a corresponding right of up to a maximum of three months
enhanced ShPP. This is, of course, an additional expense an
employer was not previously faced with.
Flexible lifestyle options
Overall, the new scheme will mean more flexible lifestyle
options for parents. The ability for a mother to go back to work
following childbirth and then take time off later in the year
for childcare offers what for many will be an attractive option
both from a childcare and career development perspective.
The ability for partners to take leave under the new scheme
is radical. On balance, the employers we work with see the
new scheme as an opportunity to enhance a culture where
parents are supported to use their entitlement to SPL, thereby
appealing to current and prospective staff as an employer of
choice. By taking this approach organisations can raise their
competitive performance and strengthen their brand.
Steve Peacock, Partner
0151 242 7955
steve.peacock@weightmans.com
© Copyright. Weightmans 2015. All rights reserved.

22 On Balance Weighing the issues of commercial law
effort
rvice
t initiative
experience
satisfaction
results
improve
new
share
success
training
progress
quality
outperform
difference
knowledge
listening
WHY WE
MUST DELIVER
MORE
THAN JUST
EXCELLENT
LEGAL ADVICE
At Weightmans, we recognise that our clients, our people and our
reputation are our most important assets. Without them, we simply
would not exist in business.
With this in mind, we have recently launched our Improving Client Experience
(ICE) project, a new initiative we are implementing during the course of the year.
ICE is about speaking to our clients and seeing how we can improve. It is also
about encouraging, training and recognising the efforts of our people who all
share a common trait: genuine interest in our clients’ ultimate success.
In order to be leaders in our field, we know we must deliver more than excellent legal advice. ICE is
about looking at our client service, listening, learning and then implementing positive change. It’s
about exceeding expectation on a whole range of levels – legal excellence, communication skills,
commercial awareness, efficiency and responsiveness, industry knowledge, and insight into
client’s business.
As a firm, we were very encouraged by the results of our most recent client satisfaction survey, which
showed that Weightmans is outperforming its competitors – but we must continue to improve. We
know the smallest factors can make a big difference – how quickly a phone call is returned or how
often the client is updated on the progress of a matter.
Working side by side with clients fuels our best thinking and leads to some of our most productive
strategies. We are in business to deliver the very best levels of service for our clients and our ICE
initiative will ensure we never lose sight of that mission.
OFF THE SCALE
CORPORATE TEAM
BOLSTERED WITH NEW
TAX PARTNER
Haydn Rogan, who is a dual qualified
Chartered Accountant and lawyer, brings
nearly 20 years experience in advising
clients on a wide range of transactional and
employment related tax issues (see p.19).
Haydn qualified as a Chartered Accounted
at PwC in Leeds before then also qualifying as a lawyer. He
previously worked at Cobbetts for eight years, having headed
up the tax team there, before joining DWF.
EMPOWERING
YOUTH FOR A
BRIGHTER FUTURE
Award winning
apprenticeship programme
Currently there are 14 apprentices across the firm following
a programme of study in legal services, IT, HR, finance,
accountancy or business administration at Levels two, three
and four. Weightmans was the first law firm in the country to
recruit a Level four apprentice in legal services.
14 apprentices across the firm.
Our work with apprentices has been recognised on both a
regional and national level and Weightmans has received
a number of awards, including The Northwest National
Apprenticeship award in the large newcomer category, “highly
commended” in the National Apprenticeship Awards, and a
British Legal Award for education and training initiative of the
year. We have also received Employer of the Year and Higher
Apprentice of the Year, at the Damar Apprenticeship Awards.
Issue 7 Spring/Summer 2015
FIRST ALL WOMEN
PROMOTIONS
Weightmans has welcomed four women
to its partnership, in its 2015 promotions.
Weightmans has utilised its ABS Licence for a subsequent
year to promote Sam Airey, HR Director to Fixed Share
Membership (FSM) Status. The previous year being the
first time the firm had ever made any promotions from a
business services department, with Marketing Director,
Sarah-Jane Howitt.
Promotions from the legal side of the business include
Navdip Wilson, in the Commercial insurance and Local
Government teams and Patricia Grinyer, from the firm’s
corporate finance team.
Finally, Carole Spiller, in the firm’s corporate dispute
resolution team has been promoted. Weightmans has
supported Carole in working flexibly during her career,
enabling her to successfully balance her busy workload
with personal responsibilities.
WEIGHTMANS RETAINS
ITS TOP EMPLOYER
STATUS FOR THE
EIGHTH YEAR
We have been listed in the Top UK Employers list 2015, still
managing to stay at the top for the last eight years. This year
we have been noted in the annual Top Employers Institute
Guardian report for our attractive employee benefits and
promoting strong company values around teamwork
and respect.
23
Dan Cutts, Senior Partner
0116 242 8923
dan.cutts@weightmans.com
© Copyright. Weightmans 2015. All rights reserved.

Law is our business.
Weightmans’ commercial reputation speaks
for itself.
With a longstanding reputation for the very highest quality advice,
we can help you with all your commercial legal needs.
Our commercial expertise, combined with our extensive
experience and reputation for the very best family and private
client advice means we can support our clients in all of their
business and personal needs.
For further information, please contact
Tim Lang, Commercial Director on 0845 073 9900
or email tim.lang@weightmans.com
For more information visit weightmans.com