The Brisbane legal market is off to an eventful 2011 with floods, mergers and a new player on the scene. Macpherson+Kelley was the first to stir the market, with its BCI Lawyers merger taking effect from the first of January. Then the floods hit on the eleventh, causing office closures and mass destruction, and just last week Henry Davis York entered the market with two Sydney partners setting up shop in Creek Street, Brisbane. In the longer term, HDY will be leasing new premises in Queen Street for an initial term of five years once the office fit out is complete.

“Over the past two years we have built a presence in the Brisbane market through our work in banking disputes, restructurings and insolvencies including Octaviar and ABC Learning Centres,” said HDY partner John Evans. After an analysis of the Brisbane market, the partners at HDY agreed that there was room in the market for them. “We have opened the Brisbane office in response to the needs and requests from our clients to provide on-the-ground advice in Brisbane,” said Evans.

Until now Evans and his fellow partner Leonard McCarthy had been flying back and forth to work on matters, operating out of their clients’ offices. “There is a huge advantage being where clients are,” said Evans.

While the ABC Learning Centres and Octaviar matters are the main reasons for the move, Evans said they are by no means the only reason. “We have a number of Brisbane clients and we have opened to service our clients’ needs across banking and finance matters,” he added. The ABC Learning Centres work is coming to an end, but Evans said there would be plenty of work going forward on the Octaviar matter. “Going forward we will certainly be looking to recruit from the Brisbane market. However, we can also call on our Sydney office as the need arises.  We have recruited quite heavily from Brisbane for the Sydney office in the past,” said Evans.

The competition

Firms already well-established in the Brisbane market are optimistic that the entry of two new players from the south will be a positive thing for the legal landscape.

“HDY has been active up here for a while. It’s a logical extension of their business,” said McCullough Robertson managing partner Guy Humble. “HDY and M+K are high calibre players and will look to find clients in the market.” Chris Ward, partner at Cooper Grace Ward agrees that the two firms will undoubtedly try and take market share, however, he doesn’t expect them to impact on his firm noticeably. “I think there is room for good players in any market. Their arrival is not a bad thing,” he said.

Indeed, many Brisbane firms were of the opinion that in a mature market, competition is a good thing: “Competition makes you better at what you do,” said Humble. “It tells us that we have to be more flexible and adapt to new conditions.” For others, the new entrants will force firms to improve customer service and raise the bar on competitive pricing. “Any competition will be healthy, in that it raises the bar in terms of service delivery and competitive pricing,” said Mills Oakley partner Heinz Lepahe. “As a result clients, and good lawyers, should do well out of it.”

Carter Newell CEO Peter Ellender says Brisbane firms will need to be wary of the new arrivals and keep service levels at a high priority. “We will be making sure we compare and compete with all new entrants,” he said.  Bruce Humphrys, managing partner at HopgoodGanim Lawyers is unsurprised by the two arrivals stating: “I think there is always room for southern firms and international firms in the market. I was surprised that Allen & Overy decided on Perth instead of Brisbane. But in the short term, we see no real difference to the work our firm receives as a result [of their arrival].”