Lawyers blame burnout

EOY pressure cooker

January 13, 2025

👋 G’day

We’re back and better than ever.

Hope you had a chance to recharge over the holidays and haven’t ditched your NY resolutions yet. If you missed anything, catch up with us on LinkedIn.

Today’s brief:

  • Rio makes a $11bn gamble

  • Star Entertainment faces a cash crisis

  • Plus, we reveal the average salary at major law firms

Enjoy that morning coffee ☕️

PRACTICE POINTS

ASIC ramps up greenwashing action

  • ASIC v Ryan is a textbook reminder of how the section 189 defence can save a director’s skin. Under the Corps Act, directors can rely on expert advice, unless they know, or should know of facts that indicate they cannot or should not rely on the advice. ASIC alleged that Ryan, a Dixon Advisory director, breached his duties by prioritising Dixon’s holding company’s interests. But the Federal Court sided with Ryan, accepting that he relied on MinterEllison’s legal advice. The case highlights the importance of obtaining and considering professional advice in complex corporate matters.

  • G+T has flagged a sharp uptick in ASIC’s greenwashing crackdown in 2024. The watchdog secured its first-ever civil penalties, hitting Mercer in August and Vanguard in September, with LGSS potentially next in line.

  • Meanwhile, the ACCC has released its final guide on sustainability collaborations, explaining how entities can team up to achieve sustainability outcomes without breaching the ACL. If a collaboration does cross the line, the ACCC emphasised the importance of seeking authorisation first to avoid the risk of enforcement action.

WORD ON THE STREET

Aussie lawyer salaries revealed

  • We revealed the average salaries of lawyers at top Australian firms in 2024 👆 Lawyers at major firms saw a 5.8% pay bump - not as high as during COVID-19. See the full post here. 

  • Allens’ outgoing chair, Fiona Crosbie, is signing off after 8 years and dropping some insights about the biggest shift in top law firms: culture. Beyond the buzzwords, she’s focused on achieving “harmony at the top". Clients notice the cohesion and are assured the firm can deliver the best for them. 

  • Ever tried to throw someone under the bus to save your own skin? Turns out, it could cost you your career. An ACT barrister just got struck off for blaming another lawyer for his client’s missed protection visa deadline without a shred of evidence to back it up.

TALKING POINTS

Lawyer burnout reaches new heights

  • A College of Law survey revealed that a third of the 67% of lawyers who felt burnout last year took leave to recharge—yet most still worked. Even better, half of them were contacted by colleagues. It’s like clients decide the end of the year is the best time to dump all their work on you…

  • The US Supreme Court is hearing arguments over the future of TikTok. ByteDance, the owner of TikTok, may be forced to sell up or face a ban on 19 Jan, citing security concerns. ByteDance has argued the move is a clear First Amendment violation.

  • In a predictable twist, US President-elect Trump has avoided jail or a fine over the hush-money payment case. But the court’s decision to grant an unconditional discharge leaves his jury conviction on his permanent record, making him the first convicted felon to enter the White House.

  • AFL club Western Bulldogs have applied for a High Court challenge to a $6m award granted to a fan sexually abused by a club volunteer. The Victorian Court of Appeal upheld the jury verdict, but the club argues there was no foreseeable risk posed by the abuser and denies breaching its duty of care to the victim.

  • Small businesses are at risk of collapse as calls to liquidators rise to prepare restructuring plans. The pressure? ATO is aggressively pushing to claw back $35bn in tax debt.

TREASURY

ASX as at market close. Commodities and crypto in US dollars.

DEAL ROOM

Rio’s lithium deal gets the go-ahead

  • Rio’s $11bn lithium gamble now has the green light. US regulators have confirmed it has no national security concerns over its Arcadium Lithium takeover, despite earlier worries about Chinese-owned Chinalco’s 10.3% stake in Rio.

  • Insignia is ‘considering’ Bain Capital’s matched $4.30 per share offer alongside that of CC Capital’s January bid. Insignia rejected Bain’s $4.00 offer in December. Now, Bain is open to discussing a transaction structure that would enable shareholders to receive some scrip consideration.

  • Crown offloads high-end London casino Aspinall’s. This follows the sale of its 20% stake in Nobu just months ago, as the company overhauls its portfolio.

  • The market is speculating that Brookfield might be eyeing Insignia after CC Capital and Bain Capital threw their hats in the ring. Insignia, however, denies any Brookfield bid.

SECTOR SPECIFIC

Encrypted messages fuel investor lawsuit

🚜 DIGGERS

  • Investors suing Rio in the US have uncovered documents showing crucial work conversations shifting to encrypted apps like WhatsApp. The lawsuit alleges Rio delayed disclosing market-sensitive info about cost blowouts and delays at its Oyu Tolgoi copper mine in Mongolia—raising fresh questions about transparency.

  • Amid ongoing claims that the mining sector is too “blokey,” ASX-listed mining contractor, Macmahon resists the parental leave movement. Their response? A classic "we're working on it". Meanwhile, 68% of Aussie businesses offer some form of leave, with top law firms offering up to six months of paid leave.

  • Woodside, Santos, and their LNG buddies are bracing for a wave of natural gas hitting the market this year—aka lower prices. The government’s already predicting a $5bn dip in Australia’s LNG earnings as a result.

  • Origin Energy has admitted to breaching the National Energy Retail Rules just a few 5,000 times, disconnecting premises where life support equipment was in use. The result? A hefty $12m in penalties.

🏦 FIN

  • A former Gresham banker-turned-TikTok influencer claims the bank offered her hush money before she quit. She later took to TikTok to call out the bank over an incident at a work dinner.

  • Nothing like doom and gloom to kick off 2025 - Bloomberg says global banks may cut up to 200k jobs (or 3% of their workforce) over the next 3-5 years thanks to AI.

📱 TECH

  • In case you missed it, Meta has scrapped fact-checking of social media posts. Not entirely surprising against a backdrop of deepening polarisation and Zuckerberg’s long-held concerns about the politicisation of Meta. On the Aussie front, Meta has since clarified that no changes will be made to the Australian platform before the federal election. But its decision has ignited fresh calls to reopen negotiations over payments to traditional media outlets.

  • Telstra is doubling down on its SpaceX partnership, sealing a new deal that will let regional customers send texts via Starlink’s satellite tech. Looks like Telstra’s playing catch-up to Optus, which locked in its own Starlink deal back in 2023.

🏡 RETAIL & REAL ESTATE

  • Struggling Star Entertainment could be heading into voluntary administration in weeks, with NSW and QLD governments refusing to step in after the casino operator revealed it only has $79m left in the bank.

  • Building approvals for new dwellings are far below the Government's 240k annual target. Albanese is now pouring millions down newly built drains to fix that.

  • Virgin Australia’s CEO has cash to splash on a new $16.9m Noosa Head’s beach house – a little inspiration for us all.

PS. Are you liking Point Blank?

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