PRACTICE POINTS

Restraints under fire

• Advisory firm Perpetual lots its bid to stop a former partner Constantine Maglis from joining Ord Minnett, taking with him 22 long time clients. Perpetual leaned on its non-solicit and non-compete clauses, but the Qld Supreme Court wasn’t convinced citing “a weak case for enforceability of the restraint” — the client definition too broad requiring it to be read down and Maglis didn’t even initiate contact with the clients. The outcome? No injunction granted. This case is a wake-up call: just because there’s a restraint doesn’t mean it’ll hold up.

• An employee's right to flexible work can’t be blocked by an enterprise agreement if the National Employment Standard (NES) offers something better. That’s the message from the FWC, which ordered Paper Australia to approve a worker’s flexibility request—even though it clashed with the Enterprise Agreement. The employer’s “business grounds” were lacking, ruling NES will prevail where it provides a more beneficial term.

• The Court of Appeal has confirmed:

  1. a liquidator’s admission of a proof of debt doesn’t create “a new liability in substitution for an existing liabiliy”; and

  2. letters of comfort won’t bind third parties unless clearly worded to do so.

  In FXCT’s case, its parent company IGL wasn’t liable for the $43.6m in admitted customer claims, despite signing a letter of comfort applying to any debts incurred by FXCT. The Court found no language in the letter suggesting IGL agreed to be bound by the liquidator’s determination of customer claims: Allens

WORD ON THE STREET

Kramer Levin ditches diversity

• Just months after touting shared DEI values in its $3bn merger, Kramer Levin has quietly scrubbed the term “diversity” from its website and programs—replacing it with “inclusion”. The shift comes amid US political heat on DEI, piling pressure on HSF, which has long championed public diversity targets. The merged firm launches 1 June: AFR

• Scott Harris, former managing partner of Hogan Lovells Australia, has joined Hall & Wilcox after the global firm’s local exit. With 30+ years’ experience across Australia and the UK, Harris brings serious firepower in restructuring and commercial disputes.

• WA barrister Saritha Andrews will stay in practice despite failing to lodge 8 tax returns and 16 BAS statements. The Legal Practice Board tried to lift a stay on her suspension, but WASAT’s Judge Henry Jackson sided with Andrews, saying tax noncompliance alone doesn’t make a lawyer unfit: Lawyerly

TALKING POINTS

Young lawyers say enough

• New research from ANU and UniMelb shows early-career lawyers are burning out fast—citing excessive hours, poor pay, and a culture that glorifies overwork. Stefanie Costi says bullying and mistreatment are rife, with firms banking on a “conga line” of lawyers to replace anyone who burns out. Students are sold the Elle Woods or Harvey Specter dream, but the reality is far less glamorous. Now, Leila Bunguric has launched the Young Lawyers Club to support those questioning why they chose law in the first place: The Australian

• Wentworth MP Allegra Spender has blasted an anonymous pamphlet accusing her of misleading voters and opposing the majority views of her electorate, calling it “false, misleading and offensive.” The AEC says 47,000 unauthorised flyers were dropped across the seat, breaching electoral laws. Spender, an independent who flipped the once-safe Liberal seat in 2022, says it’s a dirty trick to boost her rivals: AFR

• Looks like most lawyers are clocking off before the 9-hour mark—but not by much. 36% say they're in the office less than 9 hours a day, while a solid 33% are doing 9–10 hours. Still, nearly 1 in 10 are grinding 11+ hours.

• The Vatican confirmed Pope Francis has died aged 88, passing away peacefully on Monday morning. The Church said the Jesuit pontiff (ie, the bridge builder in the name of Jesus) dedicated his life to faith and service. Now, for the conclave – the world will watch on as Rome prepares for a new papal election in secret: The Guardian

THE TREASURY

DEAL ROOM

Twiggy’s white hydro bet

• Fortescue: has kicked off drilling at HyTerra’s Kansas-based white hydrogen project after taking a 39.8% stake for $21.9m. White hydrogen—naturally formed underground—could be a game-changer for cheap, clean energy, unlike green hydrogen which must be manufactured. As green projects wobble post-Trump, Fortescue is betting big on this untapped resource: The Australian

• Zenith: narrows the field. The race for a 50% stake in Zenith Energy is down to three—KKR, EQT, and CVC. The private capital giants are circling the $120m EBITDA miner supplier after earlier bidders, including BlackRock and Morrison, dropped out. Final bids loom as sellers eye a deal riding the decarbonisation boom: AFR

• Sigma: post-merger sell-off has triggered a frenzy, with Australia’s top investment banks jostling to win favour with Chemist Warehouse founders ahead of escrow expiries. The trio holds $16.7bn in stock—$1.7bn becomes sellable after FY25, with the rest unlocked post-FY26. With Damien Gance already offloading, banks are betting the big guns might follow: AFR

• Macquarie: sells its entire North American and European investment arm to Japan’s Nomura for $2.8bn. The spin-out means Macquarie will continue to operate in Australia but will ditch its $285bn assets under management. The move sharpens Macquarie’s focus on private markets, where it’s already lent $22.5bn via its booming private credit business: AFR

SECTOR SPECIFIC

$92m banking blunders

🚜 DIGGERS

• Activist fund Palliser is copping heat for its shareholder resolution that looks to scrap Rio Tinto’s dual-listed structure. A pro-unification report it funded wasn’t clearly disclosed, and a webinar set up to discuss the resolution featuring a self-described “independent journalist” raised eyebrows for its softball questions. Rio’s not winning hearts either—its dull YouTube explainer has just 158 views: AFR

• After years of delays, Rio and BHP’s massive Resolution Copper project in Arizona has scored Fast-41 status from Trump’s White House. The mine could supply 25% of US copper needs but has faced enviro issues and fierce pushback from the San Carlos Apache Tribe. Now, it's being revived as US-China tensions ramp up over critical resources: The Australian

🏦 FIN

• Despite claiming closure on Royal Commission-era scandals, the big banks are still forking out hundreds of millions in remediation for ongoing breaches—like mischarged service fees and incorrect product sales, and missed pricing promises. ASIC says nearly 500,000 customers were paid $92m in FY24 alone—but that’s only a third of total losses: Capital Brief

• BOQ and its regional peers are feeling the heat—shrinking mortgage margins, rising tech costs, and Trump-era tariffs are biting hard. BOQ’s overhauling its platforms, axing branches, and chasing business lending. But analysts warn its 8% ROE target looks shaky amid disruption, funding pressure, and tough competition from the majors: The Australian

🏠 RETAIL & REAL ESTATE

• After two years of pain, office property funds are back in the black. Q1 2025 delivered a 1.1% return for funds holding $34bn+ in towers—breaking the post-COVID slump triggered by hybrid work and slashed valuations. The MSCI data confirms a sector turning the corner, with Investa’s fund leading the charge at 2.7%. Optimism is growing from players like Investa signalling a rebound—especially in Sydney and Brisbane—though geopolitical risks could shake things up: AFR

• Shein has cracked $1.23bn in Aussie sales, up 26% in a year. Its ultra-cheap, influencer-fuelled model is crushing local players like Catch and Myer, but Trump’s tariffs and looming IPO uncertainty could shake things up. For now, Gen Z keeps clicking—and incumbents keep sweating: AFR

📱 TECH & START UP

• Here’s what VC won’t tell you… start up Lorikeet’s $14m AI rocket is fuelled by cred, not just code. Co-founder Steve Hind reckons pitch decks barely move the needle—fundraising success is mostly baked in years before the round starts. It’s your reputation, ref checks, and customer traction that do the talking. His AI support startup just landed Blackbird, Square Peg, and Skip Capital as backers: Capital Brief

• A US judge finds Google has an illegal monopoly, finding the tech giant guilty of anticompetitive conduct in online ad tech. The DOJ argued Google rigged the ad market in its favour—owning tools on both the buy and sell sides. The case now heads to a remedies phase, with a possible Alphabet breakup on the cards: BBC