From the Editor

In the Canadian legal market, the ‘Seven Sisters’, leading Bay Street Toronto, Ontario corporate firms, continue to dominate the marketplace. They are Blake, Cassels & Graydon LLP, Davies Ward Phillips & Vineberg LLP, Goodmans LLP, McCarthy Tétrault, Osler, Hoskin & Harcourt LLP, Stikeman Elliott LLP and Torys. The firms generally possess offices across the nation and abroad in such cities as London and New York, with the sole exception being Goodmans LLP, which is exclusively based in Toronto.

The Seven Sisters continue to face challenges from a wide range of competitors, including large domestic firms Borden Ladner Gervais LLP – a leader in Labour and Employment and Transport: Shipping; and Fasken, a top-tier firm in such areas as Energy and Natural Resources – Mining and Indigenous Law; and domestic multidisciplinary firms Bennett Jones LLP, which leads in such areas as Cannabis and Transport: Aviation, and Cassels Brock & Blackwell LLP, which remains a force in Mining.

In addition, other major international firms such as Dentons and DLA Piper (Canada) LLP remain key market players, as well as expanded domestic firm Gowling WLG, which boasts a strong global network, and such practice area specialists as construction experts Singleton Urquhart Reynolds Vogel LLP; Vancouver-based Nathanson, Schachter & Thompson, which brings strength to dispute resolution matters; immigration firm Green and Spiegel LLP; and labour and employment leaders Mathews, Dinsdale & Clark LLP in Toronto.

Despite a recent drop in headline inflation down to 1.6% in September 2024, the Canadian economy, the 10th largest in the world (according to the International Monetary Fund), experienced a slowing of growth in Q3 (below projections), with unemployment spiking to a seven-year high in August 2024 at 6.6%, and IMF predictions indicating a modest GDP growth of 1.3% by year’s end.

Despite global stresses and slower than expected economic movement, the nation’s financial system, and some areas, such as the housing market, remain robust (though affordable housing remains an issue, with an approximately 1.3 million expansion of the population between 2023 and 2024).

However, the overall economic impact can be observed across many key practice areas.

In Corporate and M&A, respondent firms reported modest growth in the M&A space, with some uncertainty caused by the conflicts in Ukraine and Gaza, a strengthened regulatory regime and the outcome of the US election. Some teams highlighted the life sciences sector as being a particularly robust segment. The Seven Sisters remain at the top of the market in the practice area, followed by Bennett Jones LLP, Fasken and Norton Rose Fulbright.

In Capital Markets, while debt capital markets matters have experienced some growth, the pipeline for equity markets matters remains slow, with hopes that declining interest rates will stimulate a flagging IPO market. Osler, Hoskin & Harcourt LLP and Stikeman Elliott LLP display particular strength in the practice area. McCarthy Tétrault remains a port of call in the debt and underwriter-side space.

In Construction, the effects of the COVID-19 pandemic on cost/pricing continue to be felt. In addition, global instability and inflation have had an impact on projects, and price rises have contributed to project cost delays. Borden Ladner Gervais LLP and Singleton Urquhart Reynolds Vogel LLP remain market leaders in the practice space.

The Energy and Natural Resources Mining area remains strong, with an M&A market driven by the need for lithium, cobalt and nickel to power the EV industry. However, teams reported an impact on dealings with Chinese businesses, following the government’s passage of a 100% surtax on all Chinese-made electric vehicles (EVs), effective October 1, 2024, with the full intent of imposing a 25% surtax on imports of steel and aluminium products from China under section 53 of the Customs Tariff. The uranium market continues to surge, with the prices spiking up 233% in June of 2024. Cassels Brock & Blackwell LLP and Fasken remain the leaders in the Mining space, as well as in the International Mining rankings.

While the aforementioned external factors did not result in major firm movements, notable developments included the closure of mid-size Toronto firm Minden Gross after over 70 years of operation, and the September 2024 combination of IP firm Bereskin & Parr with Smart & Biggar.

Mike De Luca

Editor, The Legal 500 Canada

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