Both players were part of a Forest side that reached the semi-finals in 1988 and 1989 and the final in 1991.
"That side in the late 1980s was the best team I ever played in," Laws told BBC Sport.
"We had a great team spirit and that camaraderie was crucial to having a successful team. It was certainly no coincidence Stuart Pearce was club captain at the time.
"We used to do a lot of organising together, functions both inside and outside the club, like doing dangerous sports and other things.
"It always seemed to be Stuart and I who were going so we built up a good partnership together."
The pair have remained in touch ever since and Laws has nothing but respect for the job Pearce has done since taking over from Kevin Keegan at Eastlands.
He said: "It's no surprise to me he has done so well at City. I went on the same management courses as him and he just tried to learn as quickly as possible."