Page 25 - The Handbook - Law Firm Networks 2018
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The Handbook: Law Firm Networks
practice. Some commentators see them as merely extending the network to other independent firms.98 The
only difference may be their intent, at a future point, to become a fully integrated firm.99
Lastly, there are now the Big 4 and BDO in the legal market outside of the United States.100 Their legal
practices come under the general umbrella of networks of independent firms, large numbers of which have
their own legal practices. They can operate as the accounting and consulting services operate through
centrally coordinated activities but as independent firms. Their expansion to law represents the adaptability
of networks to create an organizational structure by combining existing units to offer new services.
So what is a law firm network? Up until recently, from the perspective of law firms, many of these points
may have been distinctions without a difference. Today, it appears that the legal system is beginning to hold
“networks” to different standards. The Swiss associations have been held accountable as law firms because
they say they are law firms.101 In Europe, accounting firms that are part of networks are also accountable
even though each member is independent.102 Both Swiss associations and accounting networks have the same
legal status as a law firm as to liability and conflicts of interest. However, from a marketing perspective,
these are not mere distinctions; being a verein creates some advantages over the traditional law firm network
where the members are clearly independent but lack a recognizable brand. This affects how the network is
perceived and how it is evaluated in the market.
Until these two issues are resolved, they impact the marketing of networks internally to members and
externally to clients, the media, and the global legal profession as seen from the client’s perspective. They
also affect the legal status of networks. However, in the end, this may not be relevant when the analysis is of
the underlying model themselves, rather than the self-serving characterizations.
98 Priyanka Bhat & Vaidehi Shankar, Unholy Bond – Insight into the Swiss Verein Structure, NSLR BLOG, May 15, 2015,
nslrblog.wordpress.com/2015/05/02/unholy-bond-insight-into-the-swiss-verein-structure/; Natasha Bernal, What’s the Deal With… Dentons Merging
with 21 Firms? THE LAWYER (June 22, 2015), www.thelawyer.com/home/insight/whats-the-deal-with-dentons-merging-with-21-
firms/3036205.article.
99 Given the history of the accounting profession and ethical considerations, some have doubted that this will occur. See Sheth, supra note 12.
100 Mark A. Cohen, By Stealth or By Storm? The Big Four and the Legal Market, LEGAL MOSAIC, June 22, 2015, legalmosaic.com/2015/06/22/the-
bigfour-legal-market/; see also Attack of the Bean Counters, THE ECONOMIST, March 31, 2015, www.economist.com/news/business/21646741-
lawyers-beware-accountants-are-coming-after-your-business-attack-bean-counters.
101 In a recent case, the chief administrative judge of the U.S. International Trade Commission Court held that Dentons was a law firm for conflict of
interest rules. See Mark A. Cohen, Denton’s Disqualification and Legal Advertising: Stir but Don’t Shake, BLOOMBERG BNA, bol.bna.com/dentons-
disqualification-and-legal-advertising-stir-but-dont-shake/ (This was preceded by a case alleging a conflict of interest against Norton Rose Fulbright).
See also MacEwen, supra note 76.
102 See infra Chapter 7, Regulations and Other Legal Considerations for Networks.
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practice. Some commentators see them as merely extending the network to other independent firms.98 The
only difference may be their intent, at a future point, to become a fully integrated firm.99
Lastly, there are now the Big 4 and BDO in the legal market outside of the United States.100 Their legal
practices come under the general umbrella of networks of independent firms, large numbers of which have
their own legal practices. They can operate as the accounting and consulting services operate through
centrally coordinated activities but as independent firms. Their expansion to law represents the adaptability
of networks to create an organizational structure by combining existing units to offer new services.
So what is a law firm network? Up until recently, from the perspective of law firms, many of these points
may have been distinctions without a difference. Today, it appears that the legal system is beginning to hold
“networks” to different standards. The Swiss associations have been held accountable as law firms because
they say they are law firms.101 In Europe, accounting firms that are part of networks are also accountable
even though each member is independent.102 Both Swiss associations and accounting networks have the same
legal status as a law firm as to liability and conflicts of interest. However, from a marketing perspective,
these are not mere distinctions; being a verein creates some advantages over the traditional law firm network
where the members are clearly independent but lack a recognizable brand. This affects how the network is
perceived and how it is evaluated in the market.
Until these two issues are resolved, they impact the marketing of networks internally to members and
externally to clients, the media, and the global legal profession as seen from the client’s perspective. They
also affect the legal status of networks. However, in the end, this may not be relevant when the analysis is of
the underlying model themselves, rather than the self-serving characterizations.
98 Priyanka Bhat & Vaidehi Shankar, Unholy Bond – Insight into the Swiss Verein Structure, NSLR BLOG, May 15, 2015,
nslrblog.wordpress.com/2015/05/02/unholy-bond-insight-into-the-swiss-verein-structure/; Natasha Bernal, What’s the Deal With… Dentons Merging
with 21 Firms? THE LAWYER (June 22, 2015), www.thelawyer.com/home/insight/whats-the-deal-with-dentons-merging-with-21-
firms/3036205.article.
99 Given the history of the accounting profession and ethical considerations, some have doubted that this will occur. See Sheth, supra note 12.
100 Mark A. Cohen, By Stealth or By Storm? The Big Four and the Legal Market, LEGAL MOSAIC, June 22, 2015, legalmosaic.com/2015/06/22/the-
bigfour-legal-market/; see also Attack of the Bean Counters, THE ECONOMIST, March 31, 2015, www.economist.com/news/business/21646741-
lawyers-beware-accountants-are-coming-after-your-business-attack-bean-counters.
101 In a recent case, the chief administrative judge of the U.S. International Trade Commission Court held that Dentons was a law firm for conflict of
interest rules. See Mark A. Cohen, Denton’s Disqualification and Legal Advertising: Stir but Don’t Shake, BLOOMBERG BNA, bol.bna.com/dentons-
disqualification-and-legal-advertising-stir-but-dont-shake/ (This was preceded by a case alleging a conflict of interest against Norton Rose Fulbright).
See also MacEwen, supra note 76.
102 See infra Chapter 7, Regulations and Other Legal Considerations for Networks.
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