Page 24 - The Handbook - Legal and Accounting Networks 81
P. 24
Law and Accounting Networks and Associations
Lastly, there are now the Big 4 and BDO in the legal market outside of the United States.79 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.80 In Europe, accounting firms that are part of networks are also accountable even
though each member is independent.81 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.
79 Mark A. Cohen, By Stealth or By Storm? The Big 4 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.
80 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.
81 See infra Chapter 7, Regulations and Other Legal Considerations for Networks.
12
Lastly, there are now the Big 4 and BDO in the legal market outside of the United States.79 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.80 In Europe, accounting firms that are part of networks are also accountable even
though each member is independent.81 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.
79 Mark A. Cohen, By Stealth or By Storm? The Big 4 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.
80 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.
81 See infra Chapter 7, Regulations and Other Legal Considerations for Networks.
12
