Page 30 - The Handbook: Law and Accounting Networks and Associations 2019
P. 30
Law and Accounting Networks and Associations
In 1989 when Lex Mundi was formed, it represented a new development of networks as a business.126 It
established objective criteria for membership. It was the first network in which each member had to be among
the largest and most established firms in a state or country. It was a business that provided members with many
alternatives to expand their resources. It was a network organized around a home office with staff rather than
a staff being assembled after the network was established. While different from the accounting network, the
concept was that of an entity that provided services to members and should also have an established brand.
Unlike earlier networks in which all activities are internal, 50 percent of the activities were external.127 The
staff, board, councils, and members collaborated to achieve the objectives. The list of internal and external
activities reflected approximately 30 different items.128
Other networks like TerraLex129 and Meritas130 soon followed with a similar business-based model. These
networks were not secret and operated also as businesses. Their stated objective was to create a branded
alternative to the large United States and English law firms that had expanded into their countries. All of them
have many of the features of Level 3 networks.
U.S. national networks also developed in the 1980s. The first was American Law Firm Association,131 which
was a network that focused primarily on insurance litigation. The second was State Capital Group,132 which
began as a national network of firms that had government affairs practices. To qualify for membership, the
firms needed to have a former governor at the firms. Both of these networks became international, changing
their names to SCG Legal and ALFA, respectively.
The same national expansion exists in other regions. For example, there are 80 European-centric networks.
Some cover most of Europe, while others focus on a specific region like the Nordic or the CIS. In Canada
national firms have gradually opened offices in most of the provinces. Canadian firms that did not agree with
this strategy have joined the better-known networks. In Canada there is a clear demarcation between the two
approaches.133
Dentons,134 DLA,135 Hogan Lovells,136 Norton Rose Fulbright,137 Baker & McKenzie,138 King & Wood
Mallesons,139 and Squire Patton Boggs140 — the Swiss association verein141 is not something new but is
essentially no different than any other corporate association.142 The only difference is that a law firm has simply
126 Maireed Keohane, Virtual Advocate, Steve McGarry, the Brains Behind Lex Mundi, EUR. LEGAL BUS., Nov. 1999, at 14; see also Stephen McGarry,
Practicing Law in the 21st Century Will Require Affiliations, LEG. MGMT., May-June 1994, at 34; see also Stratton, Captive Law Firms v. Global Legal
Networks: The MDP Inquiry Continues,, 82 TAX NOTES 26-40 (Jan. 4 1999); see also WIKIPEDIA: LAW FIRM NETWORKS & ASSOCIATIONS,
en.wikipedida.org/international_law_firm-networks_and_association; see also Nick Jarrett-Kerr, International Alliances: How They Work, What They
Deliver, and Whether to Join, JARRETT-KERR.COM (Dec. 5, 2012), www.jarrett-kerr.com/blog/International-alliances; see also Liz Wiehl, How Small
Firms Compete Amid the Giants, N.Y. TIMES (Nov. 10, 1989).
127 Lex Mundi is the network that has spent the most to become “The Leading Association of Independent Law Firm.”
128 See infra Chapter 5, Governance of Networks and Operations.
129 TERRALEX, supra note 125.
130 MERITAS, www.meritas.org.
131 ALFA International, supra note 124.
132 C. E. Yandle, New Law Firm to be Based in Raleigh, RALEIGH POST, July 18, 1989, at 1; see also STATE CAPITAL LAW REVIEW GROUP,
www.statecapitallaw.org.
133 See infra Appendix 3.
134 See DENTONS, www.dentons.com.
135 See DLA PIPER, www.dlapiper.com.
136 See HOGAN LOVELLS, www.hoganlovells.com.
137 See NORTON ROSE FULBRIGHT, www.nortonrosefulbright.com.
138 See BAKER & MCKENZIE, www.bakermckenzie.com.
139 See KING & WOOD MALLESONS, www.kwm.com/en.
140 See SQUIRE PATTON BOGGS, LEGAL NOTICE, http://www.squirepattonboggs.com/footer/legal-notice: “Squire Patton Boggs is the collective trade
name for an international legal practice, the practicing entities of which are separate and distinct law firms and other entities. Squire Patton Boggs
International Association (a Swiss Verein) does not itself provide, directly or indirectly, any legal or other client services.”
141 SCHWEIZERISCHES ZIVILGESETZBUCH [ZGB], CODE CIVIL [CC], CODICE CIVIL [CC] [CIVIL CODE] Dec. 10, 1907, SR 210, RS 210, art. 61 (Switz.).
142 See Appendix 6 See Chris Johnson, Global Law Firms and Vereins: The End of the Affair? THE AM LAW DAILY (March 22, 2017),
http://www.americanlawyer.com/id=1202781867597/Global-Law-Firms-and-Vereins-The-End-of-the-Affair?slreturn=20170229143243,discusses the
rise of the CLG as an alternative form of network that reduce risk of vicarious liability; Chris Johnson, Vereins: The New Structure for Global Firms,
18
In 1989 when Lex Mundi was formed, it represented a new development of networks as a business.126 It
established objective criteria for membership. It was the first network in which each member had to be among
the largest and most established firms in a state or country. It was a business that provided members with many
alternatives to expand their resources. It was a network organized around a home office with staff rather than
a staff being assembled after the network was established. While different from the accounting network, the
concept was that of an entity that provided services to members and should also have an established brand.
Unlike earlier networks in which all activities are internal, 50 percent of the activities were external.127 The
staff, board, councils, and members collaborated to achieve the objectives. The list of internal and external
activities reflected approximately 30 different items.128
Other networks like TerraLex129 and Meritas130 soon followed with a similar business-based model. These
networks were not secret and operated also as businesses. Their stated objective was to create a branded
alternative to the large United States and English law firms that had expanded into their countries. All of them
have many of the features of Level 3 networks.
U.S. national networks also developed in the 1980s. The first was American Law Firm Association,131 which
was a network that focused primarily on insurance litigation. The second was State Capital Group,132 which
began as a national network of firms that had government affairs practices. To qualify for membership, the
firms needed to have a former governor at the firms. Both of these networks became international, changing
their names to SCG Legal and ALFA, respectively.
The same national expansion exists in other regions. For example, there are 80 European-centric networks.
Some cover most of Europe, while others focus on a specific region like the Nordic or the CIS. In Canada
national firms have gradually opened offices in most of the provinces. Canadian firms that did not agree with
this strategy have joined the better-known networks. In Canada there is a clear demarcation between the two
approaches.133
Dentons,134 DLA,135 Hogan Lovells,136 Norton Rose Fulbright,137 Baker & McKenzie,138 King & Wood
Mallesons,139 and Squire Patton Boggs140 — the Swiss association verein141 is not something new but is
essentially no different than any other corporate association.142 The only difference is that a law firm has simply
126 Maireed Keohane, Virtual Advocate, Steve McGarry, the Brains Behind Lex Mundi, EUR. LEGAL BUS., Nov. 1999, at 14; see also Stephen McGarry,
Practicing Law in the 21st Century Will Require Affiliations, LEG. MGMT., May-June 1994, at 34; see also Stratton, Captive Law Firms v. Global Legal
Networks: The MDP Inquiry Continues,, 82 TAX NOTES 26-40 (Jan. 4 1999); see also WIKIPEDIA: LAW FIRM NETWORKS & ASSOCIATIONS,
en.wikipedida.org/international_law_firm-networks_and_association; see also Nick Jarrett-Kerr, International Alliances: How They Work, What They
Deliver, and Whether to Join, JARRETT-KERR.COM (Dec. 5, 2012), www.jarrett-kerr.com/blog/International-alliances; see also Liz Wiehl, How Small
Firms Compete Amid the Giants, N.Y. TIMES (Nov. 10, 1989).
127 Lex Mundi is the network that has spent the most to become “The Leading Association of Independent Law Firm.”
128 See infra Chapter 5, Governance of Networks and Operations.
129 TERRALEX, supra note 125.
130 MERITAS, www.meritas.org.
131 ALFA International, supra note 124.
132 C. E. Yandle, New Law Firm to be Based in Raleigh, RALEIGH POST, July 18, 1989, at 1; see also STATE CAPITAL LAW REVIEW GROUP,
www.statecapitallaw.org.
133 See infra Appendix 3.
134 See DENTONS, www.dentons.com.
135 See DLA PIPER, www.dlapiper.com.
136 See HOGAN LOVELLS, www.hoganlovells.com.
137 See NORTON ROSE FULBRIGHT, www.nortonrosefulbright.com.
138 See BAKER & MCKENZIE, www.bakermckenzie.com.
139 See KING & WOOD MALLESONS, www.kwm.com/en.
140 See SQUIRE PATTON BOGGS, LEGAL NOTICE, http://www.squirepattonboggs.com/footer/legal-notice: “Squire Patton Boggs is the collective trade
name for an international legal practice, the practicing entities of which are separate and distinct law firms and other entities. Squire Patton Boggs
International Association (a Swiss Verein) does not itself provide, directly or indirectly, any legal or other client services.”
141 SCHWEIZERISCHES ZIVILGESETZBUCH [ZGB], CODE CIVIL [CC], CODICE CIVIL [CC] [CIVIL CODE] Dec. 10, 1907, SR 210, RS 210, art. 61 (Switz.).
142 See Appendix 6 See Chris Johnson, Global Law Firms and Vereins: The End of the Affair? THE AM LAW DAILY (March 22, 2017),
http://www.americanlawyer.com/id=1202781867597/Global-Law-Firms-and-Vereins-The-End-of-the-Affair?slreturn=20170229143243,discusses the
rise of the CLG as an alternative form of network that reduce risk of vicarious liability; Chris Johnson, Vereins: The New Structure for Global Firms,
18
