Page 169 - The Handbook - Law Firm Networks
P. 169
The Handbook - Law Firm Networks

Conflict of interest rules apply Big 4 Network Legal Verein Law Firm Law Firm
Members pay management Network
fees or dues Yes (network) No Yes
Local management has full Yes Yes433 Yes No
authority Yes434
Operations integrated Split No
Command and control Yes435 Yes
management Yes Yes
Global practice groups Yes Yes No Yes
Vicarious liability Semi-local No
Common joint marketing Yes autonomy Yes
Common tax liability No Yes Yes Yes
Business plan Yes No No Yes
Known as network No Yes Some/No Yes
Referred to as network Yes No No Yes
Exclusive Referrals Yes/No Yes Yes No
Yes No Yes No
Yes Sometimes Yes No
Yes No

433 In a recent case, the chief administrative judge of the U.S. International Trade Commission held that Dentons was a law firm for conflict of

interest purposes. See Mark A. Cohen, Denton’s Disqualification and Legal Advertising: Stir But Don’t Shake, BLOOMBERG BNA, July 21, 2015,

https://bol.bna.com/dentons-disqualification-and-legal- (This was preceded by a case alleging a conflict of interest against Dentons).

434 Julie Triedman, Rift Among Rainmakers Complicates Dentons’ Mexico Deal, THE AMERICAN LAWYER, May 19, 2016,

http://www.americanlawyer.com/id=1202758141767/Rift-Among-Rainmakers-Complicates-Dentons-Mexico-Deal#ixzz4Bwa1qQra: “Soria

noted that the deal to become part of Dentons …. did not seem onerous. His office in Mexico City would be required to send 2 percent of its

annual income to the firm’s global management as overhead, plus 23 percent of inbound referral fees.”

435 Supra note 2: “Dentons promised complete freedom on compensation, hiring and other decisions, as well as a steady stream of inbound

referrals.”

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