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standards or create the impression that they operate as one entity under a common brand. There is inherent
tension between the marketing of the relationships and the need to maintain independence so as not to incur
vicarious liability or violate ethics rules.4 Operational independence means that the network must be able
to define the relationships among members in terms of their common interests. The
How does one recognize a network? Every network, from PWC to Lex Mundi to the legal profession’s new
Swiss Vereins, uses a “network disclaimer.” The network disclaimer of PWC5 states that the network
members are independent firms that do not practice jointly and are not responsible for the negligence of
another member. It further states that the network does not practice a profession or otherwise provide
services to clients of the network’s members. From the concept of independence found in the disclaimer,
the foundation of both network operations and governance is laid.
These legal disclaimers found on a website may be in contrast to marketing efforts that leave the impression
or seek to demonstrate uniform standards of brand quality. In the accounting profession, this duality has led
to the regulatory distinction between networks and associations.6 In the legal profession, the term “network”
has no statutory definition. This can lead to the confusion between what law firms are and what networks
are. For example, Lex Mundi and TerraLex are clearly recognized as networks. Clifford Chance, Jones
Day, or Morrison & Forester are law firms in which the partners share profits, expenses, and liabilities.
Are the seven Swiss vereins (Dentons, DLA Piper, Hogan Lovells, Norton Rose Fulbright, Baker &
McKenzie, King & Wood Mallesons, and Squire Patton Boggs) simply networks7? For example, on their
website DLA Piper refers to itself as a law firm,8 but at the same time denies it is a partnership. “[W]ords
or phrases such as ‘firm’, ‘law firm’ or ‘international legal practice’ are for convenience only and does not
imply that all or any of such entities are in partnership together or accept responsibility for the acts or
omissions of each other.”9 In a Google search for Denton, Dentons describes itself in the search results as
a “global law firm.” In the legal notice on the website, it is a global legal practice providing client services
worldwide through its member firms and affiliates …..each of which is its own Legal Practice. .10 Similar
4 See Chapter 8, infra.
5 “‘PricewaterhouseCoopers’ and ‘PwC’ refer to the network of member firms of PricewaterhouseCoopers International Limited
(PwCIL). Each member firm is a separate legal entity and does not act as agent of PwCIL or any other member firm. PwCIL does
not provide any services to clients. PwCIL is not responsible or liable for the acts or omissions of any of its member firms nor can
it control the exercise of their professional judgment or bind them in any way. No member firm is responsible or liable for the acts
or omissions of any other member firm nor can it control the exercise of another member firm's professional judgment or bind
another member firm or PwCIL in any way.” PWC SOUTH AFRICA, http://www.pwc.co.za/en/index.jhtml (last visited July
25, 2015).
6 See Chapter 6, infra.
7 Defined in Newsweek as “a German word meaning association, club or network.” Lynley Browning, Legal Swiss Cheese,
December 15, 2014. http://www.newsweek.com/legal-swiss-cheese-
8 See DLA PIPER, https://www.dlapiper.com (last visited July14, 2015).
9 “The use of the name ‘DLA Piper’ and words or phrases such as ‘firm,’ ‘law firm’ or ‘international legal practice’ is for
convenience only and does not imply that all or any of such entities are in partnership together or accept responsibility for the acts
or omissions of each other.” DLA PIPER, LEGAL NOTICES, https://www.dlapiper.com/en/us/footer/legalnoticespage/ (last
visited July 14, 2015).
10 “Dentons is a global legal practice providing client services worldwide through its member firms and affiliates …..each of which
is its own Legal Practice. Salans FMC SNR Denton Group (a Swiss Verein) does not itself provide legal or other client services.”
DENTONS, http://www.dentons.com/en/legal-notices (last visited July 14, 2015).
50 | P a g e
tension between the marketing of the relationships and the need to maintain independence so as not to incur
vicarious liability or violate ethics rules.4 Operational independence means that the network must be able
to define the relationships among members in terms of their common interests. The
How does one recognize a network? Every network, from PWC to Lex Mundi to the legal profession’s new
Swiss Vereins, uses a “network disclaimer.” The network disclaimer of PWC5 states that the network
members are independent firms that do not practice jointly and are not responsible for the negligence of
another member. It further states that the network does not practice a profession or otherwise provide
services to clients of the network’s members. From the concept of independence found in the disclaimer,
the foundation of both network operations and governance is laid.
These legal disclaimers found on a website may be in contrast to marketing efforts that leave the impression
or seek to demonstrate uniform standards of brand quality. In the accounting profession, this duality has led
to the regulatory distinction between networks and associations.6 In the legal profession, the term “network”
has no statutory definition. This can lead to the confusion between what law firms are and what networks
are. For example, Lex Mundi and TerraLex are clearly recognized as networks. Clifford Chance, Jones
Day, or Morrison & Forester are law firms in which the partners share profits, expenses, and liabilities.
Are the seven Swiss vereins (Dentons, DLA Piper, Hogan Lovells, Norton Rose Fulbright, Baker &
McKenzie, King & Wood Mallesons, and Squire Patton Boggs) simply networks7? For example, on their
website DLA Piper refers to itself as a law firm,8 but at the same time denies it is a partnership. “[W]ords
or phrases such as ‘firm’, ‘law firm’ or ‘international legal practice’ are for convenience only and does not
imply that all or any of such entities are in partnership together or accept responsibility for the acts or
omissions of each other.”9 In a Google search for Denton, Dentons describes itself in the search results as
a “global law firm.” In the legal notice on the website, it is a global legal practice providing client services
worldwide through its member firms and affiliates …..each of which is its own Legal Practice. .10 Similar
4 See Chapter 8, infra.
5 “‘PricewaterhouseCoopers’ and ‘PwC’ refer to the network of member firms of PricewaterhouseCoopers International Limited
(PwCIL). Each member firm is a separate legal entity and does not act as agent of PwCIL or any other member firm. PwCIL does
not provide any services to clients. PwCIL is not responsible or liable for the acts or omissions of any of its member firms nor can
it control the exercise of their professional judgment or bind them in any way. No member firm is responsible or liable for the acts
or omissions of any other member firm nor can it control the exercise of another member firm's professional judgment or bind
another member firm or PwCIL in any way.” PWC SOUTH AFRICA, http://www.pwc.co.za/en/index.jhtml (last visited July
25, 2015).
6 See Chapter 6, infra.
7 Defined in Newsweek as “a German word meaning association, club or network.” Lynley Browning, Legal Swiss Cheese,
December 15, 2014. http://www.newsweek.com/legal-swiss-cheese-
8 See DLA PIPER, https://www.dlapiper.com (last visited July14, 2015).
9 “The use of the name ‘DLA Piper’ and words or phrases such as ‘firm,’ ‘law firm’ or ‘international legal practice’ is for
convenience only and does not imply that all or any of such entities are in partnership together or accept responsibility for the acts
or omissions of each other.” DLA PIPER, LEGAL NOTICES, https://www.dlapiper.com/en/us/footer/legalnoticespage/ (last
visited July 14, 2015).
10 “Dentons is a global legal practice providing client services worldwide through its member firms and affiliates …..each of which
is its own Legal Practice. Salans FMC SNR Denton Group (a Swiss Verein) does not itself provide legal or other client services.”
DENTONS, http://www.dentons.com/en/legal-notices (last visited July 14, 2015).
50 | P a g e
