Page 23 - Professional Services Networks
P. 23
The Handbook: Law Firm Networks
to the regulatory distinction between networks and associations.85 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,86 or
Morrison & Forester are law firms in which the partners share profits, expenses, and liabilities. There is no
disclaimer.
Does the disclaimer of the seven Swiss associations (Dentons, DLA Piper, Hogan Lovells, Norton Rose
Fulbright, Baker & McKenzie, King & Wood Mallesons, and Squire Patton Boggs) make them networks?87
Let’s look at some examples of their disclaimers so that the reader can determine their status.
On their website DLA Piper refers to itself as a law firm88 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.”89 In a Google search for Dentons, it describes itself in the search results as a
“global law firm.” In the legal notice on its 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.”90 Similar
disclaimers are found in Hogan Lovells,91 Norton Rose Fulbright,92 Baker & McKenzie,93 King & Wood
Mallesons,94 and Squire Patton Boggs.95 These disclaimers or legal notices seem to parallel those of the Big 4
accounting firms that are clearly and proudly networks. It would appear that the opposite is true for the
vereins who want to be law firms.
Being a law firm allows the vereins to be evaluated in the media as integrated organizations. At the same
time the verein provides the benefit of being an organization that grows quickly.96 The inherent public
relations value to be ranked as among the largest law firms is immeasurable.97 By referring to their recruiting
efforts as “mergers,” the impression is created that the member firms are integrated and each has a global
85 See infra Chapter 7, Regulations and Other Legal Considerations for Networks.
86 The Value of a True Partnership, JONES DAY, www.jonesday.com/atruepartnership/.
87 Defined in Newsweek as “a German word meaning association, club or network.” Lynnley Browning, Legal Swiss Cheese, NEWSWEEK, Dec. 15,
2014, www.newsweek.com/legal-swiss-cheese-291745.
88 For detailed discussion, see Appendix 6. See DLA PIPER, www.dlapiper.com (last visited July14, 2015).
89 “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, www.dlapiper.com/en/us/footer/legalnoticespage/ (last visited July 14, 2015).
90 “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,
www.dentons.com/en/legal-notices (last visited July 14, 2015).
8 “‘Hogan Lovells’ or the ‘firm’ refers to the international legal practice that comprises Hogan Lovells International LLP, Hogan Lovells US LLP and
their affiliated businesses, each of which is a separate legal entity.” HOGAN LOVELLS, www.hoganlovells.com/legal-notices/ (last visited July 22,
2015).
92 “‘References to ‘Norton Rose Fulbright’, ‘the law firm’, and ‘legal practice’ are to one or more of the Norton Rose Fulbright members or to one of
their respective affiliates (together ‘Norton Rose Fulbright entity/entities’). That reference does not imply that the Norton Rose Fulbright entities are
in partnership together, nor that one Norton Rose Fulbright entity accepts responsibility for the acts or omissions of another.” NORTON ROSE
FULBRIGHT, www.nortonrosefulbright.com/legal-notices-and-disclaimers/ (last visited July 14, 2015).
93 “Baker & McKenzie LLP is a member firm of Baker & McKenzie International, a Swiss Verein, with other member law firms around the world. In
accordance with the common terminology used in professional service organizations, reference to a ‘partner’ means a person who is a partner, or
equivalent, in such a law firm. Similarly, reference to an ‘office’ means an office of any such law firm.” BAKER & MCKENZIE LLP,
www.bakermckenzie.com/disclaimers/ (last visited July 14, 2015).
94 “King & Wood Mallesons refers to the network of firms which are members of the King & Wood Mallesons network and their associated service
companies.” KING & WOOD MALLESONS, www.kwm.com/en/legal-notices (last visited July 14, 2015).
95 “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.” SQUIRE PATTON BOGGS, http://www.squirepattonboggs.com/footer/legal-notice (last visited July 14, 2015).
96 Bruce MacEwen , Norton Rose Fulbright: a Merger, a Combination, or Trying to Have It Both Ways?, LEGAL WEEK, Oct. 15, 2014,
www.legalweek.com/legal-week/blog-post/2375816/norton-rose-fulbright-a-merger-combination-or-lawyers-trying-to-have-it-both-ways.
97 This practice has been criticized by integrated law firms as not reflecting the true nature of the firms. See Matt Byrnes, K&L Gates’ Kalis Renews
Attacks on Swiss Vereins, THE LAWYER, www.thelawyer.com/firms-and-the-bar/kl-gates-kalis-renews-attack-on-swiss-vereins-
in-video-interview/3003318.article; see also Ed Shanahan, The Am Law 100: Grand Illusion, THE AM LAW DAILY (May 2, 2011),
amlawdaily.typepad.com/amlawdaily/2011/05/grandillusion.html; see also Tony Williams, Advance of Global Verein Firms, WORLD
SERVICES GROUP, September 2014, www.worldservicesgroup.com/presentations/928/928_2.pdf.
- 11 -
to the regulatory distinction between networks and associations.85 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,86 or
Morrison & Forester are law firms in which the partners share profits, expenses, and liabilities. There is no
disclaimer.
Does the disclaimer of the seven Swiss associations (Dentons, DLA Piper, Hogan Lovells, Norton Rose
Fulbright, Baker & McKenzie, King & Wood Mallesons, and Squire Patton Boggs) make them networks?87
Let’s look at some examples of their disclaimers so that the reader can determine their status.
On their website DLA Piper refers to itself as a law firm88 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.”89 In a Google search for Dentons, it describes itself in the search results as a
“global law firm.” In the legal notice on its 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.”90 Similar
disclaimers are found in Hogan Lovells,91 Norton Rose Fulbright,92 Baker & McKenzie,93 King & Wood
Mallesons,94 and Squire Patton Boggs.95 These disclaimers or legal notices seem to parallel those of the Big 4
accounting firms that are clearly and proudly networks. It would appear that the opposite is true for the
vereins who want to be law firms.
Being a law firm allows the vereins to be evaluated in the media as integrated organizations. At the same
time the verein provides the benefit of being an organization that grows quickly.96 The inherent public
relations value to be ranked as among the largest law firms is immeasurable.97 By referring to their recruiting
efforts as “mergers,” the impression is created that the member firms are integrated and each has a global
85 See infra Chapter 7, Regulations and Other Legal Considerations for Networks.
86 The Value of a True Partnership, JONES DAY, www.jonesday.com/atruepartnership/.
87 Defined in Newsweek as “a German word meaning association, club or network.” Lynnley Browning, Legal Swiss Cheese, NEWSWEEK, Dec. 15,
2014, www.newsweek.com/legal-swiss-cheese-291745.
88 For detailed discussion, see Appendix 6. See DLA PIPER, www.dlapiper.com (last visited July14, 2015).
89 “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, www.dlapiper.com/en/us/footer/legalnoticespage/ (last visited July 14, 2015).
90 “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,
www.dentons.com/en/legal-notices (last visited July 14, 2015).
8 “‘Hogan Lovells’ or the ‘firm’ refers to the international legal practice that comprises Hogan Lovells International LLP, Hogan Lovells US LLP and
their affiliated businesses, each of which is a separate legal entity.” HOGAN LOVELLS, www.hoganlovells.com/legal-notices/ (last visited July 22,
2015).
92 “‘References to ‘Norton Rose Fulbright’, ‘the law firm’, and ‘legal practice’ are to one or more of the Norton Rose Fulbright members or to one of
their respective affiliates (together ‘Norton Rose Fulbright entity/entities’). That reference does not imply that the Norton Rose Fulbright entities are
in partnership together, nor that one Norton Rose Fulbright entity accepts responsibility for the acts or omissions of another.” NORTON ROSE
FULBRIGHT, www.nortonrosefulbright.com/legal-notices-and-disclaimers/ (last visited July 14, 2015).
93 “Baker & McKenzie LLP is a member firm of Baker & McKenzie International, a Swiss Verein, with other member law firms around the world. In
accordance with the common terminology used in professional service organizations, reference to a ‘partner’ means a person who is a partner, or
equivalent, in such a law firm. Similarly, reference to an ‘office’ means an office of any such law firm.” BAKER & MCKENZIE LLP,
www.bakermckenzie.com/disclaimers/ (last visited July 14, 2015).
94 “King & Wood Mallesons refers to the network of firms which are members of the King & Wood Mallesons network and their associated service
companies.” KING & WOOD MALLESONS, www.kwm.com/en/legal-notices (last visited July 14, 2015).
95 “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.” SQUIRE PATTON BOGGS, http://www.squirepattonboggs.com/footer/legal-notice (last visited July 14, 2015).
96 Bruce MacEwen , Norton Rose Fulbright: a Merger, a Combination, or Trying to Have It Both Ways?, LEGAL WEEK, Oct. 15, 2014,
www.legalweek.com/legal-week/blog-post/2375816/norton-rose-fulbright-a-merger-combination-or-lawyers-trying-to-have-it-both-ways.
97 This practice has been criticized by integrated law firms as not reflecting the true nature of the firms. See Matt Byrnes, K&L Gates’ Kalis Renews
Attacks on Swiss Vereins, THE LAWYER, www.thelawyer.com/firms-and-the-bar/kl-gates-kalis-renews-attack-on-swiss-vereins-
in-video-interview/3003318.article; see also Ed Shanahan, The Am Law 100: Grand Illusion, THE AM LAW DAILY (May 2, 2011),
amlawdaily.typepad.com/amlawdaily/2011/05/grandillusion.html; see also Tony Williams, Advance of Global Verein Firms, WORLD
SERVICES GROUP, September 2014, www.worldservicesgroup.com/presentations/928/928_2.pdf.
- 11 -