Clifford Chance Eyeing Indian Nuptials
Here is an example of a "best friends" approach to the Indian legal market. This is the only practical way to exploit that market given the extremely restrictive rules about foreign legal practice that exist at the moment. As a general rule, I normally prefer the best friends approach over the physical presence approach. In India, as noted, the physical presence approach is not feasible in any case.
Tuesday, December 23, 2008
Monday, December 22, 2008
Will Tough Economy Push Companies to Outsource Legal Work?
Will Tough Economy Push Companies to Outsource Legal Work?
This article provides some interesting insights into the problems and benefits of legal process outsourcing, which is rapidly emerging as a means for some major US corporations to reduce their legal costs. The article draws an important distinction between business process outsourcing (back office functions, such as accounting) and the more recent phenomenon of legal process outsourcing, which essentially means turning over complete legal functions to the outsourcing firm. In some cases, companies like Microsoft and GE claim to have achieved significant savings with a superior work product. Of course, the recent ABA ethics opinion (also briefly mentioned in the article) requires a qualified attorney to accept responsibility for the outsourced work. That seems to be the major concern, as, for the time being, legal process outsourcing seems to require a considerable amount of oversight.
This article provides some interesting insights into the problems and benefits of legal process outsourcing, which is rapidly emerging as a means for some major US corporations to reduce their legal costs. The article draws an important distinction between business process outsourcing (back office functions, such as accounting) and the more recent phenomenon of legal process outsourcing, which essentially means turning over complete legal functions to the outsourcing firm. In some cases, companies like Microsoft and GE claim to have achieved significant savings with a superior work product. Of course, the recent ABA ethics opinion (also briefly mentioned in the article) requires a qualified attorney to accept responsibility for the outsourced work. That seems to be the major concern, as, for the time being, legal process outsourcing seems to require a considerable amount of oversight.
Economic Crisis Shifts Asian Spotlight to Litigation
Economic Crisis Shifts Asian Spotlight to Litigation
Much of the information in this article is anecdotal, but it is not surprising. As the large, integrated, global firms see the traditional business of their foreign offices dwindle due to the current economic uncertainties and lack of transactional business, they are being faced with hard choices about what to do with these expensive offices. Not surprisingly, they are trying to adapt them to the available business and to new opportunities, which often means a radical departure from previous traditional business mix. This raises some interesting questions, because this new business also appears to require a different staffing mix than the traditional transactional staff mix. It will be interesting to see how this plays out.
Much of the information in this article is anecdotal, but it is not surprising. As the large, integrated, global firms see the traditional business of their foreign offices dwindle due to the current economic uncertainties and lack of transactional business, they are being faced with hard choices about what to do with these expensive offices. Not surprisingly, they are trying to adapt them to the available business and to new opportunities, which often means a radical departure from previous traditional business mix. This raises some interesting questions, because this new business also appears to require a different staffing mix than the traditional transactional staff mix. It will be interesting to see how this plays out.
Friday, December 19, 2008
Law.com - Berwin Leighton Paisner Set for Russia Launch With Moscow Merger
Law.com - Berwin Leighton Paisner Set for Russia Launch With Moscow Merger
This is an interesting bit of news that comes at a time when most of the news of the legal community is dominated by salary cuts, bonus reductions or eliminations, reductions in staff, sometimes severe, or, worse still, simply going out of business, such as Heller and Thelen. There is some of that in this article too. Obviously, however, the breakup of one firm is another firm's gain. Nevertheless, in these difficult times, it is curious to see that, even though both firms appear to be well acquainted with the "best friends" concept, they did not chose that option and, instead, opted for a more costly, higher risk linkup.
This is an interesting bit of news that comes at a time when most of the news of the legal community is dominated by salary cuts, bonus reductions or eliminations, reductions in staff, sometimes severe, or, worse still, simply going out of business, such as Heller and Thelen. There is some of that in this article too. Obviously, however, the breakup of one firm is another firm's gain. Nevertheless, in these difficult times, it is curious to see that, even though both firms appear to be well acquainted with the "best friends" concept, they did not chose that option and, instead, opted for a more costly, higher risk linkup.
Tuesday, December 9, 2008
A Tale of Two Emirates in the Financial Crisis
A Tale of Two Emirates in the Financial Crisis
This article in another example of the great mobility of the "global firms" to chase opportunity. However, there are ominous storm clouds on the horizon, but the firms still seem to keep coming despite these clear warning signs, which include a 40% decline in property values. While there may still be a belief that anyone can make money in Dubai, and its neighbor Abu Dhabi, experience has taught us that, as the competition grows, not everyone can or will, particularly those who established a presence there without having a real plan or a real need for that presence. Fortunately, mobility expertise may make it easy to withdraw as rapidly as one came, provided the warning signs are appropriately perceived and acted on in a timely fashion.
This article in another example of the great mobility of the "global firms" to chase opportunity. However, there are ominous storm clouds on the horizon, but the firms still seem to keep coming despite these clear warning signs, which include a 40% decline in property values. While there may still be a belief that anyone can make money in Dubai, and its neighbor Abu Dhabi, experience has taught us that, as the competition grows, not everyone can or will, particularly those who established a presence there without having a real plan or a real need for that presence. Fortunately, mobility expertise may make it easy to withdraw as rapidly as one came, provided the warning signs are appropriately perceived and acted on in a timely fashion.
Monday, December 8, 2008
Cold Feet: MegaFirm Calls Off Merger Talks
Cold Feet: MegaFirm Calls Off Merger Talks
It looks as if the current economic climate is impacting more than year-end bonuses and head-counts. One would think, however, that, in more difficult economic times, unless the other partner is in serious difficulty, it would be better to join forces and gain from the synergy than go it alone. Thus, there must be more to this story than has been reported thus far.
It looks as if the current economic climate is impacting more than year-end bonuses and head-counts. One would think, however, that, in more difficult economic times, unless the other partner is in serious difficulty, it would be better to join forces and gain from the synergy than go it alone. Thus, there must be more to this story than has been reported thus far.
lawjobs.com Career Center - Three Ways to Save Big Firms
lawjobs.com Career Center - Three Ways to Save Big Firms
This article states the problems of the current situation for large firms very well and then posits three conclusions:
1. Abolish the distinction between partners and associates;
2. Outside investment in law firms as is already permitted in England and Australia; and
3. Have meaningful covenants not to compete.
All of these conclusions deserve further study and comment, which will come in due course.
This article states the problems of the current situation for large firms very well and then posits three conclusions:
1. Abolish the distinction between partners and associates;
2. Outside investment in law firms as is already permitted in England and Australia; and
3. Have meaningful covenants not to compete.
All of these conclusions deserve further study and comment, which will come in due course.
Wednesday, December 3, 2008
Law.com - White & Case to Undergo Major Reorganization
Law.com - White & Case to Undergo Major Reorganization
The subtitle of this article could be "Global, but not Integrated." But that is now all going to change for W&C it seems. There are some very interesting cross-currents here. The regional structure still leaves open the question of how integrated the individual offices will be, even if they might be better integrated with the other offices in the region. Will the offices in the various regions be integrated with the offices in the other regions, and, if so, how? On the other side is the client team concept, which, at least for the five clients involved, should integrate the entire firm and all its offices behind the needs of the specific clients involved. This structure bears some watching to see how well it plays out and whether it really solves the problems inherent in having a firm with many far flung offices that are essentially independent of one another.
The subtitle of this article could be "Global, but not Integrated." But that is now all going to change for W&C it seems. There are some very interesting cross-currents here. The regional structure still leaves open the question of how integrated the individual offices will be, even if they might be better integrated with the other offices in the region. Will the offices in the various regions be integrated with the offices in the other regions, and, if so, how? On the other side is the client team concept, which, at least for the five clients involved, should integrate the entire firm and all its offices behind the needs of the specific clients involved. This structure bears some watching to see how well it plays out and whether it really solves the problems inherent in having a firm with many far flung offices that are essentially independent of one another.
Tuesday, December 2, 2008
DLA Piper Reviews 40 U.K. Jobs in Redundancy Consultation
DLA Piper Reviews 40 U.K. Jobs in Redundancy Consultation
This looks like the usual suspects in the current market situation, real estate and finance. It looks as if the economic malaise is clearly settling in in most of the major jurisdictions around the world and not just in the major centers, such as New York and London. I suppose this is not surprising taking into account yesterday's news that we have been in a recession for almost a year now. That has to be taking its toll everywhere, not just in the major centers.
This looks like the usual suspects in the current market situation, real estate and finance. It looks as if the economic malaise is clearly settling in in most of the major jurisdictions around the world and not just in the major centers, such as New York and London. I suppose this is not surprising taking into account yesterday's news that we have been in a recession for almost a year now. That has to be taking its toll everywhere, not just in the major centers.
Wednesday, November 26, 2008
Legal Blog Watch
Legal Blog Watch: "Pressure to Cut Costs Drives More Work to India"
The statistics in this article are grim, if you are a US based major law firm. I am reminded of the 2008 Presidential Summit at the Annual Meeting of the New York State Bar Association. One of my co-panelists, Mary C. Daly, the Dean of St. John's Law School in Jamaica, New York, who, unhappily passed away a few days ago, emphatically said, to the surprise of many in the audience, that no serious law firm could ignore outsourcing more routine legal work to India. There were some caveats, of course, but the need to cut costs would drive the process she said. Now we are talking about the loss of 35,000 legal jobs within the span of a bit more than a year and 79,000 in a bit more than six years. I think this is even faster than Dean Daly envisioned.
The statistics in this article are grim, if you are a US based major law firm. I am reminded of the 2008 Presidential Summit at the Annual Meeting of the New York State Bar Association. One of my co-panelists, Mary C. Daly, the Dean of St. John's Law School in Jamaica, New York, who, unhappily passed away a few days ago, emphatically said, to the surprise of many in the audience, that no serious law firm could ignore outsourcing more routine legal work to India. There were some caveats, of course, but the need to cut costs would drive the process she said. Now we are talking about the loss of 35,000 legal jobs within the span of a bit more than a year and 79,000 in a bit more than six years. I think this is even faster than Dean Daly envisioned.
Monday, November 24, 2008
Law.com - Some Glimmers of Sunshine for Law Firms, Say Citi Experts
Law.com - Some Glimmers of Sunshine for Law Firms, Say Citi Experts
This is an article that requires some careful study and analysis. A look at the underlying data might also be necessary to do that properly. Aside from indicating that there might be some pain coming, it is interesting to note that firms with more than 25% of their lawyers abroad (note Nixon Peabody's recently announced objective) seem to be weathering the storm without too much difficulty. However, large New York based firms and firms with a lesser foreign presence seem to be bearing a much heavier burden. I continue to wonder how long overseas offices are going to be an economic benefit in these uncertain economic times.
This is an article that requires some careful study and analysis. A look at the underlying data might also be necessary to do that properly. Aside from indicating that there might be some pain coming, it is interesting to note that firms with more than 25% of their lawyers abroad (note Nixon Peabody's recently announced objective) seem to be weathering the storm without too much difficulty. However, large New York based firms and firms with a lesser foreign presence seem to be bearing a much heavier burden. I continue to wonder how long overseas offices are going to be an economic benefit in these uncertain economic times.
Sunday, November 23, 2008
Anarchy in the UK: More Layoffs Coming
Anarchy in the UK: More Layoffs Coming
Do you get the feeling that this is only the tip of the iceberg? Regrettably, the onset of the current economic uncertainties was very swift. As these uncertainties ripple through all business sectors, it is hard not to imagine they are also going to hit the practice of law at all levels. Weaker practices will probably feel it first, but all most certainly will. Those practices that prepare for the inevitable will no doubt attract more attention as they do so, but, in the long run, they will be stronger for it and will survive better.
Do you get the feeling that this is only the tip of the iceberg? Regrettably, the onset of the current economic uncertainties was very swift. As these uncertainties ripple through all business sectors, it is hard not to imagine they are also going to hit the practice of law at all levels. Weaker practices will probably feel it first, but all most certainly will. Those practices that prepare for the inevitable will no doubt attract more attention as they do so, but, in the long run, they will be stronger for it and will survive better.
Lawyers Wanted - Abroad, That Is - NYTimes.com
Lawyers Wanted - Abroad, That Is - NYTimes.com
This is an interesting article, not just because it mentions my son by name, but because it puts a different spin on overseas offices. Also notable is the chart and the mention that foreign law firms cannot have an office in India. That is going to have to change.
As a practical matter, it is probably much easier to have a young lawyer without a wife and family take an assignment abroad. There is a lot less to manage when you are just moving one versus a family with young children, some of whom might be school age. Also, when you move a family, it may require a longer term commitment than moving a single lawyer.
Underlying all this, however, is the impact of the current economic climate. At the moment, there may be a shortage of qualified talent abroad, but, if the economic uncertainties continue to spread, this may change. For the young lawyer who has been abroad, it may be difficult to repatriate, because, if for nothing else, out of sight, out of mind. The associates who stayed at home will probably have superior chances to remain on board.
This is an interesting article, not just because it mentions my son by name, but because it puts a different spin on overseas offices. Also notable is the chart and the mention that foreign law firms cannot have an office in India. That is going to have to change.
As a practical matter, it is probably much easier to have a young lawyer without a wife and family take an assignment abroad. There is a lot less to manage when you are just moving one versus a family with young children, some of whom might be school age. Also, when you move a family, it may require a longer term commitment than moving a single lawyer.
Underlying all this, however, is the impact of the current economic climate. At the moment, there may be a shortage of qualified talent abroad, but, if the economic uncertainties continue to spread, this may change. For the young lawyer who has been abroad, it may be difficult to repatriate, because, if for nothing else, out of sight, out of mind. The associates who stayed at home will probably have superior chances to remain on board.
Friday, November 21, 2008
Patent Services Outsourcing to India Hits $46 Million
Patent Services Outsourcing to India Hits $46 Million
If anyone doubted that outsourcing to India was not something we had to reckon with, they will have to think again. As more law firms come under pressure from clients to contain fees, and more general counsel look for ways to reduce dependence upon their traditional suppliers of legal services, outsourcing to India and elsewhere looks as if it is starting to look better and better. This is by no means an endorsement of the trend. There are many problems inherent in outsourcing, and we have not even begun to discover what they are or could be.
If anyone doubted that outsourcing to India was not something we had to reckon with, they will have to think again. As more law firms come under pressure from clients to contain fees, and more general counsel look for ways to reduce dependence upon their traditional suppliers of legal services, outsourcing to India and elsewhere looks as if it is starting to look better and better. This is by no means an endorsement of the trend. There are many problems inherent in outsourcing, and we have not even begun to discover what they are or could be.
Law.com - In Surprise Move for Troubled Times, DLA Piper Asks Partners to Contribute Capital
Law.com - In Surprise Move for Troubled Times, DLA Piper Asks Partners to Contribute Capital
Whether this move is unprecedented or not, the comments from the bankers clearly show the need to keep a close eye on these developments. If we are at the beginning or the middle of the credit "crisis" rather than at the end, those "many law firms that have dug deeper into their credit lines this year" will no doubt be headed toward greater problems as time passes. Also, with many firms borrowing "more than 30 percent over last year," they are bound to run into resistance, if they need to increase their borrowings in the future. Notably, DLA, which is sometimes referred to as the world's largest law firm does not seem to have benefited from its geographic exposure. This is not a surprise, because the firm's centers of gravity are in the more significantly affected world economies, and the current economic climate is affecting virtually all world economies in any event.
Whether this move is unprecedented or not, the comments from the bankers clearly show the need to keep a close eye on these developments. If we are at the beginning or the middle of the credit "crisis" rather than at the end, those "many law firms that have dug deeper into their credit lines this year" will no doubt be headed toward greater problems as time passes. Also, with many firms borrowing "more than 30 percent over last year," they are bound to run into resistance, if they need to increase their borrowings in the future. Notably, DLA, which is sometimes referred to as the world's largest law firm does not seem to have benefited from its geographic exposure. This is not a surprise, because the firm's centers of gravity are in the more significantly affected world economies, and the current economic climate is affecting virtually all world economies in any event.
Friday, November 7, 2008
Law.com - Hungry Nixon Set to Hire as Many as 100 From Thelen
Law.com - Hungry Nixon Set to Hire as Many as 100 From Thelen
Once again, we have an article that states Nixon's objective of having one-quarter of its attorneys outside the United States within five years. This is a very tall order, and, unless there is a very good reason for doing this - such as significant existing business or documented need - it is probably a very high risk move. It is almost axiomatic that every large firm thinks it needs a strong collection of branch offices in most, if not all, of the major world markets. However, this can be extremely costly, and, without good business justification, simply a waste of money that could be better employed elsewhere. I continue to believe that it is difficult to have every branch office, particularly, a foreign branch office reflect the same high standards of the major domestic office or offices. With such rapid growth, it is almost certain that the foreign branch offices are going to have to have considerable care and supervision to integrate them properly into the fabric of the firm.
Once again, we have an article that states Nixon's objective of having one-quarter of its attorneys outside the United States within five years. This is a very tall order, and, unless there is a very good reason for doing this - such as significant existing business or documented need - it is probably a very high risk move. It is almost axiomatic that every large firm thinks it needs a strong collection of branch offices in most, if not all, of the major world markets. However, this can be extremely costly, and, without good business justification, simply a waste of money that could be better employed elsewhere. I continue to believe that it is difficult to have every branch office, particularly, a foreign branch office reflect the same high standards of the major domestic office or offices. With such rapid growth, it is almost certain that the foreign branch offices are going to have to have considerable care and supervision to integrate them properly into the fabric of the firm.
Law.com - London Firms Post Solid Financials as Rest of U.K. Starts to Feel the Pinch
Law.com - London Firms Post Solid Financials as Rest of U.K. Starts to Feel the Pinch
With the exception of Trowers, which mentioned it Middle East practice, there is very little indication in this article about the reasons why some firms have enjoyed more success than others. This data warrants further study to see where the various contributions to earnings come from. It could also be that some firms, rather than having a better geographical placement of their practice have a better practice mix. We already know that real estate is causing problems for some London firms. Perhaps, the better performing firms have less involvement with real estate and more with other, more profitable, areas, such as IP. Certainly, there will be more data along these lines coming.
With the exception of Trowers, which mentioned it Middle East practice, there is very little indication in this article about the reasons why some firms have enjoyed more success than others. This data warrants further study to see where the various contributions to earnings come from. It could also be that some firms, rather than having a better geographical placement of their practice have a better practice mix. We already know that real estate is causing problems for some London firms. Perhaps, the better performing firms have less involvement with real estate and more with other, more profitable, areas, such as IP. Certainly, there will be more data along these lines coming.
Thursday, November 6, 2008
Law.com - Top U.K. Firms Say They Could Cut Jobs in Next Six Months
Law.com - Top U.K. Firms Say They Could Cut Jobs in Next Six Months
The article is not very specific about where the cuts are to come, other than to suggest that real estate would be the hardest hit. That could indicate the cuts are coming in domestic real estate, but many of these firms have global real estate practices. This bears watching, because there is probably a lot more coming, and it will probably be firm wide.
The article is not very specific about where the cuts are to come, other than to suggest that real estate would be the hardest hit. That could indicate the cuts are coming in domestic real estate, but many of these firms have global real estate practices. This bears watching, because there is probably a lot more coming, and it will probably be firm wide.
Wednesday, November 5, 2008
Law.com - Miller Canfield Opens New Office in Shanghai
Law.com - Miller Canfield Opens New Office in Shanghai
It takes real courage in these difficult economic and uncertain times to open a foreign branch office. However, the IP area, the main focus of Miller Canfield's new Shanghai office, is an up and coming field, particularly in China.
It takes real courage in these difficult economic and uncertain times to open a foreign branch office. However, the IP area, the main focus of Miller Canfield's new Shanghai office, is an up and coming field, particularly in China.
Thursday, October 16, 2008
Midsized NY Firm Firm Opens Office in Dubai
Midsized NY Firm Firm Opens Office in Dubai
You do not always have to be a big player to play like the big boys, but the risks are clearly a lot higher. This situatution clearly calls out for a "best friends" approach, even though I wish my many friends at Curtis Mallet the best of luck in their foreign branch office endevors.
You do not always have to be a big player to play like the big boys, but the risks are clearly a lot higher. This situatution clearly calls out for a "best friends" approach, even though I wish my many friends at Curtis Mallet the best of luck in their foreign branch office endevors.
Tuesday, October 14, 2008
Law.com - Allen & Overy Loses Seven-Partner Hong Kong Team to Latham
Law.com - Allen & Overy Loses Seven-Partner Hong Kong Team to Latham
This article is important only because of its scale. A seven partner departure is, in deed, a significant "mobility event." When it happens to a "magic circle" firm, it is even more so.
This article is important only because of its scale. A seven partner departure is, in deed, a significant "mobility event." When it happens to a "magic circle" firm, it is even more so.
Friday, October 10, 2008
Law.com - DLA Piper Launches Joint Agreement With Kuwaiti Firm
Law.com - DLA Piper Launches Joint Agreement With Kuwaiti Firm
It has been a while that there has been some interesting international legal services news in the legal press, probably, because everything seems to be dominated by the current economic situation.
This article is interesting because of the joint venture aspects, which is a variant of the "best friends" approach. Perhaps, current economic conditions dictated this approach as it most probably implies less risk and burden to DLA to partner with a firm that is already established and that has a core base of business that, presumably, complements DLA's business in the region.
It has been a while that there has been some interesting international legal services news in the legal press, probably, because everything seems to be dominated by the current economic situation.
This article is interesting because of the joint venture aspects, which is a variant of the "best friends" approach. Perhaps, current economic conditions dictated this approach as it most probably implies less risk and burden to DLA to partner with a firm that is already established and that has a core base of business that, presumably, complements DLA's business in the region.
Thursday, October 2, 2008
Law.com - The 2008 Global 100: The English Advantage
Law.com - The 2008 Global 100: The English Advantage
I have a strong bias towards a well developed and maintained "Best Friends" network, either ad hoc or formal, such as Lex Mundi to which my firm belongs. This article certainly challenges that view. Notably, success from foreign branch offices comes from strong investment, strong management, and strong controls. So, I guess that, if a firm is willing to do those things, it can achieve superior performance. However, there is still the mobility issue. If a regional economy is lagging, a firm with a presence there will have to be diligent about adjusting quickly so that the presence does not become a serious economic burden. For the moment, it looks as if the Magic Circle firms have guessed right about where the big revenues will come from. However, the market is dynamic, and it will be interesting how long the current configuration will be sustainable and what will have to happen when, as will be inevitable, the current offices face hard times to prevent a serious drag on the firm as a whole.
I have a strong bias towards a well developed and maintained "Best Friends" network, either ad hoc or formal, such as Lex Mundi to which my firm belongs. This article certainly challenges that view. Notably, success from foreign branch offices comes from strong investment, strong management, and strong controls. So, I guess that, if a firm is willing to do those things, it can achieve superior performance. However, there is still the mobility issue. If a regional economy is lagging, a firm with a presence there will have to be diligent about adjusting quickly so that the presence does not become a serious economic burden. For the moment, it looks as if the Magic Circle firms have guessed right about where the big revenues will come from. However, the market is dynamic, and it will be interesting how long the current configuration will be sustainable and what will have to happen when, as will be inevitable, the current offices face hard times to prevent a serious drag on the firm as a whole.
Wednesday, October 1, 2008
Boutique Opens in DC With Hire of International Securities Expert
Boutique Opens in DC With Hire of International Securities Expert
This is another transaction that is similar to the Edwards Angell transaction just commented on. It might have been interesting to have been a fly on the wall during the negotiations. Usually, the move is to a bigger firm because of the availability of more resources. Maybe, smaller is better in some circles. I tend to think that is right when you want to have a specialized practice.
This is another transaction that is similar to the Edwards Angell transaction just commented on. It might have been interesting to have been a fly on the wall during the negotiations. Usually, the move is to a bigger firm because of the availability of more resources. Maybe, smaller is better in some circles. I tend to think that is right when you want to have a specialized practice.
Longtime Partner's Start-Up Offers US Firm Hong Kong Presence
Longtime Partner's Start-Up Offers US Firm Hong Kong Presence
There has to be more to this story than what is written in this article. Otherwise, Edwards Angell must have been desperate to have a presence in Hong Kong.
There has to be more to this story than what is written in this article. Otherwise, Edwards Angell must have been desperate to have a presence in Hong Kong.
NY Partner Leads MegaFirm Expansion in Latin America
NY Partner Leads MegaFirm Expansion in Latin America
With all the problems in the US financial sector, news about international matters has been a bit slow of late. Here is one that is very interesting, because, of late, the focus has been elsewhere than on Brazil and Latin America. The quote about the move being client driven is curious. Is there another reason to open a foreign branch office?
With all the problems in the US financial sector, news about international matters has been a bit slow of late. Here is one that is very interesting, because, of late, the focus has been elsewhere than on Brazil and Latin America. The quote about the move being client driven is curious. Is there another reason to open a foreign branch office?
Friday, September 26, 2008
Law.com - Holland & Knight Opens Office in Abu Dhabi
Law.com - Holland & Knight Opens Office in Abu Dhabi
This brief article is another example of the growing interest in the Middle East. It would seem from the level of staffing, two partners and a handful of associates, that this will be more than a mere representative office.
This brief article is another example of the growing interest in the Middle East. It would seem from the level of staffing, two partners and a handful of associates, that this will be more than a mere representative office.
Tuesday, September 16, 2008
Berlin Game: Merger Gives BigLaw Firm Three Offices in Germany
Berlin Game: Merger Gives BigLaw Firm Three Offices in Germany
This post is more for the record than for comment. Orrick seems to be very heavily focused on Europe, and it is certainly putting significant resources there.
This post is more for the record than for comment. Orrick seems to be very heavily focused on Europe, and it is certainly putting significant resources there.
Tuesday, September 9, 2008
Law.com - Overseas Practices Keep British Firms Afloat
Law.com - Overseas Practices Keep British Firms Afloat
This article generates some very provocative questions about the desirability of rapid overseas expansion as a way of staving off declines in traditional markets. Interestingly, Brazil seems to be missing from the preferred growth markets with the greatest focus being in the Emirates. This seems to me to be another example of practice mobility. Put another way, the firms involved are very quickly moving resources to markets that are hot at the moment and away from those that are not. I continue to believe, however, that, long term, this could be a recipe for great trouble when the hot markets start to decline as they inevitably must at some point as competition comes on and the available pool of business becomes very tight. What are the choices then? Stay and tough it out or move on to yet another hot market? This picture does not convey a very stable picture, particularly if the firm chooses to close its office or reduce its presence dramatically.
This article generates some very provocative questions about the desirability of rapid overseas expansion as a way of staving off declines in traditional markets. Interestingly, Brazil seems to be missing from the preferred growth markets with the greatest focus being in the Emirates. This seems to me to be another example of practice mobility. Put another way, the firms involved are very quickly moving resources to markets that are hot at the moment and away from those that are not. I continue to believe, however, that, long term, this could be a recipe for great trouble when the hot markets start to decline as they inevitably must at some point as competition comes on and the available pool of business becomes very tight. What are the choices then? Stay and tough it out or move on to yet another hot market? This picture does not convey a very stable picture, particularly if the firm chooses to close its office or reduce its presence dramatically.
Wednesday, September 3, 2008
Congratulations! You're a Partner . . . Now Pack Your Bags
Congratulations! You're a Partner . . . Now Pack Your Bags
This is just another mobility of personnel story, but the interesting part of it is that the pace does not seem to be letting up.
This is just another mobility of personnel story, but the interesting part of it is that the pace does not seem to be letting up.
Thursday, August 28, 2008
Leveraged Planet - Mergers, Acquisitions, Venture Capital, Hedge Funds -- DealBook - New York Times
Leveraged Planet - Mergers, Acquisitions, Venture Capital, Hedge Funds -- DealBook - New York Times
While this article is not strictly of a legal nature, it underscores the need for global cooperation in many matters, in this case the stability of markets after the near collapse of a prominent US financial institution. It was important to deal with the matter effectively, efficiently, and, most of all, quickly. Law firms often face these same sorts of issues. For the most part, they are usually up to the task.
While this article is not strictly of a legal nature, it underscores the need for global cooperation in many matters, in this case the stability of markets after the near collapse of a prominent US financial institution. It was important to deal with the matter effectively, efficiently, and, most of all, quickly. Law firms often face these same sorts of issues. For the most part, they are usually up to the task.
Law.com - International Posts: DLA Piper's Peter Valert in Prague and Sofia
Law.com - International Posts: DLA Piper's Peter Valert in Prague and Sofia
This is another article that underscores the mobility in the profession, with a very specific example as Valert ferries between Prague and Sofia. However, the article also points out that, while once there were a large number of expats involved in the practice of law int the Czech Republic and Bulgaria, the local lawyers are becoming more capable thus eliminating the need for as many expats. Presumably, in keeping with today's mobility in the profession, the unneeded expats have moved on to greener pastures.
This is another article that underscores the mobility in the profession, with a very specific example as Valert ferries between Prague and Sofia. However, the article also points out that, while once there were a large number of expats involved in the practice of law int the Czech Republic and Bulgaria, the local lawyers are becoming more capable thus eliminating the need for as many expats. Presumably, in keeping with today's mobility in the profession, the unneeded expats have moved on to greener pastures.
Wednesday, August 27, 2008
Law.com - ABA Gives Thumbs Up to Legal Outsourcing
Law.com - ABA Gives Thumbs Up to Legal Outsourcing
This is a very interesting development, and it portends some very significant changes to come in the way legal services are delivered, not just globally but locally as well. Once law firms gain experience working with remote service providers, will it still be necessary to have as many young lawyers on staff? Even if your practice is strictly local, if your peer law firms have decided to outsource much of their basic research and similar requirements, can you afford not to do that as well?
When you couple this development with other recent developments, such as, non-lawyer ownership of law firms, which is coming in the UK and already exists in Australia, will it still be necessary to have law firms of the type we have today? It may make more sense for large consumers of legal services to own their own core group of lawyers who then outsource as much as possible. This would essentially make today's law firm an outmoded structure.
Also, this may make it easier, or even necessary, for individual lawyers to establish their own identity and work independent of law firms. The attorney-client relationship is, after all, still in many aspects a one-to-one relationship. A top lawyer with a good reputation and a good presence on the Internet, may find it more interesting to work alone and create, or become part of, teams on an ad hoc basis. If you have not noticed, this is how many other service industries are going. Many young people in those industries these days have multiple employers whom they service over the Internet. Why should law be any different, particularly when the rules are changing to make that easier.
This is a very interesting development, and it portends some very significant changes to come in the way legal services are delivered, not just globally but locally as well. Once law firms gain experience working with remote service providers, will it still be necessary to have as many young lawyers on staff? Even if your practice is strictly local, if your peer law firms have decided to outsource much of their basic research and similar requirements, can you afford not to do that as well?
When you couple this development with other recent developments, such as, non-lawyer ownership of law firms, which is coming in the UK and already exists in Australia, will it still be necessary to have law firms of the type we have today? It may make more sense for large consumers of legal services to own their own core group of lawyers who then outsource as much as possible. This would essentially make today's law firm an outmoded structure.
Also, this may make it easier, or even necessary, for individual lawyers to establish their own identity and work independent of law firms. The attorney-client relationship is, after all, still in many aspects a one-to-one relationship. A top lawyer with a good reputation and a good presence on the Internet, may find it more interesting to work alone and create, or become part of, teams on an ad hoc basis. If you have not noticed, this is how many other service industries are going. Many young people in those industries these days have multiple employers whom they service over the Internet. Why should law be any different, particularly when the rules are changing to make that easier.
Thursday, August 21, 2008
Law.com - International Posts: Shearman & Sterling's Andrew Janszky in Sao Paulo
Law.com - International Posts: Shearman & Sterling's Andrew Janszky in Sao Paulo
This article underscores an interesting aspect of attorney mobility. It is one thing to talk about shifting resources to enhance business opportunities, but the reality of the situation is that real people, and, often, their families, must face the personal issues involved. Good luck to Mr. Janszky and his family!
This article underscores an interesting aspect of attorney mobility. It is one thing to talk about shifting resources to enhance business opportunities, but the reality of the situation is that real people, and, often, their families, must face the personal issues involved. Good luck to Mr. Janszky and his family!
Wednesday, August 20, 2008
Law.com - Dozen 'Stolen' Taylor Wessing Partners Headed to Nixon Peabody
Law.com - Dozen 'Stolen' Taylor Wessing Partners Headed to Nixon Peabody
Here is a follow up to an earlier article and my comments on that article in this blog. It seems to me that, if law firms are going to start behaving like commercial entities, that this spate of litigation over a busted deal is a natural progression. There was a time when law firms were professional organizations that behaved much differently. Once they lose that status, all bets are off.
Here is a follow up to an earlier article and my comments on that article in this blog. It seems to me that, if law firms are going to start behaving like commercial entities, that this spate of litigation over a busted deal is a natural progression. There was a time when law firms were professional organizations that behaved much differently. Once they lose that status, all bets are off.
Monday, August 18, 2008
Law.com - Dechert Expands in Asia With Beijing Office
Law.com - Dechert Expands in Asia With Beijing Office
Deckert makes another move in China to join a growing number of firms that want to have a presence there. Deckert's experience underscores the competition for qualified people who understand the China market, and it looks as if the competition for them is becoming intense, another "mobility issue." The article also contains a number of references to what other firms are doing in China and the route they took to gain a presence there. Finally, I do not think the reference to Duane Morris' Singapore and two Vietnam offices really qualify as a base for activities in China. If you want to be in China, you really have to be there.
Deckert makes another move in China to join a growing number of firms that want to have a presence there. Deckert's experience underscores the competition for qualified people who understand the China market, and it looks as if the competition for them is becoming intense, another "mobility issue." The article also contains a number of references to what other firms are doing in China and the route they took to gain a presence there. Finally, I do not think the reference to Duane Morris' Singapore and two Vietnam offices really qualify as a base for activities in China. If you want to be in China, you really have to be there.
Tuesday, August 12, 2008
Law.com - Eversheds Signs New Deal to Outsource Work to India
Law.com - Eversheds Signs New Deal to Outsource Work to India
There was a very interesting article in this morning's New York Times entitled "Cost-Cutting in New York, but a Boom in India" about the outsourcing of financial analysis services to India. Some of the services being outsourced are at a higher level, more comparable to what used to be performed in places like New York, London, or Hong Kong. They are not "entry level" services. It seems that some of the world's major financial institutions are outsourcing financial analysis services on an increasingly grand scale. The article quotes the number of personnel some of the major banks have involved, and the numbers are, in deed, impressive.
Then, in this morning's Law.com there was the above noted feature about Eversheds doing the same thing in the legal services area. This is another example of the mobility of legal services, particularly, legal services of a commodity nature, which is the case here - the services in question are indicated to be services that cannot be performed at a reasonable cost inhouse or at Eversheds. So long as the ethical considerations are properly observed, these services can usually be performed elsewhere, usually at substantially less cost. This leads to the obvious conclusion that it is going to become increasingly more necessary for larger law firms to be able to access these outsourcing services in an ethically appropriate way.
There was a very interesting article in this morning's New York Times entitled "Cost-Cutting in New York, but a Boom in India" about the outsourcing of financial analysis services to India. Some of the services being outsourced are at a higher level, more comparable to what used to be performed in places like New York, London, or Hong Kong. They are not "entry level" services. It seems that some of the world's major financial institutions are outsourcing financial analysis services on an increasingly grand scale. The article quotes the number of personnel some of the major banks have involved, and the numbers are, in deed, impressive.
Then, in this morning's Law.com there was the above noted feature about Eversheds doing the same thing in the legal services area. This is another example of the mobility of legal services, particularly, legal services of a commodity nature, which is the case here - the services in question are indicated to be services that cannot be performed at a reasonable cost inhouse or at Eversheds. So long as the ethical considerations are properly observed, these services can usually be performed elsewhere, usually at substantially less cost. This leads to the obvious conclusion that it is going to become increasingly more necessary for larger law firms to be able to access these outsourcing services in an ethically appropriate way.
Friday, August 8, 2008
Law.com - International Posts: Clifford Chance's Nicholas Fletcher, in Warsaw
Law.com - International Posts: Clifford Chance's Nicholas Fletcher, in Warsaw
Fletcher has some very interesting perspectives and comments on working in Eastern Europe during a very important time in its transition from Communism to Capitalism.
Fletcher has some very interesting perspectives and comments on working in Eastern Europe during a very important time in its transition from Communism to Capitalism.
Law.com - Linklaters Makes High-Profile FTC Hire in New York
Law.com - Linklaters Makes High-Profile FTC Hire in New York
This is a very interesting move that continues to prove what I think many of us have suspected for a long time. Many of the Magic Circle firms are hedging their bets by establishing significant presences in New York. If there is only going to be one major world legal center, London and New York top the list. Having a strong presence in each means, no matter which way it turns out, they will be there in force.
This is a very interesting move that continues to prove what I think many of us have suspected for a long time. Many of the Magic Circle firms are hedging their bets by establishing significant presences in New York. If there is only going to be one major world legal center, London and New York top the list. Having a strong presence in each means, no matter which way it turns out, they will be there in force.
Thursday, August 7, 2008
Law.com - Taylor Wessing Fears Over Outside Investment Triggered Disputed Paris Merger
Law.com - Taylor Wessing Fears Over Outside Investment Triggered Disputed Paris Merger
This article gives a glimpse of what may come when law firms may have non-lawyer ownership and may run more like a business than a professional practice. It all starts when Taylor Wessing started its Paris office with the acquisition of a 30 lawyer team from an accounting firm. Then, it seems Taylor started to explore financing possibilities under the upcoming UK Legal Services Act. This upset Taylor's Paris partners and they decided to talk to a US based firm about a merger that would take them out of Taylor. When Taylor's other partners learned of the Paris partners' merger plans, they intervened and were able to talk the Paris partners into staying put, or, at least that is what people thought. However, the Paris managing partner stepped down and apparently continued to pursue merger discussions with the US firm. This has now triggered Taylor to bring a law suit against the US firm for breach of various duties, including a non-poaching clause in the documents signed when the merger was under discussion. This is beginning to sound a bit like Microsoft and Yahoo. I guess these things are to be expected when professional practices start behaving like commercial businesses.
This article gives a glimpse of what may come when law firms may have non-lawyer ownership and may run more like a business than a professional practice. It all starts when Taylor Wessing started its Paris office with the acquisition of a 30 lawyer team from an accounting firm. Then, it seems Taylor started to explore financing possibilities under the upcoming UK Legal Services Act. This upset Taylor's Paris partners and they decided to talk to a US based firm about a merger that would take them out of Taylor. When Taylor's other partners learned of the Paris partners' merger plans, they intervened and were able to talk the Paris partners into staying put, or, at least that is what people thought. However, the Paris managing partner stepped down and apparently continued to pursue merger discussions with the US firm. This has now triggered Taylor to bring a law suit against the US firm for breach of various duties, including a non-poaching clause in the documents signed when the merger was under discussion. This is beginning to sound a bit like Microsoft and Yahoo. I guess these things are to be expected when professional practices start behaving like commercial businesses.
Tuesday, August 5, 2008
Law.com - O'Melveny Opens in Singapore With White & Case Hire
Law.com - O'Melveny Opens in Singapore With White & Case Hire
Here is another example of mobility and the growing interest in Singapore. Mobility, as we have pointed out comes in many forms. We see two of them here: the move from firm to firm and the move from one jurisdiction to another. It will be interesting to see if Singapore can sustain its appeal over the long haul. Ultimately, India will have to relax its current restrictions on foreign law firms establishing there. Once that happens, the appeal of Singapore will no doubt diminish considerably as some firms will move quickly to establish there. We will then probably see another form of mobility, the mobility of capital and resources as firms transfer from Singapore to India.
Here is another example of mobility and the growing interest in Singapore. Mobility, as we have pointed out comes in many forms. We see two of them here: the move from firm to firm and the move from one jurisdiction to another. It will be interesting to see if Singapore can sustain its appeal over the long haul. Ultimately, India will have to relax its current restrictions on foreign law firms establishing there. Once that happens, the appeal of Singapore will no doubt diminish considerably as some firms will move quickly to establish there. We will then probably see another form of mobility, the mobility of capital and resources as firms transfer from Singapore to India.
Friday, August 1, 2008
Hunton Sets Its Sights on Akin Gump
Hunton Sets Its Sights on Akin Gump
This is interesting. Two hundred and forty-seven laterals and counting. How does a firm manage its culture and its traditions when it starts to import such large groups of lawyers on a wholesale basis. Today's posts seem to suggest that mobility is growing considerably in the profession. Some of it is inspired by tough economic times, but, obviously, not all is. Some firms still think they can beat the trend and move forward, despite the economic difficulties others may be facing. In that regard, they might want to look back on some of Cadwalader's statements from 2007.
This is interesting. Two hundred and forty-seven laterals and counting. How does a firm manage its culture and its traditions when it starts to import such large groups of lawyers on a wholesale basis. Today's posts seem to suggest that mobility is growing considerably in the profession. Some of it is inspired by tough economic times, but, obviously, not all is. Some firms still think they can beat the trend and move forward, despite the economic difficulties others may be facing. In that regard, they might want to look back on some of Cadwalader's statements from 2007.
ong Kong So Long: NY Leader Loses Asia Partner
Hong Kong So Long: NY Leader Loses Asia Partner
More examples of increasing mobility in the profession. This coupled with downsizing and other phenomena regarding legal talent means that the legal placement firms will probably start hiring some of the talent agents from professional sports. That would add an interesting dimension. You can hire away a practice group leader, but you have to give up two US Supreme Court clerks when they finish their term...Law schools might start having legal talent drafts with law review editors going to the firm with the highest right to pick...
More examples of increasing mobility in the profession. This coupled with downsizing and other phenomena regarding legal talent means that the legal placement firms will probably start hiring some of the talent agents from professional sports. That would add an interesting dimension. You can hire away a practice group leader, but you have to give up two US Supreme Court clerks when they finish their term...Law schools might start having legal talent drafts with law review editors going to the firm with the highest right to pick...
Law.com - DLA Faces Job Cuts as Effects of Crunch Continue to Take Hold
Law.com - DLA Faces Job Cuts as Effects of Crunch Continue to Take Hold
While this might not be the best example of an increasingly more common phenomenon, it is definitely an example that illustrates the growing trend of many firms to respond quickly and decisively to changing market conditions. Cadwalader would be another example with layoffs of about 130 or so professional staff in to tranches, about 35 and then another 95. It is true that law firms are also businesses, but there was a time when they put more emphasis on the professional side of things. Now, some are starting to look like automobile companies, laying off production workers the first sign that a car model is in trouble. If this is the future of law firms, then it will only be a matter of time before we see union type activity, particularly at the support staff and associate levels.
While this might not be the best example of an increasingly more common phenomenon, it is definitely an example that illustrates the growing trend of many firms to respond quickly and decisively to changing market conditions. Cadwalader would be another example with layoffs of about 130 or so professional staff in to tranches, about 35 and then another 95. It is true that law firms are also businesses, but there was a time when they put more emphasis on the professional side of things. Now, some are starting to look like automobile companies, laying off production workers the first sign that a car model is in trouble. If this is the future of law firms, then it will only be a matter of time before we see union type activity, particularly at the support staff and associate levels.
Wednesday, July 30, 2008
CC Gets A-OK for Abu Dhabi Debut
CC Gets A-OK for Abu Dhabi Debut
Clifford Change joins a growing list of law firms expanding their presence in Abu Dhabi. Interestingly, Clifford Chance appears to be pursuing Riyadh through a best friends relationship that is now in its 10th year.
Clifford Change joins a growing list of law firms expanding their presence in Abu Dhabi. Interestingly, Clifford Chance appears to be pursuing Riyadh through a best friends relationship that is now in its 10th year.
Friends With Benefits: BigLaw Finds Informal Overseas Liaisons Satisfying
Friends With Benefits: BigLaw Finds Informal Overseas Liaisons Satisfying
This is a very interesting article with a number of "best friends" success stories. Many firms do not see the need for, or the benefit of, having offices around the world. Instead, they search out relationships with local firms with which they can form more or less permanent alliances to meet the needs of clients. This often produces very satisfactory results with much lower costs and risks for the "best friends." A word of caution, however, relying on best friends relationships does not mean there is no work involved. To maintain a good best friends network takes a lot of work and requires considerable effort to keep the relationship in order. Among the things that must be done is broad-scale meetings between the firms on a periodic basis. Thus, there is a clear cost to best friends relationships.
This is a very interesting article with a number of "best friends" success stories. Many firms do not see the need for, or the benefit of, having offices around the world. Instead, they search out relationships with local firms with which they can form more or less permanent alliances to meet the needs of clients. This often produces very satisfactory results with much lower costs and risks for the "best friends." A word of caution, however, relying on best friends relationships does not mean there is no work involved. To maintain a good best friends network takes a lot of work and requires considerable effort to keep the relationship in order. Among the things that must be done is broad-scale meetings between the firms on a periodic basis. Thus, there is a clear cost to best friends relationships.
Friday, July 25, 2008
Law.com - Allen & Overy Continues Reign at Top of Global Projects Rankings
Law.com - Allen & Overy Continues Reign at Top of Global Projects Rankings
This article is worth a read just to get a sense of the scope of what international transactional work is at the moment. It is a bit disappointing to see that US firms are not as active players as some of their UK counterparts.
This article is worth a read just to get a sense of the scope of what international transactional work is at the moment. It is a bit disappointing to see that US firms are not as active players as some of their UK counterparts.
Thursday, July 24, 2008
Law.com - Manatt's China Energy Gambit
Law.com - Manatt's China Energy Gambit
This article discusses an interesting approach to China. Notice that Manatt says it has no current plans to open an office in China. It did, however, hire a well versed Chinese practitioner who has demonstrated considerable mobility on his own to assist with developing business in China.
This article discusses an interesting approach to China. Notice that Manatt says it has no current plans to open an office in China. It did, however, hire a well versed Chinese practitioner who has demonstrated considerable mobility on his own to assist with developing business in China.
Law.com - Latham Puts Lawyers in Mideast Offices
Law.com - Latham Puts Lawyers in Mideast Offices
Here is another article that illustrates the increasing mobility of law firms and their staff. While the article does not say, it is hard to imagine that the partners involved are qualified in the localities in which they will be resident on very short notice. These are opportunistic moves to try to take advantage of what may prove to be transient opportunities. If these opportunities fail to materialize as expected or disappear over time, no doubt the staff involved will be assigned elsewhere.
Here is another article that illustrates the increasing mobility of law firms and their staff. While the article does not say, it is hard to imagine that the partners involved are qualified in the localities in which they will be resident on very short notice. These are opportunistic moves to try to take advantage of what may prove to be transient opportunities. If these opportunities fail to materialize as expected or disappear over time, no doubt the staff involved will be assigned elsewhere.
Wednesday, July 23, 2008
Law.com - Covington Set for Asia With Beijing Office Launch
Law.com - Covington Set for Asia With Beijing Office Launch
Another firm is joining the throng with an office in Beijing. It is hard at the moment to have a "best friend" in China due to the absence of many local firms. Given the size of the market, it does not look as if it is getting crowded yet. However, I still think that the greatest opportunities in China lie in the secondary and tertiary cities. Costs there are much lower, there is virtually no competition, and the need is great. As China is such a large country, it might make sense to branch out from Beijing and/or Shanghai to the secondary and tertiary cities. There are many of them as China has more than 100 cities with a population of 1.0 million or more.
Another firm is joining the throng with an office in Beijing. It is hard at the moment to have a "best friend" in China due to the absence of many local firms. Given the size of the market, it does not look as if it is getting crowded yet. However, I still think that the greatest opportunities in China lie in the secondary and tertiary cities. Costs there are much lower, there is virtually no competition, and the need is great. As China is such a large country, it might make sense to branch out from Beijing and/or Shanghai to the secondary and tertiary cities. There are many of them as China has more than 100 cities with a population of 1.0 million or more.
Monday, July 21, 2008
Law.com - Emerging Markets Prove Fertile Ground as U.K. Firms Reap Benefits of International Strategies
Law.com - Emerging Markets Prove Fertile Ground as U.K. Firms Reap Benefits of International Strategies
This article is another in a recent series of articles pointing out the benefits of global diversification. While this is, to a slight degree, a surprising result to me, the evidence seems to be there that it worked this year for a number of firms.
I think it remains to be seen, however, whether these benefits can continue if the so-called "head-quarters" jurisdictions are experiencing difficulty. The head-quarters jurisdictions often have a significant share of the cost and also revenue contribution. If these jurisdictions are experiencing difficulty on a sustained basis, it will likely infect the whole organization.
Put another way, It is hard to see that smaller, geographically disbursed branch operations can be the locomotive that drives the entire firm.
It is also interesting that no firm has given credit to all of the BRIC countries. Freshfields seems to be focusing on China and Russia and did not mention Brazil or India.
At the end of the day, the watchword is mobility of resources. Those firms that are most successful in moving resources from high cost, low revenue jurisdictions to higher revenue jurisdictions will be able to weather the economic storm that seems to be brewing.
This article is another in a recent series of articles pointing out the benefits of global diversification. While this is, to a slight degree, a surprising result to me, the evidence seems to be there that it worked this year for a number of firms.
I think it remains to be seen, however, whether these benefits can continue if the so-called "head-quarters" jurisdictions are experiencing difficulty. The head-quarters jurisdictions often have a significant share of the cost and also revenue contribution. If these jurisdictions are experiencing difficulty on a sustained basis, it will likely infect the whole organization.
Put another way, It is hard to see that smaller, geographically disbursed branch operations can be the locomotive that drives the entire firm.
It is also interesting that no firm has given credit to all of the BRIC countries. Freshfields seems to be focusing on China and Russia and did not mention Brazil or India.
At the end of the day, the watchword is mobility of resources. Those firms that are most successful in moving resources from high cost, low revenue jurisdictions to higher revenue jurisdictions will be able to weather the economic storm that seems to be brewing.
Friday, July 18, 2008
Law.com - Global Focus Drives U.K. Top 50 as Firms Weather Global Crunch
Law.com - Global Focus Drives U.K. Top 50 as Firms Weather Global Crunch
The statics from the British law firms continue to amaze. It looks as if they have achieved a certain amount of mobility to shift assets and resources from lower performing areas to superior performing areas. This is becoming a very common business model in the business arena. These sorts of results have to give one pause and must force careful consideration of the merits of the global integrated law firm model.
The statics from the British law firms continue to amaze. It looks as if they have achieved a certain amount of mobility to shift assets and resources from lower performing areas to superior performing areas. This is becoming a very common business model in the business arena. These sorts of results have to give one pause and must force careful consideration of the merits of the global integrated law firm model.
Thursday, July 17, 2008
Law.com - Solid Growth for Allen & Overy and Linklaters
Law.com - Solid Growth for Allen & Overy and Linklaters
No matter how you view these results, they are impressive. The question that remains open is how sustainable are they in an economic downturn, which may be the situation confronting us now. I suspect there is a considerable amount of leveraging in these numbers, and leveraging, as we know, works both ways.
No matter how you view these results, they are impressive. The question that remains open is how sustainable are they in an economic downturn, which may be the situation confronting us now. I suspect there is a considerable amount of leveraging in these numbers, and leveraging, as we know, works both ways.
Thursday, July 10, 2008
Law.com - U.S. Firms' London Growth Plans Undimmed by Downturn
Law.com - U.S. Firms' London Growth Plans Undimmed by Downturn
There are some interesting statistics in this article about the expansion plans of the US law firms in London. It is curious though, that, with an admitted downturn in business, so many firms are planning to push ahead aggressively. That sounds like a good way to saturate the market and cause a shakeout of the weaker elements many of which may well have been weakened by overly ambitious growth plans that were not warranted. Time will tell whether this is a good strategy in these times. Also, as a general rule, I favor the best friends approach whenever possible. London is a city where there are many fine choices for best friends.
There are some interesting statistics in this article about the expansion plans of the US law firms in London. It is curious though, that, with an admitted downturn in business, so many firms are planning to push ahead aggressively. That sounds like a good way to saturate the market and cause a shakeout of the weaker elements many of which may well have been weakened by overly ambitious growth plans that were not warranted. Time will tell whether this is a good strategy in these times. Also, as a general rule, I favor the best friends approach whenever possible. London is a city where there are many fine choices for best friends.
Wednesday, July 9, 2008
Dubai for Now: Corporate Honcho Heads to Mideast
Dubai for Now: Corporate Honcho Heads to Mideast
The most important aspect of this article is the emphasis some firms are placing on the Mideast. Latham & Watkins is said to be launching three offices in the region and sending some heavy weight people there to look after things. For the time being, oil revenues may support this level of lawyer presence. However, should oil revenues fall significantly, for whatever reason, and there could be many reasons, not the least of which is recession with more use of alternative energy sources lurking in the background, there could be a lot of very expensive downsizing.
The most important aspect of this article is the emphasis some firms are placing on the Mideast. Latham & Watkins is said to be launching three offices in the region and sending some heavy weight people there to look after things. For the time being, oil revenues may support this level of lawyer presence. However, should oil revenues fall significantly, for whatever reason, and there could be many reasons, not the least of which is recession with more use of alternative energy sources lurking in the background, there could be a lot of very expensive downsizing.
Country's Biggest Firm Raids NY Leader for Partner Pair
Country's Biggest Firm Raids NY Leader for Partner Pair
This is another "mobility" article. At least the author saw fit to call it a "raid." That is what it sounds like when you take several partners and a number of associates. The test of the pudding, as it were is going to be how long the new attorneys stay. Once they see how easy it is to be "mobile," the more often, in my view, they are likely to move on when they think the grass is greener somewhere else. This really cannot be good for the profession long term.
This is another "mobility" article. At least the author saw fit to call it a "raid." That is what it sounds like when you take several partners and a number of associates. The test of the pudding, as it were is going to be how long the new attorneys stay. Once they see how easy it is to be "mobile," the more often, in my view, they are likely to move on when they think the grass is greener somewhere else. This really cannot be good for the profession long term.
Law.com - Bracing for China Monopoly Law
Law.com - Bracing for China Monopoly Law
Not only is this an interesting and informative article on a very timely topic, the article lists a number of prominent law firms with offices in China, most of which are in Beijing or Shanghai.
Not only is this an interesting and informative article on a very timely topic, the article lists a number of prominent law firms with offices in China, most of which are in Beijing or Shanghai.
Law.com - Salans Gets Approval for Beijing Office Launch
Law.com - Salans Gets Approval for Beijing Office Launch
This article is illustrative of several trends that I have been highlighting in this blog since its inception. The first is the growing emphasis on the importance of having an office in a major Chinese city, such as Beijing or Shanghai. Another is the mobility of legal personnel, in one case upward mobility. Muller joined Salans from the Shanghai office of another firm, but only as an associate. Now, he heads Salans' Beijing office as a partner. Also note that Salans launched a Frankfurt office with the hire of a small group, including partners and associates, from another German law firm.
This article is illustrative of several trends that I have been highlighting in this blog since its inception. The first is the growing emphasis on the importance of having an office in a major Chinese city, such as Beijing or Shanghai. Another is the mobility of legal personnel, in one case upward mobility. Muller joined Salans from the Shanghai office of another firm, but only as an associate. Now, he heads Salans' Beijing office as a partner. Also note that Salans launched a Frankfurt office with the hire of a small group, including partners and associates, from another German law firm.
Tuesday, July 8, 2008
Law.com - Top London Partner Moves From Shearman to Weil Gotshal
Law.com - Top London Partner Moves From Shearman to Weil Gotshal
This is just another example of extreme mobility in the profession and the possible consequences to firms that play that game. According to the article, Peter King was a Linlkaters until 2003 when he left to go to S&S' London office where he remained until last week and resigned to go to Weil Gotshal's London office. This move may leave a hole in S&S's London corporate practice, but should this come as a surprise to S&S or to Weil Gotshal, if in a few years, King decides to move on again? There was something charming about the not so old notion that partnerships were for life. When legal talent becomes as mobile as major league sports figures who are recruited and traded back and forth, it takes something from the profession. While it may be very much part of the business of law these days, I think the profession loses, as do those firms who play that game.
This is just another example of extreme mobility in the profession and the possible consequences to firms that play that game. According to the article, Peter King was a Linlkaters until 2003 when he left to go to S&S' London office where he remained until last week and resigned to go to Weil Gotshal's London office. This move may leave a hole in S&S's London corporate practice, but should this come as a surprise to S&S or to Weil Gotshal, if in a few years, King decides to move on again? There was something charming about the not so old notion that partnerships were for life. When legal talent becomes as mobile as major league sports figures who are recruited and traded back and forth, it takes something from the profession. While it may be very much part of the business of law these days, I think the profession loses, as do those firms who play that game.
Thursday, July 3, 2008
Law.com - Global Growth Has the Greatest Impact on In-House Legal Departments
Law.com - Global Growth Has the Greatest Impact on In-House Legal Departments
An interesting statistic in this article is how low many GCs rate their own legal departments. This looks like an opportunity for outside law firms to pick up the slack and provide much needed quality legal services. Unfortunately, the GCs seem to be equally negative or more so about their outside legal relationships. This is obviously an area for further study. The law firm that gets it right is likely to start to reap benefits.
An interesting statistic in this article is how low many GCs rate their own legal departments. This looks like an opportunity for outside law firms to pick up the slack and provide much needed quality legal services. Unfortunately, the GCs seem to be equally negative or more so about their outside legal relationships. This is obviously an area for further study. The law firm that gets it right is likely to start to reap benefits.
Wednesday, July 2, 2008
NY Firm Continues Euro Push With Ties to Top Deal Lawyer's Boutique
NY Firm Continues Euro Push With Ties to Top Deal Lawyer's Boutique
Here is a new "best friends" approach. Interestingly, Willkie already has an office in London. So, this arrangement with Dickson Minto is in addition to Willkie's existing presence.
Here is a new "best friends" approach. Interestingly, Willkie already has an office in London. So, this arrangement with Dickson Minto is in addition to Willkie's existing presence.
Everybody Samba!: NY Leader Opens in Brazil
Everybody Samba!: NY Leader Opens in Brazil
It is surprising that more US law firms are not focused more strongly on Latin America. The B in BRIC stands for Brazil after all, and there is a lot going on throughout the region. Simpson Thacher's move to Sao Paulo should be an interesting study for other firms who have an interest in the region. I continue to believe, however, that, unless there is a compelling reason to have a presence in a region, the best friends approach has great merit, particularly if done properly.
It is surprising that more US law firms are not focused more strongly on Latin America. The B in BRIC stands for Brazil after all, and there is a lot going on throughout the region. Simpson Thacher's move to Sao Paulo should be an interesting study for other firms who have an interest in the region. I continue to believe, however, that, unless there is a compelling reason to have a presence in a region, the best friends approach has great merit, particularly if done properly.
Growth Spurt: Firm Picks Up 53 Laterals in One Day
Growth Spurt: Firm Picks Up 53 Laterals in One Day
While this is not an international acquisition by any stretch of the imagination, it is another example of the increasing mobility of groups of lawyers throughout the profession both domestically and internationally. It is also reminiscent of the recent jump of most of Thacher Profitt's Latin American practice, including Thacher's Mexico City office, to Chabourne. It might be logical to assume that the economic downturn in the US and elsewhere will put more stress on law firms and accelerate the pace of combinations, whether they are called "laterals" as this one was, mergers, or just poaching a practice group.
While this is not an international acquisition by any stretch of the imagination, it is another example of the increasing mobility of groups of lawyers throughout the profession both domestically and internationally. It is also reminiscent of the recent jump of most of Thacher Profitt's Latin American practice, including Thacher's Mexico City office, to Chabourne. It might be logical to assume that the economic downturn in the US and elsewhere will put more stress on law firms and accelerate the pace of combinations, whether they are called "laterals" as this one was, mergers, or just poaching a practice group.
Monday, June 30, 2008
Law.com - DLA Piper Cuts Ties With Saudi Ally
Law.com - DLA Piper Cuts Ties With Saudi Ally
Not every marriage is made in heaven, and, sometimes, even those that are run into snags. The problem is, of course, the need to have the support of a local firm to maintain a presence in Saudi Arabia. It would probably have been more prudent to have lined up the next firm before cutting loose the first firm. Finding a firm in Saudi Arabia may be easier said than done.
Not every marriage is made in heaven, and, sometimes, even those that are run into snags. The problem is, of course, the need to have the support of a local firm to maintain a presence in Saudi Arabia. It would probably have been more prudent to have lined up the next firm before cutting loose the first firm. Finding a firm in Saudi Arabia may be easier said than done.
Sunday, June 29, 2008
Law.com - Justice Breyer: Use of Foreign Materials Is 'Going to Happen'
Law.com - Justice Breyer: Use of Foreign Materials Is 'Going to Happen'
The long-terms implications of these ideas are quite interesting. The blurring of the sources of law would, no doubt lead to greater harmonization of legal systems around the globe. However, it may also lead to less predictability, if unexpected foreign law can be considered as a possible solution.
The long-terms implications of these ideas are quite interesting. The blurring of the sources of law would, no doubt lead to greater harmonization of legal systems around the globe. However, it may also lead to less predictability, if unexpected foreign law can be considered as a possible solution.
Law.com - Another Am Law 100 Chairman Heads for New York
Law.com - Another Am Law 100 Chairman Heads for New York
As an New York lawyer who is very active in the International Law and Practise Section (one of the founders and a past Chair) of the New York State Bar Association, this article seems to me to state an obvious conclusion. New York is where a significant part of the international practice that involves the United States takes place. Many important non-US law firms have branch offices there, and they provide on site resources as to foreign law issues. You really have to be present in New York in a significant way to show that you are a player.
As an New York lawyer who is very active in the International Law and Practise Section (one of the founders and a past Chair) of the New York State Bar Association, this article seems to me to state an obvious conclusion. New York is where a significant part of the international practice that involves the United States takes place. Many important non-US law firms have branch offices there, and they provide on site resources as to foreign law issues. You really have to be present in New York in a significant way to show that you are a player.
Friday, May 30, 2008
Law.com - Clifford Chance Posts 11 Percent Boost in Revenue
Law.com - Clifford Chance Posts 11 Percent Boost in Revenue
The most significant aspect of this article is the areas that account for the revenues growth were Asia, the Middle East, and Central and Eastern Europe, which the firm characterized as "particularly strong." Notably absent were North America, Western Europe, and Latin and South America. The firm has a substantial presence in these other markets as well. In fact, it may have a stronger presence in these latter areas than it does in the areas of growth.
The most significant aspect of this article is the areas that account for the revenues growth were Asia, the Middle East, and Central and Eastern Europe, which the firm characterized as "particularly strong." Notably absent were North America, Western Europe, and Latin and South America. The firm has a substantial presence in these other markets as well. In fact, it may have a stronger presence in these latter areas than it does in the areas of growth.
Tuesday, May 27, 2008
Law.com - Law Firm Files Suit to Bar Outsourcing of Client Data
Law.com - Law Firm Files Suit to Bar Outsourcing of Client Data
I suppose a lawsuit involving the confidentiality of client data and information was inevitable, but this one seems incredibly strained. At the Presidential Summit of this year's annual meeting of the New York State Bar Association, one of my co-panelists, Mary Dalt, the Dean of St. John's Law School in New York, indicated that law firms needed to consider seriously the use of off-shore outsourcing firms, but she also cautioned that due diligence was necessary to make sure that there were proper protections in place. This lawsuit appears to be saying that there are never any protections where the outsourcing firm is off-shore, regardless of what arrangements the outsourcing firm and the attorney may make.
I suppose a lawsuit involving the confidentiality of client data and information was inevitable, but this one seems incredibly strained. At the Presidential Summit of this year's annual meeting of the New York State Bar Association, one of my co-panelists, Mary Dalt, the Dean of St. John's Law School in New York, indicated that law firms needed to consider seriously the use of off-shore outsourcing firms, but she also cautioned that due diligence was necessary to make sure that there were proper protections in place. This lawsuit appears to be saying that there are never any protections where the outsourcing firm is off-shore, regardless of what arrangements the outsourcing firm and the attorney may make.
Friday, May 23, 2008
Law.com - Freshfields Seals Saudi Ties With Local Firm
Law.com - Freshfields Seals Saudi Ties With Local Firm
This would appear to be taking a "best friends" relationship to a new level. Of course, without more details about the economic relationships involved in the joint management of the local firm, it is hard to tell whether the local firm remains truly independent of Freshfields or whether the local firm is now in an economic relationship that is the functional equivalent of a partnership relationship with Freshfields. In some jurisdictions, it would be necessary to examine the ethical issues associated with giving non-local attorneys significant control over the management of the local law firm on the theory that the local practice of law must be controlled by local lawyers. Unfortunately, the article does not shed much light on this aspect of the relationship.
This would appear to be taking a "best friends" relationship to a new level. Of course, without more details about the economic relationships involved in the joint management of the local firm, it is hard to tell whether the local firm remains truly independent of Freshfields or whether the local firm is now in an economic relationship that is the functional equivalent of a partnership relationship with Freshfields. In some jurisdictions, it would be necessary to examine the ethical issues associated with giving non-local attorneys significant control over the management of the local law firm on the theory that the local practice of law must be controlled by local lawyers. Unfortunately, the article does not shed much light on this aspect of the relationship.
Wednesday, May 21, 2008
Law.com - Gibson Dunn Makes Singapore Debut With Jones Day Hires
Law.com - Gibson Dunn Makes Singapore Debut With Jones Day Hires
This article is illustrative of a number of current trends in the globalizing practice of law. Notice the mobility of the players. Many have moved from other firms recently, and there is also considerable mobility within their current firm. Also, Gibson Dunn is using Singapore primarily as a surrogate for India. There is no indication that Gibson Dunn will be pursuing a local Singapore practice, other than a mention that Singapore has become an important financial center, which does not really imply a local practice.
This article is illustrative of a number of current trends in the globalizing practice of law. Notice the mobility of the players. Many have moved from other firms recently, and there is also considerable mobility within their current firm. Also, Gibson Dunn is using Singapore primarily as a surrogate for India. There is no indication that Gibson Dunn will be pursuing a local Singapore practice, other than a mention that Singapore has become an important financial center, which does not really imply a local practice.
Tuesday, May 20, 2008
Law.com - DLA Piper Names New Prague Chief
Law.com - DLA Piper Names New Prague Chief
It is interesting to see the Czech Republic coming back to its prior prominence. In the 1920's the country was one of the most important in Europe for sophisticated machinery and manufacturing. I think, however, that what Prague needs is more local firms of stature, and, for DLA Piper to aspire to become one of the top law firms it the Czech Republic will put it head to head with the top local law firms in the region. My guess this is going to be difficult to accomplish with only two partners in the Prague office and a managing partner for that office who is resident elsewhere.
It is interesting to see the Czech Republic coming back to its prior prominence. In the 1920's the country was one of the most important in Europe for sophisticated machinery and manufacturing. I think, however, that what Prague needs is more local firms of stature, and, for DLA Piper to aspire to become one of the top law firms it the Czech Republic will put it head to head with the top local law firms in the region. My guess this is going to be difficult to accomplish with only two partners in the Prague office and a managing partner for that office who is resident elsewhere.
Law.com - Dorsey Eyes Sydney Launch to Buoy Asia Push
Law.com - Dorsey Eyes Sydney Launch to Buoy Asia Push
It is hard in today's world to see where an office in Sydney, Australia, could serve as a base for and Indian and and Asian practice. There are so many more possibilities that are more proximate to those regions. Of course, if the main thrust is to support an Australian practice and fill in when needed with an Indian and Asian practice, that is a different story. It is hard to tell from the article if that is the plan.
It is hard in today's world to see where an office in Sydney, Australia, could serve as a base for and Indian and and Asian practice. There are so many more possibilities that are more proximate to those regions. Of course, if the main thrust is to support an Australian practice and fill in when needed with an Indian and Asian practice, that is a different story. It is hard to tell from the article if that is the plan.
Monday, May 12, 2008
Law.com - Clifford Chance Captures New Prague Corporate Partner
Law.com - Clifford Chance Captures New Prague Corporate Partner
This is more evidence of the increasing trend of mobility among the perceived top talent in the profession. What is curious is that, in many cases, the move to the new firm comes relatively soon after a prior move or elevation at the prior firm. Shouldn't this also raise questions by the new firm as to how permanent the relationship is likely to be? This history might suggest that, as soon as someone else comes along with something better, the newly acquired partner is going to be on his or her way again.
This is more evidence of the increasing trend of mobility among the perceived top talent in the profession. What is curious is that, in many cases, the move to the new firm comes relatively soon after a prior move or elevation at the prior firm. Shouldn't this also raise questions by the new firm as to how permanent the relationship is likely to be? This history might suggest that, as soon as someone else comes along with something better, the newly acquired partner is going to be on his or her way again.
Law.com - Contract Attorney Company Opens Boston Office
Law.com - Contract Attorney Company Opens Boston Office
This is a variant on legal outsourcing, and it is interesting to see that people are renewing their efforts to try to do this in the United States rather than in India. The billing rates would appear to be lower that what many firms in this area would expect to bill to clients for paralegal services.
This is a variant on legal outsourcing, and it is interesting to see that people are renewing their efforts to try to do this in the United States rather than in India. The billing rates would appear to be lower that what many firms in this area would expect to bill to clients for paralegal services.
Law.com - For Am Law 100 Firms, the Sky's the Limit
Law.com - For Am Law 100 Firms, the Sky's the Limit
This article, based mainly on work done by Prof. Sherer of the University of Calgary, is a very interesting prediction of what the future of the largest law firms will look like in seven and seventeen years from now. As Yogi Berra is supposed to have said, "Predicting is very difficult, particularly when it is about the future," the article is no different and admits as much when it discusses the pit falls that could render its predictions inaccurate. In any case, Prof. Sherer's view of the future is quite astounding is some cases. One clear trend that does not seem disputable is the increased globalization of the largest, most successful law firms.
This article, based mainly on work done by Prof. Sherer of the University of Calgary, is a very interesting prediction of what the future of the largest law firms will look like in seven and seventeen years from now. As Yogi Berra is supposed to have said, "Predicting is very difficult, particularly when it is about the future," the article is no different and admits as much when it discusses the pit falls that could render its predictions inaccurate. In any case, Prof. Sherer's view of the future is quite astounding is some cases. One clear trend that does not seem disputable is the increased globalization of the largest, most successful law firms.
Friday, May 9, 2008
Law.com - Indian Bar to Visit U.K. for Reform Talks
Law.com - Indian Bar to Visit U.K. for Reform Talks
This looks like small progress with a very big problem with long term implications for India. The most significant aspect of the Bar Council's hard line is that it inhibits the growth of a thriving international legal community in India. This is absolutely necessary if India is going to become an important legal center.
I encountered this attitude from the Barra Mexicana when I was part of the US legal services negotiating team for NAFTA. Our Mexican colleagues did not want to consider that they may have been denying Mexico City of its rightful place as an important legal center for Latin America. Because of the Barra's hostility towards foreign firms, Miami fulfilled much of that role. India is doing the same thing, but how do you explain that to people who are blinded by the fear that foreign law firms will dominate local practice? That rarely happens, even in the most liberal of jurisdictions, and there is ample evidence to prove this. On the other hand, when international firms are present in numbers, there is usually more work for all concerned.
Here is a link to a good article about the status of the Indian legal profession that appeared in a recent edition of The Economist: http://www.economist.com/business/displaystory.cfm?story_id=11090513. Anyone interested in this area should probably read it.
This looks like small progress with a very big problem with long term implications for India. The most significant aspect of the Bar Council's hard line is that it inhibits the growth of a thriving international legal community in India. This is absolutely necessary if India is going to become an important legal center.
I encountered this attitude from the Barra Mexicana when I was part of the US legal services negotiating team for NAFTA. Our Mexican colleagues did not want to consider that they may have been denying Mexico City of its rightful place as an important legal center for Latin America. Because of the Barra's hostility towards foreign firms, Miami fulfilled much of that role. India is doing the same thing, but how do you explain that to people who are blinded by the fear that foreign law firms will dominate local practice? That rarely happens, even in the most liberal of jurisdictions, and there is ample evidence to prove this. On the other hand, when international firms are present in numbers, there is usually more work for all concerned.
Here is a link to a good article about the status of the Indian legal profession that appeared in a recent edition of The Economist: http://www.economist.com/business/displaystory.cfm?story_id=11090513. Anyone interested in this area should probably read it.
Thursday, May 8, 2008
Law.com - Ropes & Gray Jumps Into the China Fray
Law.com - Ropes & Gray Jumps Into the China Fray
Although Ropes & Gray's Hong Kong office is stated to have been in the planning stage for a few years, the triggering event seems to have been the willingness of Scott Jalowayski to jump from Morrison and Foerster with two senior associates. According to the article, Jalowayski was only made a partner at MoFo in 2007. As I have noted in prior posts, one of the features of the new transnational law firm is mobility. This scenario would appear to put a new emphasis on mobility. It seems to ignore the obvious danger of building what will certainly be a very expensive office to open and maintain on the willingness of highly mobile staff not to jump again.
Although Ropes & Gray's Hong Kong office is stated to have been in the planning stage for a few years, the triggering event seems to have been the willingness of Scott Jalowayski to jump from Morrison and Foerster with two senior associates. According to the article, Jalowayski was only made a partner at MoFo in 2007. As I have noted in prior posts, one of the features of the new transnational law firm is mobility. This scenario would appear to put a new emphasis on mobility. It seems to ignore the obvious danger of building what will certainly be a very expensive office to open and maintain on the willingness of highly mobile staff not to jump again.
Wednesday, May 7, 2008
Law.com - Watson Farley Widens Italy Reach With Milan Debut
Law.com - Watson Farley Widens Italy Reach With Milan Debut
I have often wondered about the importance of Italy in the overall scheme of an international practice. Curiously, although Watson Farley touts the importance of Italy and a Milan presence, there does not seem to be any partner in residence in the new Milan office. From the article, it seems, the Milan office is just four unnamed associates who will be supervised from Rome. It would be more impressive if there were some named superstars involved.
I have often wondered about the importance of Italy in the overall scheme of an international practice. Curiously, although Watson Farley touts the importance of Italy and a Milan presence, there does not seem to be any partner in residence in the new Milan office. From the article, it seems, the Milan office is just four unnamed associates who will be supervised from Rome. It would be more impressive if there were some named superstars involved.
Law.com - Clifford Chance Snaps Up Norton Rose Singapore Partner
Law.com - Clifford Chance Snaps Up Norton Rose Singapore Partner
This article, which is largely about using Singapore as a center for regional practice groups, would seem to be a more sensible use of Singapore and stands in sharp contrast to the recent article commented on earlier that suggested a number of firms were looking to practice local law in Singapore. Until India becomes more welcoming to foreign law firms, Singapore is a logical place to host an Indian practice.
This article, which is largely about using Singapore as a center for regional practice groups, would seem to be a more sensible use of Singapore and stands in sharp contrast to the recent article commented on earlier that suggested a number of firms were looking to practice local law in Singapore. Until India becomes more welcoming to foreign law firms, Singapore is a logical place to host an Indian practice.
Monday, May 5, 2008
NY BigLaw Leader Says G'Bye to GC in Surprise Move
NY BigLaw Leader Says G'Bye to GC in Surprise Move
It is surprising that risk management at a a $921,000,000 firm spread across four continents, with 857 lawyers is only a part-time job. One would think that there might be a need for more than one full time lawyer to handle that sort of work load. Perhaps, the real reason is the need to cut costs as mentioned in another paragraph of the article.
It is surprising that risk management at a a $921,000,000 firm spread across four continents, with 857 lawyers is only a part-time job. One would think that there might be a need for more than one full time lawyer to handle that sort of work load. Perhaps, the real reason is the need to cut costs as mentioned in another paragraph of the article.
Law.com - U.K. Firms Eye Singapore Opportunities as Local-Law Licenses Go Up for Grabs
Law.com - U.K. Firms Eye Singapore Opportunities as Local-Law Licenses Go Up for Grabs
It is hard to imagine that there is so much local work in Singapore that there is a need for so much legal presence there. While, for the time being, Singapore can be viewed as a regional hub or a surrogate for India, Indonesia, and other jurisdictions in the general region, this is likely to be a temporary situation. However, if the globalization of legal services has shown anything, it has show that the providers - i.e., the aspiring global firms - are extremely mobile. The many firms trying to establish a presence in Singapore may need to use their mobility skills in time as other markets become more accessible and the need to operate from Singapore diminishes.
It is hard to imagine that there is so much local work in Singapore that there is a need for so much legal presence there. While, for the time being, Singapore can be viewed as a regional hub or a surrogate for India, Indonesia, and other jurisdictions in the general region, this is likely to be a temporary situation. However, if the globalization of legal services has shown anything, it has show that the providers - i.e., the aspiring global firms - are extremely mobile. The many firms trying to establish a presence in Singapore may need to use their mobility skills in time as other markets become more accessible and the need to operate from Singapore diminishes.
Friday, May 2, 2008
Law.com - U.K. Firms Eye Singapore Opportunities as Local-Law Licenses Go Up for Grabs
Law.com - U.K. Firms Eye Singapore Opportunities as Local-Law Licenses Go Up for Grabs
As long as Singapore is viewed as a surrogate for other Asia-Pacific jurisdictions, this interest makes some sense. However, there is hardly enough business in Singapore per se that it makes much sense to want to practice local law there.
As long as Singapore is viewed as a surrogate for other Asia-Pacific jurisdictions, this interest makes some sense. However, there is hardly enough business in Singapore per se that it makes much sense to want to practice local law there.
Wednesday, April 30, 2008
Law.com - Shearman & Sterling Hikes London Associates' Pay by 7 Percent
Law.com - Shearman & Sterling Hikes London Associates' Pay by 7 Percent
As this article indicates, unless some of the other major firms in London follow suit, there is likely to be a differentiation in salary levels between Shearman and some of it peer firms. It will be interesting to see how this plays out and whether the peers can hold the line or Shearman will back off.
As this article indicates, unless some of the other major firms in London follow suit, there is likely to be a differentiation in salary levels between Shearman and some of it peer firms. It will be interesting to see how this plays out and whether the peers can hold the line or Shearman will back off.
Tuesday, April 29, 2008
Law.com - Capitalism in China Called a 'Work in Progress'
Law.com - Capitalism in China Called a 'Work in Progress'
Having just returned Sunday from my third trip to Beijing in less than 18 months, I must agree with most everything stated in this article. However, the situation is so dynamic in China these days, there are really no hard and fast rules and the real need is to be flexible and adaptive in pursuing the numerous opportunities that would seem to exist in China as it moves into the forefront of the 21st Century from Middle-Ages feudalism.
The pace of change in China is so rapid, there are bound to be mistakes, some of which might turn out to be very costly to correct once they are discovered, if correction is possible. One example is the way whole urban areas have been torn down to make way for new construction. Once historic buildings are destroyed, they cannot be replaced, but historic preservation impedes progress, and progress is the main goal these days.
Despite the continuation of the label of the Communist Party, it is in many respects communist in name only. It is an institution that can govern, and that, it seems to me, is its main purpose now governance. It is becoming more capitalist in most respects than most of us would have believed was possible even a few years ago. As an example, in a conversation about a year ago with a senior Communist Party official, he said, "My predecessors ruled with guns. I rule with lawyers." Of course, he might have been trying to impress me as a lawyer, but I think he truly understood the need for progressive laws that fostered creativity and innovation.
Chinese business is very adaptive, and the Chinese people are entrepreneurial at their core. Perhaps the most important trend in China that we need to monitor is the Chinese plan to become the factory of the world. This means there are many opportunities for lawyers in China, both domestic and foreign. China has an emerging legal profession, which is rapidly, achieving a high level of competence. Perhaps some of the best opportunities for lawyers exist in the secondary and tertiary cities rather than in the main cities. The most rapid growth, and the greatest need exist in those cities, but there are virtually no significant bodies of lawyers there. China is reasonably hospitable to foreign lawyers, and probably will be for some time as the need is great and cannot be met domestically.
Having just returned Sunday from my third trip to Beijing in less than 18 months, I must agree with most everything stated in this article. However, the situation is so dynamic in China these days, there are really no hard and fast rules and the real need is to be flexible and adaptive in pursuing the numerous opportunities that would seem to exist in China as it moves into the forefront of the 21st Century from Middle-Ages feudalism.
The pace of change in China is so rapid, there are bound to be mistakes, some of which might turn out to be very costly to correct once they are discovered, if correction is possible. One example is the way whole urban areas have been torn down to make way for new construction. Once historic buildings are destroyed, they cannot be replaced, but historic preservation impedes progress, and progress is the main goal these days.
Despite the continuation of the label of the Communist Party, it is in many respects communist in name only. It is an institution that can govern, and that, it seems to me, is its main purpose now governance. It is becoming more capitalist in most respects than most of us would have believed was possible even a few years ago. As an example, in a conversation about a year ago with a senior Communist Party official, he said, "My predecessors ruled with guns. I rule with lawyers." Of course, he might have been trying to impress me as a lawyer, but I think he truly understood the need for progressive laws that fostered creativity and innovation.
Chinese business is very adaptive, and the Chinese people are entrepreneurial at their core. Perhaps the most important trend in China that we need to monitor is the Chinese plan to become the factory of the world. This means there are many opportunities for lawyers in China, both domestic and foreign. China has an emerging legal profession, which is rapidly, achieving a high level of competence. Perhaps some of the best opportunities for lawyers exist in the secondary and tertiary cities rather than in the main cities. The most rapid growth, and the greatest need exist in those cities, but there are virtually no significant bodies of lawyers there. China is reasonably hospitable to foreign lawyers, and probably will be for some time as the need is great and cannot be met domestically.
Law.com - Vinson & Elkins Bolsters New York, Global Offices
Law.com - Vinson & Elkins Bolsters New York, Global Offices
There are two significant trends illustrated in this article. The first is the mobility of legal talent: note that partners and associates are relocating to a number of locations, including international locations. The second it the realignment of the practice along global lines rather than regional or local lines.
There are two significant trends illustrated in this article. The first is the mobility of legal talent: note that partners and associates are relocating to a number of locations, including international locations. The second it the realignment of the practice along global lines rather than regional or local lines.
Legal Blog Watch
India's Biggest Law Firm?
This is a very interesting blog post that gives a good overview of the status of India's legal outsourcing industry, which the article states is being increasingly used by both law firms and large corporate clients alike. When I was in India recently, I had the opportunity to meet briefly with a co-owner of a legal outsourcing firm. He was a bright, aggressive young Indian lawyer who was also admitted in New York. He unabashedly claimed that Indian lawyers were the best common law lawyers in the world. Curiously, most of his staff were not Indian lawyers, which is what this article seems to confirm as well. Earlier this year, when I spoke at the Presidential Summit on the globalization of legal services at the New York State Bar Association Annual Meeting, one of my co-panelists, St. John's Law School Dean Mary Daly, suggested that legal outsourcing needed to be seriously considered. However, she also said it would be necessary to vet the outsourcing firm very carefully, including, possibly actually visiting the firm before using it, which is something the author of the above blog post apparently did as well. Legal outsourcing is an area that bears much closer scrutiny. Also, it would be wise to try to collect and share experiences users have had, especially information about the ethical issues involved and how they were resolved.
This is a very interesting blog post that gives a good overview of the status of India's legal outsourcing industry, which the article states is being increasingly used by both law firms and large corporate clients alike. When I was in India recently, I had the opportunity to meet briefly with a co-owner of a legal outsourcing firm. He was a bright, aggressive young Indian lawyer who was also admitted in New York. He unabashedly claimed that Indian lawyers were the best common law lawyers in the world. Curiously, most of his staff were not Indian lawyers, which is what this article seems to confirm as well. Earlier this year, when I spoke at the Presidential Summit on the globalization of legal services at the New York State Bar Association Annual Meeting, one of my co-panelists, St. John's Law School Dean Mary Daly, suggested that legal outsourcing needed to be seriously considered. However, she also said it would be necessary to vet the outsourcing firm very carefully, including, possibly actually visiting the firm before using it, which is something the author of the above blog post apparently did as well. Legal outsourcing is an area that bears much closer scrutiny. Also, it would be wise to try to collect and share experiences users have had, especially information about the ethical issues involved and how they were resolved.
Monday, April 28, 2008
Law.com - Linklaters Top Brass Review Eastern Europe Network
Law.com - Linklaters Top Brass Review Eastern Europe Network
There are a number of potentially interesting trends in this article. As local firms start to evolve into significant legal resources, the availability of a potential "best friend" mitigates against the need to have a low profitability office in the jurisdiction. Also, as in the case of Freshfields' Cologne office, the desire for independence in local markets also mitigates against the presence of an office. Linklaters is obviously alert to this issue as it seems willing to restructure the payment status of its German partners, but increasing their cost to the firm will, of course, mitigate against their profitability.
There are a number of potentially interesting trends in this article. As local firms start to evolve into significant legal resources, the availability of a potential "best friend" mitigates against the need to have a low profitability office in the jurisdiction. Also, as in the case of Freshfields' Cologne office, the desire for independence in local markets also mitigates against the presence of an office. Linklaters is obviously alert to this issue as it seems willing to restructure the payment status of its German partners, but increasing their cost to the firm will, of course, mitigate against their profitability.
Law.com - White & Case Boosts Hong Kong Practice With Lovells Finance Team
Law.com - White & Case Boosts Hong Kong Practice With Lovells Finance Team
Here is another illustration of the increasing mobility of legal talent in the international practice arena.
Here is another illustration of the increasing mobility of legal talent in the international practice arena.
Tuesday, April 22, 2008
Law.com - Shearman Parts With 30-Lawyer German Office
Law.com - Shearman Parts With 30-Lawyer German Office
This is interesting, but not necessarily surprising, news.
This is interesting, but not necessarily surprising, news.
Weak Dollar Weighs Heavily on Europe - New York Times
Weak Dollar Weighs Heavily on Europe - New York Times
This article is a little off scope for this blog, but I thought I would include it any way, because of the potential impact it could have on legal services. At current levels, US legal services are starting to look very cheap. The ideal situation would be to use US based, Dollar paid fee earners, but bill in Euros. Of course, there is no advantage where the US firm has a large presence in the Euro zone, because, with that presence, comes Euro expenses as well.
This article is a little off scope for this blog, but I thought I would include it any way, because of the potential impact it could have on legal services. At current levels, US legal services are starting to look very cheap. The ideal situation would be to use US based, Dollar paid fee earners, but bill in Euros. Of course, there is no advantage where the US firm has a large presence in the Euro zone, because, with that presence, comes Euro expenses as well.
Law.com - Eversheds Secures Abu Dhabi Debut
Law.com - Eversheds Secures Abu Dhabi Debut
Yet another firm joins the ranks of firms seeking a presence in Abu Dhabi. This appears to be a direct office, which is a bit of a departure from Evershed's "best friends" approach in many jurisdictions. Of course, a best friends approach to Abu Dhabi may not be feasible due to the lack of an indigenous law firm base.
Yet another firm joins the ranks of firms seeking a presence in Abu Dhabi. This appears to be a direct office, which is a bit of a departure from Evershed's "best friends" approach in many jurisdictions. Of course, a best friends approach to Abu Dhabi may not be feasible due to the lack of an indigenous law firm base.
Monday, April 21, 2008
Law.com - Webb to Head DLA Abu Dhabi Team
Law.com - Webb to Head DLA Abu Dhabi Team
Perhaps this article is more important because of the listing of law firms and individuals who are trying to gain entry to the Abu Dhabi legal market. While it is certainly a very interesting market, when you start to tally up all the firms that have indicated an interest in that market, it is hard to believe there is really that much business available that everyone is going to be happy with the outcome.
Perhaps this article is more important because of the listing of law firms and individuals who are trying to gain entry to the Abu Dhabi legal market. While it is certainly a very interesting market, when you start to tally up all the firms that have indicated an interest in that market, it is hard to believe there is really that much business available that everyone is going to be happy with the outcome.
Thursday, April 17, 2008
Law.com - U.K. Corporations Break Ground With Third-Party Funding to Defend Major Claims
Law.com - U.K. Corporations Break Ground With Third-Party Funding to Defend Major Claims
I suppose this article on third-party litigation funding gets to this blog on globalization of legal services because third-party litigation funding is a phenomenon that seems to have started in the UK, where it is also possible for non-lawyers to have an ownership interest in law firms.
I am not sure third-party litigation funding is a positive development or a welcome develpment. When you have third-parties funding litigation costs, hedge funds undertaking part of the risk for a fee, and so on, before long, the litigation process is going to become a means for financial speculation rather than, what it should be, namely, a means of resolving, as fairly and as efficiently as possible, a dispute that the real parties at interest cannot resolve for themselves.
When you start to introduce extraneous financial considerations and financial speculation into the litigation process, the real purpose of litigation can quickly become secondary. Such circumstances can clearly lead to abuse and ultimately disrespect for our legal system. Thus, this is a potentially alarming trend that needs to be watched closely and eliminated swiftly, if the evidence suggests this is warranted. Litigation should always be considered a last resort between the real parties at interest. It should not be an opportunity for third parties to profit from the misfortune of the real parties at interest.
I suppose this article on third-party litigation funding gets to this blog on globalization of legal services because third-party litigation funding is a phenomenon that seems to have started in the UK, where it is also possible for non-lawyers to have an ownership interest in law firms.
I am not sure third-party litigation funding is a positive development or a welcome develpment. When you have third-parties funding litigation costs, hedge funds undertaking part of the risk for a fee, and so on, before long, the litigation process is going to become a means for financial speculation rather than, what it should be, namely, a means of resolving, as fairly and as efficiently as possible, a dispute that the real parties at interest cannot resolve for themselves.
When you start to introduce extraneous financial considerations and financial speculation into the litigation process, the real purpose of litigation can quickly become secondary. Such circumstances can clearly lead to abuse and ultimately disrespect for our legal system. Thus, this is a potentially alarming trend that needs to be watched closely and eliminated swiftly, if the evidence suggests this is warranted. Litigation should always be considered a last resort between the real parties at interest. It should not be an opportunity for third parties to profit from the misfortune of the real parties at interest.
Tuesday, April 15, 2008
Law.com - Eversheds Enters Africa With Johannesburg Merger
Law.com - Eversheds Enters Africa With Johannesburg Merger
This looks like a very formal and structured "best friends" approach. Presumably, Routledge Modise will continue to operate under its own name and will co-brand with the Eversheds International name. Reportedly, the only Eversheds International firms that have added Eversheds to their name are the Baltic firms also mentioned in this article. I continue to feel that the best friends approach, when implemented properly, is the most effective and efficient way to have a full service presence in a jurisdiction. The best friends approach does, however, require considerable effort and investment to function properly, but generally much less than having an actual presence in a jurisdiction with all the costs and risks that entails.
This looks like a very formal and structured "best friends" approach. Presumably, Routledge Modise will continue to operate under its own name and will co-brand with the Eversheds International name. Reportedly, the only Eversheds International firms that have added Eversheds to their name are the Baltic firms also mentioned in this article. I continue to feel that the best friends approach, when implemented properly, is the most effective and efficient way to have a full service presence in a jurisdiction. The best friends approach does, however, require considerable effort and investment to function properly, but generally much less than having an actual presence in a jurisdiction with all the costs and risks that entails.
Friday, April 11, 2008
Recession Has Firms Looking to Pickup a Few Rupees on the Side
Recession Has Firms Looking to Pickup a Few Rupees on the Side
With its very catchy title, I am glad this article finally got around to pointing out that India is a very difficult jurisdiction at the moment for foreign law firms. In fact, some my say it is completely inhospitable to foreign law firms. But, as the article suggests, if you can pick up a few Rupees, maybe you do not care that much.
With its very catchy title, I am glad this article finally got around to pointing out that India is a very difficult jurisdiction at the moment for foreign law firms. In fact, some my say it is completely inhospitable to foreign law firms. But, as the article suggests, if you can pick up a few Rupees, maybe you do not care that much.
$378 Million Law Firm Seeks Companions for International Travel, Deals and Possible LTR
$378 Million Law Firm Seeks Companions for International Travel, Deals and Possible LTR
It is refreshing to see that some firms are still interested in pursuing the "best friends" approach rather that open an office or acquire an existing firm. As I suspect the parties already know there is also a cost to creating and maintaining best friends relationships, but one thing that is definitely missing is the costs of opening and/or maintaining a permanent office in the best friend's jurisdiction.
It is refreshing to see that some firms are still interested in pursuing the "best friends" approach rather that open an office or acquire an existing firm. As I suspect the parties already know there is also a cost to creating and maintaining best friends relationships, but one thing that is definitely missing is the costs of opening and/or maintaining a permanent office in the best friend's jurisdiction.
Thursday, April 10, 2008
Law.com - Dewey & LeBoeuf to Close Three U.S. Offices
Law.com - Dewey & LeBoeuf to Close Three U.S. Offices
One way of looking at this is that you really do not need to be everywhere. You only need to be where it is strategically important.
One way of looking at this is that you really do not need to be everywhere. You only need to be where it is strategically important.
Wednesday, April 9, 2008
BigLaw Firm Cooking Up Some Asian Fusion With Practice Leader Takeaway
BigLaw Firm Cooking Up Some Asian Fusion With Practice Leader Takeaway
The mobility of lawyers in a globalized practice is some times amazing to those of us who are old enough to remember the partnership for life days. This article refers to an attorney who came to Hong Kong in 1994 (for an unnamed firm), then joining Sidley in 1997, then joining Paul Hastings in 2003, and now O'Melveney & Myers in 2008. The interesting thing is that, even though this looks about the same as the way sports teams trade players, this is no longer exceptional in the globalizing practice of law.
The mobility of lawyers in a globalized practice is some times amazing to those of us who are old enough to remember the partnership for life days. This article refers to an attorney who came to Hong Kong in 1994 (for an unnamed firm), then joining Sidley in 1997, then joining Paul Hastings in 2003, and now O'Melveney & Myers in 2008. The interesting thing is that, even though this looks about the same as the way sports teams trade players, this is no longer exceptional in the globalizing practice of law.
Tuesday, April 8, 2008
Law.com - Reed Smith Takes Chance on Contingent Fee Case -- and It Pays Off
Law.com - Reed Smith Takes Chance on Contingent Fee Case -- and It Pays Off
This is an interesting article, because it shows there can be significant upsides to taking a case on contingency. One thing that is not discussed to any great degree is the international aspects of some of the cases mentioned. For example, if the Belgian case mentioned used the Euro as the reference currency for damages, the US firms did even better because of the enormous increase in value of the Euro against the Dollar. So, there might have been another bonus in the case.
This is an interesting article, because it shows there can be significant upsides to taking a case on contingency. One thing that is not discussed to any great degree is the international aspects of some of the cases mentioned. For example, if the Belgian case mentioned used the Euro as the reference currency for damages, the US firms did even better because of the enormous increase in value of the Euro against the Dollar. So, there might have been another bonus in the case.
Law.com - London Firms Announce Bumper Crop of New Partner Promotions
Law.com - London Firms Announce Bumper Crop of New Partner Promotions
This is an interesting article which tends to suggest that the decision to elevate an associate to partnership is, at least in part, not tied directly to current economic conditions so long as the long term outlook is favorable. That being said, the article notes that only about a third of the partnerships were created in London with the rest being created elsewhere. It would seem, based on this statistic, that the major London firms are rapidly making the transition towards the "transnational business model."
This is an interesting article which tends to suggest that the decision to elevate an associate to partnership is, at least in part, not tied directly to current economic conditions so long as the long term outlook is favorable. That being said, the article notes that only about a third of the partnerships were created in London with the rest being created elsewhere. It would seem, based on this statistic, that the major London firms are rapidly making the transition towards the "transnational business model."
Asian Inflation Begins to Sting U.S. Shoppers - New York Times
Asian Inflation Begins to Sting U.S. Shoppers - New York Times
While not strictly a legal topic, I think we have to be aware of the trends and issues discussed in this article when it comes to decisions on the best and most effective way to deliver legal services to the global legal market place. In a very few short years, we have seen the global economy migrate from places like Mexico, once, even recently, thought of a low labor cost jurisdiction to Vietnam, where the US fought a costly war within the memories of many lawyers. The same rapid pace of change is occurring in the so-called "transnational law firm."
While not strictly a legal topic, I think we have to be aware of the trends and issues discussed in this article when it comes to decisions on the best and most effective way to deliver legal services to the global legal market place. In a very few short years, we have seen the global economy migrate from places like Mexico, once, even recently, thought of a low labor cost jurisdiction to Vietnam, where the US fought a costly war within the memories of many lawyers. The same rapid pace of change is occurring in the so-called "transnational law firm."
Thursday, April 3, 2008
Law.com - Benelux Leader Loyens in Islamic Finance Push
Law.com - Benelux Leader Loyens in Islamic Finance Push
This article is indicative of another trend that is emerging as the practice of law globalizes, namely, the introduction of previously little known or understood legal systems. Interestingly, the base for Loyens Islamic law practice is in Amsterdam in a civil law country. London, a common law country, also has its fair share of Islamic law practitioners.
This article is indicative of another trend that is emerging as the practice of law globalizes, namely, the introduction of previously little known or understood legal systems. Interestingly, the base for Loyens Islamic law practice is in Amsterdam in a civil law country. London, a common law country, also has its fair share of Islamic law practitioners.
Wednesday, April 2, 2008
Where Does White & Case Go Now?
Where Does White & Case Go Now?
A very interesting article. It looks as if W&C is still very much tied to the so-called colonial model mentioned in my first post to this blog. This is probably a good study of what not to do in handling foreign branch offices, when viewed from the New York headquarters perspective.
A very interesting article. It looks as if W&C is still very much tied to the so-called colonial model mentioned in my first post to this blog. This is probably a good study of what not to do in handling foreign branch offices, when viewed from the New York headquarters perspective.
Law.com - Attorney Unlicensed in Florida Still Awarded $1 Million in Fees in Messy Probate Case
Law.com - Attorney Unlicensed in Florida Still Awarded $1 Million in Fees in Messy Probate Case
While not strictly a globalization article, if a North Carolina attorney can be recognized this way in Florida, why not an English solicitor, a French avocat, or any other non-Florida attorney. The court seems to be operating on a results based test. I would what would have happened if the results were not as impressive and the court seemed to think they were.
While not strictly a globalization article, if a North Carolina attorney can be recognized this way in Florida, why not an English solicitor, a French avocat, or any other non-Florida attorney. The court seems to be operating on a results based test. I would what would have happened if the results were not as impressive and the court seemed to think they were.
Law.com - Davis Polk Makes Rare Lateral Hire in Beijing
Law.com - Davis Polk Makes Rare Lateral Hire in Beijing
Another lateral hire, this time by a firm that does not hire laterally very often. In my initial post to this blog, I mentioned the emerging transnational business model, which includes getting the work done where the best people are who can get it done on time at the lowest cost. I also mentioned the increasing mobility of people particularly in connection with this model. It looks as if some of this is happening in the practice of law as well.
Another lateral hire, this time by a firm that does not hire laterally very often. In my initial post to this blog, I mentioned the emerging transnational business model, which includes getting the work done where the best people are who can get it done on time at the lowest cost. I also mentioned the increasing mobility of people particularly in connection with this model. It looks as if some of this is happening in the practice of law as well.
Leveraged Planet - Mergers, Acquisitions, Venture Capital, Hedge Funds -- DealBook - New York Times
Leveraged Planet - Mergers, Acquisitions, Venture Capital, Hedge Funds -- DealBook - New York Times
While not a legal article, the legal implications of this are enormous. If there is to be a global policeman for global financial markets, how long before there will be a harmonization of laws followed by a harmonization of lawyers who practice under those laws?
While not a legal article, the legal implications of this are enormous. If there is to be a global policeman for global financial markets, how long before there will be a harmonization of laws followed by a harmonization of lawyers who practice under those laws?
Monday, March 31, 2008
Law.com - Cooley Godward Forms Latin America Real Estate Group
Law.com - Cooley Godward Forms Latin America Real Estate Group
It is interesting to see a Latin American real estate practice being based in New York. Many people would have thought of Miami as a more suitable location. In any case, this just underscores the vitality and versatility of the New York legal market.
It is interesting to see a Latin American real estate practice being based in New York. Many people would have thought of Miami as a more suitable location. In any case, this just underscores the vitality and versatility of the New York legal market.
Law.com - For Willkie and Orrick, Paris -- Not London -- Is the Gateway to Europe
Law.com - For Willkie and Orrick, Paris -- Not London -- Is the Gateway to Europe
This is a interesting commentary on the role Paris plays for some firms and could possibly play for others in establishing or maintaining a European presence. London probably has too many law firms at the moment all going after the same business. Paris, fell out of favor for a while when the French made it more difficult to establish there about 15 years ago. On paper, I am not sure it is any more hospitable today, but the practice is often different than what the rules and regulations might indicate. One thing London offers is that it is English speaking, and most big deals are done in English. Most major firms in Paris work well in English, but it isn't usually the preferred language in Paris, particularly, for staff.
This is a interesting commentary on the role Paris plays for some firms and could possibly play for others in establishing or maintaining a European presence. London probably has too many law firms at the moment all going after the same business. Paris, fell out of favor for a while when the French made it more difficult to establish there about 15 years ago. On paper, I am not sure it is any more hospitable today, but the practice is often different than what the rules and regulations might indicate. One thing London offers is that it is English speaking, and most big deals are done in English. Most major firms in Paris work well in English, but it isn't usually the preferred language in Paris, particularly, for staff.
Friday, March 28, 2008
Law firms hike salaries to retain talent as foreign cos troop in- Jobs-News By Industry-News-The Economic Times
Law firms hike salaries to retain talent as foreign cos troop in- Jobs-News By Industry-News-The Economic Times
In a rapidly globalizing world, it seems no one is immune from the upward salary pressures some of the major US and UK firms are creating. As this article suggests this trend is now even reaching India. There is still a significant differential between US and UK starting salaries and Indian starting salaries, but the gap has gotten narrower at all levels it seems. This may trend may also hit the Indian legal outsourcing firms that offer Indian common law trained attorneys for research and other tasks typically performed by lawyers in the US and elsewhere. My guess it, however, that these outsourcing firms are not hiring the types of lawyers who might command the higher salaries being offered by some of India's more prominent law firms. Also, as India does not permit foreign law firms to establish there, there will not be the internal price pressure of having a US or UK firm paying higher salaries in the local economy.
In a rapidly globalizing world, it seems no one is immune from the upward salary pressures some of the major US and UK firms are creating. As this article suggests this trend is now even reaching India. There is still a significant differential between US and UK starting salaries and Indian starting salaries, but the gap has gotten narrower at all levels it seems. This may trend may also hit the Indian legal outsourcing firms that offer Indian common law trained attorneys for research and other tasks typically performed by lawyers in the US and elsewhere. My guess it, however, that these outsourcing firms are not hiring the types of lawyers who might command the higher salaries being offered by some of India's more prominent law firms. Also, as India does not permit foreign law firms to establish there, there will not be the internal price pressure of having a US or UK firm paying higher salaries in the local economy.
Thursday, March 27, 2008
Age of Empire: UK Firms Rule When It Comes to Cashing in Overseas
Age of Empire: UK Firms Rule When It Comes to Cashing in Overseas
Some very interesting statistics in this article. While I generally believe that revenues from the international practice of law are superior to those from the domestic practice of law, these statistics seem to suggest that the foreign branch offices of the UK law firms in question are more profitable than their domestic offices. This does not necessarily make sense as frequently, foreign branch offices are more expensive to operate and maintain. This bears some further analysis.
Some very interesting statistics in this article. While I generally believe that revenues from the international practice of law are superior to those from the domestic practice of law, these statistics seem to suggest that the foreign branch offices of the UK law firms in question are more profitable than their domestic offices. This does not necessarily make sense as frequently, foreign branch offices are more expensive to operate and maintain. This bears some further analysis.
Wednesday, March 26, 2008
Law.com - Hot Market for International Energy Sparks Exits From Paul Hastings
Law.com - Hot Market for International Energy Sparks Exits From Paul Hastings
This article is interesting for several reasons. First, it shows the mobility of attorneys in the international areas of the practice. Second, it has some interesting comments about China which ties in nicely with the previous post about Nixon Peabody's opening a Shanghai office. Finally, it also shows the growth potential of an international practice; Paul Hastings' practice group grew more than three-fold in five years.
This article is interesting for several reasons. First, it shows the mobility of attorneys in the international areas of the practice. Second, it has some interesting comments about China which ties in nicely with the previous post about Nixon Peabody's opening a Shanghai office. Finally, it also shows the growth potential of an international practice; Paul Hastings' practice group grew more than three-fold in five years.
Law.com - Nixon Peabody Goes to China
Law.com - Nixon Peabody Goes to China
Opening an office in Shanghai is a big step from opening an office in London, Nixon Peabody's first foreign office, but the competition in China should be a lot less severe than in London. With fourteen lawyers involved in a China practice, Nixon Peabody, has a reasonable core competency to have a meaningful China practice. However, it will need to staff up Shanghai with more than two rotating lawyers to make that office a real functioning office rather than a letterhead entry. Nixon Peabody was once perceived as an Upstate New York firm. Today, it has branched out considerably, even though its roots remain in Upstate New York. It will be interesting to see if the firm addresses other areas of China. Shanghai is an important city in China, but China has many cities, and the risks could be even lower and the rewards higher in second and third tier emerging cities than in the older, more established cities.
Opening an office in Shanghai is a big step from opening an office in London, Nixon Peabody's first foreign office, but the competition in China should be a lot less severe than in London. With fourteen lawyers involved in a China practice, Nixon Peabody, has a reasonable core competency to have a meaningful China practice. However, it will need to staff up Shanghai with more than two rotating lawyers to make that office a real functioning office rather than a letterhead entry. Nixon Peabody was once perceived as an Upstate New York firm. Today, it has branched out considerably, even though its roots remain in Upstate New York. It will be interesting to see if the firm addresses other areas of China. Shanghai is an important city in China, but China has many cities, and the risks could be even lower and the rewards higher in second and third tier emerging cities than in the older, more established cities.
Thursday, March 20, 2008
Law.com - External Funding Booms as Litigators Plot Upturn
Law.com - External Funding Booms as Litigators Plot Upturn
While not exactly globalization of legal services, as the main action is taking place in London with some US law firms joining in, it looks as if it will qualify.
Traditional barriers are coming down very quickly in the legal profession. While some people might taut this as positive change, sometimes, when you depart from the old rules, particularly when you really do not consider the reasons for the old rules, there can be some very unhappy developments.
When a third party funds a litigation for a slice of the action, who controls the litigation? The client or the lender? To whom does the attorney owe his duty? Is it the client or the lender? Would the attorney disregard the wishes of the client because those wishes prejudice the one who is actually paying the bills?
This is a very interesting development, and it deserves further watching and study.
While not exactly globalization of legal services, as the main action is taking place in London with some US law firms joining in, it looks as if it will qualify.
Traditional barriers are coming down very quickly in the legal profession. While some people might taut this as positive change, sometimes, when you depart from the old rules, particularly when you really do not consider the reasons for the old rules, there can be some very unhappy developments.
When a third party funds a litigation for a slice of the action, who controls the litigation? The client or the lender? To whom does the attorney owe his duty? Is it the client or the lender? Would the attorney disregard the wishes of the client because those wishes prejudice the one who is actually paying the bills?
This is a very interesting development, and it deserves further watching and study.
After Defections, NY BigLaw Firm Names New London Leaders
After Defections, NY BigLaw Firm Names New London Leaders
This article takes us back to my first post about business models that drew on a then recent article from Business Week. Notice that the London partners wanted more independence from New York headquarters. There would seem to be a tension between the colonial model and the multinational model. It also underscores the issues that are likely to come about as law firms follow the experience of business.
This article takes us back to my first post about business models that drew on a then recent article from Business Week. Notice that the London partners wanted more independence from New York headquarters. There would seem to be a tension between the colonial model and the multinational model. It also underscores the issues that are likely to come about as law firms follow the experience of business.
Bar Admission and Globalization
Last evening, I attended our monthly meeting of the Committee on Legal Education and Admission to the Bar of the New York State Bar Association. We had a very interesting report from Prof. Randy Herz of New York University School of Law about the activities of the "Outcomes" Committee he is chairing in response to some initiatives of the US Department of Education regarding the role of the American Bar Association in the accreditation of law schools in the United States.
As I was listening to Prof. Herz's excellent report, it occurred to me that, in world of globalized legal services, bar admission is really not considered as being very important. If you look at the mobility of legal talent these days, you see announcements in the legal press of this or that lawyer (whose bar admission is not even mentioned) going from Hong Kong (for example) to a new office in Bahrain (or where ever). The point is, of course, that no one can be admitted everywhere, and, often, law firms and consumers of legal services are more interested in skills and experience than they are in the formalities of bar admission. Thus, an M&A lawyer from New York or London, may be needed in Moscow and may never think twice about seeking admission to the local bar.
This clearly does not pose a problem to the consumers of these legal services, because they are all sophisticated users of legal services (and are usually lawyers themselves as in-house GS's or outside law firms) and can easily protect themselves. Hence, bar admission is not a major consideration of the decision to engage a lawyer. Rather, specific skills and experience are.
At the administrative level, the US still seems to be obsessed with local bar admission. However, at the practice level, lawyers move about the country doing deals, meeting clients, taking depositions, etc., without much regard to whether they are admitted in the jurisdiction where the meeting takes place, etc. Internationally, it is even more so. Lawyers open offices in jurisdictions where they have no local bar admission and offer "international legal services" from those offices. This woudl run afoul of most MJP rules in the US. However, there is some precedent for this in the Establishment Directive in the EU.
The EU gives great mobility to EU nationals who are admitted in a member state of their nationality. Such a lawyer can go to any other member state and practice home country law. After three years of such practice, the lawyer can get host country admission without more. That certainly gives a lot of weight to skills and experience.
It will be interesting to see where all this is going.
As I was listening to Prof. Herz's excellent report, it occurred to me that, in world of globalized legal services, bar admission is really not considered as being very important. If you look at the mobility of legal talent these days, you see announcements in the legal press of this or that lawyer (whose bar admission is not even mentioned) going from Hong Kong (for example) to a new office in Bahrain (or where ever). The point is, of course, that no one can be admitted everywhere, and, often, law firms and consumers of legal services are more interested in skills and experience than they are in the formalities of bar admission. Thus, an M&A lawyer from New York or London, may be needed in Moscow and may never think twice about seeking admission to the local bar.
This clearly does not pose a problem to the consumers of these legal services, because they are all sophisticated users of legal services (and are usually lawyers themselves as in-house GS's or outside law firms) and can easily protect themselves. Hence, bar admission is not a major consideration of the decision to engage a lawyer. Rather, specific skills and experience are.
At the administrative level, the US still seems to be obsessed with local bar admission. However, at the practice level, lawyers move about the country doing deals, meeting clients, taking depositions, etc., without much regard to whether they are admitted in the jurisdiction where the meeting takes place, etc. Internationally, it is even more so. Lawyers open offices in jurisdictions where they have no local bar admission and offer "international legal services" from those offices. This woudl run afoul of most MJP rules in the US. However, there is some precedent for this in the Establishment Directive in the EU.
The EU gives great mobility to EU nationals who are admitted in a member state of their nationality. Such a lawyer can go to any other member state and practice home country law. After three years of such practice, the lawyer can get host country admission without more. That certainly gives a lot of weight to skills and experience.
It will be interesting to see where all this is going.
Wednesday, March 19, 2008
Law.com - Nabarro Gains Best Friends in Italy and Spain
Law.com - Nabarro Gains Best Friends in Italy and Spain
This post complements the immediately preceding post regarding Clifford Chance and Dewey & LeBoeuf. The "best friends" approach, particularly when it is implemented well, is often the most cost effective and lowest risk solution. In addition, where the "best friend" is a more diverse law firm, there is a greater scope of services available.
This post complements the immediately preceding post regarding Clifford Chance and Dewey & LeBoeuf. The "best friends" approach, particularly when it is implemented well, is often the most cost effective and lowest risk solution. In addition, where the "best friend" is a more diverse law firm, there is a greater scope of services available.
Law.com - Clifford Chance Duo Jump to Dewey in Rome
Law.com - Clifford Chance Duo Jump to Dewey in Rome
Another realignment of legal talent involving foreign branch offices of global firms one home-based in London and the other home-based in New York.
Another realignment of legal talent involving foreign branch offices of global firms one home-based in London and the other home-based in New York.
An Export in Solid Supply - New York Times
An Export in Solid Supply - New York Times
While not strictly a legal issue at this time, this article might well indicate a future trend in global legal services. The real category, of course, is not coal per se, but rather a subset of energy related legal services. As the coal is here but being sold globally, this is one area where domestic firms can enjoy an advantage, provided they master the other services needed to manage the global sale of coal.
While not strictly a legal issue at this time, this article might well indicate a future trend in global legal services. The real category, of course, is not coal per se, but rather a subset of energy related legal services. As the coal is here but being sold globally, this is one area where domestic firms can enjoy an advantage, provided they master the other services needed to manage the global sale of coal.
Tuesday, March 18, 2008
"Skadden to open in São Paulo"
To me this makes more sense in many ways than opening an office in an already "over lawyered" area as many firms are still rushing to do. The problem is, however, that, as is often the case in many older, more stable areas, such as São Paulo, there are already some very strong local firms with which to partner thereby eliminating the costs and risks of setting up a stand alone office. In my view, the only good reason to set up a stand alone office is because there are no realistic possibilities of suitable "best friends" relationships.
To me this makes more sense in many ways than opening an office in an already "over lawyered" area as many firms are still rushing to do. The problem is, however, that, as is often the case in many older, more stable areas, such as São Paulo, there are already some very strong local firms with which to partner thereby eliminating the costs and risks of setting up a stand alone office. In my view, the only good reason to set up a stand alone office is because there are no realistic possibilities of suitable "best friends" relationships.
Friday, March 14, 2008
Practice Leader Bolts Firm
Practice Leader Bolts Firm
There is an interesting focus to this article. Jackson Lewis is a highly specialized and focused national firm.
There is an interesting focus to this article. Jackson Lewis is a highly specialized and focused national firm.
Another Partner Flies Alston & Bird's Coop
Another Partner Flies Alston & Bird's Coop
The mobility of certain segments of the legal profession is becoming truly amazing. The days of "partner for life" are long gone, and, as this article, which is representative of many similar articles, shows the allure of the "global presence" law firm for many practitioners.
The mobility of certain segments of the legal profession is becoming truly amazing. The days of "partner for life" are long gone, and, as this article, which is representative of many similar articles, shows the allure of the "global presence" law firm for many practitioners.
Wednesday, March 12, 2008
Law.com - Senior Corporate Hire Steps Up DLA's Gulf Push
Law.com - Senior Corporate Hire Steps Up DLA's Gulf Push
More news about DLA's expansion plans. This time, DLA looks to Australia as a source for talent in its Mid-east efforts, which include enhancing Dubai with new presences in Abu Dubai, Oman, and Qatar. Time will tell if this part of the world needs so much legal presence.
More news about DLA's expansion plans. This time, DLA looks to Australia as a source for talent in its Mid-east efforts, which include enhancing Dubai with new presences in Abu Dubai, Oman, and Qatar. Time will tell if this part of the world needs so much legal presence.
Tuesday, March 11, 2008
Law.com - Allen and Goetz to Exit White & Case's London Office
Law.com - Allen and Goetz to Exit White & Case's London Office
Yet another almost daily example of the growing mobility among international practicioner at the larger firms.
Yet another almost daily example of the growing mobility among international practicioner at the larger firms.
Law.com - Private Equity Firm First to Openly Target Legal Services in U.K.
Law.com - Private Equity Firm First to Openly Target Legal Services in U.K.
This is not possible yet, if ever, in the US, but it is possible in some parts of the world, including Australia and the UK. It is interesting that the private equity firm is targeting mid-tier firms. You might argue that, while these firms have more growth potential than some of the mega firms, they are probably not as well managed, do not always have the best client bases, and may not be able to break through to the mega firm level within a reasonable time. Also, helping a mid-tier firm develop a new practice area seems to be a very risky investment, unless there is a core group of clients to which the firm could successfully market these services. Time will tell, of course, if non-lawyer investment in law firms is a good idea or even a workable idea. This is something we need to watch closely to see what lessons, if any, can be gleaned from the experience.
This is not possible yet, if ever, in the US, but it is possible in some parts of the world, including Australia and the UK. It is interesting that the private equity firm is targeting mid-tier firms. You might argue that, while these firms have more growth potential than some of the mega firms, they are probably not as well managed, do not always have the best client bases, and may not be able to break through to the mega firm level within a reasonable time. Also, helping a mid-tier firm develop a new practice area seems to be a very risky investment, unless there is a core group of clients to which the firm could successfully market these services. Time will tell, of course, if non-lawyer investment in law firms is a good idea or even a workable idea. This is something we need to watch closely to see what lessons, if any, can be gleaned from the experience.
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