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.
Wednesday, April 30, 2008
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?
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