Smoke signals - there's no easy way to judge verein-backed firms
I knew this one was brewing for months. When Legal Week got around to its annual table of law firm results, there was always going to be a mind-numbing debate about how to treat the law firms put together with multiple profit centres. In many ways, the days when UK tables from Legal Week or US tables from The American Lawyer neatly summed up the upper end of the global legal services market have already passed. With more than 1,500 lawyers working for foreign firms in London, the UK-based tables already fail to reflect a substantial element of the domestic market. Yet merely replacing them with global tables or UK-revenue specific figures in isolation doesn't look that practical.
July 13, 2011 at 07:03 PM
3 minute read
I knew this one was brewing for months. When Legal Week got around to its annual table of law firm results, there was always going to be a mind-numbing debate about how to treat the law firms put together with multiple profit centres.
In many ways, the days when UK tables from Legal Week or US tables from The American Lawyer neatly summed up the upper end of the global legal services market have already passed. With more than 1,500 lawyers working for foreign firms in London, the UK-based tables already fail to reflect a substantial element of the domestic market. Yet merely replacing them with global tables or UK-revenue specific figures in isolation doesn't look that practical.
I suspect in the years to come we will have to come up with a method that does capture the particular qualities of the UK market while also reflecting the uniquely international outlook of the firms that compete in the UK. But we're not quite there yet. I also feel that law firms operating on the basis of mergers that use group structures would do well to let the market catch up with the evolution that they in part represent. Heavy-handed attempts to push out global numbers or pretend that they operate exactly the same as single profit centre firms will more likely attract unwanted attention on the differences of their businesses rather than convincing everyone of the seamless beauty of their global platforms.
And I say this despite Legal Week roundly rejecting the claim pushed by some rivals that mergers such as Hogan Lovells, SNR Denton or DLA Piper are merely associations – clearly they are a lot more than that. Yet there is something structurally distinct to their businesses and, to a certain extent, working out how they will perform is a guessing game. For all the protestations of managing partners at these firms that it makes no difference, there isn't enough experience yet to tell.
The tone of responses to this week's Big Question does speak of the ambiguity of the structure. There is little feeling that clients will lack confidence in such verein-backed firms or that service levels will be negatively impacted – a feeling that obviously bodes very well for the Hogan Lovells and DLA Pipers of this world. Yet there is a justifiable feeling that such arrangements will be less satisfactory in delivering strategic direction and aligning a single partnership.
And managing partners claiming that such tensions matter for nothing are pushing their luck – it's one thing to argue that the pros of a multiple-profit centre merger outweigh the cons of immediate integration; it's another to pretend there are none.
Beyond that, it's already becoming apparent that there are considerable differences in governance and structure between law firms using broadly comparable models, with Hogan Lovells in particular pushing hard to achieve genuine integration. With no easy answer, we'll have to do our best.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllCox & Palmer to Merge with Benson Buffett in St. John’s, Canada’s Easternmost City
2 minute readAsia's Top Stories 2024: Departures, Layoffs and Breakups at the Likes of Kirkland, Skadden and Mayer Brown
A&O Shearman’s South African Lawyers in Last-minute Talks To Find Jobs Before Closure
3 minute readTrending Stories
- 1Call for Nominations: Elite Trial Lawyers 2025
- 2Senate Judiciary Dems Release Report on Supreme Court Ethics
- 3Senate Confirms Last 2 of Biden's California Judicial Nominees
- 4Morrison & Foerster Doles Out Year-End and Special Bonuses, Raises Base Compensation for Associates
- 5Tom Girardi to Surrender to Federal Authorities on Jan. 7
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250