Lawyers abroad: The internationalization of legal practice

California Management Review

Volumn , Issue 3, 1997, Pages 8-28

  Spar, Debora L ^a  

^a NONE

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EID: 0031531847     PISSN: 00081256     EISSN: None     Source Type: Journal    
DOI: 10.2307/41165896     Document Type: Article

References (95)

1. There is, of course, a vast literature that defines the differences between goods and services, and the further distinctions of information-based services. See, for instance, T.P. Hill, "On Goods and Services," The Review of Income and Wealth, 23 (December 1977): 315-331; Geza Feketekuty, International Trade in Services (Cambridge, MA: Ballinger Publishing, 1988); Jagdish Bhagwati, "International Trade in Services and Its Relevance for Economic Development," in Orio Giarini, ed., The Emerging Service Economy (New York, NY: Pergamon Press, 1987); Gary Sampson and Richard Snape, "Identifying the Issues in Trade in Services," The World Economy, 8 (June 1985): 171-182.
2. There is, of course, a vast literature that defines the differences between goods and services, and the further distinctions of information-based services. See, for instance, T.P. Hill, "On Goods and Services," The Review of Income and Wealth, 23 (December 1977): 315-331; Geza Feketekuty, International Trade in Services (Cambridge, MA: Ballinger Publishing, 1988); Jagdish Bhagwati, "International Trade in Services and Its Relevance for Economic Development," in Orio Giarini, ed., The Emerging Service Economy (New York, NY: Pergamon Press, 1987); Gary Sampson and Richard Snape, "Identifying the Issues in Trade in Services," The World Economy, 8 (June 1985): 171-182.
3. There is, of course, a vast literature that defines the differences between goods and services, and the further distinctions of information-based services. See, for instance, T.P. Hill, "On Goods and Services," The Review of Income and Wealth, 23 (December 1977): 315-331; Geza Feketekuty, International Trade in Services (Cambridge, MA: Ballinger Publishing, 1988); Jagdish Bhagwati, "International Trade in Services and Its Relevance for Economic Development," in Orio Giarini, ed., The Emerging Service Economy (New York, NY: Pergamon Press, 1987); Gary Sampson and Richard Snape, "Identifying the Issues in Trade in Services," The World Economy, 8 (June 1985): 171-182.
4. There is, of course, a vast literature that defines the differences between goods and services, and the further distinctions of information-based services. See, for instance, T.P. Hill, "On Goods and Services," The Review of Income and Wealth, 23 (December 1977): 315-331; Geza Feketekuty, International Trade in Services (Cambridge, MA: Ballinger Publishing, 1988); Jagdish Bhagwati, "International Trade in Services and Its Relevance for Economic Development," in Orio Giarini, ed., The Emerging Service Economy (New York, NY: Pergamon Press, 1987); Gary Sampson and Richard Snape, "Identifying the Issues in Trade in Services," The World Economy, 8 (June 1985): 171-182.
5. In 1743, for example, there were only eight lawyers in New York City. See Roscoe Pound, The Lawyer from Antiquity to Modern Times (St. Paul, MN: West Publishing Co., 1953), p. 141. Some of Pound's most provocative insights come from John Adams's diary. See John Adams, The Works of John Adams (Boston, MA: Little, Brown, 1850-1856).
6. In 1743, for example, there were only eight lawyers in New York City. See Roscoe Pound, The Lawyer from Antiquity to Modern Times (St. Paul, MN: West Publishing Co., 1953), p. 141. Some of Pound's most provocative insights come from John Adams's diary. See John Adams, The Works of John Adams (Boston, MA: Little, Brown, 1850-1856).
7. Alexis de Tocqueville, cited in James W. Hurst, The Growth of American Law (Boston, MA: Little, Brown, 1950), p. 251.
8. See for instance Marc Galanter and Thomas Palay, Tournament of Lawyers: The Transformation of the Big Law Firm (Chicago, IL: University of Chicago Press, 1991), pp. 7-8. Their work builds upon Theron Strong, Landmarks of a Lawyer's Lifetime (New York, NY: Dodd, Mead, 1914); Charles Chamberlayne, "The Soul of the Profession," Green Bag, 18 (1906): 396-401. See also Wayne K. Hobson, The American Legal Profession and the Organizational Society 1890-1930 (New York, NY: Garland Publishing, Inc., 1986), pp. 150-152; Hurst (1950), op. cit., p. 308; Thomas Paul Pinansky, "The Emergence of Law Firms in the American Legal Profession," University of Arkansas at Little Rock Law Journal, 9 (1986-87): 606-608 and 612-614.
9. See for instance Marc Galanter and Thomas Palay, Tournament of Lawyers: The Transformation of the Big Law Firm (Chicago, IL: University of Chicago Press, 1991), pp. 7-8. Their work builds upon Theron Strong, Landmarks of a Lawyer's Lifetime (New York, NY: Dodd, Mead, 1914); Charles Chamberlayne, "The Soul of the Profession," Green Bag, 18 (1906): 396-401. See also Wayne K. Hobson, The American Legal Profession and the Organizational Society 1890-1930 (New York, NY: Garland Publishing, Inc., 1986), pp. 150-152; Hurst (1950), op. cit., p. 308; Thomas Paul Pinansky, "The Emergence of Law Firms in the American Legal Profession," University of Arkansas at Little Rock Law Journal, 9 (1986-87): 606-608 and 612-614.
10. See for instance Marc Galanter and Thomas Palay, Tournament of Lawyers: The Transformation of the Big Law Firm (Chicago, IL: University of Chicago Press, 1991), pp. 7-8. Their work builds upon Theron Strong, Landmarks of a Lawyer's Lifetime (New York, NY: Dodd, Mead, 1914); Charles Chamberlayne, "The Soul of the Profession," Green Bag, 18 (1906): 396-401. See also Wayne K. Hobson, The American Legal Profession and the Organizational Society 1890-1930 (New York, NY: Garland Publishing, Inc., 1986), pp. 150-152; Hurst (1950), op. cit., p. 308; Thomas Paul Pinansky, "The Emergence of Law Firms in the American Legal Profession," University of Arkansas at Little Rock Law Journal, 9 (1986-87): 606-608 and 612-614.
11. See for instance Marc Galanter and Thomas Palay, Tournament of Lawyers: The Transformation of the Big Law Firm (Chicago, IL: University of Chicago Press, 1991), pp. 7-8. Their work builds upon Theron Strong, Landmarks of a Lawyer's Lifetime (New York, NY: Dodd, Mead, 1914); Charles Chamberlayne, "The Soul of the Profession," Green Bag, 18 (1906): 396-401. See also Wayne K. Hobson, The American Legal Profession and the Organizational Society 1890-1930 (New York, NY: Garland Publishing, Inc., 1986), pp. 150-152; Hurst (1950), op. cit., p. 308; Thomas Paul Pinansky, "The Emergence of Law Firms in the American Legal Profession," University of Arkansas at Little Rock Law Journal, 9 (1986-87): 606-608 and 612-614.
12. See for instance Marc Galanter and Thomas Palay, Tournament of Lawyers: The Transformation of the Big Law Firm (Chicago, IL: University of Chicago Press, 1991), pp. 7-8. Their work builds upon Theron Strong, Landmarks of a Lawyer's Lifetime (New York, NY: Dodd, Mead, 1914); Charles Chamberlayne, "The Soul of the Profession," Green Bag, 18 (1906): 396-401. See also Wayne K. Hobson, The American Legal Profession and the Organizational Society 1890-1930 (New York, NY: Garland Publishing, Inc., 1986), pp. 150-152; Hurst (1950), op. cit., p. 308; Thomas Paul Pinansky, "The Emergence of Law Firms in the American Legal Profession," University of Arkansas at Little Rock Law Journal, 9 (1986-87): 606-608 and 612-614.
13. See for instance Marc Galanter and Thomas Palay, Tournament of Lawyers: The Transformation of the Big Law Firm (Chicago, IL: University of Chicago Press, 1991), pp. 7-8. Their work builds upon Theron Strong, Landmarks of a Lawyer's Lifetime (New York, NY: Dodd, Mead, 1914); Charles Chamberlayne, "The Soul of the Profession," Green Bag, 18 (1906): 396-401. See also Wayne K. Hobson, The American Legal Profession and the Organizational Society 1890-1930 (New York, NY: Garland Publishing, Inc., 1986), pp. 150-152; Hurst (1950), op. cit., p. 308; Thomas Paul Pinansky, "The Emergence of Law Firms in the American Legal Profession," University of Arkansas at Little Rock Law Journal, 9 (1986-87): 606-608 and 612-614.
14. Two other structural changes occurred in the legal profession during this same phase: the growing importance of law schools and the growing reach and role of bar associations. For more on these linked developments, see Wayne K. Hobson, The American Legal Profession and the Organizational Society 1890-1930 (New York, NY: Garland Publishing, Inc., 1986), p. 76. For a discussion, see Pinansky, op. cit., pp. 593-640.
15. Two other structural changes occurred in the legal profession during this same phase: the growing importance of law schools and the growing reach and role of bar associations. For more on these linked developments, see Wayne K. Hobson, The American Legal Profession and the Organizational Society 1890-1930 (New York, NY: Garland Publishing, Inc., 1986), p. 76. For a discussion, see Pinansky, op. cit., pp. 593-640.
16. See Pinansky, op. cit., p. 611.
17. Between 1974 and 1980, 29 New York firms opened branch offices in Florida. Richard Abel, American Lawyers (New York, NY: Oxford University Press, 1989), p. 189.
18. Galanter and Palay (1991), p. 47.
19. Throughout this article, I use the terms "global" and "international" interchangeably, despite several excellent descriptions of the implied differences between these two terms. See for instance, Christopher A. Bartlett and Sumantra Ghoshal, Managing Across Borders: The Transnational Solution (Boston, MA: Harvard Business School Press, 1989); Yves L. Doz and C.K. Prahalad, The Multinational Mission: Balancing Local Demands and Global Vision (New York, NY: Free Press, 1989). My use of "global" or "international" law also refers to the overseas activities of law firms, rather than to the formal body of public international law, which concerns itself primarily with relations between sovereign states. To practitioners, by contrast, as Flood notes, international law means advising on transactions or litigation involving more than one jurisdiction. See John Flood, "Megalawyering in the Global Order: The Cultural, Social and Economic Transformation of Global Legal Practice," International Journal of the Legal Profession, 3 (March 1996): 189.
20. Throughout this article, I use the terms "global" and "international" interchangeably, despite several excellent descriptions of the implied differences between these two terms. See for instance, Christopher A. Bartlett and Sumantra Ghoshal, Managing Across Borders: The Transnational Solution (Boston, MA: Harvard Business School Press, 1989); Yves L. Doz and C.K. Prahalad, The Multinational Mission: Balancing Local Demands and Global Vision (New York, NY: Free Press, 1989). My use of "global" or "international" law also refers to the overseas activities of law firms, rather than to the formal body of public international law, which concerns itself primarily with relations between sovereign states. To practitioners, by contrast, as Flood notes, international law means advising on transactions or litigation involving more than one jurisdiction. See John Flood, "Megalawyering in the Global Order: The Cultural, Social and Economic Transformation of Global Legal Practice," International Journal of the Legal Profession, 3 (March 1996): 189.
21. Throughout this article, I use the terms "global" and "international" interchangeably, despite several excellent descriptions of the implied differences between these two terms. See for instance, Christopher A. Bartlett and Sumantra Ghoshal, Managing Across Borders: The Transnational Solution (Boston, MA: Harvard Business School Press, 1989); Yves L. Doz and C.K. Prahalad, The Multinational Mission: Balancing Local Demands and Global Vision (New York, NY: Free Press, 1989). My use of "global" or "international" law also refers to the overseas activities of law firms, rather than to the formal body of public international law, which concerns itself primarily with relations between sovereign states. To practitioners, by contrast, as Flood notes, international law means advising on transactions or litigation involving more than one jurisdiction. See John Flood, "Megalawyering in the Global Order: The Cultural, Social and Economic Transformation of Global Legal Practice," International Journal of the Legal Profession, 3 (March 1996): 189.
22. See for instance, Robert L. Nelson, Partners with Power: The Social Transformation of the Large Law Firm (Berkeley, CA: University of California Press, 1988), p. 266; Pinansky, op. cit., pp. 634-635.
23. See for instance, Robert L. Nelson, Partners with Power: The Social Transformation of the Large Law Firm (Berkeley, CA: University of California Press, 1988), p. 266; Pinansky, op. cit., pp. 634-635.
24. One obvious alternative for corporations is to create inhouse legal staffs, thereby reducing both financial and transaction costs.
25. For a discussion of current developments concerning the future of "foreign legal consultants," see Sidney M. Cone III, "FLCs face licencing hurdles in host countries," The National Law Journal, October 7, 1996, p. C2.
26. France, for instance, allowed only members of the legal and judicial professions in France to give legal advice. See EU Schedule on Professional Services; cited in Kenneth S. Kilimnik, "Lawyers Abroad: New Rules for Practice in a Global Economy," Dickinson Journal of International Law, 12 (Winter 1994): 269-325. In Japan, foreign lawyers were allowed to practice, but only on issues that concerned the law of their home state, and only after receiving approval from the Japanese bar association. [Special Measures Law Concerning the Handling of Legal Business by Foreign Lawyers, art. 10(3).] See also generally Amelia Porges, "Introduction to Japan: Law and Ministerial Order Related to the Handling of Legal Business by Foreign Lawyers," International Legal Materials, 26 (1987): 881-920. Foreign law offices were also not permitted to hire Japanese attorneys. In 1987, Japan liberalized its laws somewhat, permitting foreign lawyers to petition to become "foreign legal consultants" (and thereby practice home-jurisdiction law) under certain conditions. Until the spring of 1996, Hong Kong permitted foreign lawyers to practice, but only if they confined their advice to the laws of their home states. See Janice Fuhrman, "Hong Kong is Adjusting to the '1997 Jitters'," The National Law Journal, July 11, 1983, p. 26. Hong Kong law also prohibited local Hong Kong solicitors from employing any employee of a foreign law firm, or even from sharing office space with them. The Hong Kong regulations have been particularly despised by U.S. firms, because they treat British law firms as local, rather than foreign, entities. See Joan M. Cheever, "U.S.-Hong Kong Deals Shaky?" The National Law Journal, August 20, 1990, p. 3; Simon Ip, "Legal Skills Cannot Cross National Boundaries," Far Eastern Economic Review, November 17, 1988, pp. 44-46.
27. France, for instance, allowed only members of the legal and judicial professions in France to give legal advice. See EU Schedule on Professional Services; cited in Kenneth S. Kilimnik, "Lawyers Abroad: New Rules for Practice in a Global Economy," Dickinson Journal of International Law, 12 (Winter 1994): 269-325. In Japan, foreign lawyers were allowed to practice, but only on issues that concerned the law of their home state, and only after receiving approval from the Japanese bar association. [Special Measures Law Concerning the Handling of Legal Business by Foreign Lawyers, art. 10(3).] See also generally Amelia Porges, "Introduction to Japan: Law and Ministerial Order Related to the Handling of Legal Business by Foreign Lawyers," International Legal Materials, 26 (1987): 881-920. Foreign law offices were also not permitted to hire Japanese attorneys. In 1987, Japan liberalized its laws somewhat, permitting foreign lawyers to petition to become "foreign legal consultants" (and thereby practice home-jurisdiction law) under certain conditions. Until the spring of 1996, Hong Kong permitted foreign lawyers to practice, but only if they confined their advice to the laws of their home states. See Janice Fuhrman, "Hong Kong is Adjusting to the '1997 Jitters'," The National Law Journal, July 11, 1983, p. 26. Hong Kong law also prohibited local Hong Kong solicitors from employing any employee of a foreign law firm, or even from sharing office space with them. The Hong Kong regulations have been particularly despised by U.S. firms, because they treat British law firms as local, rather than foreign, entities. See Joan M. Cheever, "U.S.-Hong Kong Deals Shaky?" The National Law Journal, August 20, 1990, p. 3; Simon Ip, "Legal Skills Cannot Cross National Boundaries," Far Eastern Economic Review, November 17, 1988, pp. 44-46.
28. France, for instance, allowed only members of the legal and judicial professions in France to give legal advice. See EU Schedule on Professional Services; cited in Kenneth S. Kilimnik, "Lawyers Abroad: New Rules for Practice in a Global Economy," Dickinson Journal of International Law, 12 (Winter 1994): 269-325. In Japan, foreign lawyers were allowed to practice, but only on issues that concerned the law of their home state, and only after receiving approval from the Japanese bar association. [Special Measures Law Concerning the Handling of Legal Business by Foreign Lawyers, art. 10(3).] See also generally Amelia Porges, "Introduction to Japan: Law and Ministerial Order Related to the Handling of Legal Business by Foreign Lawyers," International Legal Materials, 26 (1987): 881-920. Foreign law offices were also not permitted to hire Japanese attorneys. In 1987, Japan liberalized its laws somewhat, permitting foreign lawyers to petition to become "foreign legal consultants" (and thereby practice home-jurisdiction law) under certain conditions. Until the spring of 1996, Hong Kong permitted foreign lawyers to practice, but only if they confined their advice to the laws of their home states. See Janice Fuhrman, "Hong Kong is Adjusting to the '1997 Jitters'," The National Law Journal, July 11, 1983, p. 26. Hong Kong law also prohibited local Hong Kong solicitors from employing any employee of a foreign law firm, or even from sharing office space with them. The Hong Kong regulations have been particularly despised by U.S. firms, because they treat British law firms as local, rather than foreign, entities. See Joan M. Cheever, "U.S.-Hong Kong Deals Shaky?" The National Law Journal, August 20, 1990, p. 3; Simon Ip, "Legal Skills Cannot Cross National Boundaries," Far Eastern Economic Review, November 17, 1988, pp. 44-46.
29. France, for instance, allowed only members of the legal and judicial professions in France to give legal advice. See EU Schedule on Professional Services; cited in Kenneth S. Kilimnik, "Lawyers Abroad: New Rules for Practice in a Global Economy," Dickinson Journal of International Law, 12 (Winter 1994): 269-325. In Japan, foreign lawyers were allowed to practice, but only on issues that concerned the law of their home state, and only after receiving approval from the Japanese bar association. [Special Measures Law Concerning the Handling of Legal Business by Foreign Lawyers, art. 10(3).] See also generally Amelia Porges, "Introduction to Japan: Law and Ministerial Order Related to the Handling of Legal Business by Foreign Lawyers," International Legal Materials, 26 (1987): 881-920. Foreign law offices were also not permitted to hire Japanese attorneys. In 1987, Japan liberalized its laws somewhat, permitting foreign lawyers to petition to become "foreign legal consultants" (and thereby practice home-jurisdiction law) under certain conditions. Until the spring of 1996, Hong Kong permitted foreign lawyers to practice, but only if they confined their advice to the laws of their home states. See Janice Fuhrman, "Hong Kong is Adjusting to the '1997 Jitters'," The National Law Journal, July 11, 1983, p. 26. Hong Kong law also prohibited local Hong Kong solicitors from employing any employee of a foreign law firm, or even from sharing office space with them. The Hong Kong regulations have been particularly despised by U.S. firms, because they treat British law firms as local, rather than foreign, entities. See Joan M. Cheever, "U.S.-Hong Kong Deals Shaky?" The National Law Journal, August 20, 1990, p. 3; Simon Ip, "Legal Skills Cannot Cross National Boundaries," Far Eastern Economic Review, November 17, 1988, pp. 44-46.
30. France, for instance, allowed only members of the legal and judicial professions in France to give legal advice. See EU Schedule on Professional Services; cited in Kenneth S. Kilimnik, "Lawyers Abroad: New Rules for Practice in a Global Economy," Dickinson Journal of International Law, 12 (Winter 1994): 269-325. In Japan, foreign lawyers were allowed to practice, but only on issues that concerned the law of their home state, and only after receiving approval from the Japanese bar association. [Special Measures Law Concerning the Handling of Legal Business by Foreign Lawyers, art. 10(3).] See also generally Amelia Porges, "Introduction to Japan: Law and Ministerial Order Related to the Handling of Legal Business by Foreign Lawyers," International Legal Materials, 26 (1987): 881-920. Foreign law offices were also not permitted to hire Japanese attorneys. In 1987, Japan liberalized its laws somewhat, permitting foreign lawyers to petition to become "foreign legal consultants" (and thereby practice home-jurisdiction law) under certain conditions. Until the spring of 1996, Hong Kong permitted foreign lawyers to practice, but only if they confined their advice to the laws of their home states. See Janice Fuhrman, "Hong Kong is Adjusting to the '1997 Jitters'," The National Law Journal, July 11, 1983, p. 26. Hong Kong law also prohibited local Hong Kong solicitors from employing any employee of a foreign law firm, or even from sharing office space with them. The Hong Kong regulations have been particularly despised by U.S. firms, because they treat British law firms as local, rather than foreign, entities. See Joan M. Cheever, "U.S.-Hong Kong Deals Shaky?" The National Law Journal, August 20, 1990, p. 3; Simon Ip, "Legal Skills Cannot Cross National Boundaries," Far Eastern Economic Review, November 17, 1988, pp. 44-46.
31. See Richard L. Abel, "Symposium: The Future of the Legal Profession: Transnational Law Practice," Case Western Reserve Law Review, 49 (1994): 737-870.
32. Quoted in Sheila Kaplan, "Backlash in Brussels," Legal Times, December 3, 1990, Report from Europe, p. 1.
33. Ibid.
34. See, for instance, Steve Albert, "Looking South of the Border," The Recorder, May 28, 1991, p. 12; Joan M. Cheever, "The Legal Community Withdraws its Welcome in Hong Kong," The National Law Journal, January 9, 1989, p. 22.
35. See, for instance, Steve Albert, "Looking South of the Border," The Recorder, May 28, 1991, p. 12; Joan M. Cheever, "The Legal Community Withdraws its Welcome in Hong Kong," The National Law Journal, January 9, 1989, p. 22.
36. Quoted in Benjamin Weiser, "204 Miles and a World Apart," Washington Post, February 10, 1994, p. D11.
37. Sherry Sontag, "Opening Offices Overseas: Does the Payoff Warrant the Huge Expense?" National Law Journal, February 12, 1990, p. 1.
38. Calculated from Abel (1994), op. cit., Table 23, p. 859.
39. The export figure includes only payments by foreign-based sources to U.S.-based firms, thus capturing only a portion of total U.S. legal revenues sourced abroad. See John E. Morris, "Capitalizing on Global Capitalism," The American Lawyer (April 1996), p. 5. As Abel notes, the overseas activities of U.S. lawyers still constitute only a tiny fraction of the total revenues for the profession; but the growth rate and absolute number are remarkable. See Abel (1994), op. cit., p. 738.
40. The export figure includes only payments by foreign-based sources to U.S.-based firms, thus capturing only a portion of total U.S. legal revenues sourced abroad. See John E. Morris, "Capitalizing on Global Capitalism," The American Lawyer (April 1996), p. 5. As Abel notes, the overseas activities of U.S. lawyers still constitute only a tiny fraction of the total revenues for the profession; but the growth rate and absolute number are remarkable. See Abel (1994), op. cit., p. 738.
41. See Abel (1994), op. cit., p. 741; and Robert Budden, "The IFLR Top 40: The World's Largest Law Firms," International Financial Law Review, October, 1992, p. 13. The remaining firms in the top 40 include four Australian and one Canadian practice.
42. See Abel (1994), op. cit., p. 741; and Robert Budden, "The IFLR Top 40: The World's Largest Law Firms," International Financial Law Review, October, 1992, p. 13. The remaining firms in the top 40 include four Australian and one Canadian practice.
43. Deborah Graham, "Two Decades See Growth in Overseas Branching," Legal Times, May 28, 1984, p. 9.
44. Sometime later, Shearman also followed Citibank to Latin America to advise the bank on its massive restructuring of country debt. Subsequently, the firm's Latin American practice took off. See Sam Adler, "Hola Latinoamerica," Manhattan Lawyer (September 1991), p. 22.
45. See Karen Dillon, "Brand Names at the Brink," The American Lawyer (May 1995), p. 5.
46. Graham (1984), op. cit., p. 9.
47. One analyst observing this movement attributes it to the Thomas Theorem: that "trends become real, because people believe them to be real." See Erhard Blankenburg, "The Thomas Theorem of mega-lawyering," in Philip S.C. Lewis, ed., Law and Technology in the Pacific Community (Boulder, CO: Westview Press, 1994), p. 28.
48. See also Timothy Harper, "Going Global: Big Law Firms Expand Overseas," ABA Journal (September 1989), pp. 68-72.
49. Abel (1994), op. cit., p. 741.
50. As Galanter and Palay note, "one stop shopping" benefits the corporate buyer by reducing both transaction costs and search costs. See Galanter and Palay (1991), op. cit., p. 50.
51. For more on the emerging market squabbles between accountants and lawyers, see Sheila Kaplan, "Eastern Europe: Dealmakers Rush to a New Frontier," The American Lawyer (April 1991), Corporate Scorecard 1990, p. 6; Chris Klein, "Gold Rush, Thin Stakes," The National Law Journal, August 12, 1996, p. A1.
52. For more on the emerging market squabbles between accountants and lawyers, see Sheila Kaplan, "Eastern Europe: Dealmakers Rush to a New Frontier," The American Lawyer (April 1991), Corporate Scorecard 1990, p. 6; Chris Klein, "Gold Rush, Thin Stakes," The National Law Journal, August 12, 1996, p. A1.
53. In at least some cases, however, poor performance of foreign offices turns out to be a challenge, not a death blow. See Emily Barker, "Making Milbank Over," The American Lawyer (October 1996), p. 48.
54. See "Red Tape Around the World," The Economist, November 23, 1996, p. 77.
55. Drawn from data presented in John Flood, "The Cultures of Globalization: Professional Restructuring for the International Market," in Y. Dezalay and D. Sugarman, eds., Professional Competition and Professional Power: Lawyers, Accountants and the Social Construction of Markets (London: Routledge, 1995), Table 6.1, p. 151; and "The IFLR Top 40: The World's Largest Law Firms," International Financial Law Review (October 1992), p. 13.
56. Drawn from data presented in John Flood, "The Cultures of Globalization: Professional Restructuring for the International Market," in Y. Dezalay and D. Sugarman, eds., Professional Competition and Professional Power: Lawyers, Accountants and the Social Construction of Markets (London: Routledge, 1995), Table 6.1, p. 151; and "The IFLR Top 40: The World's Largest Law Firms," International Financial Law Review (October 1992), p. 13.
57. For more on this phenomenon, see Paul Hoffman, Lions of the Eighties (New York, NY: Doubleday, 1982), pp. 226-233. For a discussion of how the trend toward "boutique-ing" is liable to affect the future of the legal practice, see Steven Brill, "The Law Business in the Year 2000," The American Lawyer, June 1989, p. 5.
58. For more on this phenomenon, see Paul Hoffman, Lions of the Eighties (New York, NY: Doubleday, 1982), pp. 226-233. For a discussion of how the trend toward "boutique-ing" is liable to affect the future of the legal practice, see Steven Brill, "The Law Business in the Year 2000," The American Lawyer, June 1989, p. 5.
59. Interview, London, October 1996
60. Mark Rollinson, "Small Company, Big Law Firm," Harvard Business Review (November/December 1985), p. 7. For more on the attributes of size, see also the discussion in Galanter and Palay (1991), op. cit., p. 50.
61. Mark Rollinson, "Small Company, Big Law Firm," Harvard Business Review (November/December 1985), p. 7. For more on the attributes of size, see also the discussion in Galanter and Palay (1991), op. cit., p. 50.
62. William B. Glaberson, "Megafirms are taking over corporate law," Business Week, November 17, 1986, p. 104. For an expanded discussion of the factors behind law firm growth, see Nelson (1988), op. cit., pp. 62-63; and Arleen Leibowitz and Robert Tollison, "Free Riding, Shirking, and Team Production in Legal Partnerships," Economic Inquiry, 18 (1980): 380-394.
63. William B. Glaberson, "Megafirms are taking over corporate law," Business Week, November 17, 1986, p. 104. For an expanded discussion of the factors behind law firm growth, see Nelson (1988), op. cit., pp. 62-63; and Arleen Leibowitz and Robert Tollison, "Free Riding, Shirking, and Team Production in Legal Partnerships," Economic Inquiry, 18 (1980): 380-394.
64. William B. Glaberson, "Megafirms are taking over corporate law," Business Week, November 17, 1986, p. 104. For an expanded discussion of the factors behind law firm growth, see Nelson (1988), op. cit., pp. 62-63; and Arleen Leibowitz and Robert Tollison, "Free Riding, Shirking, and Team Production in Legal Partnerships," Economic Inquiry, 18 (1980): 380-394.
65. It also apparently increased the relative share of profits earned by the top tier firms. See Brill (1989), op. cit.
66. The importance of hiring local attorneys in order to build relationships and generate business is a recurrent theme. See for instance Ed Finkel, "Altheimer Expands Boundaries Again with Move to Turkey," Chicago Lawyer (June 1994), p. 65; David Trubek et al., "Global Restructuring and the Law: Studies of the Internationalization of Legal Fields and the Creation of Transnational Arenas," Case Western Reserve Law Review, 44 (Winter 1994): 407-498.
67. The importance of hiring local attorneys in order to build relationships and generate business is a recurrent theme. See for instance Ed Finkel, "Altheimer Expands Boundaries Again with Move to Turkey," Chicago Lawyer (June 1994), p. 65; David Trubek et al., "Global Restructuring and the Law: Studies of the Internationalization of Legal Fields and the Creation of Transnational Arenas," Case Western Reserve Law Review, 44 (Winter 1994): 407-498.
68. See, for instance, Michael Oppenhoff, "Organisation of International Legal Services," International Bar Association, Section on Business Law Seminar, Amsterdam, March 14, 1995.
69. For an interesting support of this position, see John Merrow, Senior Partner of Sullivan & Cromwell, transcript of presentation to the American Bar Association Annual Meeting, New Orleans, August 1994.
70. Altheimer & Gray, which is by far the smallest U.S. firm with a major overseas presence, is the only one that does not appear as an Am Law 100 firm. Since the Am Law 100 is calculated according to gross revenue, Altheimer & Gray's failure to place in this ranking is not necessarily consequential.
71. Software, publishing, and media have some, but not all, of the same characteristics. For a related discussion of the problems that surround the electronic sale of information, see Debora Spar and Jeffrey J. Bussgang, "Ruling the Net," Harvard Business Review (May/June 1996), pp. 125-133.
72. This point is also confirmed in James F. Fitzpatrick, "Legal Future Shock: The Role of Large Law Firms by the End of the Century," Indiana Law Journal, 64 (Summer 1989): 461-471.
73. Personal interview, Washington, D.C., September 1996.
74. The term was suggested during a personal interview. New York, NY, October 1996. For more on this point, see also Saundra Torry and B.H. Lawrence, "D.C. Area Law Firms Join Wave of Mergers," Washington Post, April 10, 1989, p. E1; Joseph Flom, "Is the Multicity Mega-Firm a Necessity or a Pipe Dream?" panel discussion, reported in American Lawyer, under the title "Getting Big: Is Growth Unavoidable?" (December 1984), pp. 8-15 of supplement.
75. The term was suggested during a personal interview. New York, NY, October 1996. For more on this point, see also Saundra Torry and B.H. Lawrence, "D.C. Area Law Firms Join Wave of Mergers," Washington Post, April 10, 1989, p. E1; Joseph Flom, "Is the Multicity Mega-Firm a Necessity or a Pipe Dream?" panel discussion, reported in American Lawyer, under the title "Getting Big: Is Growth Unavoidable?" (December 1984), pp. 8-15 of supplement.
76. The term was suggested during a personal interview. New York, NY, October 1996. For more on this point, see also Saundra Torry and B.H. Lawrence, "D.C. Area Law Firms Join Wave of Mergers," Washington Post, April 10, 1989, p. E1; Joseph Flom, "Is the Multicity Mega-Firm a Necessity or a Pipe Dream?" panel discussion, reported in American Lawyer, under the title "Getting Big: Is Growth Unavoidable?" (December 1984), pp. 8-15 of supplement.
77. Personal interview, New York, NY, September 1996.
78. In a a related discussion, DeAngelo argues that big accounting firms are inherently better than small ones, because they are less reliant on any single customer, and thus more likely to produce objective reports. See Linda A. DeAngelo, "Auditor Size and Audit Quality," Journal of Accounting and Economics, 3 (1981): 183-199. For a description of how the investment management industry is also splitting into two tiers of very large and very small firms, see Mark P. Hurley et al., "The Coming Evolution of the Investment Management Industry: Opportunities and Strategies," Goldman Sachs & Co., Investment Management Industry Group, October 1995.
79. In a a related discussion, DeAngelo argues that big accounting firms are inherently better than small ones, because they are less reliant on any single customer, and thus more likely to produce objective reports. See Linda A. DeAngelo, "Auditor Size and Audit Quality," Journal of Accounting and Economics, 3 (1981): 183-199. For a description of how the investment management industry is also splitting into two tiers of very large and very small firms, see Mark P. Hurley et al., "The Coming Evolution of the Investment Management Industry: Opportunities and Strategies," Goldman Sachs & Co., Investment Management Industry Group, October 1995.
80. Interview, London, October 1996. This comment was made repeatedly in my interviews.
81. Gilson and Mnookin argue that large firms can be seen in fact as a quality assurance mechanism. See Ronald J. Gilson and Robert H. Mnookin, "Sharing among the Human Capitalists: An Economic Inquiry into the Corporate Law Firm and How Partners Split Profits," Stanford Law Review, 37 (January 1985): 313-397.
82. Or as Lovelock and Yip note, "[t]he uncertainty engendered by intangibility requires strong branding to offset it." Christopher H. Lovelock and George S. Yip, "Developing Global Strategies for Service Businesses," California Management Review, 38/2 (Winter 1996): 64-86.
83. Personal interview, New York, NY, September 1996.
84. See, for instance, Feketekuty (1988), op. cit., pp. 48-50.
85. See Christopher A. Bartlett and Sumantra Ghoshal, "What Is a Global Manager?" Harvard Business Review, 7 (September/October 1992): 124-132; Christopher A. Bartlett and Sumantra Ghoshal, Managing Across Borders (Boston, MA: Harvard Business School Press, 1989); Yves L. Doz and C. K. Prahalad, Multinational Mission: Balancing Local Demands and Global Vision (New York, NY: The Free Press, 1987).
86. See Christopher A. Bartlett and Sumantra Ghoshal, "What Is a Global Manager?" Harvard Business Review, 7 (September/October 1992): 124-132; Christopher A. Bartlett and Sumantra Ghoshal, Managing Across Borders (Boston, MA: Harvard Business School Press, 1989); Yves L. Doz and C. K. Prahalad, Multinational Mission: Balancing Local Demands and Global Vision (New York, NY: The Free Press, 1987).
87. See Christopher A. Bartlett and Sumantra Ghoshal, "What Is a Global Manager?" Harvard Business Review, 7 (September/October 1992): 124-132; Christopher A. Bartlett and Sumantra Ghoshal, Managing Across Borders (Boston, MA: Harvard Business School Press, 1989); Yves L. Doz and C. K. Prahalad, Multinational Mission: Balancing Local Demands and Global Vision (New York, NY: The Free Press, 1987).
88. This was confirmed to me repeatedly in interviews conducted with law firms in New York, Washington, D.C., and London in the fall of 1996.
89. Personal interview, New York, NY, September 1996.
90. Major decisions include those that involve an investment of more than $1 million or a firm commitment of more than five years. See Deborah Graham, "Baker & McKenzie Streamlines Democratically," Legal Times, February 25, 1985, p. 12. For more on the practice and structure of Baker & McKenzie, see Barnaby J. Feder, "The Unorthodox Behemoth of Law Firms," New York Times, March 14, 1993, Section 3, p. 1; James B. Stewart, Jr., "Inside the World's Largest Law Firm: Baker & McKenzie," The American Lawyer, January 1980, p. 32; Mark Stevens, "Chicken McLaw: The Evolution of Baker & McKenzie," Crain's Chicago Business, November 24, 1986, p. 25.
91. Major decisions include those that involve an investment of more than $1 million or a firm commitment of more than five years. See Deborah Graham, "Baker & McKenzie Streamlines Democratically," Legal Times, February 25, 1985, p. 12. For more on the practice and structure of Baker & McKenzie, see Barnaby J. Feder, "The Unorthodox Behemoth of Law Firms," New York Times, March 14, 1993, Section 3, p. 1; James B. Stewart, Jr., "Inside the World's Largest Law Firm: Baker & McKenzie," The American Lawyer, January 1980, p. 32; Mark Stevens, "Chicken McLaw: The Evolution of Baker & McKenzie," Crain's Chicago Business, November 24, 1986, p. 25.
92. Major decisions include those that involve an investment of more than $1 million or a firm commitment of more than five years. See Deborah Graham, "Baker & McKenzie Streamlines Democratically," Legal Times, February 25, 1985, p. 12. For more on the practice and structure of Baker & McKenzie, see Barnaby J. Feder, "The Unorthodox Behemoth of Law Firms," New York Times, March 14, 1993, Section 3, p. 1; James B. Stewart, Jr., "Inside the World's Largest Law Firm: Baker & McKenzie," The American Lawyer, January 1980, p. 32; Mark Stevens, "Chicken McLaw: The Evolution of Baker & McKenzie," Crain's Chicago Business, November 24, 1986, p. 25.
93. Major decisions include those that involve an investment of more than $1 million or a firm commitment of more than five years. See Deborah Graham, "Baker & McKenzie Streamlines Democratically," Legal Times, February 25, 1985, p. 12. For more on the practice and structure of Baker & McKenzie, see Barnaby J. Feder, "The Unorthodox Behemoth of Law Firms," New York Times, March 14, 1993, Section 3, p. 1; James B. Stewart, Jr., "Inside the World's Largest Law Firm: Baker & McKenzie," The American Lawyer, January 1980, p. 32; Mark Stevens, "Chicken McLaw: The Evolution of Baker & McKenzie," Crain's Chicago Business, November 24, 1986, p. 25.
94. Donna Gill, "Baker's Unique Niche," Chicago Lawyer (January 1992), p. 1.
95. See Nicholas Varchaver, "The Culture of Chaos," American Lawyer (December 1993), p. 52.