Lexpert Magazine

October 2017

Lexpert magazine features articles and columns on developments in legal practice management, deals and lawsuits of interest in Canada, the law and business issues of interest to legal professionals and businesses that purchase legal services.

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40 LEXPERT MAGAZINE | OCTOBER 2017 where they have offices, like New York, London, Frankfurt, Singapore, Beijing, Chicago and Houston, there's a lot of the world they don't cover." By way of example, the 10 largest global firms have offices in only 12 US states. In many places, independent firms are the largest players. e WSG firm in Santiago, at 175 lawyers, is the largest firm in Chile, dwarfing the local offices of the global firms, which top out at 25 lawyers. From the perspective of inbound work, Dentons Canada LLP, Norton Rose Fulbright Can- ada LLP and DLA Piper (Canada) LLP are the only representatives of either the global giants or the vereins in this country. Nor- ton Rose, with 167 lawyers in Montréal, is the largest. But otherwise, independents rule: nationally, BLG's 726 lawyers make it the largest firm, while Blakes tops the list in Toronto (298), Gowling in Ottawa (277), Fasken in Vancouver (137) and Ben- nett Jones (173) in Calgary. Homegrown independents Stewart McKelvey, Cox & Palmer and McInnes Cooper dominate the Atlantic market. On this analysis, networks provide value to independents of any size. Even US-based McGuireWoods LLP, a firm of more than 1,000 lawyers, is a member of Lex Mundi. So is US-based Baker Botts and its 725 at- torneys. Blakes, with 604 lawyers, is the largest Canadian firm in a network, fol- lowed by Davies Ward and its 240 lawyers. What seems clear is that major indepen- dents, competing for the high-end work, find networks a useful tool in competing with global law firms and giant vereins, while working hand in hand with the ones with which they have relationships. e emergence of Nextlaw, moreover, es- tablishes that even the largest legal entities see the value of networks. "If we don't have the talent that our clients need or have a conflict, we'll make a referral to a Nextlaw firm," Portnoy says. MOST FIRMS, however, don't compete for the very highest-end work. "Minden Gross isn't interested in doing work for Co- ca-Cola, but we have our own kind of client and niche market," says Kallish's partner Samantha Prasad, who sits on the Meritas board. "It's not just large public companies that need assistance abroad, because mid- market firms are also globalizing." According to Kallish, Minden Gross lawyers see clients that are doing interna- tional business "virtually every day" and Meritas "allows us to serve their needs." Nick Torchetti of Aird & Berlis goes fur- ther. "Belonging to Interlaw means we have no problem competing with international firms for international clients," he says. e point, McGarry says, is that net- works can benefit firms of any size. And it's not just about referrals. "People tend to think that inbound referrals are the most important thing, but in my view the big- gest benefit is the opportunity to maintain a firm's own clients," he says. at's true both nationally and inter- nationally. Meritas has representatives throughout Canada, including Robertson Stromberg LLP in Saskatoon, BCF LLP in Montréal and Québec City, Patterson Law in Halifax, Lawson Creamer in Saint John, Benson Buffett in St. John's, Key Murray Law in Prince Edward Island, McLennan Ross LLP in Calgary, Edmonton and the Northwest Territories, Pitblado Law LLP in Winnipeg, Boughton Law LLP in Van- couver, Minden Gross LLP in Toronto, and Brazeau Seller Law LLP in Ottawa. YET THE DEBATE rages about the rela- tive merits of networks and global firms or vereins as springboards to an international presence. "Ogilvy Renault went global via the verein route to acquire the scale of ex- pertise that only being large and global can bring you, including the best technology systems and seamless management of cli- ent business on a constant basis," says Nor- man Steinberg, Chairman, Norton Rose Fulbright Canada LLP and former chair of the global firm, who shepherded Ogilvy Renault's combination with Norton Rose. "Like the Big Four, we went for scale and enterprise sharing of resources. You can't do that if you have a bunch of disparate firms in a bunch of different places." Still, Steinberg concedes that networks of independent firms have their place. "I wouldn't want to wake up and be the chair of Ogilvy Renault today, but if I was, I'd want to be a member of a network," Stein- berg says. "e difficulty I see is that once a network gets so large, how do you exercise control over things like the quality of each independent firm?" As Portnoy sees it, the difference be- tween networked and global firms or ver- eins is like "night and day." No matter how NORMAN STEINBERG NORTON ROSE FULBRIGHT CANADA LLP "I wouldn't want to wake up and be the chair of Ogilvy Renault today, but if I was, I'd want to be a member of a network. The difficulty I see is that once a network gets so large, how do you exercise control over things like the quality of each independent firm?" | LEGAL NETWORKS |

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