Law Firm Network - Membership

Membership

There are three different types of networks. The original large networks – Lex Mundi, ALFA, TerraLex, State Capital Group, tended to have large firms who were members. This was because they were competing against large firms opening offices. The newer networks have smaller firms. There are now boutique networks such as IP Lawyers, Employment Law Alliance,Antitrust Alliance, etc. which are based upon individuals at firms rather than the entire firm participating.

A review of the websites of each of the 170 of the law firm, multidisciplinary and specialty networks in HG.org – Law Firm Network Directory, Chambers and Partners, Law Firm Marketing Portal and Martindale Hubbell shows that networks often offer their members territorial exclusivity. This means that another firm can not be admitted on their territory. Such an arrangement ensures maximum referral opportunities and minimal conflicts of interest.

As networks are membership organisations, firms are free to leave the organisation by not renewing their membership at the end of the year. By the same token, networks are often able to terminate the membership of any member that is involved in malpractice or unable to meet the service standards expected.

Network members may cumulatively have hundreds of offices. Firms listed in the list of largest U.S. law firms have at most 4,000 attorneys. The largest networks have in the more than 10,000 attorneys as set out in the HG.org Law Network Directory. Based upon the number of partner, the legal networks are comparable to all but the largest accounting networks.

Some businesses with international operations prefer to use international firms rather than networks as they perceive that service and quality will be consistent. Some observers would disagree with this point of view, arguing that quality is variable across international firms, and that better, more personal service and lower charge out rates can be expected from firms that do not have to bear the cost of offices in multiple countries. Firms belonging to networks cooperate more on cross-border transactions than in the past Niche law firm networks such as IP Lawyers, Employment Law Alliance,Antitrust Alliance, etc. extensively cooperate because of their specialities. They require members to have a demonstrated level of experience in the network's area of specialization.

Membership of networks such as MSI Global Alliance, The Geneva Group, World Services Group, etc. is open to accounting firms also, and accounting networks are also forming alliances with law networks, with examples including IGAF, and Ecovis. Some commentators would agree that bringing together a group of lawyers and accountants to create a multidisciplinary association ultimately benefits clients as they often need a wide range of professional services advisors when involved in large transactions, e. g., when incorporating a new business or in litigation matters, when for lawyers, the litigation support services of accountants can be very valuable. Bringing lawyers and accountants together does not create a multidisciplinary practice (MDP), as all firms are separate legal entities. MDPs are not permitted in the majority of jurisdictions around the world, with exceptions such as Germany and Uruguay.