As cross-border trade increases in the Asia-Pacific region, legal networks are becoming important for both clients as well as law firms. Ranajit Dam looks at the benefits networks can provide, and how they are different from global law firms

Cross-border trade is not new to Asia, given how the past few decades have seen investment flowing into the region. Recently, however, the direction of the flow of trade and investment has diversified; capital has been moving outwards from the region as well, not to mention the rise of intra-Asian trade. Suddenly lawyers find their clients seeking counsel relating to countries near and far. To ensure they maintain the trust of these clients, firms need to find triedand- tested peers in those jurisdictions who they can rely on.

In this scenario, it is legal networks like Lex Mundi (see interview with president Carl Anduri on page 36) and Interlaw that can act as a bridge between law firms in different countries and regions, and these have become increasingly sophisticated in recent times.

According to Michael Siebold, chair, and Shuichi Namba, Asia-Pacific regional chair, of Interlaw, networks “have shed their former club-like status and transformed themselves into highly professional organisations,” and they are growing. “We have been able to spend the last couple of decades shaping our offering around the client’s increasing need for a truly international, high standard of legal expertise, they say. “During the past three years, Interlaw has expanded considerably – in 2015 we welcomed eight new firms from around the world – bringing the total number of Interlaw members to almost 7,000 lawyers in 76 firms, across 125 major cities.”

Another key area where networks have evolved is brand. “For the international law firms, brand recognition is often their trump card in securing clients,” say Siebold and Namba. “Brand is also increasingly important to the legal networks as they develop but, unlike the major firms, brand does not lead the charge. For networks, their unifying brand is a mark of quality and also signifies a commitment by thousands of local legal experts around the world to work together for the benefit of their multinational clients.”

VALUE PROPOSITION

Siebold and Namba say that there are two key ways where networks are challenging global law firms: Networks provide “truly international reach” while maintaining local independence. “Large law firms have spent the past decade increasing their global footprint through formal mergers and ‘best friends’ arrangements. While their reach might have extended significantly, it has proven to be difficult to embed their offer on a truly global scale,” they say. “While many firms have entered new markets, more are pulling out of major jurisdictions and locations. That is why clients find significant gaps in the reach of these global firms. In reality, they are creating networks of a sort, but without the genuine worldwide coverage established networks can provide.”

By providing the combination of established local expertise with access to international experts across most of the world, elite legal networks are able to offer something different to the global outpost service pushed by many global legal brands,” say Siebold and Namba. “Added to this, in a network, reputable independent firms work alongside one another with the joint aim of providing the best service to clients. Most importantly, we enjoy working together – there is no place for political infighting in a network, with member firms respecting one another’s independence.”

NEED FOR RELIABILITY

But what do the law firm members of these networks stand to gain from joining them? Singapore-headquartered law firm Joseph Tan Jude Benny (JTJB), which specialises in shipping and dispute resolution, currently has its own network of offices in Asia and beyond, including in jurisdictions like Myanmar, Taiwan and Greece. But it still is a member of two international legal networks: Advoc, which has 90 members in 68 countries, and the Shiparrested.com network, which has 280 maritime law firms in 98 countries.

Murali Pany, managing partner of JTJB, says that since the firm does a lot of commercial and corporate cross border work for its international and domestic clients, and also has a specialist practice in maritime law and maritime work, which, by its nature, is international, there was a need for offices and reliable contacts in other jurisdictions in order to provide a full and seamless service to its clients. This led to the firm setting up its JTJB network, but “there was a need for a wider range of reliable contacts in more jurisdictions and this led to us joining Advoc and Shiparrested.com.”

He says that the networks fulfil different purposes. “Advoc network firms are more full service, commercial or corporate law firms, though there is a maritime practice group,” says Pany. “Shiparrested. com firms specialise in maritime law.” These networks, he adds, allow the firm to focus its expansion plans. “In jurisdictions where we have a reliable network partner and irregular work, there is no real need for us to consider establishing an office,” he says.

Pany notes that the ability to engage a quality law firm in almost any jurisdiction with assurance, sometime at very short notice, is “invaluable” to JTJB. “The network firms also cross- market via events and seminars, refer work to each other and share contacts in their respective jurisdictions,” he says.

 

Similarly, JTJB also contributes to the networks. “We organise the annual Advoc Business Law Conference in Bali,” he says. “We have also organised the annual Advoc Maritime Conference in Singapore in 2014 and 2015. Our Senior Partner, Dato’ Jude Benny became the Advoc Global President in 2015. In March of this year, we co-hosted the 13 Annual Shiparrested.com Conference in Singapore. This was the first time that Conference had been held in Asia and it was attended by over 80 delegates from around the world.”