Serving Global Clients, Anywhere: The Case for Distributed Law Firms

Notwithstanding the ever-changing world of international governmental and economic affairs, globalism is far from gone. In fact, it is more relevant than ever for businesses and organizations of all sizes and industries. Even those primarily operating within a particular country or regional economy must address globalized issues such as supply chains, tariffs, branding, intellectual property protection, financial markets, competition law, investment treaties, international dispute resolution, and more.

Strategic industries—including aerospace, energy, and maritime—will inevitably be subject to a plethora of national laws that impose impactful regulations that vary by country or region (such as the European Union). Regardless of an organization’s size or focus, however, the proliferation of the internet, social media, international travel, and global transportation networks has effectively made global citizens of everyone served by global supply and distribution systems, with increasingly few physical and communication boundaries. Few industries remain untouched by technology-driven disruption, and most now rely significantly on e-commerce.

Companies in strategic industries, and many others, need savvy, strategic legal counseling on negotiation and documentation issues that cross boundaries and address the unique aspects of local laws in the countries involved. The result must be comprehensive, enforceable solutions that address the full scope of the global legal landscape.

As clients increasingly require services across national boundaries, law firms are pressured to have global delivery capabilities. Supply and distribution agreements, corporate transactional agreements, finance documents, and some other legal agreements are beginning to follow more common patterns across jurisdictions. This is especially driven by major business and financial cities, and specific industries.

Providing globalized legal services is not an easy task, however. Laws and regulations continue to vary tremendously by country, as do the practices of regulators and courts. While certain types of agreements—from bottling contracts to joint ventures, mergers, and ship charters—may share common features regardless of where they originated, that is only the starting point. Finalizing enforceable documents across jurisdictions requires attention to a wide range of issues related to culture, business convention, jurisdictional law, language, dispute resolution, and more. What may be readily agreeable to two parties in a common jurisdiction will often entail extended negotiation and adaptation once a border is crossed.

To address client expectations for cross-border legal services, law firms have pursued a number of different paths. Historically, firms based in major business and financial centers maintained networks of local correspondent firms as client needs arose in other countries—a model still widely used. Over time, more leading firms began to selectively open their own offices in other key international cities, while continuing to maintain active correspondent networks. Some firms handle international needs through marketing associations of like-minded firms. More recently, a few have expanded aggressively to determine a presence in nearly every city of commercial significance.

These approaches evolved within conventional, highly structured law firms. Senior lawyers served as firm partners, with periodically elected management teams and partnership agreements negotiated annually to reflect contributions and performance. As firms scaled, managerial roles were held by nonpracticing lawyers, and practice areas each had their own management team. Office footprints grew to include significant investments in marketing, associate training, technology, and administrative support. Thus, “Big Law” was born.

Nevertheless, legal services remain a distinct segment of professional services and service businesses. To be a top lawyer in one’s chosen specialty requires primary devotion to that practice area and consistent interaction with other high-level practitioners and the judiciary. Above all, it demands 24/7 dedication to clients. Savvy clients expect direct access to the seasoned attorneys handling their matters. While office prestige and support teams are appreciated, it is the skill and commitment of the lead attorney or team managing the specific transaction, restructuring, patent prosecution, or dispute that matters most.

Given the rising cost of outside legal services and the managerial demands on senior practitioners in a conventional law firm, both clients and lawyers have increasingly looked to alternative firm models. One such alternative is the distributed, or virtual, law firm, a model that originated in the United States, spread to the United Kingdom, and now is expanding globally. These firms feature flat hierarchies, limited office and administrative overhead, and limited reliance on associates and junior lawyers.

Thanks to today’s technology and the ease of remote work, distributed law firms have unique capabilities to handle complex cross-border matters with efficient and highly focused lawyering. Clients benefit from working directly with the lawyers they know and are looking for, without the costs associated with a host of overhead services. Lawyers retain full autonomy to set client engagement terms and staff projects, build respected client relationships, and control the distribution of client receipts on their matters, and they are also able to access qualified colleagues across practice areas and jurisdictions.

With legal challenges increasingly spanning jurisdictions and clients demanding business-savvy counsel across borders, the distributed law firm model offers one compelling answer. It reflects the realities of modern global commerce and can provide the kind of responsive, internationally informed legal support that businesses now require to compete and thrive on a global stage.