ZAKEN ADVOCATEN
FIRST LAW INTERNATIONAL IS AN ALTERNATIVE TO GLOBAL FIRMS
Law firm network benefits
from price war
HANS BROCKMANS
64 18 JULI 2013
| WWW.TRENDS.BE
The First Law International network of
independent law firms tries to be a
very cost-effective alternative to traditional
international law firms.
C
ORLANDO CASARES
First Law International's
network of lawyers
targets below the price
hambers, the organization that
provides quality rankings to
International (FLI) in April at the
top of the attorneys’ networks
in the world. FLI is the only
network with its headquarters in Europe,
based on Avenue Louise in Brussels. It was
founded ten years ago by Texan Orlando
Casares. "This nomination is the best proof
that FLI is increasingly becoming an alternative to the much more expensive interna-
"All lawyers today
have lowered
their fees by
10 to 15 percent"
Legal clearance sale
ranked 'elite networks' of independent law
consultancy Bignon De Keyser, there is still a
become a real competitor to Linklaters, Allen
boost," said the former managing partner of
PAT VERBRUGGEN
lawyers being nominated is helpful in the
search for international consultancy. The
task because legal departments are having
their budgets slashed."
"One thing is certain: the competition
among lawyers is growing every day, and
Michael Reynolds, president of the International Bar Association and active with Allen &
Overy in Brussels. "That depresses prices and
has a problem."
Cost savings is everywhere, including in
the legal department," admits Karel Everaet,
Vice President of Legal Europe at technology
distributor Ingram Micro in Vilvoorde. "We
acceptable price for good service. All lawyers
have lowered their fees by 10 to 15 percent.
In fact, the question is whether it really is
Casares remained in Europe after his
studies ended in 1998 as counsel to the
Company. "I wanted to share my legal expertise with more parties and to be the external
adviser to several U.S. companies. Whether to
set up a corporate structure, a European
acquisition, employment issues in a restructuring or licensing of patents for example, I
was looking for specialized lawyers and their
advice to be bundled into a workable whole
for the client in the United States.”
A networker will network
Casares decided ten years ago to form his
network of lawyers - FLI. He selected
based on information from local business
organizations, consultants and lawyers. The
members are, according to him, not the
to preserve their autonomy," he contends.
"They do not want to price themselves out of
the market with the skyrocketing fees of
≤
they can join FLI."
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| 18 JULI 2013
65
ZAKEN ADVOCATEN
LOOKING FOR AN ALTERNATIVE
First Law International (FLI)
organized a conference in The
Hague in late May in which its
potential clients participated.
The conference discussed how
in-house lawyers should
proceed. Karel Everaet assessed
whether FLI is a viable alternaa network remains a loose
What I want to know, as general
counsel, is whether an organization in any country in any legal
niche can provide the same
networks constitute a real
alternative."
Brett Hattaway, the head of the
legal department of DHL in
Eastern Europe, the Middle East
and East Africa, manages
several disputes and transac-
McGraw from Houston recently
became a member of FLI. "We
strive for a long-term relationship," says managing partner
Cary Gray. "We used to refer
The Congo and Iraq. "These are
not especially regions where
Cleary Gottlieb and other
multinational leading practices
are already active. DHL has
operations in 220 countries, so
in each of them we have legal
one-stop shop. There were
many mistakes. But the partner
lawyer. Thanks to the
widespread reach of the FLI
network is we now have
resources." Specialized in Oil &
membership if they mess up a
negotiating deeply below the
"The fee is only one aspect."
That's why Everaet has never
worked with beauty contests, in
which lawyers compete against
each other as candidates to be a
transaction advisor. "It is also
Such was the case in Belgium for
≤ reputable
Van Bael & Bellis,
T. SWEERTVAEGHER
underway to make truly large
investments," said Reynolds of the
support in aspects of more traditional
work. These lawyers work optimally for
customers.
"For many lawyers a network of best
friends is an opportunistic way to
generate revenue", says De Keyser. "An
around the world as it has good referrals
from any jurisdiction. Integrated into a
greater whole and therefore a competitor
of the referring colleague, it could lose
half of its revenue."
Only a small percentage of client
matters go directly to FLI HQ. The rest of
Looper Reed & McGraw, which recently
joined the network. "I'm tired of my
66 18 JULI 2013
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anywhere with quality. Each
deal has its momentum and
immediate legal advice is vital. If
you miss the timing, you may
never be able to seal the deal."
requires investment. And that money
has to come from somewhere."
There is a new global merger and
advice in trade and competition
issues. In the Netherlands FLI works
with Pels Rijcken & Droogleever
Fortuijn, that initially did the bulk of
their work in administrative law.
but they also work with specialists in
corporate law, taxation, real estate
important that the lawyer be
long lasting and build up an
internal network with his client.
In that case he can better assess
the situation and greatly
decrease the bill. This increases
the quality of the advice. If we
complete an acquisition of a
company active in three or four
countries, we work with a law
KAREL EVERAET
"A lawyer who is familiar with a
customer can quickly assess a situation
and respond appropriately."
that charge $800 per hour," says managing partner Cary Gray. "We will now see
whether FLI does equally well for less
than half. We do it on a case by case basis
and with prudence. We want to avoid
delivering our U.S. customers to incom-
Quality requires financial support
Above all FLI is a brand. "Networks are
loose connections with some weak links,"
whole quality advice to such an organization requires a strong structure, for
example in customer support and IT. This
and successful in their search for
exchanging contacts, for example
through the departments of the
International Bar Association. A
well-developed network then gives
more stability. No single model has
everything."
FLI is funded by a contribution from
ment fee in relation to the total bill
(1-8%). A client may choose to avoid
from its website.
Casares readily admits that customers
with highly complex, time-sensitive
matters continue to rely on traditional
specialized work of the niche lawyers complex tax structures, for example - they
will not outsource to us. That leaves 80
to us, we are happy."