“Panel finds no conflict of interest in divorce, probate matters” —

• “An attorney need not withdraw from representing a client in a divorce proceeding despite opposing counsel serving as the probate judge overseeing an unrelated matter in which the attorney represents a different client, the Rhode Island Supreme Court Ethics Advisory Panel has ruled.”
• “The attorney inquired into whether withdrawal from representing the client in the divorce proceeding was required under the Rules of Professional Conduct.”
• “‘The inquiring attorney represents a client (‘Client 1’) in a divorce proceeding. The lawyer for the opposing party in the divorce proceeding is also a probate judge before whom the inquiring attorney represents a different client (‘Client 2’) as an heir against a surviving spouse in an unrelated contested matter,’ the panel noted.”
• “‘The Panel finds that under the facts as described by the inquiring attorney, no conflict of interest exists here. The interests of Client 1 and Client 2 are not directly adverse because they are unrelated parties involved in unrelated matters — one a divorce proceeding, the other a contested probate matter,’ the panel wrote.”
• “‘Additionally, neither representation is materially limited by the inquiring attorney’s responsibilities to either Client 1 and Client 2 or any other party. … Therefore, the inquiring attorney is under no obligation to withdraw from representing either Client 1 or Client 2,’ the panel added.”
• “The two-page decision, Rhode Island Supreme Court Ethics Advisory Panel Op. 2024-11, can be found by clicking here.”

“As Global Law Firm Mergers Keep Coming, Could There Ever Be a New Swiss Verein?” —

• “The Swiss verein model for law firm combinations has benefited a handful of global firms looking to sustain growth and increase size and scale, but the fact that only a small number of firms have combined using the verein structure has experts wondering whether it is still a viable business strategy.”
• “Large firms such as Dentons, DLA Piper and Baker McKenzie embraced the verein approach in the early part of the 21st century, using the model to place them in the upper echelons of the Am Law 100. Other recent trans-Atlantic mergers, however, including the combination between Allen & Overy and Shearman & Sterling that created A&O Shearman, and the merger between Herbert Smith Freehills and Kramer Levin Naftalis & Frankel to become HSF Kramer, have avoided the Swiss verein route, leading to questions over whether the model is losing luster.”
• “‘The verein model for law firm combinations is still a prominent business model for many international law firms, but its popularity and effectiveness have come under scrutiny in recent years,’ said Zain Atassi, a principal with recruiting firm Lateral Link. ‘Whether it remains a favored model depends on the perspective of the firm, its clients, and the specific markets in which it operates.'”
• “One of the draws to operating as a verein is the ability for large firms to expand internationally while still respecting local regulations. Another is liability protection, since firms under the verein model are considered to be separate legal entities. And yet another benefit is M&A flexibility, since the structure makes it easier to bring in new firms or dissolve relationships without having to restructure the entire organization, Atassi said.”
• “But some experts say it’s not all upside when it comes to vereins, which is reflected by the fact that only a small number of global firms today are actually structured as Swiss vereins.”
• “‘One of the biggest criticisms of the verein model is that it can create a fragmented culture, coupled with leadership and governnance issues,’ said Atassi, of Lateral Link. ‘Because member firms operate independently, there can be challenges when it comes to aligning strategies, managing conflicts, or implementing firm-wide initiatives.'”
• “Clients can also develop the perception that firms under the verein model are ‘fragmented rather than fully integrated,’ which can pose an issue for firms, Atassi said.”
• “Critics of vereins note that the impression that firms who merge this way are looked at as one, single global law firm is illusionary, and also that vereins open up the door to greater risks of conflict of interest for attorneys associated with verein firms.”
• “One example of verein conflicting interests involved global firm Dentons, which had been representing a company in an international investigation for patent infringement brought by a U.S. clothing retailer, which sought to have Dentons disqualified from the case because the retailer was also a client of Dentons, according to a 2017 paper written by then-law student Gabriela Chambi of American University, Washington College of Law, who now works as a senior associate with Hudson Cook.”
• “The verein structure serves the purpose of globalization and limited risk, but ‘you’re not going to be a proper, true firm in the sense that a partnership typically is,’ Mclaren said. ‘The question for the verein is, is there clear direction globally and what (are they) trying to achieve? Are all the partners in their organizations aligned and are they committed in the same way?'”
• “Also, ‘bigger from a global perspective isn’t always better,’ said one recruiter who has experience working with Big Law firms who spoke anonymously because of potential client conflict.”
• “Furthermore, partners looking to move to another firm will not necessarily consider whether a firm is structured as a verein as a determining factor when deciding to make a lateral leap, one industry expert said.”
• “‘All they really want to know is, ‘How is this going to affect me personally, and will it affect the amount of money that I make,” said Jeffrey Lowe, a legal recruiter with CenterPeak. ‘They’re really looking more at the quality of the firm, so they’re much more focused on the perception of the firm’s profitability and prestige rather than the structure that they have.'”