Legal Elites and the Shaping of Corporate Law Practice in Brazil: A Historical Study

Brazil today has a legal market that allows for foreign lawyers and foreign firms, but existing regulations are restrictive. Foreign lawyers cannot practice domestic law or litigation, nor can Brazilian‐licensed lawyers working for foreign firms or partnering with foreign lawyers. This was not always the case, however. Until 1963, there was little regulation of the legal profession. Beginning in 1913, elite US lawyers traveled to Brazil, with some even becoming prominent domestic practitioners. They partnered with local elite lawyers (who maintained their domestic privileges) and served as key brokers for US businesses seeking market entry. Drawing on the elite theory literature, and on ethnographies, interview data, and over 1,000 pages of rare Portuguese and English archival sources, this study's thesis is that sophisticated US and Brazilian legal elites capitalized on the lack of regulation to advance their financial interests, and in the process transformed Brazil's corporate legal sector.     

In Dependence: The Paradox of Professional Independence and Taking Seriously the Vulnerabilities of Lawyers in Large Corporate Law Firms

In this article, and drawing on the work of Martha Fineman and others, we deploy a vulnerability lens as an heuristic device to push against the concept of professional lawyer independence as enshrined in statute and promoted by legal services regulators. Using interviews with 53 senior partners and others from 20 large corporate law firms, we show how the meaning and practice of independence are profoundly mediated by the contexts, relationships, and interactions of corporate lawyers’ everyday working lives. Vulnerable to competition from other firms, the demands of clients, the shift over time from ‘trusted advisor’ to ‘service provider', regulatory requirements, pressures to make profit, and so on, these corporate lawyers appeared prone to developing and normalizing potentially risky and irresponsible practices. We therefore argue that a debate about corporate legal regulation is better based upon a richly theorized concept of interdependence that takes seriously the causes and effects of practitioner vulnerabilities in particular circumstances.     

Origin Myths,Contracts, and the Hunt for Pari Passu

We use interviews with corporate lawyers and a data set of contracts to explore an elite area of legal practice: sovereign bond lending. Sovereign debt lawyers work at prestigious global law firms, yet the contracts they produce include some terms that defy explanation. Lawyers often account for the existence of these terms through origin myths. Focusing on one contract term, the pari passu clause, we explore two puzzling aspects of these myths. First, we demonstrate that the myths are inaccurate as to both the clause's origin and the role of lawyers in contract drafting. Second, the myths often are unflattering, inaccurately portraying lawyers as engaged in little more than rote copying. We probe this disjuncture between the myths and lawyers' actual practices and explore why contracts origin myths might hold such appeal for this elite segment of the bar.     

Hiring Teams,Firms, and Lawyers: Evidence of the Evolving Relationships in the Corporate Legal Market

How are relationships between corporate clients and law firms evolving? Drawing on interview and survey data from 166 chief legal officers of S&P 500 companies from 2006–2007, we find that—contrary to standard depictions of corporate client‐provider relationships—(1) large companies have relationships with ten to twenty preferred providers; (2) these relationships continue to be enduring; and (3) clients focus not only on law firm platforms and lead partners, but also on teams and departments within preferred providers, allocating work to these subunits at rival firms over time and following “star” lawyers, especially if they move as part of a team. The combination of long‐term relationships and subunit rivalry provides law firms with steady work flows and allows companies to keep cost pressure on firms while preserving relationship‐specific capital, quality assurance, and soft forms of legal capacity insurance. Our findings have implications for law firms, corporate departments, and law schools.     

The global restructuring of legal services work? A study of the internationalisation of Australian law firms

The research discussed in this paper examines the ways that an elite group of law firms in Australia are contributing to the globalisation of business and restructuring of legal services work. We examine the distinctive commercial orientation and institutional corporate connections of this group, focusing exclusively on the continuities, breaks and reconversions of the Australian legal profession. Our findings reveal an institutionalised reproduction of strategic practice favouring the elite group of players that generally complies with the political, economic and symbolic power currently wielded by US and UK firms. The data specifically on the recent phase of internationalisation of legal services show Australian lawyers to be of lower status when compared to elite US and European law firms. Using a Bourdieuian method of analysis we explore the extent to which these Australian lawyers' strategic accounts show the potentially coercive and mimetic influence of the economic and symbolic capitals of dominant groups. We apply Sklair's global system theory as a means of interpreting Australian law firms' collective strategic intent, which at the time of this research is to develop a global competitive presence in markets in the Asia Pacific region.     

Agents of Change or Unchanging Agents? The Role of Lawyers within Russian Industrial Enterprises

The transition from state socialism toward market capitalism has led to an almost endless supply of new laws and legal institutions. Industrial enterprises need to adapt to this new institutional regime. In-house lawyers are well placed to be agents of change in facilitating this adjustment. Using survey data from 328 Russian enterprises, the article examines the role of company lawyers, asking whether they have fulfilled this potential. Legal expertise is not in short supply, but lawyers are marginalized within the enterprise. They focus on established, routine tasks, such as handling labor relations or drafting form contracts, rather than on shaping enterprise strategies in the newer areas created by the transition, such as corporate governance or securities law. The failure of in-house lawyers to emerge as agents of change in Russia reflects a continuation of their low status during the Soviet era and the lack of professional identity among these company lawyers.     

Limited Liability in California 1928-31: It's the Lawyers

Only in 1931 was the California Corporate Code revised to providefor limited liability. In earlier work I found that this movehad no detectable effect on shareholder wealth. In this articleI examine the potential beneficiaries of this change with aneye toward finding out who wanted this change. Using this historicalexample we can shed light on a number of issues including: (1)the economic impact of limited liability; (2) the role of lawyers,especially lawyers of high prestige, in determining the law;and (3) the competition or lack thereof among states in designingtheir corporate codes.     

The legal profession of China in a globalized world: innovations and new challenges

ABSTRACT

The legal profession is undergoing fundamental changes; and this is the case not just in established legal markets. Based on a state-of-the-art sketch, this paper identifies and analyzes the latest innovation initiatives and alternative business models in China’s legal profession. It finds that, propelled by market demands and benefiting from technological advancements, the provision of legal services has become highly versatile today, giving rise to various alternative service providers, especially the rapidly rising online legal service portals. Because they are technically not law firms, the exclusivity requirements on lawyer ownership and legal service provision are not applicable to them. In the meantime, the competition for large corporate clients and lucrative business transactions is fierce and will continue to be so, not only within the club of big Chinese corporate law firms, but also between Chinese law firms and international law firms globally. In this course, some leading big corporate law firms in China are observed to have creatively incorporated key corporate features in running their business and compensating their partners, effectively deviating from the partnership?+?pure legal services regulation. Such market realities question the necessity and effect of the regulatory restrictions on law firm legal form and ownership structure, and call for an agenda for related research in the future.     

Client Influence and the Contingency of Professionalism: The Work of Elite Corporate Lawyers in China

This study examines how the professional work of elite corporate lawyers is constructed by influence from different types of clients. The data presented include interviews with 24 lawyers from six elite corporate law firms in China and the author's participant-observation in one of the firms. For these elite Chinese corporate law firms, foreign corporations, state-owned enterprises, and private enterprises constitute their extremely diversified client types. Accordingly, lawyers' work becomes flexible and adaptive to accommodate the different demands of the clients. Meanwhile, client influence on lawyers' professional work is mediated by the division of labor within the corporate law firm: whereas partners have solid control over the process of diagnosis, inference, and treatment and thus enjoy a high degree of professional autonomy, associates are largely stripped of this cultural machinery in the workplace, and their work becomes vulnerable to client influence. As a result, client influence on professional work appears to decrease with a lawyer's seniority.     

论公司法与民法典的良性互动关系

《公司法》与《民法典》无缝对接、有机衔接、同频共振、相辅相成《民法典》中的基本原则普适于公司法律关系,诸项具体制度也可补充适用。《公司法》对特定事项有规定、而《民法典》无规定时,应适用《公司法》。两法对特定事项均有规定、但相抵触时,应优先适用《公司法》。两法对法人制度的规定详略不同、但不相抵触时,应优先适用《公司法》。两法在很多公司法案件中可兼容并用,协同共治,互不排斥。平等、自愿、公平、诚信、公序良俗、绿色、关怀弱势群体和禁止权利滥用共同构成民法八项基本原则。而公司法有其独特原则,如等价有偿、尊重与保障公司的生存权与发展权、慎重解散公司、坚持商业模式的包容性、促进公司的三重营利性、弘扬股权文化、鼓励公司社会责任和构建新型亲清政商关系原则。要尊重《公司法》的特别法地位,必须切实扭转司法实践中的“轻公司法化”现象。修改《公司法》和解释《民法典》应着眼于消除规范冲突,预防制度真空,铸造制度合力。     

Working for Corporate Actors: Social Change and Elite Attorneys in Chicago

Elite attorneys have been the objects of social scientific study and speculation for many years. This article contributes to that body of thought by reporting some of the results of a research project that studied 59 members of Chicago's corporate actor legal elite-the lawyers who serve the city's major business, social, civic, political, and cultural organizations.
The article briefly defines the elite studied and the design of the overall re-search project. It then focuses on the working situations of these lawyers and the professional roles they play for their respective corporate actors. A division of legal labor that is discovered to separate house counsel from law firm partners among the elite is analyzed in some depth.
Since the professional roles of these elite attorneys differ from those de-scribed by other social scientists earlier, the article concludes by offering a theory to explain this apparent social change. By tapping recent discussions of the coming of postliberal society, it suggests that corporate actors engineer this new division of legal labor for their attorneys in response to the complex new legal problems posed by institutional changes in the larger society.     

Recent developments in German corporate governance

This paper provides an overview of the German corporate governance system. We review the governance role of large shareholders, creditors, the product market and the supervisory board. We also discuss the importance of mergers and acquisitions, the market in block trades, and the lack of a hostile takeover market. Given that Germany is often referred to as a bank-based economy, we pay particular attention to the role of the universal banks (Hausbanken). We show that the German system is characterised by a market for partial corporate control, large shareholders and bank/creditor monitoring, a two-tier (management and supervisory) board with co-determination between shareholders and employees on the supervisory board, a disciplinary product–market, and corporate governance regulation largely based on EU directives but with deep roots in the German codes and legal doctrine. Another important feature of the German system is its corporate governance efficiency criterion which is focused on the maximisation of stakeholder value rather than shareholder value. However, the German corporate governance system has experienced many important changes over the last decade. First, the relationship between ownership or control concentration and profitability has changed over time. Second, the pay-for-performance relation is influenced by large shareholder control: in firms with controlling blockholders and when a universal bank is simultaneously an equity- and debtholder, the pay-for-performance relation is lower than in widely held firms or blockholder-controlled firms. Third, since 1995 several major regulatory initiatives (including voluntary codes) have increased transparency and accountability.     

The Organization of lawyers' Work: Size, Intensity, and Co-Practice of the Fields of Law

Using data from personal interviews with 777 Chicago lawyers, constituting a random cross section of the urban bar, the authors estimate the relative volumes of effort devoted to each of several fields of law, analyze the degree to which practitioners specialize in fields or groups of fields, and examine the patterns of co-practice of the fields. They find that the total effort of the Chicago bar is about evenly divided between work for corporate clients and work for individual clients. They also suggest that, while relatively few lawyers are highly specialized to a particular doctrinal area of the law, most are specialized to the service of the needs of a particular type of client. Exploring possible implications of their findings, the authors speculate that lawyers who are specialized to clients rather than to substantive fields may lack the incentive to devote their resources to the rationalization of legal doctrine.     

Human-centered legal tech: integrating design in legal education

As the legal profession begins in earnest to deploy digital technology in service and information delivery, greater numbers of law schools are including technology instruction in their curricula. The prospect of more lawyers with digital expertise, while a welcome development, amplifies a parallel imperative that new technology tools be designed to be responsive to evolving human needs. This paper argues that coupling technology instruction with training in human-centered design approaches offers legal educators a means of preparing lawyers not only able to generate novel technology solutions, but able to fundamentally improve legal institutions and programs through those results. The use of design pedagogies within legal education also provides educators and students with the opportunity to reimagine the law as a creative pursuit by exploring structured methods like empathy via observation, prototyping, and the embrace of failure, with learning outcomes that hold the potential to transform how lawyers approach their role. This paper concludes by detailing the insights the NuLawLab has gained in the application of design methodologies in the creation of digital legal resources, and the modifications we are adopting to the approach to produce better results for the legal sector.     

Multijurisdictional practice and the health lawyer: will your practice benefit from the new ABA model rules of professional conduct?

At the end of the twentieth century, bar scholars and regulators were reexamining two traditionally improper aspects of legal practice. The first was the multidisciplinary practice of law, which would permit lawyers to offer accounting and other professional services to their clients, and allow lawyers to share fees with non-lawyers. The second was the multijurisdictional practice of law, which would permit a lawyer licensed in one jurisdiction to practice law in other jurisdiction in which he was not admitted to the bar. Enron and other corporate scandals deflated the movement towards multidisciplinary practice, but the movement to allow multijurisdictional practice bore some limited, yet important, results. This Article argues that the American Bar Association's new Model Rules 5.5 and 8.5, which broaden the ability of healthcare lawyers to practice outside of the states in which they are admitted, are a suitable accommodation to today's mode of practice, while still preserving the states' ability to regulate lawyers and protect clients.     

Practice and Privilege: Social Change and the Structure of Large Law Firms

Despite dramatic changes in size and specialization, large law firms have remained remarkably unchanged in other respects. Introducing research on major Chicago law firms, this article examines how large law firms have changed so much by changing so little. It proposes a theory of law firm growth emphasizing the relationship between changes in the market for sophisticated legal services and changes in the approach law firms have taken to organizing their practices. The author discusses the organizational structure of large law firms, giving particular attention to the various roles that lawyers play in such firms. After speculating on trends affecting large law firms, he points to implications of these trends for law and social change.     

Why the Japanese Law School System Was Established: Co-optation as a Defensive Tactic in the Face of Global Pressures

In the face of pressures to expand the rule of law, in 2004, Japan introduced a new law school system in order to produce more and better qualified lawyers. This article explains why the new law school system solution was selected from among other alternatives such as reforming the national bar exam, abolishing mandatory legal training, reforming existing legal education, or redefining the jurisdiction of lawyers. I argue that the law school system was adopted because the legal establishment co-opted pro-law school scholars and other reformists. Although American-style law schools have been introduced in Japan, power has not yet shifted entirely from the legal establishment to the pro-law school scholars; while the legal establishment may no longer have absolute control of the Japanese judicial arena, it remains powerful because it successfully co-opted pro-American elites into judicial reform. By analyzing the case of the Japanese law school system, this article indicates that transplants of global institutions may often be more symbolic than practical due to co-optation tactics used by powerful local actors.     

Mystery shopping: demand-side phenomena in markets for personal plight legal services

ABSTRACT

“Personal plight” is the sector of the legal services industry in which the clients are individuals, and the legal needs arise from disputes. This article proposes that competition among personal plight law firms is suppressed by three demand-side phenomena. First, consumers confront high search costs. Identifying competing law firms willing and able to provide the needed services often requires significant expenditure of temporal and psychological resources. Second, comparable price and quality information about firms is scarce for consumers. Both of these factors impede comparison shopping and reduce competitive pressure on firms. A third competition-suppressing factor is observed in tort legal service markets, where offerings are typically priced on a contingency basis. Contingency fees have relatively low salience to consumers, and this reduces consumers’ willingness to negotiate and comparison-shop on the basis of price. This analysis is supported by the author’s empirical research with Ontario personal plight lawyers as well as the existing literature. The article concludes by suggesting possible consequences of this analysis for regulatory policy.