Michael J. Reynolds (IBA) : "There will always be room for independent, local, small law firms"
Publicado em 3/09/2014
Interview with Michael J. Reynolds, Partner Allen & Overy, President of International Bar Association
Michael Reynolds. It is now more than 18 months since I became President of the International Bar Association (IBA). My first, and overarching, objective in this role has been to focus on the challenges faced by lawyers and the legal profession in countries undergoing rapid political and economic change. Strengthening engagement with legal professionals in the BRICS countries (Brazil, Russia, India, China and South Africa), other African nations (including the French and Portuguese speaking jurisdictions), Mexico, Vietnam, Indonesia and Myanmar is very important to both me as an individual and also the IBA as a whole. In October 2013, the IBA Annual Conference took place in Boston. It was a huge success, attracting thousands of delegates and demonstrating the ever-increasing interest of the global legal profession to meet counterparts from across the world. This year’s Annual Conference will be held in Tokyo, Japan, and will be opened by the nation’s Prime Minister, Mr Shinz? Abe. This is of great importance to the IBA because it demonstrates the Association’s aptitude to attract the participation of decision makers at the highest level. Recognising that in a good number of countries the political and/or economic landscape is changing quickly I wanted the IBA to be at the forefront of providing specialist legal assistance. We have worked for example in countries like Myanmar, where we conducted training sessions for large numbers of lawyers and judges, provided technological support and supplied law books. Also, together with Myanmar’s lawyers, we have been working towards the establishment of a new national bar association, which will guarantee independence of Myanmar’s legal profession where it didn’t exist before. Another example comes to mind: we have done an extraordinary job in Cuba, where economic change is underway. Travelling to the country, I personally visited the Union of Lawyers and the National Association of Collective Law Firms and had very productive meetings. Being a non-political organisation, the IBA fosters the belief that it is important not to isolate Cuba from the legal community at large. Consequently, discussions are underway to organise a conference on arbitration in Cuba, in Spanish. Myanmar and Cuba are prime examples of met objectives and of the IBA’s efforts in the area of human rights in general.
Leaders League. At the beginning of your term, you mentioned your desire to extend the IBA’s activities in emerging countries. Why is this so important?
M. R. Everyone knows that the economies of the BRICS (Brazil, Russia, India China and South Africa) nations have shown rapid growth in recent years. However, there are also the MINT (Mexico, Indonesia, Nigeria and Turkey) economies which similarly have had impressive growth and which many describe as having enormous latent potential. Both groupings highlight the well-known business trend of globalisation. Companies are thinking on an international scale and lawyers have to do the same - especially the younger generations. There is currently a huge expansion of legal services around the world and I am convinced that the IBA is the best platform for lawyers to keep abreast of the latest developments. The number of legal professionals from emerging countries joining the IBA is increasing all the time, reflecting the Association’s global value and the new members’ recognition of the importance of understanding the legal landscape beyond one’s jurisdiction.
Leaders League. Another concern of yours is climate change. Where is the link with the legal profession?
M. R. There is not a single issue under climate change but many, both at local and global levels. Let me explain with a theoretical example. Imagine that you are growing coffee in Costa Rica. You may one day, now or in the future, suffer from pollution emanating from China. How do you bring a claim against China? Any such action will involve complex legal issues. The IBA is attempting to address such situations and find solutions. One of the two task forces I have created focuses on climate change justice and human rights. We will publish a 190-page report with recommendations which will be submitted to the heads of governments of more than 50 countries encouraging them to engage and act.
Leaders League. We see more and more mergers between law firms under the Swiss Verein system. How do you explain this?
M. R. Certainly it is one model, but not the only one. The Swiss Verein is an international arrangement that might be helpful for international expansion since it provides a certain amount of local autonomy. However, the chief objective of building a common culture is not the easiest thing to do, and in order for a merger to be successful under this system, the profit sharing and the partner retirement elements need to be set long before the merger takes place. King & Wood Mallesons SJ Berwin is a good example of success for the Swiss Verein system because the firms seem to have achieved economies of scale and rationalisation of resources while accommodating a good degree of local autonomy. Nonetheless, the system is in a nascent stage, and as such we do not yet have sufficient feedback to evaluate it. I have concerns as to how the system will respond when economic pressure increases.
Leaders League. Mergers, acquisitions, globalisation, how could an independent law firm survive against the magic circle firms?
M. R. If you are referring to firms like Allen & Overy, where I am a partner, yes, it is true that the firm is a large global firm, with the moniker of a ‘magic circle firm’. However, I sincerely think that there will always be room for independent, local, small, close-to-the-customer law firms. Even though when broken down into their essential components, the big international law firms are comprised of national entities, there will always be customers with a preference to do business with non-magic circle firms.
Leaders League. More and more law firms are hiring non-lawyers as CEOs. What would the IBA’s recommendation be?
M. R. For most law firms, the hiring of non-lawyers into the role of chief executive officer remains the exception to the rule, though it is impressive whenever a traditional way of doing things is resisted. Of course, it is always interesting to add a business-oriented point of view to the mix, but it’s not right for all law firms. A 4,000 lawyer-strong law firm like mine needs to have a clear strategy, meaning that we need to have professional managers. I do support non-lawyer managers but legal work has to be done by legal professionals, lawyers. I don’t really see the hiring of non-lawyers as becoming a global trend, though Pepper Hamilton, Coblentz and others have decided on that route.