Last month saw DLA Piper and South African firm Cliffe Dekker Hofmeyr end their ten-year formal alliance over integration and branding issues, with the international firm making plans to open a greenfield site in Johannesburg to preserve a presence in the market.
DLA wanted Cliffe Dekker, which carries the DLA branding, to become more closely integrated with the firm. However, the majority of the partnership at Cliffe Dekker felt they would lose too much independence and freedom to operate as a result. At the time the duo said they would continue to maintain a relationship to support existing client relationships and refer clients where appropriate.
DLA’s global co-chief executive Simon Levine told Legal Business that the firm had talked to a number of its alliance firms about increasing integration and consistency with DLA’s operating principles.
‘I am an IP lawyer so you have got to understand, from my point of view, IP and branding is a big deal to me,’ said Levine. ‘It was [Cliffe Dekker’s] choice but initiated by us. On a global basis the DLA brand and how we use it has to be consistent in terms of quality, the service we give to clients, risk management, conflict policy, client take-on and all sorts of other things. As we go to some new parts of the world we have to think about how we are going to operate and what model to use.’
This could result in a policy where all alliance firms that carry the DLA branding will need to become more closely integrated with the firm.
‘I am an IP lawyer so you have got to understand, from my point of view, branding is a big deal.’
Simon Levine, DLA Piper
‘It is all about what you do with our brand,’ added Levine. ‘If you want DLA Piper in front of your firm name, then we would ask you to give up a degree of independence and become integrated with us. If you want to be an independent law firm and continue to work with us, that’s absolutely a possibility but in certain key jurisdictions like South Africa we might prefer not to do that and open our own office.’
DLA is planning to open a Johannesburg office by the end of the year which Levine says will primarily focus on corporate, finance and commercial work. DLA currently services clients out of Africa on transactional issues in areas including projects and project finance.
Other international firms with a presence in the city include Clyde & Co, which opened in May 2014 with a team hire from Linklaters’ local ally Webber Wentzel; Hogan Lovells, which combined with Routledge Modise in December 2013; and Baker & McKenzie, which launched in May 2012.
kathryn.mccann@legalease.co.uk