Globalization and the Legal Profession

INTERNATIONAL LEGAL EDUCATION ABROAD CONFERENCE

American University, Washington College of Law, April 2, 2012

Prof. Laurel S. Terry (LTerry@psu.edu)Penn State Dickinson School of Law

Roadmap

• The global dimension of law practice

• Observations about lawyer regulation

• Implications for legal educators

2

I. The Global Dimension of Law Practice

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Exports United States Exports United Kingdom

Imports United States Imports United Kingdom

Source: WTO Secretariat Report on Legal Services, S/C/W/38 (June 2010), at ¶7 3

The Global Dimension is… Global Chart 2: Global Legal Services Market Segmentation: 2008 Percentage share by value

Americas, 54.10% Europe, 36.50%

Asia-Pacific, 9.40%

Source: WTO Secretariat Report, supra, at ¶5

4

Globalization Affects All US States

Source: Office of Trade and Industry Information (OTII), Manufacturing and Services, International Trade Administration, U.S. Department of Commerce.

*All states except Hawaii and Wyoming had 2010 exports in the billions

5

States in Which NLJ 250 Firms Have Offices(U.S. “imputation” rules extend the effects of globalization)

Slide content from Jim Jones at the May 2009 CCJ-Globalization Conference

6

Concentration of Fortune 1000 Companies

Over 30 Fortune 1000 Cos. 21 - 30 Fortune 1000 Cos.

10 - 20 Fortune 1000 Cos.

98

118

58

94

13 29

32

32

29

24

33

32

6154

41

27

Source: Fortune 500, May 2009

12

22

11

10

23

15

12

27

10

46

1

8 5

2

1 6

7 9

11

5

1

1

4

36

1 - 9 Fortune 1000 Cos.

Slide content by Jim Jones at the May 2009 CCJ-Globalization Conference

7

Companies with In-House General Counsels

1,000 – 2,999 Companies500 - 999 Companies

100 - 499 Companies

10,761

5,214

4,059

5,127

1,2301,341

1,635

2,166

2,088

1,386

2,829

1,083

2,4513,513

3,3661,464

1,224

2,115

678

177

894

765

1,068

1,098

264

372309

33

252 27939153

411 204

39180

339

33

51

312

90375

1 - 99 Companies

21

18

96

45

108

51 282

240

Puerto Rico 12

Virgin Islands 3 3,000+ Companies

Source: Extracted from ACC data.

Slide content by Former ACC Gen’l Counsel Susan Hackett (5/09 CCJ Conf.)

8

This is More Than a BigLaw Phenomenon• In 2010, 12% of U.S. population was foreign born

(more than 37million)– 16 states (almost one-third) had a foreign-born population

that was ≥10%

– Examples: California (27.2%,), Nevada (18.9%), New York (22.2%), Florida (19.4%), Massachusetts (15%), Washington (13.1%), Maryland (13.9%) & R.I. (12.8%)

– Selected cities [2009]: LA (39%), San Jose (38%), NY (35%), Boston (25%), Austin (20%), Chicago (20%), Denver (15%), Charlotte (13%), & Columbus (10%)

9See also Laurel S. Terry, The Legal World is Flat: Globalization and its Effect on Lawyers Practicing in Non-Global Law Firms, 28 Northwestern J. Int’l L. & Bus. 527 (2008)

Sources: ABA Commission on Ethics 20/20 Proposed Model Rule on Pro Hac Vice Admission & U.S. Census Bureau, 2010 American Community Survey, MPI Data Hub

BRICs: Brazil, Russia, India, China

10

South Africa has now joined this group which is now known as “BRICS”

Source: Goldman Sachs, Dreaming With BRICs: The Path to 2050, Global Economics Paper #99 (2003), http://www2.goldmansachs.com/our-thinking/brics/brics-reports-pdfs/brics-dream.pdf

This Shift will affect clients & thus lawyers

11Source: See previous slide

II. Is There a Coordinated Regulatory Regime?

• Not really…we are at the beginning stages:– ABA Commission on Ethics 20/20

• “Inbound” lawyer proposals

– Council of the ABA Sec. of Legal Ed. & Admission[s]• Pending Model Rule on [Full] Admission for LL.Ms• Comments sought on off-shore accreditation rules

– New York LL.M - Bar Eligibility rules– Conference of Chief Justices

• Discipline cooperation with the CCBE & Law Council of Australia

– Global Efforts (Bologna Process, GATS, APEC, etc.)

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III. What Should Legal Educators Do?

Recognize that….– We live in a global world– Students from all law schools will need to be prepared to

represent clients with global needs– Int’l programs expose students to law’s global dimension

– directly and indirectly– Note: Could we better leverage the global exposure

students have? • See, e.g., Carole Silver, Fordham 2012,

http://papers.ssrn.com/sol3/cf_dev/AbsByAuth.cfm?per_id=288407

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To Read More About It…• ABA Commission on Ethics 20/20

– http://www.americanbar.org/groups/professional_responsibility/aba_commission_on_ethics_20_20/initial_proposals.html

• WTO Secretariat’s 2010 Legal Services Paper,– http://www.wto.org/english/tratop_e/serv_e/legal_e/legal_e.htm

• International Association of Legal Ethics (and ILECs)

– http://www.stanford.edu/group/lawlibrary/cgi-bin/iaole/wordpress/

• LawWithoutWalls Materials– http://www.lawwithoutwalls.org/

• Fall 2011 Fordham Symposium on Globalization and the Legal Profession

• Archived programs at, inter alia, Harvard, Stanford, Georgetown, MSU, Akron, & Hofstra

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To Read More About It…By Laurel Terry

Global Legal Practice Resources Webpage: http://www.personal.psu.edu/faculty/l/s/lst3/globalprac.htm

Links to Publications by Topic: http://www.personal.psu.edu/faculty/l/s/lst3/

Presentations Page: http://www.personal.psu.edu/faculty/l/s/lst3/presentations.htm

SSRN page: http://ssrn.com/author=340745

See, e.g., International Initiatives Relevant to Transnational and Cross-Border Higher Education

[2011 Presentation & Paper]

15

My Presentations Webpage:

16http://www.personal.psu.edu/faculty/l/s/lst3/presentations.htm