The Swiss verein structure of global law firm Baker McKenzie has come under scrutiny through a malpractice lawsuit, which has sparked a venue dispute. The firm requested for the case to be relocated overseas, highlighting where “‘witnesses and evidence reside.'”. However, an Illinois appeals court ruling opposed this by allowing the case to remain state-side. This shining the light on the principle of “legal unity of liability of defendants,” and opened a wider discussion on the liability implications held by such verein firms should a member faces malpractice allegations.
An overarching issue with this structure is the potential ambiguity in deciphering whether such entities operate as ‘one firm’ or as separate entities, which has implications for conflicts and liability concerns. Baker McKenzie’s predicament echoes a case involving Dentons two years earlier, where the firm’s verein status was also implicated following a $32 million malpractice verdict.
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