DAMODARAM SANJIVAYYA NATIONAL LAW

UNIVERSITY
VISAKHAPATNAM, A.P., INDIA

GLOBALISATION AND LEGAL PROFESSION

PROFESSIONAL ETHICS AND PROFESSION ACCOUNTANCY

Submitted to: V. Suryanarayana Raju

Submitted by
Parish Mishra

1
Contents

Objective 3

Research Methodology 3

Hypothesis 3

Chapterisation

Chapter 1: Introduction 4

Chapter 2: Legal Profession in India 5

Chapter 3: Foundation of Globalized Legal Services 7

Chapter 4: The impact of globalization on legal education 9

Chapter 5: Integrate Cross-Border Practice into the Traditional Curriculum 10

Chapter 6: Codes of Conduct and Cultural Understandings of a Lawyer's Role 11

Chapter 7: 5 Ways the Legal Profession is Set to Change 12

Chapter 8: Role of the U.S. Supreme Court and the European Court 14

Chapter 9: Conclusions 16
Bibliography 17

2
Objective

The main objective behind this project is to study about globalization and legal profession and
their relation in modern case scenario in different countries. In this project I am also going to
mention about foreign article as well as Indian article to relate legal profession and globalization
in a proper manner.

Research Methodology

This project is totally a doctrinal research methodology i.e. material is taken from many sources
like books, journal and another means of sources. Many cases are collected from the online
journal and the judgments are from the sites of many concerning courts.

Hypothesis

Globalization is a very popular word these days. It is hard to read a newspaper, peruse the
business section of a magazine, or watch the nightly news on television without encountering the
term as a shorthand expression for the synergistic entwinement of complex economic, cultural,
and political phenomena.

3
Chapter 1: Introduction

Traditionally the term globalisation referred solely to economic factors; foreign direct
investment, free trade and outsourcing. More recently, additional facets have emerged such as
politics, communications, culture and technology.
Globalisation, a buzzword used by many but understood by few. Lets face it, the phenomenon is
unavoidable, but to what extent are the effects on the legal profession truly understood?
Declining trade barriers, and advancing technology have induced an increasingly global culture;
Delhi taxi drivers listen to Michael Jackson while Bollywood films air in Detroit. To remain
competitive in the global market, law firms have had to adapt and in doing so, many have taken
unique approaches.
Globalization is a very popular word these days. It is hard to read a newspaper, peruse the
business section of a magazine, or watch the nightly news on television without encountering the
term as a shorthand expression for the synergistic entwinement of complex economic, cultural,
and political phenomena.1 This Article accepts globalization as a defining characteristic of the
world order of the late twentieth and the early twenty-first centuries and as a force majeure on
the legal profession.2
Globalisation is facilitating the increasing strength of emerging economies. In outlining distinct
strategies, it is clearly demonstrated that large commercial firms are feeling the effects. Whilst it
is plausible that the Bar will remain strong in itself, perhaps the bold approach of 20 Essex Street
Chambers suggests the Bar faces the same internationalised fate. It is safe to say the legal
profession and the focus of the law itself are most definitely influenced by a changing
international market.3

1
Global Investing, WALL ST. J., June 26, 1997, at Rl-17
2
John Flood, The Globalizing World, 23 INTL LAW. 509 (1995)
3
ibid

4
Chapter 2: Legal Profession in India

India has the worlds second largest legal profession with more than 600,000 lawyers. The
predominant service providers are individual lawyers, small or family based firms. Most of the
firms are involved in the issues of domestic law and majority work under countrys adversarial
litigation system. The conception of legal services as a noble profession rather than services
resulted in formulation of stringent and restrictive regulatory machinery. These regulations have
been justified on the grounds of public policy and dignity of profession.

The judiciary has reinforced these principles, which can be reflected in words of Justice Krishna
Iyer, when he noted, Law is not a trade, not briefs, not merchandise, and so the heaven of
commercial competition should not vulgarize the legal profession. However, over the years
courts have recognized Legal Service as a service rendered to the consumers and have held
that lawyers are accountable to the clients in the cases of deficiency of services. In the case of
Srinath V. Union of India4 Madras High Court held that, in view of Sec. 3 of Consumer
Protection Act, 1986. Consumer redressal forums have jurisdiction to deal with claims against
advocates. Sec. 2 of competition Act, 2002 defines the term Service along the lines of
consumer protection Act, 1986. Thus it may be concluded that legal services are becoming
subject of trade related laws where consumerism and market forces should be given adequate
space.5

Changing Face of Legal Profession

Globalization brought about a revolution in international trade with increasing participation and
involvement of countries & greater access to domestic economies. The implication of the same
on the legal service sector has been both quantitative and qualitative. 6

The past decade has been mini-revolution in legal service sector with the greatest legal impact on
corporate legal arena Activities in project financing, intellectual property protection,
environmental protection, competition law, corporate taxation, infrastructure contract, corporate
governance and investment law were almost unknown before 90s. Number of Law firms
capable of dealing such work was very few. It is evident that need of professional service has

4
AIR 1996 Mad 427
5
Supra 1 at p 211
6
Supra 2 at p 110

5
been tremendous in the legal service sector. In last few years Law Firms, in house firms and
individual lawyers expertise in providing legal services in corporate sector has increased by
several times. These new Law Firms primarily engage and loan instrument, writing
infrastructural contracts, power contract, drafting of project finance, contracts, finalizing
transnational investment, joint venture and technology transfer contracts. This is discerning shift
in the disposition of emerging legal sectors towards settling disputes through ADRS rather
adversarial litigation mode of dispute resolution Globalization has thus expanded the internal and
external demand for legal services. Today in legal services is on inevitable fact. At the same time
significant for progressive development of legal profession in India in this era of Globalization.7

The challenge before the legal profession today is to resolve the basic paradoxes, which it faces,
to adapt to changing social values and revolutionary technology, to reorganize itself in such a
way as to provide more effective, real and affordable access to legal advice and representation by
ordinary citizens, to preserve and, where necessary, to defend the best of the old rules requiring
honesty, fidelity, loyalty, diligence, competence and dispassion in the service of clients above
mere self-interest and specifically above commercial self-advantage, to adapt to the growth and
changing composition of our society and of its legal profession. And to mould itself to the fast
changing content and complexity of substantive and procedural law. It is quite a tall order. Are
we up to it?

The hope must be that some of the old-fashioned notions of selfless and faithful service will
survive even these changing times. In the void left by the undoubted decline of belief in
fundamentals, we must hope that a new foothold for idealism and selflessness will be found.
Despite the beliefs of some of its critics, the Indian legal profession's guiding principles will not
be found in economics alone. Still less will it be found in a dogma of free market competition.
Economics simply cannot explain the will to do justice, to be dutiful to courts and honest and
dispassionate to clients. Modern economic theory, now put into widespread practice, has not
done such a good job in terms of social engineering. The large pool of long term unemployed,
the rise in crime, drug use and increased stress within personal relationship all suggest the failure
of unbridled economic rationalism as an alternative foundation principle for society.8

7
Ibid
8
Supra 1 at p 122

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Chapter 3: Foundation of Globalized Legal Services

World Trade Organization (WTO) is the successor of the General Agreement on Tariffs and
Trade (GATT), which ruled the world between 1960 and 1993. both Co-existed between 1994
and 1995, when WTO came into existence. Services are brought for the first time under
multilateral trading system under the Uruguay Round Agreements launching WTO. Earlier the
GATT System confined only to goods trade. The inclusion of services under the WTO in 1995 is
a reflection of growing share of services in national economics world over. It is on indication
that trade in services is set to play on all important role in the economic development of
countries in future. The developed west Economics are specializing in knowledge based service
and this GATS entered the WTO agenda in 1995. It is among the WTOs most important and the
first and only set of multilateral rules concerning International Trade in services. It was
negotiated by the Governments themselves and set the framework agreement containing general
rules and disciplines and the national schedules, which list basic commitments on behalf of
individual countries. \

As with the GATT, GATS serves to create a Most Favoured Nation (MFN) status for members
of the WTO through specific commitments that allow non-discriminatory treatment to be given
to foreign suppliers from overseas. Members have complete freedom to select which services to
commit and while granting access a country may however limit the degree to which foreign
services provider can operate in the market. Thus, it is possible for a country like India to limit
the number of foreign legal practitioners who may be licensed to practice here. But it goes much
further than that. A whole range of non-tariff barriers exist which countries may either commit to
remove, dilute or otherwise restrict in their operation so as to create a more friendly trading
environment within which services can be provided across national barriers. GATS achieves its
objectives following basic GATT principles using. Most Favoured National treatment under
Article II and XVII respectively while aiming to reform markets and yet allow special and
differential treatment for developing countries. The two excepts to GATS are-

i. services provided to the public in the exercise of governmental authorities and,

ii. in the Air transport structure, traffic, rights.

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GATS provides for trade in services through four different modes which are defined in paragraph
2 of Article I.

a. From the territory of one member into the territory of any other member.
b. In the territory of one member to the service consumer of any other member.
c. By a service supplier of one member, through commercial presence in the territory of any
other member.
d. By a service supplier of one member, through presence of natural persons of a member in
the territory of any other member.

The GATS schedules refer to each of these modes and all commitments are made accordingly.

GATS classification & Legal Services

There are 12 sectors classified by GATS for which commitments may be made one of them is
Business Services. Business Services is further divided into 6 types of services, which include
professional services. The Professional service sector further divided into 11 services, which
include Legal Services.

India has made only specific commitments in relating to engineering services.

India has made no commitments in the legal services sector at present. This may be contrasted
with commitments mode by 44 countries in the legal service sector even same developing
countries have made commitments. Such commitments are beneficial to all i.e. to countries and
to consumers. As these commitments will bring Trade in the legal services which will play
crucial role benefiting consumers countrywide.

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Chapter 4: The impact of globalization on legal education

Many issues have divided the American Bar Association (ABA) and the Association of
American Law Schools (AALS). Globalization is not one of them. The ABA has encouraged
law schools to increase their offerings in the international law area, and the AALS has hailed the
emergence of the first generation of global lawyers.9

Session of the AALSs 1998 Annual Meeting was Thinking and Teaching about Law in a
Global Context as an Exercise in Com-mon Enterprise. Scholarly commentators and thoughtful
practitioners have called for curriculum reform, urging law schools to expand their international
law offerings and professors to adopt a pervasive pedagogy by adding international law
perspectives to their substantive courses.10

In general, the academic community has responded positively to these calls, and significant
developments at the institutional level are regularly occurring at U.S. law schools across the
country. The elite law schools have not hesitated to adopt new programs or reinvigorate existing
ones. Taking advantage of its significant endowment and the generosity of its alumni, New York
University School of Law has proclaimed itself the first global law school.

One of the U.S. law schools has entered into an agreement with its African counterpart for the
purpose of organizing joint research, student summer exchanges providing an African masters
law.11 Reinforcing this initiative is the AALSs establishment of a section on African Law.
Latin American law schools and ABA-ac-credited law schools are now similarly linked. In
addition, the AALS has established special ties with law schools in the NAFTA countries,
especially Mexico.

U.S. law students are keenly interested in the study of foreign law. Over ninety law schools
sponsor summer abroad programs and it is estimated that over twenty-nine hundred students
enroll in them. The benefit from these programs is enormous. Students have the opportunity to
take courses in public and private international law that often are not available at the schools

9
Mini-Workshop Materials, AALS Mini-Workshop on Teaching the First Generation of Global Lawyers, 1993
AALS Annual Meeting.
10
1998 Conference Program Brochure
11
Robert Fullerton, Update on African Law Initiative Project, 26 SYLLABUS, Summer 1995, at 4

9
where they are matriculating. Frequently, U.S. and foreign law school faculty members co-teach
these courses, providing students with a unique comparative perspective.12

These co-taught courses benefit the participating professors as much as the students. The courses
allow them to exchange highly-nuanced substantive knowledge in face-to-face discussions and
greatly facilitate collaborative efforts outside the classroom. Some summer abroad programs
even admit foreign law students and/or lawyers lending a true international flavor to the
classroom environment and further enriching the U.S. law students experience.13

Chapter 5: Integrate Cross-Border Practice into the Traditional Curriculum

For a variety of reasons generally involving faculty resources, many law schools cannot
reconfigure their professional responsibility curriculum to offer contextual courses. Limitations
on faculty resources is not, however, a valid reason for ignoring the ethical implications of the
globalization of the legal profession. Once convinced of the need to add a global perspective to
his or her course, a professional responsibility teacher must still address the daunting questions
of how to integrate the subject matter and what materials to select. The answer to the how
question requires an honest self-appraisal of the professors.

Educational approach to the courses subject matter and teaching style. Two ambitions are
usually presented in counterpoint to one another: to familiarize the students with the specific
codes that govern the conduct of lawyers, and to explore a broad range of professionalism issues,
often against the backdrop of philosophic reasoning. For most teachers neither goal is exclusive.
For some parts of the course, it is important that the students know the precise language of a
particular norm. For other parts, it is important that the students reflect on the professional
culture underlying a norm, but the norms linguistic expression is inconsequential. Integrating
cross-border practice into the traditional professional responsibility curriculum will not disrupt
either aim. Just as professors currently explore with their students specific provisions of the
Model Code, the Model Rules, the draft Restatement, and the decisions of the United States
Supreme Court.

12
University of Baltimore and University of Maryland Program cotaught with professors from the University of
Aberdeen, Aberdeen, Scotland); at 38
13
Ibid

10
The trial and error has persuaded that the most efficient way to teach cross-border materials is to
front load at the very beginning of the semester with a brief comparative overview, intersperse
general comments during the discussions of confidentiality and conflicts of interest, and devote a
unit to specific issues pertinent to globalization. The traditional curriculum can easily
accommodate this approach. All that is required is an additional document supplement with the
cross-border readings.

Chapter 6: Codes of Conduct and Cultural Understandings of a Lawyer's

Role

Most courses, and especially those that take a law of lawyering approach, begin with a general
discussion of the normative framework regulating lawyers conduct: the common law of agency
and fiduciary relationships, malpractice liability, the Model Code, and the Model Rules.
Depending upon individual pedagogical preferences, there may be passing references to' or a
more complete discussion of, the ALIs draft Restatement of the Law of Lawyering, and the
constitutional guarantees of the first, fifth, and sixth amendments. It is a statement of common
rules which apply to all lawyers ... in relation to their cross-border activities. The CCBE is an
umbrella organization of the bar associations of the European Union Member States and other
Observer States.14
The legal and regulatory status of the CCBE within the Member States of the European Union
resembles the ABAs within the United States. In order for the CCBE Code to have any legal
effect it had to be adopted by the Member States, just as the Model Rules had to be adopted by
the individual states. Fifteen Member States and four observer states to the CCBE have now
adopted the CCBE Code. The Code applies only to lawyers admitted in the CCBE states and
only to their cross-border activities. It does not apply, by its own terms, to U.S. lawyers. There is
a distinct possibility that the CCBE Code in amended form will one day govern the conduct of
all lawyers who provide cross-border legal services.15

14
Council of The Bars and Law Societies of The European Union, CCBE Code of Conduct For Lawyers in The
European Union, art. 1.3.1, reprinted in RIGHTS, LIABILITY, AND ETHICS, supra note 54, at 380. It is also
reprinted in Terry, Legal Ethics Code Part I, at 63-75.
15
Annie Eun-ah Lee, Toward Institutionalization of Reciprocity in Transnational Legal Services: A Proposal for a
Multilateral Convention under the Auspices of GATT, 13 B.C. INTL & COMP. L. REV. 91, 117-24 (1990).

11
Chapter 7: 5 Ways the Legal Profession is Set to Change
The legal profession has been undergoing a paradigm shift. Factors such as the Global Financial
Crisis, the advancement of technology and the growing number of law students have led to the
streamlining of many law firms, the automation of many tasks and fierce competition between a
larger pool of lawyers for a smaller range of roles. What are the implications? W?
Below are five ways in which the legal profession is expected to change over the coming years.
1. New Technology
As explored in Tuesdays article, the evolution of technology is yielding both benefits
and challenges for the legal profession. However, many experts believe what we have
seen thus far will pale in comparison to the technological changes the legal profession
will need to embrace in the coming years.
In his 2013 book Tomorrows Lawyers, UK-based legal futurology expert Richard
Susskind cites a prediction made by the founder of Intel (referred to as Moores Law):
If we can see the day in which the average desktop machine has more processing
power than all of humanity combined, he wrote, then it might be time for lawyers to
rethink some of their working practices. In short, the future of legal practice is set to be
much more automated.
2. Multigenerational Workforce
Due to increased professional demands, extended retirement ages, and prolonged
lifespans, Australia is currently experiencing a heretofore unforeseen phenomenon: four
generations working together in one workplace. With Traditionalists, Baby Boomers,
Generation X and Generation Y all crammed into one professional space, many law firms
are managing a generation gap of more than 50 years. While such a diverse expanse of
employment poses a number of technological, social and cultural challenges the
generation gap is only likely to increase. A plethora of influential factors such as the
extension of the retirement age to 70, the impending retirement of the prolific Baby
Boomers, and the ever-swelling number of law graduates will ensure that the legal
profession of the future will be more diverse and multigenerational than ever.

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3. Globalisation
In few places has the impact of globalisation been as significant as in the legal profession.
While protectionist measures enforced by professional legal bodies can limit the
countries in which one can practice, many law firms are still expanding internationally
usually via mergers and partnerships. The merger of King & Wood Mallesons and SJ
Berwin has united firms across the UK, Europe, China and Australia, while Linklaters is
running holiday work placement schemes for Australian and Indian students interested in
working in the UK. At the other end of the market, firms such as Allen & Overy have
procured legal process outsourcing services in Mumbai, which allow much of their basic
litigation document review to be completed offshore for a fraction of the price.
With globalisation trends likely to continue over the coming years, legal practitioners in
Australia will be faced with both opportunities and challenges. The chance for Australian
lawyers to work overseas will continue to grow, however many legal professionals who
depend on increasingly outsourced work may find themselves outgunned by cheaper
international providers.
4. Work/Life Balance
With law firms and legal departments demanding more work from fewer workers, many
legal professionals have needed to relinquish aspects of their personal lives to get the job
done. In response, beleaguered employees have pushed for a greater work/life balance,
and an increasing number of law firms have begun to implement policies such as phased
retirement, compressed schedules, telecommuting, temporary leave, flex-time, part-time
work and other alternative work arrangements. Such trends are likely to ensure that legal
practitioners of the future will be given more work/life flexibility in recognition of their
hefty workloads.
5. Women in Law
According to a report issued by the Victorian Equal Opportunity and Human Rights
Commission, women comprised 46 percent of lawyers practising in Australia as of 2013.
The report also revealed that while only 11 percent of law graduates in the 1960s were
women, the majority of all Australian law graduates have been women since the 1990s.
Despite these advancements, the landscape of Australian law still lacks an equitable

13
 number of females in senior roles. However, as many social issues relating to gender
stereotypes and family structures are addressed, the next 50 years are likely to see a
steady tipping of the scales.
With the number of stay-at-home dads doubling in Australia over the past decade, it is
increasingly likely that the demands of raising a family will not fall automatically to the
woman. This will allow many more female legal professionals to continue with their
careers rather than taking time off to bear children however for gender balance to truly
be obtained in the legal workplace, we as a profession will need to address a range of
issues beyond family dynamics.

Chapter 8: Role of the U.S. Supreme Court and the European Court
Valuable area of comparison involves the role of the courts in the admission process and their
use of constitutional norms to strike down local barriers to practice. To the extent that a
professional responsibility course includes the Piper-Friedman-Thorstenn16 trilogy of cases,
decisions of the European Court of Justice addressing the same issue in the context of Member
State barriers to the provision of services by lawyers in other Member States are particularly
relevant. In most discussions of the admissions process, attention is directed to the problems
created by the federal structure of the U.S. legal system. Generally speaking, a lawyer may not
advise a client regarding the law of a jurisdiction in which the lawyer is not admitted. Most
states effectively discouraged out-of-state lawyers from establishing law offices or practicing
within the state by imposing a residency requirement as a condition precedent to sitting for the
bar examination. Beginning with Piper, the Supreme Court struck down residency requirements
as violative of the Privileges and Immunities Clause of Article IV. Like the U.S. Constitution,
the Treaty of Rome which established the European Community anticipated the free flow of
goods and services through Member States.17

Discussing European Court of Justice jurisprudence has two advantages. First, it allows the
students to observe from a comparative perspective how the evolution of the legal profession,
which purports to be self-regulating, can be dramatically impacted by an institution over which

16
Barnard v. Thorstenn, 489 U.S. 546 (1989); Supreme Court of Virginia v. Friedman, 487 U.S. 59 (1988);
17
Terry, Legal Ethics Code Part I,at 45-51

14
the legal profession has no direct control. Second, it exposes students to the very different way
the legal profession is structured outside the United States. In the United States, once a lawyer is
licensed, the lawyer is free to practice in all the courts of the state, to provide legal services in all
parts of the state, and to offer a full range of services (i.e., no stratification). In contrast, in the
EU Member States, a lawyer was admitted to a particular bar e.g., the bar of Frankfurt, the bar of
Paris, the bar of Brussels. That admission permitted the lawyer to provide legal services within
the geographic boundary of the bar, but not beyond. A lawyer admitted to the bar of Frankfurt,
For example, could not provide legal services in Dusseldorf; a lawyer admitted to the bar of Paris
could not provide legal services in Lyon, etc. Furthermore, these and other restrictions often
made it impossible for a law firm to establish a partnership with offices in more than one bar.
Consequently, law firms in Member States were quite small by U.S. standards and the economic
incentives associated with growth such as leverage, enlarged client base, and more practice areas
were non-existent.18
When the European Court of Justice removed the barriers to practice by lawyers from other
Member States, foreign lawyers had a distinct advantage. A German-national lawyer admitted to
the bar of Frankfurt, for example, could provide legal services in Paris and Lyon, but a French-
national lawyer could only provide services within the boundaries of the lawyers bar of
admission This reverse discrimination prompted the modification of the admission process to
allow lawyers to be admitted to more than one jurisdiction in a single Member State.19

18
Shapero v. Kentucky Bar Assn, 486 U.S. 466 (1988)
19
Johannes Henricus Maria van Binsbergen v. Bestuur van de Bedrijf svereniging voor de Metaalnijverheid, Case
33/74, [1974] E.R.C. 1299, [1975] 1 C.M.L.R. 298

15
Chapter 9: Conclusions
In many courses, their professors earnestly endeavored to introduce them to the structure of
foreign legal systems and to impart some understanding of the different systems substantive
law. There was no international dimension to the graduates instruction in professional
responsibility, however. Almost without exception, their courses focused exclusively on the
ethical dilemmas commonly encountered in U.S. domestic practice.
The evolution of the legal profession in the context of globalization presents a very exciting
research frontier for the study of lawyers. The great debate for lawyers in the coming century is
not whether a separate cadre of advocates will survive. It is not even whether competition and
consumer pressure will improve the delivery of some legal services. Of course they will. It is
whether the ascendancy of economics, competition and technology, unrestrained, will snuff out
what is left of the nobility of the legal services. We must certainly all hope that the basic ideal of
the legal profession, as one of faithful service beyond pure economic self-interest will survive.
But whether it survives or not is up to the lawyers of today. We should use an occasion such as
this to reflect upon the problems that we can see, looming and to examine the sources of our
deepest concerns.

16
Bibliogaphy

Book referred: -

1. R. Abbey, A. Ash, A. Boon, E. Skordaki, A. Whyte, Reconfiguring the Market for

Advocacy Services: A Case Study of London and Four Fields of Practice, 1986
2. Nichols, Mike. Can We Trust Lawyers to Police Other Lawyers? Wisconsin State
Journal. 28 Sept. 2010.
3. Susskind, Richard. The End of Lawyers? Rethinking the Nature of Legal Services.
Oxford: Oxford UP, 2008. Print
4. Kaplan, Ari. The Evolution of the Legal Profession: A Conversation With the Legal
Communitys Thought Leaders on the Front Lines of an Industry in Transition. Rep. Ari
Kaplan Advisors, 2010

Website referred: -

1. Legalzoom.com
2. Completecase.com
3. Virtuallawpractice.com
4. Wikipedia.com
5. legalserviceindia.com

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