Law Firm Partnership: Models, Fears/Challenges and Solutions

U&L UKIRI & LIJADU

A Presentation to Muslim Lawyers’ Association of Nigeria (“MULAN”)

20th May 2017

Ovie Ukiri Partner

U&L UKIRI & LIJADU

Content

Overview

Brief History of Partnerships in Nigeria

What is a Partnership

Why a Law Partnership

Models

Fear/Challenges

Solutions

Conclusion

U&L UKIRI & LIJADU

Overview

• Historically, law firms in Nigeria are modelled along the style of the traditional English Barrister’s law chambers – Not surprising given that the law and practice in Nigeria were inherited from England.

• The vast majority of law firms in Nigeria are still structured as sole proprietors working alone, with juniors and/or pupils in chambers in the style of the traditional English barrister

• In recent times, Lagos and a few other cities in Nigeria have begun to show a slight movement from the traditional structure of law firms, into law partnerships.

U&L UKIRI & LIJADU

• Irving & Bonnar 1917 – First law firm in Nigeria

• Thomas, Williams and Kayode – 1948 (Bode Thomas, Rotimi Williams and Remi Fani-Kayode)

• Michael, Chris and Samuel – 1950 (Michael Odesanya, Chris Ogunbanjo and Samuel Akintola)

• Mbanefo & Mbanefo – 1974 (Patrick Mbanefo and Louis Mbanefo)

Brief History of Law Partnerships in Nigeria

U&L UKIRI & LIJADU

Partnership

What is a Partnership?

“A voluntary association of two or more persons who jointly own or carry on a business for profit” – Black’s Law Dictionary “A relationship which subsists between persons carrying on business in common with a view to profit” – Partnership Law of Lagos State.

U&L UKIRI & LIJADU

The measure of a successful law partnership would therefore appear to be profit? i.e money? Not necessarily true. Professional fulfillment

Social Impact

√ Human rights √ Law Reporting (Gani Fawehinmi)

Appointment into public office (Bench; AG etc)

Academia

A Law Firm or Law Partnership, to be a successful business, must apply the usual business principles applicable to any other commercial undertaking in order to maximize profits.

Partnership

U&L UKIRI & LIJADU

Two concepts in economics which are applicable in Law partnerships and form one of the pillars of a successful Law partnership:

Why a Law Partnership

Division of Labour

The ability to raise funds may be increased. Capacity may be greater. Attract good lawyers to the business if given the incentive to become a Partner. Benefit from the combination of complimentary skills and a wider pool of knowledge, skills and contacts.

Economies of Scale

Partnerships can be cost-effective as each

partner specializes in certain aspects of

their business.

Partnerships provide moral support and

will allow for more creative brainstorming

U&L UKIRI & LIJADU

Models Lockstep Model (most widely used)

Modified Lockstep

Eat what you kill

Monarch Structure

It is entirely up to the partners to determine what works for them. No hard and fast rules

U&L UKIRI & LIJADU

Lacking a shared Vision

(Important to agree on and buy into the Vision)

Lacking the ability or nature to share

Ego/Greed/Insecurity - treat your partner’s concerns as equal in importance to your own.

Partnership demands creativity – Important in order to accommodate every partners needs

Challenges

U&L UKIRI & LIJADU

Partnership requires compromise - Sharing “all” profits vs investing in the business.

Partnership requires commitment and consistency – “I will be here tomorrow, the day after and the day after that”

Partnership requires flexibility – be prepared to change the vision for the common good even if the change makes one person a star.

Partnership requires fairness – everyone must benefit. A feeling of exploitation will eventually collapse the partnership.

Challenges

U&L UKIRI & LIJADU

Solutions Sincerity, Honesty, Trust etc

Helpful if you have things in common (friendship) but not essential. What is essential is

mutual regard and trustworthiness.

Adhere strictly to the rules that all have set and agreed upon (succession planning;

retirement age etc)

Ability to adapt to changes

U&L UKIRI & LIJADU

Conclusion

What is the

future of Law Partnership in

Nigeria?

Foreign Involvement?

A l l i a n c e s ?

Response of Local/Indigenous Law Firms to Foreign Involvement

U&L UKIRI & LIJADU

Thank you