The past 15 years has seen a significant change in New Zealand’s legal landscape. Lawyers from many large firms have broken away to start up their own specialist practices; companies now commonly use a variety of legal providers; and there has been sizeable growth in the use of in-house counsel.

Clients have become decidedly more legal savy and as a result lawyers are having to work a lot harder to deliver value.

This guide – the first of its kind – is both an editorial and reference guide to these services (see link below).

Russell McVeagh has emerged at the top of the pecking order of legal firms, with Bell Gully just a smidgeon behind and then only a slight gap to Chapman Tripp.

That’s the results of a price performance comparison survey of in-house counsel by legal measurement firm Team Factors with the Corporate Lawyers Association (CLANZ).

“We are on lots of panels and we deal with in-house counsel all the time. That’s just the way the market is.” This bald statement of reality for the big legal firms is from Buddle Findlay national chairman Peter Chemis.

It could have come from any of the other big firms with their big commercially focused clients. Although the trend to in-house legal teams has been apparent for the past decade, the level of acceptance and enthusiasm for the new reality of client power varies.

There are two markets for commercial legal services. The first is occupied by the top three or four firms, with other contenders filling up to another eight to ten places.

The top tier is characterised by the biggest and best corporate and commercial clients, by high-value transactions, highly paid lawyers, absolute commitment to the client and to success, and with the prices, premises and arrogance to match. These firms are found only in Auckland and Wellington.

The market for legal services in New Zealand is worth well over $1 billion. The dollar value has been increasing steadily in the past few years as the economy has expanded, and commercial activity has increased.

The firms have done well, many of them very well indeed.
Yet there is a widespread view that there are too many firms, and that the market is changing rapidly. Economic conditions are more challenging than before. An election is looming. International pressures are strong and potentially negative.

The trend to niche, specialty and boutique firms is a top talking point among the legal fraternity and the client set. Are they the way of the future, or just a passing fad? Are they the new and hot competition for the biggest firms or will they be swept aside as the economy crumbles and the market shrinks.

The answer depends on whom you talk to and what explanation for the rise of the niche firm you prefer to adopt. Those with long memories (and a certain cynicism) see the current trend toward specialty shops as part of a cycle.