Abstract
The Argentine legal profession has experienced, as in most Latin American countries, a rapid process of change since the return of democracy. The expansion of higher education associated with democratization has contributed to an increase in the number of lawyers and has diversified the social composition of this professional group in terms of gender, class, and geographic origin. This chapter presents an overview of these changes, focusing especially on the situation of an important segment of the profession: large law firms, oriented toward the corporate sector. The first part of this chapter outlines the political and economic changes the country has experienced since 1990. The presentation of trends in the legal profession starts by analyzing the expansion of large firms in the nineties and continues by describing large law firms’ responses to the 2001 crisis. It concludes by showing their efforts to adapt to a context of recurrent economic crises and marked changes in foreign relations.
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- 1.
- 2.
The 2013 corruption index, prepared by Transparency International for 2013, gave Argentina 34 points on a 0–100 scale. The country is ranked at 106 out of a total of 177 audited. Article in La Nación, December 3, 2013, accessible at www.lanacion.com.ar/1644091-la-argentina-cayo-en-el-indice-de-percepcion-de-la-corrupcion
- 3.
The Convertibility Plan was a response to the 1991 hyperinflation episode. The government established a fixed pegging of one-to-one parity between the peso and the US dollar. It also guaranteed full convertibility of pesos into US dollars. The government hoped to establish local and international credibility in the peg and to limit the local control over monetary and fiscal policy. The currency board regime intended to stabilize the peso, encourage both foreign and local investment, and foster sustained economic growth.
- 4.
Many other Latin American countries signed bilateral investment treaties during the 1990s. Bolivia signed 16 treaties, Ecuador 18, Venezuela 22, Chile 48, Peru 28, and Mexico 15. Brazil also signed 15 treaties, but none were ratified (Minaverry 2013).
- 5.
Income inequality, measured by the Gini coefficient, rose from 0.40 in 1954 to 0.53 in 1995.
- 6.
Official data, published by the Sistema de Información, Monitoreo y Evaluación de Programas Sociales (SIEMPRO), Consejo Nacional de Política Social.
- 7.
A corralito is a small fence or gate, commonly used to restrict the movement of a toddler.
- 8.
Historical data on poverty, Instituto Nacional de Estadistica y Censos (National Institute of Satistics and Census, INDEC). Accessible at www.indec.gov.ar/nivel4_default.asp?id_tema_1=4&id_tema_2=27&id_tema_3=64
- 9.
According to INDEC, in mid-2006, 31.5% of Argentines lived in poverty. See www.indec.gov.ar/nivel4_default.asp?id_tema_1=4&id_tema_2=27&id_tema_3=64
- 10.
This was the case, for example, with the following companies: Correo Argentino, renationalized in 2005, Aguas Argentinas, in 2006, Aerolineas Argentinas in 2008, and finally YPF in 2012.
- 11.
The Spanish original: “La figura presidencial continúa dominando hoy el escenario político de la misma forma que lo hacía a fines de 1983. El poder ejecutivo nacional inicia las principales políticas públicas, controla ampliamente la asignación de recursos presupuestarios, marca la agenda de los medios de comunicación y define el tempo de la política nacional” (Pérez-Liñán 2013, p. 389).
- 12.
A study on corruption cases handled by the federal courts, during the period 1980–2006, showed that only 14 cases out of a total of 750 resulted in a conviction (Biscay 2006).
- 13.
A recent ECLAC report summarizes the state of the country in the Latin American context: “Argentina was the main direct investor outside Latin America during the 1990s. Outward foreign direct investment (FDI) flows topped US$ 2 billion annually (25% of the total for the region) until the 2001–2002 crisis, which sent them plummeting. Although they later ticked up again they did not return to prior levels, even at current prices. The pattern for inward FDI has been the same: indeed, Argentina (together with the Bolivarian Republic of Venezuela and Ecuador) is one of only three countries in the region where inward FDI is now lower than it was a decade ago” (ECLAC 2014, p. 85).
- 14.
In Treves’ classification (Treves 1988), these are called collective law offices, in contrast to associated law offices. In the latter, the law firm, and not the solo practitioner, takes the case in an impersonal fashion and receives the corresponding fees. Treves also pointed out the existence of business law offices, where professional service is organized according to models from industrial production in order to adequately serve large economic and social institutions. The latter represents the type of offices we have called “legal firms” here.
- 15.
Bruchou, Fernandez Madero, Lombardi & Mitrani was established in 1990. Cárdenas, Di Cio y Tarcitano, and Perez Alati, Grondona, Benitez, Arnsten & Martínez de Hoz were created in 1991 (see Table 2.7, Appendix).
- 16.
Marval, O’Farrell and Mairal allied with Demarest e Almeida from Brazil and with Spanish firm Uria Menendez. Perhaps the most interesting case is Bomchil, which began the construction of a network of Latin American offices under his name in 1963 (The Bomchil Group, www.bomchilgroup.org), which now has members in 17 different countries.
- 17.
Perez Alati formed in 1998 an alliance with Cuatrecasas (Spain), Goncalves Pereira and Castelo Branco (Portugal), and Machado, Meyer, Sendacz & Opice from Brazil . The group opened a shared branch in New York, while Marval O’Farrell and Mairal held an office in the same city.
- 18.
Dezalay and Garth have observed this trait in Latin American law firms in general in the 1990s: “This practice shows Latin American business lawyer as a hybrid phenomenon with a variety of contradictory aspects. Thus, these law firms look and act like an American law firms, but they are basically family businesses” (Dezalay and Garth 2002, p. 302). The Spanish original: “Esta práctica muestra al abogado de negocios latinoamericano como un fenómeno hibrido con una diversidad de aspectos contradictorios. Así, estas firmas de abogados lucen y actúan como una firma de negocios estadounidense, pero los cimientos de dichas instituciones fundamentalmente son de familia” (Dezalay and Garth 2002, p. 302).
- 19.
Comparing the present time with the 1990s, the partner of one of these studies commented, “[t]he firm tries to be more prudent. We do not hold our prior hiring policy, of calling not less than 20 lawyers per year. And also we analyze thoroughly before replacing when one is going” (Case 18, Senior Partner, Buenos Aires).
- 20.
Dezalay and Garth (1995) have described how this type of gentleman lawyers are progressively replaced by a new type of professionals, oriented to business engineering.
- 21.
- 22.
In the same study, based on data from national household surveys, it was found that the percentage of lawyers working as employees rose from 38% in 1995 to 49% 2003. At the same time, the percentage of lawyers who worked as employers rose from 11% to 18% (Bergoglio and Carballo 2005).
- 23.
Interview published by Apertura, August 2009, p. 48.
- 24.
Bomchil represented the plaintiff in six of these cases; Pérez Alati, Grondona, Benitez, Arnsten & Martínez de Hoz, which had a branch in New York, five cases. Meanwhile, Marval, O’Farrell and Mairal, along with a subsidiary in the United States, carried out two cases. Data obtained on the ICSID website, http://documents.worldbank.org/curated/en/2013/01/17810575/icsid-caseload-statistics-carga-de-casos-del-ciadi-estadisticas
- 25.
This happened in the following cases, whose counterpart is the Bolivarian Republic of Venezuela : Vestey (2006); Flughafen Zürich A.G. (2010); Valleverde (2012); Blubank (2012); Glasses Los Andes (2012); and Transban (2014).
- 26.
For a detailed report on the situation of large firms in 2006, including their structure, internal organization, practice areas, and professional discourse, see Bergoglio (2010a).
- 27.
Jorge Pérez Alati, name partner in Pérez Alati, Grondona, Benites, Arntsen & Martinez de Hoz (H), interview in El Cronista Comercial, October 10, 2014, accessible at www.cronista.com/legales/El-MampA-se-queda-sin-talento-20141001-0001.html
- 28.
Guillermo Malm Green, partner at Brons & Salas, interview in El Cronista Comercial, May 8, 2012. Accessible at www.cronista.com/legales/Lo-mas-hot-en-jurisprudencia-20120508-0021.html
- 29.
Alfredo O’Farrell, de Marval, O’Farrell y Mairal, interview in Apertura, August 2009, p. 28.
- 30.
Taken from the English version of the company’s web page, www.ebullo.com.ar/eng/seccion.php?idmenu=3&cat=9
- 31.
Taken from the company’s web page, www.estudio-ofarrell.com.ar/es/ss_areas/sss_laboral/index.php
- 32.
The proportion of lawyers who graduated from private universities was 30% in 2011, according to official data from the ministry of education. See Table 2.8, Appendix.
- 33.
See Allende y Brea, medio siglo de un estudio jurídico innovador, La nación, September 10, 2007. Accessible at www.lanacion.com.ar/942577-allende-y-brea-medio-siglo-de-un-estudio-juridico-innovador
- 34.
For example, when submitting a new anti-hoarding law to the Congress that was strongly criticized by banks and business chambers, President Cristina Kirchner said, “We do not want entrepreneurs to ruin the Argentinians” (“No queremos que los empresarios nos fundan a los argentinos”). See “Cristina Kirchner respondió a las críticas de las empresas: ‘No queremos que nos fundan a los argentinos,’”, Diario La Nación, August 14, 2014, accessible at www.lanacion.com.ar/1718684-cristina-kirchner-respondio-a-las-criticas-de-las-empresas-no-queremos-que-nos-fundan-a-los-argentinos
- 35.
Jorge Pérez Alati, name partner, Revista Apertura, August 2009, p. 46.
- 36.
The Spanish in original: “si el problema se presenta con las autoridades, si hay que articular algún interés en los organismos estatales, Banco Central, Bancos Oficiales, Ministerios, administraciones provinciales por razones impositivas, autoridades comunales por tasas y gravámenes, de todo eso se encarga el abogado argentino. Este abogado, que figura en el directorio, que tiene amistades, que mantiene sus relaciones de Colegio y Facultad y las utiliza provechosamente, que conoce a los ministros, sabe cómo tratar a los directores de repartición y estimular el interés de un gerente bancario, resulta imprescindible” (De Imaz 1965, p. 146).
- 37.
Analyzing the law firms employed by the largest Argentine companies, an economic magazine reports that Petrobras works with six firms, YPF with nine, Telefónica five, and Cargill three. Only Techint trusts its affairs to a single firm. Magazine Apertura, August 2009, p. 44.
- 38.
Avelino Rolón, managing partner at Baker & McKenzie. Statements published by El Cronista Comercial, May 8, 2012. Accessible at www.cronista.com/legales/Lo-mas-hot-en-jurisprudencia-20120508-0021.html
- 39.
Avelino Rolón, managing partner at Baker & McKenzie. Interview in Auno, No. 9, Vol. 3, March 2013, p. 30. Accessible at www.aunoabogados.com.ar/index.php/revista-auno-abogados/numero-9
- 40.
Alfredo O’ Farrell, managing partner at Marval, O’Farrell y Mairal, interview in Apertura, August 2009, p. 34.
- 41.
Baker and McKenzie is currently the only international firm that has an office with more than 50 professionals. Other firms have small delegations: Cleary Gottlieb opened an office in 2009 with four lawyers, and Lewis and Baach has a delegation with one lawyer.
- 42.
Avelino Rolón, managing partner at Baker & McKenzie. Interview in Auno, No. 9, Vol. 3, March 2013, p. 29. Accessible at www.aunoabogados.com.ar/index.php/revista-auno-abogados/numero-9
- 43.
Local legal elites enthusiastically adopted the model of the big US law firms as part of a strategy to attract large corporate clients in various Latin American countries. See Ashton (2002) on Chile ; Dezalay and Garth (2006) on Mexico, Bergoglio (2010a) on Argentina and Engelmann (2011) on Brazil .
- 44.
Auno, Vol. 1, No.1, April 2011, p. 26–27.
- 45.
The firm is Bruchou, Fernández Madero y Lombardi. See www.bfmyl.com/es/desarrollo-de-la-carrera
- 46.
Parsons had pointed out the ambiguous character of the social position of legal work, which he considered as “an entity that, so to speak, penetrates the limits among private and public responsibilities. Their members work in both functions and the profession has a strong anchorage in both” (Parsons 1967, e.o. 1949, p. 326).
- 47.
Horacio Esteban Beccar Varela, managing partner, Auno, No. 7, p. 31, September 2012.
- 48.
Santiago Carregal, partner at Marval, O’Farrell y Mairal, Auno, No. 1, April 2011, p. 28.
- 49.
Juan Cambiaso, Apertura, August 2009, p. 50.
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Bergoglio, M.I. (2018). Law Firms in Argentina: Challenges and Responses to a Crisis. In: Gómez, M., Pérez-Perdomo, R. (eds) Big Law in Latin America and Spain. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-65403-4_2
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