Special focus : Latin America
Republic law firm Headrick Rizik Álvarez & Fernández , highlights restructuring , insolvency , regulatory changes , competition and consumer protection law , as well as environmental law as significant sources of work . Other participants noted that “ a bigger regulatory burden in the Dominican Republic is increasing the need for regulatory [ legal ] counsel .”
One of the key challenges for law firms in the Dominican Republic , according to study respondents , is the growing competition for talent , which is a trend that is increasing costs for firms . In addition , there is significant pressure on rates due to more aggressive drives on the part of law firms to capture clients .
Fernández adds that , in order to adapt to the new environment , law firms face the pressures of having to keep the ‘ millennial ’ generation of lawyers motivated as well as providing cost-effective services to clients .
Corruption scandals Guatemala and Nicaragua are fairly similar in terms of the opportunities they offer for law firms , according to study participants . Both markets present challenges for investors , for example there are some concerns that the flow of direct investment towards Guatemala could be affected in the wake of the ongoing corruption scandals in that country . However , this environment is generating work for law firms , with many clients seeking help from lawyers in conducting risk assessments , says Jorge Luis Arenales , a partner at
“
The US remains our most important investor , but interest from the rest of Latin America is growing
”
Ruby Asturias Pacheco Coto
Arias in Guatemala , who highlights tax and employment as significant sources of work for law firms operating in the country .
Vanessa Oquelí , Honduras managing partner at García & Bodán , argues that Central America as whole is becoming an increasingly attractive market for investors . Consequently , law firms are , in general , on a drive to strengthen their presence across the DR-CAFTA region . Indeed , only 13 per cent of survey respondents worked for law firms with operations in only one country , and it was an even smaller proportion ( 7 per cent ) that said they would be focusing solely on their domestic market over the next five years . The vast majority of respondents ( 58 per cent ) said they had plans to open in other DR- CAFTA countries .
Reluctant to grow Responses from the Dominican Republic showed that law firms there are less inclined to open offices in other DR-CAFTA countries than their counterparts in the other five countries . Of the firms from the Dominican Republic , only DMK Lawyers has sought some level of regional integration , having joined Central Law , which has offices across Central America . One managing partner of a law firm in Santo Domingo says that “ after five years we expect to have the ability to explore the integration possibility but it is not our main goal ”. Another lawyer based
43 %
Proportion of lawyers based at law firms in Costa Rica , El Salvador , Guatemala , Honduras , Nicaragua and the Dominican Republic who believed that their firms ’ revenue will grow by at least 7 per cent in the coming year in the country says that “ while there is no concrete plan , regional integration is the natural path to go because of the growth in crossborder transactions where local lawyers take part ”. Headrick Rizik Álvarez & Fernández , meanwhile , is serving other countries in the region via a legal network , or via relationship law firms , and has no formal plans to expand , according to Mary Fernández , who adds : “ We are open to revisiting those plans in two to three years .”
Other firms in the Dominican Republic have adopted similar strategies in an effort to capture international mandates : Pellerano
42 • IBERIAN LAWYER • July / August 2017 www . iberianlawyer . com