The Rise of Multidisciplinary Practices in Europe and the Future of the Global Legal Profession Following Arthur Andersen v. Netherlands Bar Ass’n

Abstract

Multidisciplinary Practice (MDP) has suitably been referred to as the most important issue facing the modern legal profession. MDP, however, is not an entirely new concept—the idea of having a “Wal Mart” type of professional services firm, providing many different kinds of professional services under one roof (theoretically at a lower cost), has been contemplated in most countries. However, bar associations around the world continue to oppose the formation of MDPs, fearing that combining lawyers in an association with nonlawyers will compromise the ethical duties owed to the client in favor of the MDP’s bottom line.
In Europe, member state bar associations remain divided. Some bar associations allow MDPs in their “fully integrated” form, while others have outright prohibited their formation. In the Netherlands, where the national bar has prohibited attorneys from practicing with accountants, the most significant debate on MDPs has recently emerged, as Arthur Andersen and PriceWaterhouse Coopers have asserted that the regulation violates European Union law and have appealed the Dutch prohibition on MDPs all the way to the European Court of Justice. The decision in the case will have far-reaching effects on the global legal profession, as it will likely influence the position that national bar associations take toward MDPs and, consequently, the way legal services around the world will be provided in the twenty-first century.