Knowing me, knowing law

Strong business and personal links are needed if partnerships with Swedish and danish law firms are to succeed, reports Nicola Laver

The recent announcement that City firm DLA has bagged Scandinavian lawyers Lindh Stabell Horten for its European alliance D&P cuts against a grain of impenetrability in the Scandinavian legal market.City firm CMS Cameron McKenna lost its CMS group members Tissel & Co and Schlutter & Hald to mergers in Denmark and Sweden in the past couple of years, and Watson Farley Williams closed its Copenhagen office last year.Meanwhile, Linklaters is still waiting to see if its Swedish Alliance member Lagerlof & Leman will vote to merge.Getting into Scandinavia clearly presents some problems, but what are they?Per Troen, a partner at Bristol-based firm Osborne Clarke, which has a Danish member of its European alliance, says the trouble with the Scandinavians is that their English is just too good - perfect, in fact.Mr Troen says: 'It is difficult to get into a country where you don't speak the language, and they all speak perfect English.'Although it seems it should be easier to do business, there is a kind of second-tier of contact within the Scandinavian-speaking community, and unless you are bilingual, you will miss out.' He adds: 'The large [UK] firms do not focus on Nordic regions because they are not perceived as being as important as France or Germany.'With very few firms gaining a foothold in Scandinavia, how did Osborne Clarke - hardly a magic circle giant, but nevertheless fast-expanding - break the mould?The secret seems to be tradition.

The firm has acted for Danish clients for more than 100 years, and Mr Troen says Denmark is 'part of Osborne Clarke's furniture'.

These strong historical links have been crucial to the relationship that has been forged but, without these links, the partnership might never have happened.Anders Hansen agrees.

Mr Hansen is senior partner at the firm's Danish alliance member, currently called Petersen & Jantzen.

It will become Osborne Clarke in July when Danish regulations finally permit the name change.He says: 'We met Osborne Clarke about 15 months ago.

We have always been working with a lot of UK firms, particularly magic circle firms, but what was interesting about Osborne Clarke is that they had been working with Danish firms for over 100 years, and have that understanding, interest and experience that is important.''Magic circle firms wouldn't have that experience.

There are also cultural difficulties that would make it difficult to get those firms to take such an interest in us.'He adds: 'There had to be a good understanding of the Danish market, and they had actually acted for some Danish clients that we hadn't.'He says that, although compared to the largest City practices the firm is relatively small, it is large by European standards.Mr Troen, who is dually qualified in Denmark and England, and has just been knighted in Denmark for his services in promoting Danish business overseas, was the first registered foreign lawyer in the UK.

He says: 'We can cross-sell clients to each other and it enhances our ability to get the best lawyers on the market.'He contends: 'If you want to be part of a truly European practice, you must have local firms.'Reciprocal training sessions take place on a regular basis and everyone meets, from the coffee makers to the partners.

This week, the Danish office will close for a day and the staff will come to London for a weekend of meetings and training, which will culminate in a tour of London.Lindh Stabell Horten shares the big European firm strategy, hence its decision to join D&P.

Partner Christian Mevatne says: 'As we are in a European scene and becoming more international, we think that the D&P partnership will give us the European network and connections to develop our international business.'He has his own ideas on why Scandinavia is a difficult market to enter.

He says: 'Firstly, UK lawyers are trained in a different tradition.

For example, the continental legal system is not a common law system, but a code law system.

Second, we are an established small jurisdiction with a well-qualified profession, and with lawyers with a very good command of English.'Third, the serious big City firms in London have not found the Scandinavian countries interesting enough, so they haven't put any effort into conquering the market.

We think, however, that this is just a matter of time.'Mr Mevatne thinks a global outlook comes naturally to Scandinavians: 'As a small country, we have a stronger exposure than other countries, with higher levels of exports and imports, and a higher percentage of foreign ownership than most other European countries.'The Scandinavians take people a lot more at face value, according to Georgina Squire, a partner at London firm Rosling King, which has an associated office in Stockholm and 'a lot of Scandinavian clients'.She says: 'It is a small legal world over there because the business community is small and, of course - whilst a large country - the population is small by comparison with Britain.'But Ms Squire does not put problems with forging links in Scandinavia down to lack of interest from the City.

She says: 'It is difficult to get into Scandinavia because Scandinavians are naturally suspicious of the unknown.

It takes a lot more to build up their trust.

But that's why, once you're in, you can build up the relationship and work on it.'Rosling King has built up a good network, particularly in Scandinavian financial markets and insurance work.

Ms Squire says of the firm's associated firm in Stockholm, Fdermark & Nordia: 'We refer clients to one another, which is very handy, because if one of our clients needs work doing over there, as we know them and the work they do, we can, in turn, recommend them.' She says her firm often needs advice on points of Swedish law, which then leads to recommendations.The relationship began some 10 years ago, and the firm's work includes lectures to legal associations and contacts with law professors and other law firms.Soren Tattam, head of the corporate and commercial department at Manchester firm Pannone & Partners, points to a tough regulatory regime that has traditionally inhibited outside firms getting into Scandinavia.He says: 'Historically, it was difficult to get the necessary permissions and registrations to carry on business unless partners were also Swedish lawyers.

Since Sweden and Denmark joined the EU it has been possible for English lawyers to work in Scandinavia, but few speak the languages, which are also more difficult to learn than, say, German and French.'He adds that cross-border mergers of lawyers are still not permitted in Scandinavia by local Bar rules.Despite the Scandinavians' excellent English, Mr Tattam says: 'Having been brought up in Scandinavia, I have a close understanding of their cultural make-up, the way people think and their approach to business.

There are often nuances in our language, particularly when dealing with legal issues, which I am able to explain in their own language.'Troels Askerud, a partner at Eversheds' Copenhagen office, says: 'Some firms are not happy Eversheds has entered the market because it is a mature market.' He says the legal market is divided between a few players, and bringing in outside firms threatens this, and upsets some people.Eversheds opened in Copenhagen three years ago with three lawyers, and has expanded to five partners and 14 legal staff.

Mr Askerud says: 'The core of our ability comes from Danish lawyers but we have some flavour of the London market.

Documentation needs to be oriented towards international standards.' He says this modern approach, presented through a traditional Danish firm, is paying off with clients.Mr Tattam says Scandinavians have a strong dislike of long contracts and 'admire the level of sophistication in English law and the way English lawyers draft contracts'.

This reflects the fact that much of the content of a typical English contract is codified in Scandinavian countries' law, and need not be written out, he says.So even if Scandinavia's languages, rules and attitudes can make life difficult, then it seems the region's lawyers approach commercial law from a similar outlook to the UK.Some of their eccentricities could also attract more firms.

As Mr Tattam says: 'They do not take well to meetings lasting beyond 4.30 to 5pm.' Just one good reason, perhaps, for burnt-out City lawyers to get their firms to go down the Scandinavian way.Nicola Laver is a freelance journalist