Linklaters has terminated an 11-year-old co-operation deal with local law firm Lefosse Advogados, following moves by local bar authorities to toughen their stance on practice rights for overseas firms.

No exclusivity

According to report on the AmLaw Daily web site, the Londoners actually cut their Brazil ties at the end of October, but the partnership only confirmed the move within the last few days. Speaking to the web site, Linklaters partner Alberto Luzarraga – who went from New York to head the firm’s Sao Paulo office only last August – said Linklaters would continue to work with its ex-partner, but not on an exclusive basis. ‘We can’t be exclusive,’ he said.
At the core of the issue is an October decision by the local bar -- the Ordem dos Advogados do Brasil – to enforce a 12-year-old law requiring lawyers at international firms in the country to register as consultants on foreign law only, prohibiting them from offering local legal advice.

Yanks bailing

The Linklaters move follows a similar decision by US firm Squire Sanders last year, when it terminated an arrangement with local practice Derrak Advogados. AmLaw Daily says the Americans are now set to close their Rio de Janeiro office within the next few days.
The web site points out that fellow US firms Baker & McKenzie and Mayer Brown, and Anglo-US practice DLA Piper continue to run associations in Brazil.