I think the original maxim still applies. I don't think it means you automatically choose a friend or relative over someone you think more competent. I think preferring to work with people you know, like, and trust always has been and always will be true. The maxim isn't meant to be taken in isolation, but more in a all other things being equal sort of way.
I don't currently have a lawyer that handles all my legal needs. If I need one I would first get in touch with people I know who are lawyers to see if they can help me. I know David here and I have some cousins who are lawyers. I wouldn't automatically hire any just because I know them, but I would certainly start my search for a lawyer with them. Say though that I didn't like or trust one of my lawyer cousins. I would exclude that person from search.
Also none of my cousins or David lives and works in Colorado so if my legal issues were specific to the state of Colorado I would think they might not be best to help me. I'd probably still contact one of them to ask questions about how to hire a lawyer here, what questions to ask, etc.
There are also many, many cases of people who continue to work with family and friends even though they know there are others who can do a better job.
In the end though I think all the maxim is really saying is most people will sooner contact someone they know to some degree before calling a complete stranger, unless of course they don't like or trust the person they know.
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