Legally Speaking – Legal Recruiter Blog

Shannon Green

Corporate Counsel

05-17-2013

The U.S. legal system is the world’s most costly, according to a study released this week [PDF] by the U.S. Chamber Institute for Legal Reform (ILR). The study, conducted by NERA Economic Consulting, showed that the American system costs about one and half times more than the Eurozone average.

The NERA study compared liability costs as a percentage of a country’s gross domestic product. The 13 countries included in the study have similar levels of regulation and legal protection, leading analysts to conclude that higher costs could be attributed to more frequent and/or costly claims.

The U.S. costs were about 1.7 percent of GDP. Countries on the low end of the range—the Netherlands, Belgium, and Portugal—had costs around 0.4 percent. Legal liability costs in the U.S. were found to be about 50 percent more than costs in the U.K.

ILR president Lisa Rickard says excessive litigation is putting U.S. companies at a competitive disadvantage globally. Lawsuits create high costs for businesses, she says, and they affect consumers, employees, and the overall economy.

“The worse a litigation system becomes in a country,” says Rickard, “the more companies think twice about whether or not to do business there, to locate there, to expand there.”

A Reuters article Thursday cited antitrust plaintiffs lawyers Douglas Richards and Michael Eisenkraft, who counter the ILR survey’s conclusions. The lawyers central argument is that many of the pro-business procedures, “made on an ad hoc basis rather than through a formal rule process, have compounded ‘the problems of cost and delay that they often were ostensibly intended to solve.’ ”

ILR also released the results of a survey of 800 registered U.S. voters’ views on class action lawsuits [PDF]. Sixty-nine percent of respondents said they thought there had been an increase in abuse of the legal system over the last decade.

The U.S. Chamber of Commerce represents businesses of all sizes, and problems with the legal system are worrisome for all members, according to Rickard. “It doesn’t matter if you’re the largest company in the world or a one-person solo proprietor,” she says. “There is an equal level of concern about this country’s lawsuit abuse.”

Smaller business may be just one lawsuit away from shutting down, she says. But larger, deep-pocketed companies are usually the targets of plaintiffs lawyers. “Entrepreneurial trial lawyers target them, particularly in class action litigation,” she says, “because they know at the end of the day the company will end up settling because it’s just not worth the time, expense, and impact on shareholder value to litigate those cases.”

ILR promotes reform to the civil justice system. Rickard says there have been some recent improvements to the litigation system in the U.S., including the Class Action Fairness Act of 2005, which expanded federal jurisdiction over many large class action lawsuits. But if the litigation system is to become competitive with other industrialized nations from a cost perspective, she says that more reforms are needed.

The voter poll on class action suits raised similar concerns in the civil justice system. Eighty-nine percent of voters surveyed found it at least somewhat problematic that lawyers, not plaintiffs, receive most of the money paid out in class action lawsuits. Sixty-one percent found the practice to be a significant problem.

Of the respondents who had joined a class action lawsuit in the past, only 14 percent reported having received anything of value as a result.

Plaintiffs lawyers argue that civil lawsuits, particularly class action suits, are necessary to ensure products sold are safe for consumers. Sixty percent of respondents acknowledged that lawsuits offer at least some benefit in that respect, but just 19 percent said the benefit was significant.

“Far from helping consumers, the U.S. litigation experience really does show that consumers are not better off in terms of their pursuit of justice,” says Rickard, “and that the system really benefits the lawyers that control it more than it does the consumers.”

Please weigh in with your comments.

It’s the eternal question. Should I do what I love, money be darned, or should I go for the big bucks, idealism be darned? Just how much should money factor into your career decision? It’s a big question, one that you can’t be expected to have a ready answer for right out of school. And it’s an ever-evolving question, the answer to which will likely change throughout different stages of your life. The answer isn’t easy, but, as always, there are both practical and personal things to consider.

Choose Your Field

Different fields have different compensation standards; research average salaries for careers in your field. Typically, for example, someone in a technical or engineering field can realistically expect to make more than someone in an arts or service field. But also keep in mind that where you start doesn’t necessarily determine where you’ll finish. Your field doesn’t have to limit you. There’s creativity to be found in utilizing your individual skills to create your own unique niche. The maxim “Do what you love and the money will follow” is often true.

Leverage Your Skills

You can also leverage your skill set and passions in different ways. If you’re an English major, a future in teaching or publishing isn’t set in stone; you could use your writing skills in the communications or public relations department of a big company. If art is your passion, consider a commercially viable creative path such as graphic design. Every industry you can think of needs a whole team of people with different skill sets behind it.

Intangibles vs. Tangibles

No matter what, there are two tangible aspects of your life to which your work is undeniably tied: money and time. What you do does determine how much you earn, and how much you earn reasonably affects other aspects of your life, like how much time it will take to pay off student loans, how much you can save, how much you can afford to spend on essentials like rent and groceries, and how much you have left over for luxuries and fun. Living on less isn’t impossible, but will involve some budgeting and prioritizing. You might have to look into free or cheap fun things to do and (gasp!) learn how to cook. In terms of time, different fields require different time commitments from their employees. An investment banker far out-earns an editorial assistant, but makes up for that money working double the hours. Are you willing to put in all the hours required in a demanding position, or would you rather spend fewer hours at work and have more free time to yourself? There’s a reason they say “time is money.” If anything, time is more important than money. No one lies on their deathbed wishing they had more money, but everyone wishes they had more time.

On the other hand, there is a huge intangible aspect of your work, the importance of which is equal to or greater than that of the tangible aspects: job satisfaction. Do you find fulfillment in your work? Do you wake up every morning dreading the day to come, or do you wake up in the morning in anticipation of it? Do the hours at the office drag or do they fly by? Hours spent at the office don’t seem like a burden if you enjoy every second.

Read the rest…

Sara Randazzo

The Am Law Daily
The legal sector added 2,000 jobs in March, according to preliminary data released Friday from the U.S. Department of Labor, the highest single-month gain in nearly a year, and the first addition of jobs in the industry since 2013 began.

Initial reports from the department’s Bureau of Labor Statistics reported a 200-job boost in the legal services industry in February based on seasonally adjusted figures, but revised data now shows that 700 jobs were lost that month. An additional 2,400 jobs were lost in January, though all data from 2013 is still considered preliminary.

The number employed in the industry as of March—1,126,900—is 9,000 higher than in March of last year. The figures have yet to rebound from their prerecession peak of 1.18 million.

Overall, the nation added an underwhelming 88,000 nonfarm payroll jobs, The New York Times reports, half of what economists expected. The unemployment rate remained nearly unchanged at 7.6 percent.

Last month, frequent Am Law Daily contributor Matt Leichter concluded that the legal sector has not benefited from what he calls the greater economy’s upward slog. Read Leichter’s full analysis here.

Let’s be honest – many firms aren’t exactly silver-tongued at articulating what sets them apart from their competitors. They don’t always adequately impart the distinguishing characteristics that would “seal the deal” for lateral partner candidates. I think the primary reason for this is the firms want their plug to be optimistic and appetizing, and the most harmless way to do that is to use nonspecific statements or observations. For example, depending on the partner candidate, they may or may not be acquiescent to variable partner compensation. Some firms may think they are more attractive when they avoid the “nuts and bolts” specifics that may sour candidates who may be interested in the firm.

So…what’s a lateral to do?  Well, in today’s legal market, I believe it’s a good idea to go back to the basics.  It’s easy to get caught up in the complexities of the firm, but if the basics aren’t addressed, the more complex issues won’t be, either.

The first priority is to determine the pros and cons of your current situation. Second, determine what you’d like to see in your next opportunity. Once your list is complete, it will be the ruler you will use to measure each new situation you investigate. It is important that you take the lead by showing the firm how to characterize and promote itself. In order for you to determine if the opportunity is the right one for you, you MUST ask the meaty questions that will provide you the right information to ascertain if the firm: 1) is financially sound and has a well-defined outline of who it is and where it is going, 2) shares your view of how law should be practiced and 3) provides you both a financially beneficial situation and the atmosphere and opportunity to further grow your practice.

The following questions are to ask that will help you track the process and will either assist you in understanding the dynamics of the partnership or, at a minimum, will aide you in narrowing the field of firms. Some issues will be deal-breakers, others will allow for negotiation and compromise.

What business focus are you targeting? The uncertainty in today’s economy makes this a mandatory question to ask. Is the firm attempting to think ahead of the market in an attempt to anticipate the practice areas that will be most in demand in the future? How much does the firm rely on any particular practice areas? If the market for any of these legal services dwindles, what other practices will pick up the slack?

What are the firm’s plans for future growth and expansion? Any plans for new and existing satellite offices? What is the time-frame? We know expansion through mergers and acquisitions has become critical in the last several years. However, as we struggle through a recessionary economy, I think we’ll see increased attention placed on those law firms that have been conservative in opening new offices. After all, the geographic decisions a firm makes say something about the firm. This may or may not work for your practice.

How much debt does the firm have? Capital investment and ongoing debt obligations of partnership are critical issues in joining a firm as an equity partner. The prospective firm should be forthcoming about its debt and use of lines of credit. In today’s legal arena, profit per partner figures, on which we’ve relied heavily in the past, will not be as reliable as forecasts of future success. The key will be how the firm manages its business on behalf of capital partners.

What is your partnership structure? Today’s predominant structure is a two-tiered partnership. With the meaning of “partner” has changed considerably over the last decade, becoming an equity partner has, in some ways, become more difficult. Two-tiered partnerships may offer a firm more flexibility to promote lawyers without having to divide the profits. It usually also raises the entry bar to the equity level. Be sure to ask why the firm has chosen its partnership structure and if the firm has de-equitized partners in the past, and under what circumstances this occurred.

What is the firm’s compensation model? We are all acquainted with eat-what-you-kill, merit-based and lockstep partnership systems. Though we know that one is not elementally preferable to another, a firm chooses its compensation model for a reason. It speaks volumes about the firm’s culture and its business practice. I’m certain some will be more desirable to you than others. You will also want to ask who decides the compensation and if partner compensation figures are open or closed. Third, you will most definitely want to ask if aspects that are important to you (i.e. referring work and cross-selling) are rewarded in the firm’s compensation model.

How would my compensation be affected by a down year in my book of business? If your business is one that fluctuates with the ebb and flow of the economy, it is important to ascertain how a more modest year of collections will be viewed by a new firm.

Does the firm have a mandatory retirement age? Just like partnership models, the mandatory retirement age issue has been one in transition at many firms.  

Once on board, what programs does the firm have in place to facilitate my integration and aid in future success? You have a plan for growing your practice, but it is critical to know how the prospective firm plans to support you in this endeavor. The uncertainty of the direction of the industry makes this a mandatory question to ask.

Looking for more helpful information? Need expert career counseling? Visit www.grimeslegal.com or call 800-875-3820.

What’s the on your practice?

1. Have I made measurable, positive strides toward attaining the goal which I established as my objective for this year?
2. Have I been persistent in following my plans through to completion?
3. Have I delivered service of the best possible quality I was capable, or could I have improved any part of this service?
4. Have I effectively budgeted my time to allow for business development?  My expenses?
5. Can I use my marketing budget more efficiently and more effectively during the remaining months of the year?

1. My law firm and I are compatible. We share the same values and philosophy.
2. I have/my law firm has the support staff and technology necessary to keep productivity cost-effective.
3. My/my law firm’s law practice areas are diversified enough to avoid financial risk.
4. My/my law firm’s client base is diversified enough to avoid financial risk.
5. My legal work is always done on time and the invoices go out on schedule.
6. There are at least good 3 reasons why clients should choose my/our law firm over our competition.
7. The atmosphere at my law office/law firm is positive and healthy and there are no petty politics or personality problems to deal with at my office.
8. I have the right people in my support staff.   They are well-trained and there is nothing they need to learn and no skills they need to develop in order to do a better job.

 

We all know today’s legal market continues to evolve and it certainly presents unique challenges. With the uncertainly still looming over the financial markets, many law firms continue to streamline their ranks and trim compensation for partners whose business has fallen off. It is not uncommon to push partners into early retirement or into counsel positions for those who are no longer producing at an acceptable partner level.

So…in light of these not so attractive elements, how do you stay nimble and place yourself in a position to exact the most benefit from the current market situation? How do you maintain a vital position and keep your firm enamored with you?

Answer: Do some soul-searching and ask yourself these thought-provoking questions. If you answer them honestly, they will help you determine if you should stay the course with your current firm or start to look for new digs.

1. Are you satisfied with your firm’s reputation in the legal and business communities?
2. Is your firm well managed?
3. Are you optimistic when it comes to the financial health of your firm? Do you believe management is making the right decisions regarding the firm’s future?
4. Does your firm provide the platform you require for building your practice? Does your practice coincide with the strategic vision of the firm?
5. Is the firm committed to marketing? Does the firm provide you with the resources you need to successfully market your practice?
6. Are firm billing rates compatible with your specialty and your clients and has your firm adopted a flexible billing program?
7. Do you have the opportunity to participate in important departmental or practice decisions? If you desire a leadership role in the firm, is that a real possibility?
8. Do you feel you are compensated fairly when compared with your peers at your current firm and with those at similar firms?
9. Is your firm a good cultural fit? Do your peers share your views of work/life balance and superior client service and reputable character?
10. Does the firm’s physical surroundings provide an atmosphere where you can be productive?
11. Do you feel respected and valued by your peers? Do you respect and value your colleagues’ legal work? Are you comfortable referring your clients’ matters to them?
12. Do you receive adequate support from other partners, associates, paralegals and support staff in order to get work done in a timely fashion?
13. Is the firm committed to pro bono work and community service in a way that coincides with your values and beliefs?
14. Does the firm have a fair policy for recognizing cross-marketing and service to yours and others clients? Is there equality regarding how much work you receive from others as opposed to how much work to you throw off to others?

Article as seen on Law.com – By Gina Passarella of The Legal Intelligencer – March 14th, 2013

As the final pieces of the America Invents Act are about to go into effect March 16, intellectual property lawyers are scrambling to get thousands of last-minute patent filings in before the old rules expire Friday.

And with firms inundated by clients’ interest in updating their patent filings before the country moves from a first-to-invent to a first-to-file patent system Saturday, those lawyers expressed concern that the servers at the U.S. Patent and Trademark Office may not be able to handle the surge in online filings.

Attorney Kenneth N. Nigon of intellectual property boutique RatnerPrestia in Valley Forge, Pa., said his firm has been asking clients to file in advance of March 15. He said a number of clients were looking to file last week and this week. The firm — which Nigon pointed out is just one of hundreds of patent firms across the country — has more than 120 applications currently waiting to be filed before Saturday.

“Because of that we also are kind of wary and think the patent office electronic filing system may not be able to handle it,” Nigon said. “We’ve also prepared our in-house staff to do paper filings if need be.”

Aside from the Saturday date for implementation of the new patent system, Nigon said he would expect another round of increased filings in advance of March 19, when filing fees are set to increase.

Cozen O’Connor intellectual property attorney Kyle Vos Strache said in a typical week he may personally file a handful of applications. This week, Vos Strache said, he anticipates filing dozens.

“I imagine the patent office is going to be incredibly busy come Thursday and Friday,” Vos Strache said. “We’ve really been pushing clients to get us responses to our drafts in the last two or so weeks and not this week. It’s hard to say whether the servers at the patent offices will be able to handle it.”

Vos Strache said he is trying to be proactive and avoid filing anything Friday. He said there is “truly that potential for something to go wrong” in this situation. To avoid that as best as it can, Cozen O’Connor has approved its attorneys and staff to work late all this week to get everything done, he said.

Buchanan Ingersoll & Rooney‘s intellectual property group co-chairman, Michael L. Dever, said there will most likely be a “huge spike” in application filings Friday. That is something the USPTO had been preparing for, he said.

The USPTO is not expecting a problem this week. The office said it “has deployed sufficient server capacity to support any potential surge.”

Read the rest…

Originally seen:  Law.com – March 8th, 2013 – By: Tom Huddleston, Jr.

Legal hiring rebounded slightly last month after suffering a major drop-off in January, with the industry adding 200 jobs, according to seasonally adjusted preliminary employment data released Friday by the U.S. Bureau of Labor Statistics.

The initial estimate of February’s modest gains comes a month after the BLS reported that the legal industry had shed 2,400 positions in January.  The positive news contained in Friday’s report was, however, offset by a revision to the preliminary January figures that pushed that month’s estimated job losses up to 3,500. (Friday’s report showed the agency’s December estimate holding steady at 1,900 jobs gained for the month.)

Factoring in Friday’s hiring estimates, the legal sector now employs 5,000 more people than it did at this point last year and roughly 1.125 million people overall—about 50,000 fewer than it did at its prerecession peak in 2007.

Overall, the U.S. economy added a better-than-expected 236,000 jobs in February, according to The New York Times. The uptick dropped the unemployment rate to 7.7 percent, the lowest it’s been since December 2008.

Fenita Moore, Partner
Dilworth Paxson LLP

Corporate attorney Fenita Moore was recently accepted into partnership with Dilworth Paxson in Philadelphia. GLI placed Ms. Moore in 2006 as an associate. Ms. Moore now concentrates her practice in a wide variety of business, finance and corporate matters, including mergers and acquisitions, commercial loan transactions, private equity offerings, entity formation and corporate governance issues. She also represents service providers, manufacturers, financial institutions and non-profit corporations.

Ms. Moore also has intensive experience in negotiating, reviewing and drafting complex transactional and commercial documents such as purchase agreements, loan agreements, confidentiality agreements and master service agreements. She regularly represents closely-held and other private companies and individuals in negotiated purchases and divestitures, commercial lending and general corporate governance matters. Ms. Moore advises start-up companies in connection with formation and organizational issues, negotiation of shareholder agreements, limited liability company (LLC) and partnership agreements, financings and employment arrangements, and she acts as primary counsel for a nationally-recognized museum in a wide variety of corporate matters.

GLI is an international recruiting firm that has assisted attorneys in realizing their ideal situations for almost 30 years. We at Grimes Legal pride ourselves in assisting attorneys in strategically mapping their careers throughout the various stages of practice; from associate, to partner, to department head, to managing partner. We invest in you and your future, and help to make it more attainable. GLI achieves this by, first, working to understand the business needs of our clients, whether they are an attorney or organization. This requires thorough research into nuances of the industries in which our clients flourish, learning the philosophies of management which guide our clients’ business and professional strategies and focusing objectively on their individual cultures.

A call to GLI does not require financial investment, only the investment of your time, an open mind and great anticipation for the future. Our recruiters know the ins-and-outs of the market and can give you honest evaluations of the tides and, if you choose, your career. We look forward to speaking with you and assisting you in any possible way.

As discussed last week, navigating the current legal market and making decisions about the future of your career can seem rather daunting. Here’s a step-by-step guide on how to decide which changes to make and how you should make them.

1.  Evaluate the Market

Before you performed any science experiment in school, you had to gather background information.  Why wouldn’t we take the same approach to changes in our career?  Consider the attorneys who have recently been “let go” at your firm, those who have moved from one firm to another within your practice area and large advancements or downfalls in the practice you are interested in.  Factors similar to these aid you in developing a clear picture of the market as it relates to your career and ensuring you aren’t stepping into the path of a landslide.  Utilizing publications such as American Lawyer Daily and, more specifically, The Churn is key to keeping abreast of the current legal market.

Another website I suggest you take advantage of is HG.org.  HG.org has a truly helpful section of their website where you can research an area of law and locate a list of related organizations and articles where you might discover unique offshoots for your practice.  The site also shows the differences and similarities in the area when practicing in the United States versus internationally.

2.  Use Your Resources

In this day in time it’s no longer all about WHAT you know, it’s more about WHO you know.  That’s right, I’m talking about networking.  Networking is not a merely a way of getting a new job, it is also a great way to gather information.  Unless you work at a boutique firm, your firm probably has lawyers who do the kind of work you are considering.  What would it hurt to ask them about their work?  If you do not have access to such attorneys in your office or firm, it would be beneficial to consult friends and colleagues who do have access to get answers to your questions.  Or, take time to network at local political and social functions which are frequented by area attorneys and familiarize yourself with those who practice in your area of interest.  Spearhead a fundraiser for the cause and invite those attorneys to assist you, then ask questions during your meetings.  With this approach, you may also acquire an ally at that law firm should you ever decide to leave your current firm.

You should also consider calling your other legal contacts who are not necessarily attorneys.  Any legal recruiter who knows the ropes would be able to give you with an idea of what you are getting yourself into with this change as well as provide unique insight from attorneys with whom they have worked, including the good and the bad aspects of the practice area.  Your seasoned law school professors can also give you information from personal experience, study or contacts about the area of law you are considering.

3.  Gather Clientele

Let’s start with the easiest way to gather clients, shall we?  You already have clients in your primary practice area and they obviously like your work or they wouldn’t be your client.  Contact your existing clients to let them know to better serve their needs, you have expanded your practice to include “XYZ” work and would be honored to assist them in any matters related to both areas of law.

For bringing in new matters, I would suggest speaking with other attorneys in the practice area to let them know you have expanded your practice and would be glad to assist them.  It would also be a good idea to speak with the chair of the practice (if there is one) and let him/her know that you are interested in helping with any new matters that come available.

Another great way to gather clients is through social media.  Not only will advertising your new skill on social media networks attract new clients, it will also show others (and possibly potential employers) that you see the benefits of expanding and investing in personal growth, which is never a bad trait to market.  You should also continue to implement any previous paths you were using to bring in clients.

A Different Direction

Truthfully, another change you may want to make in your career is a change in scenery.  You may feel a sense of loyalty to your current firm, but you must ask yourself, “Is this firm giving me the support and platform I need?  Am I getting looked over by potential clients because my law firm is not well-known for the work I do?  Will I ever get to the level of seniority I desire at this law firm?”

These are all very good questions to which you owe yourself answers.  However, like the old saying goes, sometimes it is impossible to see the forest for the trees.  If you would like to find out which law firms are best known for in your particular practice area, you may consider visiting Vault.com under the “Rankings” tab or the Chambers and Partners website.  I would also advise you call my office if you desire information about law firms that only someone who has worked with them for 20+ years could provide you.  Please feel free to use any or all of these tips you find to be appropriate to your situation.  Should you determine my services would be helpful to you, whether it is for gathering information or otherwise, I would appreciate a conversation with you.