Risky Business

"Big Law Firm Model Is Broken"

By Matthew Bandyk

Posted: March 9, 2009

Interesting article in the Washington Post today about how the recession is forcing law firms to turn from traditional organizations in office buildings and office parks to virtual, nimble outfits sometimes spread across the world.

This isn't good news for all the people laid off from law firms, but there's some evidence of a shift towards greater efficiency:

Although thousands of lawyers and staff members across the country have been let go during the past six months, Willard and Virtual Law's founder say that since June they have been adding three partners per month. "When you tell people, 'I'm going to drop my rates 25 percent,' it's a pretty easy decision" for them to hire you, Willard said.

These changes are also apparently giving work to job coaches, who consult lawyers on how to adjust their business, and also help unemployed lawyers find work.

An example of creative destruction at work?

as trends goes..

What's more, it only works for lawyers who already have business - i.e., the ones less likely to be laid off from their firms in the the first place. Laid-off in-house lawyers, public service lawyers and even those few remaining old fashioned firm "service lawyers", not to mention most junior associates, will not be able to survive under this system.

The problem isn't the inefficiency of law firms. The problem is that the American economy has mispriced everything at all strata due to the effects of easy money.

putra of IN @ Jun 29, 2009 05:25:34 AM

Rimon Law Group

I think virtual law firms are a huge benefit to small businesses and entrepreneurs who couldn't afford the outrageous rates of the traditional law firms. This is especially so since virtual law firms like Rimon Law Group (www.rimonlaw.com) and Virtual Law Partners also ensure that only partner-level attorneys with many years of experience from top law firms do the work - instead of first-year associates directly out of law school that are often made to cut their teeth on small company work.

Erik Cohen of CA @ Mar 12, 2009 17:03:19 PM

Virtual Law [partners]

Companies/individuals need to be careful about engaging virtual law firms. "Protections" / remedies for professional malpractice offered clients by state bar regulators may be be difficult to obtain if client's can't prove which state's bar regulations / statutes apply. For a grim view of the bone yard see:http://www.evilesq.com

Evil Esquire of CA @ Mar 10, 2009 20:39:21 PM

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Risky Business

Risky Business

Matt Bandyk, a reporter for U.S. News, explores capitalism from where it all begins, with the entrepreneur, whose risk taking and experimentation provide the roots from which the rest of the economy grows. As much courage as it takes to create one's own business, even the entrepreneur needs some help, and this blog will look at news, trends, and practical advice for starting and running a small business.

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