Things to know before starting your own law firm
Audrey H. Rubin is president and founder of Rubin Solutions, Ltd., She designs and implements business processes which improve the financial performance and operations of corporate law departments and professional services firms. She talks with Ed about what lawyers need to know before they open their own law firm. In today's world, this is a topic of great interest, especially to those increasing numbers of law school graduates who are starting their own practices right out of school. You can learn more about Audrey at www.rubinsolutions.com.
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Charity program on television
Lance Armstrong, and many other celebrities, will appear on television for a national telethon, Stand Up To Cancer (no commercials). The program is scheduled for September 10 ... Check you local listings.
Graduates vs. Big Law -- The First Lawsuit Starts
I was wondering how long it would take?
Sarah Martinez, a recent law school grad, broke the ice. She has sued Howard, Rice, Nemerovski, Canady, Falk & Rabkin in San Francisco Superior Court for extending her an offer of employment, deferring it and now reneging, saying it didn't have the resources to hire anyone in the near future. Among the counts alleged are racial discrimination, sex discrimination, and breach of contract.
While every case stands on its own facts and merits, it's clear that Big Law will have to alter its offering policies in the future. The impact on law schools and those coming up through the grades is yet to be determined, but I suspect it will dramatically alter the economics of the future practice.
Merger off, lawyers fired, and lawyers hired - Rational?
A major player in the IP field announced that its merger plans with another IP firm have been called off. The assertion is that there were conflicts issues with one major client that could not be resolved and the client would not waive the conflict. While I may be dubious about the veracity of this assertion, sitting on the outside, it does happen.
But, then the firm announces that "... the downturn in patent litigation persists, with fewer cases being filed and more settling earlier.... (C)ases coming in are smaller with tighter budgets and leaner staffing expectations...." And this results in firings/terminations/layoffs (say it anyway you want, the people are gone) of lawyers and staff. In other words, the troubled economy is still having its impact on law firms.
So far, so good. But, then the firm also announces that it sees an increase in patent prosecution, counseling and reexamination work, particularly in the electronics and software practice and the firm will hire first-year associates. Again, from the outside, it looks like the firm is firing experienced lawyers who get paid 3X and will hire first year associates who will get paid 1X. You fill in the numbers. When industry does this, it's called "age discrimination." It may also be called "stupid" because it negatively impacts the morale of the organization ... and you don't build a loyal, cohesive and capable workforce by seeking the least expensive team members. Why couldn't the firm offer the presumably lower paying jobs to the experienced folks? In this economy, they might not like it, but they'd rather stay employed and working with colleagues they know and like and trust. And, the organization will look like a caring place to work, making needed economic changes but also sensitive to the needs of its current work force.
Just seems to me to be a better way to do things. And, at the very least, the PR ineptness of these announcements coming on the heels of one another is just astounding.
Financing contingency cases
In a conversation with a client, we discussed his current predicament. He is strapped for funding in several large contingency matters. He's looking for funding. That struck a cord in me and I write about it today at LawBiz Forum.
There are finance companies, in addition to other resources, that lend money on such cases. That is what my client was seeking. Tell us how you handle your cash flow and financing of large cases. Perhaps you can identify the names of lending companies. I look forward to hearing from you.
Join us at the Forum for further discussion on this and other topics that are challenging and stressing you.
Mentoring Lawyers
I've talked about internships for lawyers. We've discussed articling in Canada. And now I find out that the State of Georgia has a mandatory mentoring program for brand new lawyers. Perhaps we're not so far away from the internship process. On the other hand, since Georgia has been working this path for quite a few years and others have yet to follow, perhaps it's still a pipe dream that even the current recession won't make happen at either the law school or Bar level. It may still take the combination of law firms and client demands to create an effective post-law school education program for learning how to become a lawyer.
What will be the value of your practice?
I met with an attorney today ... he's 61 ... who is terrified that he now is solo and has never had to do anything in his career to attract clients. He was always part of a firm that delivered litigation clients to his doorstep. Now, he doesn't have that ... What can/should he do?
No matter what he does, the ultimate challenge for him will be on retirement, not that far away. Will he have developed any goodwill to be able to add more wealth to his capital for his heirs? The answer is: Maybe, but more likely not. That will be a crime after having been a very good lawyer for his entire career.
What are you doing to enhance the value of your practice? Do you have a succession plan? Does your law practice have an "estate plan?"
