PLP Pulse: News from the Frontiers of the Legal Profession

Globalization

Global Companies Prefer English Law and Lawyers to American for International Legal Work

Corporate Counsel

A survey regarding global companies’ demand for international legal advice found that just over half of the companies use English law for international work, while a third use U.S. law. When asked who would they consider for multijurisdictional deals and litigation involving three or more countries, 70% named British firms while only 30% named U.S. firms. Several factors seem to have contributed to such results: a perception of American litigiousness, the expensive rates of U.S. law firms, British firms’ marketing savvy and the geographic proximity of U.K. firms to key international markets.

The survey was conducted by Acritas, a British strategic research firm.

Should the ABA accredit overseas law schools?

Law.com

An ABA committee has recommended that the American Bar Association should consider expanding its accreditation power to overseas law schools that follow the U.S. law school educational model. Between 4,000-5,000 foreign-trained law graduates take bar examinations in America each year, and state supreme courts and state bar associations face increasing admissions pressures and demands as the legal profession becomes more globalized. The ABA argues that it could help reduce disparate state practices and the burdens on state admissions processes through a uniform accreditation approach, but the ABA also acknowledges that such a move could expand practice opportunities for foreign-trained attorneys with no reciprocal benefit for graduates of U.S. law schools.

Asia’s Rising Arbitration Cases Go to Singapore

The Lawyer

Equidistant from China and India, Singapore is emerging as a new hub of Asia-related arbitration. Disputes are increasingly gravitating towards Singapore as a result of a major policy effort to make it Asia’s principal arbitral location: the government is offering tax incentives and adapting legislation; a new state-of-the-art international dispute ¬resolution complex opened and the Singapore International Arbitration Centre has a truly international membership.

Innovation and New Models

Harvard Professor David Wilkins Addresses the ABA Regarding Large-Scale Legal Profession Trends

Abajournal.com

Harvard Law Professor David Wilkins, Faculty Director of the HLS Program on the Legal Profession, recently addressed the ABA House of Delegates regarding major trends impacting the legal profession across the globe. Wilkins noted that the recession is accelerating many large-scale trends that will have “a profound impact on all lawyers’ practices and how we regulate, compensate and train lawyers.”

Outsourcing: The New and Improved Business Model Big Law Needs?

AmLaw Daily

Northwestern Law Professor Steven Harper argues that outsourcing is “hardly a new idea” and may actually improve “the long-run psychological well-being of the [legal] profession” by enabling younger lawyers to concentrate on more substantive tasks while affording senior attorneys greater opportunities to mentor newer associates. Moreover, outsourcing may increase the ability of small and medium sized firms to compete with the “megafirms.”

Law Firms and Practice Management Firms Likely to Cut More Equity Partners while Outsourcing More Work

ABAJournal.com

With flat revenues at most firms for the first six months of 2010, a new survey of nearly 200 law firms suggests that firing equity partners has been “a focal point” for firms this year and it “will continue to be a priority throughout 2010.” Firms are also more likely to send work to offshore legal service providers and virtual law firms.

Former Associate Sues Nixon Peabody for Failing to Pay a $266,000 Origination Bonus

Law.com

A former Nixon Peabody associate, Noah Doolittle, is suing the firm over a $266,000 bonus he claims he is owed for bringing in and servicing a client. The firm has acknowledged that Doolittle helped bring the client to the firm but has denied that the client was considered to be Doolittle’s; moreover, the firm’s lawyer claims that, upon his departure from the firm Doolittle was paid “a very generous bonus [$75,000] and we don’t believe there was any merit to his claim that he’s entitled to any more compensation.”

Drinker Biddle Creates Role of Chief Value Officer

The Legal Intelligencer

In another sign that the practice of law is increasingly being structured like a business, Drinker, Biddle & Reath has appointing a “Chief Value Officer” whose role will include “keep[ing] clients in mind as the law firm offers more alternative pricing.”

Attorney Regulation & Ethics

Minnesota Supreme Court Decision Sets a High Burden for In-House Whistleblower Claims

Inside Counsel

Like many other jurisdictions, Minnesota has a whistleblower statute that protects employees from retaliation if they report legal violations to employers, governmental bodies or law enforcement. But what if an employee is an in-house lawyer whose job requires reporting such violations? In Kidwell v. Sybaritic, the Minnesota Supreme Court rejected a blanket “job duties exception” to whistleblower protection and set forth circumstances (such as when reporting occurs outside the scope of the employee’s normal job duties) in which an in-house lawyer with compliance and/or legal reporting duties may still be protected by the statute. One commentator observed that the Court’s ruling means that now “[i]t’s going to come down to a very specific [case-by-case] analysis” whether whistleblower protection applies to in-house lawyers.

Diversity

Boise Schiller’s Stephen Zack is the ABA’s First Hispanic-American President and the Hispanic Bar Association’s “Lawyer of the Year”

AmLawDaily.com and AbaNow.org

Stephen Zack, a partner at Boies, Schiller & Flexner, is the first Hispanic-American to serve as President of the American Bar Association. Zack has spent over 35 years in law practice and speaks with the Am Law Daily about his new position and proposed initiatives. Zack was also recently honored as the National Hispanic Bar Association’s “Lawyer of the Year.”

How Lawyers “Keep Mum”: Allen & Overy Offers 82 Days of Holiday to Retain Senior Women

DailyMail.co.uk

In an industry were men are still in the majority, firms are exploring ways to attract and retain talented and successful women. Allen & Overy, one of Britain’s “Magic Circle” firms, is providing its lawyers with the option to increase their vacation time while proportionately decreasing their salary. The effort is designed to retain workers who would accept a reduced salary so that they can spend more time at home with family.

Appointment of Women Judges Slowly Increasing in Some Muslim Countries

Open Democracy

While several Muslim countries that had previously excluded women from the judiciary are now appointing some women, they are not always allowed to adjudicate the same cases as male judges; moreover, whether these appointments have been accompanied by improvements in overall access to justice for women is debatable, according to Open Democracy.

Recent Hispanic Law Graduate Sues Howard Rice for Deferring—then Rescinding—Her Offer, Claiming Discrimination in Yet Another “Recession-Era Tale”

WSJ Law Blog

While preparing for the California Bar exam, Sarah Martinez—a 2008 graduate from the University of California (Davis) School of Law—was informed by Howard Rice, Nemerovski, Canady, Falk & Rabkin that her job offer with the firm would be deferred for a year. Despite a possible opportunity with another local firm, Martinez agreed to the deferral at Howard Rice, but her job offer was eventually rescinded by Howard Rice before the deferral period ended. Martinez maintains that she was subject to racial and gender discrimination because “even while her job offer was deferred, Howard Rice actively recruited and hired white associates, especially white male associates.”

Professional Development

“Strange phenomenon” of partners fleeing big firms continues

CrainsNewYork.com

With corporate clients increasingly scrutinizing their legal bills and law firm partners desiring greater flexibility, Crain’s reports on the “strange phenomenon … sweeping the legal arena” over the past 18 months where partners are fleeing private firms to start their own businesses where they are charging far less and affording greater certainty and predictability to corporate clients. The article also cites survey results revealing that more than half of 231 corporations polled negotiated lower rates with outside counsel and nearly two-thirds implemented rate freezes.

Is the Job Market for Lawyers Improving?

New York Law Journal

The New York Law Journal reports that law schools are expecting an improved job market this fall, with substantial increases anticipated at some New York firms that made “major reductions” last year. For example, Cravath, Swaine & Moore had only 22 summer associates in 2010, down from 121 in 2009; the firm hopes to have between 70 and 80 summer associates in 2011.

Legal Education

Does law school really teach students to “think like a lawyer”?

SSRN.com

Every first year law student is told that he or she will be taught over the next three years to “think like a lawyer,” but Dr. Douglas Rush argues that the results of two empirical studies show that law schools do not teach students to think like lawyers and that students with such skills “self-select” to attend law schools.

Report Encourages More Pragmatism in Law School and Multi-Phased Bar Exams

National Jurist

The American Law Institute, American Bar Association and Association for Continuing Legal Education have issued a report entitled, “Equipping Our Lawyers: Law School Education, Continuing Legal Education, and Legal Practice in the 21st Century.” Among other findings and recommendations, the report states that more law schools should develop and encourage “experiential learning,” providing students with access to clinics and externships to help budding lawyers better transition from academia to full-time employment. The report also recommends restructuring bar exams from one-time events to phased examinations over the span of several years.

Duke law dean defends young lawyers and their contributions

Law.com

Former federal judge and current dean of Duke Law School, David F. Levi, tackles the “vocal” “minority view” that new associates’ work is “worthless.” Levi criticizes experienced lawyers for acquiescing in and reinforcing such “hyperbolic and misleading” arguments, which are usually advanced by clients seeking to lower costs. Levi states that experienced lawyers must not permit young attorneys “bear a disproportionate share of the burdens caused by the downturn on the ground they are only getting what they deserve.”

The “Blogosphere” Expresses Discontent with the Legal Education System

WSJ Law Blog

The Wall Street Journal Law Blog reports on the blogosphere’s negative coverage of law schools and opportunities for graduates. Among the comments reproduced are those by blogger Scott Bullock—whose arguments also received coverage in other newspapers—that law school is a “scam” and a “big Ponzi scheme.” Bullock’s chief complaints involve high tuition and debt for law students, as well as claims that law schools inflate post-graduation employment and salary rates.

Posted in Uncategorized

PLP Pulse: News from the Frontiers of the Legal Profession

Globalization

Legal Outsourcing Firms and Revenue Increasing Dramatically in India

NewYorkTimes.com

The New York Times reports that the number of legal outsourcing firms in India has jumped from 40 in 2005 to 140 in 2009, and revenues are expected to grow from $440 million this year to over $1 billion by 2014.  The Times quotes David Wilkins, Faculty Director of Harvard’s Program on the Legal Profession, who observes that “[t]his is not a blip, this is a big historical movement.”  Clifford Chance’s Mark Ford, who manages his firm’s “Knowledge Center” south of New Delhi, agrees, stating that “the toothpaste is out of the tube.”

The Legal Profession is “Going Global,” but Obstacles Remain in Some Countries

Economist.com

The legal profession’s momentum in “going global” appears to be unstoppable, but some nations are enforcing limitations. In China and Brazil, for example, foreign firms have flourished by providing advice on international law, but they are not permitted to provide legal representation in local courts. And India remains a “determined outlier among fast-growing Asian economies,” according to the Economist, because the country is closed in all respects to foreign lawyers, something the British government is lobbying to change.

Legal Business Increasingly Shifting from East to West

IBANet.org

London and New York have long stood as “the dual-beating hearts of the legal market for decades,” but large global deals from BRIC nations (Brazil, Russia, India and China) are changing international legal and business dynamics. And with domestic law firms in China and India enjoying exclusive access to servicing many of these deals, they are poised for enormous growth.

Innovation and New Models

Legal Services Board Reports on “Changing Mindsets” in the UK Legal Profession

CPAGlobal.com

The United Kingdom’s Legal Services Board (LSB)—a new and independent body responsible for overseeing the regulation of lawyers in England and Wales with the goal of reforming and modernizing the legal services market place—has released its first annual report. The report examines new ideas regarding the ownership and operation of legal services firms, including alternative business structures (ABS) where companies not typically in the legal industry add specialist legal services to their offerings. The LSB notes that lawyers “have begun to open up to ABS and consider its potential,” concluding that ABS could lead to a “greater customer focus among legal services providers”.

How to Start a Legal Process Outsourcing (LPO) Business

LegallyIndia.com

SDD Global Solutions’ Sanjay Bhatia offers advice regarding creating a legal process outsourcing (LPO) business. Bhatia argues that there is a significant disparity between perception and reality in the LPO industry, and that most start-up LPOs are unaware of what is required to succeed in this relatively new industry.

Corporate Counsel

The General Counsel as Lawyer-Statesman

law.harvard.edu/programs/plp

According to PLP Distinguished Senior Fellow, Ben W. Heineman, Jr., the General Counsel is a “lawyer-statesman” whose responsibilities are broad, and include “leadership, or shared responsibility, not just for the corporation’s legal matters but for its positions on ethics, reputation, public policy, communications, corporate citizenship, country and geopolitical trends.” In the first of our “blue paper” series of essays and opinion pieces, Heineman explores the how mission of the corporation and the role of inside lawyers inform the future of the General Counsel’s purview.

Hewlett-Packard’s General Counsel Hires Directly From Law School

Law.com

Hewlett-Packard General Counsel Michael Holston hired four lawyers straight from law school—one from Harvard, two from Northwestern and another from the University of California at Berkeley—pursuant to the belief that “we can better develop lawyers in-house right now than we can by hiring from a law firm at a more junior level.” Berkeley’s Assistant Dean says this is the first time a corporate law department recruited on the Berkeley campus since at least 2002.

“Disconnect” Between Legal and IT Departments Worsening

Law.com

New research indicates that only 27 percent of survey respondents felt that IT and Legal departments were “working more closely together this year than the year before,” a particularly troubling downward trend when most large U.S. corporations are facing an average of 500 lawsuits at any given time. In fact, 72 percent of survey respondents stated that the IT and legal departments met once per quarter (or less); 52 percent replied that such meetings occurred just once a year (or less); and 23 percent indicated that the IT and legal teams never met during the year.

What Do In-House Counsel Really Think of Outside Law Firms?

InsideCounsel.com

A survey of more than 550 senior legal executives explored the current state of their legal departments, as well as their relationship with outside counsel. Among the findings from respondents: 90 percent indicate that economic conditions are increasing pressure to spend less on outside counsel; 41 percent believe law firms “understand their business”; 70 percent gave their outside counsel “B” grades; and General Counsels sometimes prefer “good enough, if imperfect” results in contrast to the costly “perfect work” law firms often strive to deliver.

In-House Positions Cut and Salaries Flat in 2009

AmLaw.com

A survey of salaries and benefits received by in-house lawyers in key markets around the globe found that salaries remained largely flat in 2009, and that legal departments in the United States cut more positions than their European counterparts, who were more inclined to freeze or reduce salaries.

Law Firms and Practice Management

Use of Contract Attorneys on the Rise

Law.com

Law firms and corporate law departments are increasingly using contract attorneys to help address increasing workloads with decreasing budgets.

Former Milbank Partner Criticizes “Big Firm Profit Model” and Creates His Own Firm Using Alternative Billing Methods

Law.com

Litigation partner Gregory Evans says he left Milbank Tweed due to the “unbearable tension” between law firm profit structures and client needs, and created a new firm that will consider alternative billing methods such as contingency or partial contingency fees, reduced billing rates and performance-based bonuses. At least one major client, Sherwin-Williams, is following Evans to his new firm.

Diversity

Survey Reveals Women’s Dissatisfaction with Law Firm Compensation Systems

Pardc.org

A compensation survey found that more than half of women equity partners (and only one-third of income and minority partners) are satisfied with their compensation systems, due primarily to problems regarding transparency, origination credit, lack of compensation committee diversity, subjectivity, exclusion from client pitches, and self advocacy/self-promotion, among other factors. The report also found that a significant number of women partners have been “de-equitized”.

Attorney Regulation and Ethics

Australia Launches Survey on National Legal Profession Reform

Australia’s National Legal Profession Reform Project seeks to create a single national market for legal services, as well as to improve regulation of the legal profession. The Project has engaged an independent consultant to perform a nation-wide consumer survey that will solicit input from consumers with respect to the creation of a national legal profession.

Legal Education

ABA Investigates U.S. News Rankings of Law Schools and the Magazine’s Proposed Rankings of Law Firms

Law.com

In February 2010 the ABA’s House of Delegates voted to investigate U.S. News & World Report’s law school rankings and the weekly magazine’s proposal to rank law firms. While the ABA’s investigation into the latter is ongoing, the ABA has completed its investigation into law school rankings, concluding that “for better or for worse, U.S. News rankings will continue for the foreseeable future to dominate public perceptions of how law schools compare, and that there is relatively little that leaders in legal education can do to change that in the short term.”

A copy of the ABA’s July 15, 2010 report can be found at: http://www.abanet.org/legaled/nosearch/Council2010/OpenSession2010/F.USNewsFinal%20Report.pdf

Former Law Firm Partner Teaches Duke Law Course on Lawyers’ Well-Being

TheCareerist.typepad.com

Vivia Chen interviews Dan Bowling, a former law firm partner and head of human resources at Coca-Cola, who will be teaching a course at Duke Law School on lawyers’ well-being. While recognizing that “pessimism” can actually lead attorneys to perform their jobs better, Bowling argues that “lawyers suffer from depression, anxiety, alcoholism, and suicide more than any other profession” and “we shouldn’t have such a large number of our membership be miserable.”

Northwestern and Jones Day Jointly Criticize August Interviewing and the Firm Moves its Interviews to September

TheCareerist.typepad.com

In an unusual joint press release, Northwestern University Law School and Jones Day jointly criticized the traditional compressed August interview schedule for law firm hiring, and Jones Day announced that it would interview Northwestern students in September and hire at least as many Northwestern students under the new arrangement as it has in recent years.

Professional Development

Market for Law Graduates Faced New Challenges in 2009

NALP.org

The National Association for Legal Career Professionals (NALP) reports that the job market for law graduates in 2009 was very different than it was for the classes that immediately preceded it, primarily because graduates were more likely to be working part-time, as solo practitioners, in temporary jobs that do not require a JD, or working but still looking for another job. The percentages of graduates choosing private firms, business and public sector jobs remained similar to prior years.

Older Lawyers Resisting Forced Retirement

Online.WSJ.com

For decades many law firms have required mandatory retirement and de-equitization once lawyers reached certain ages, but older attorneys—and the U.S. Employment Opportunity Commission—are increasingly challenging these policies.

One in Four British Associates Plan to Leave Legal Profession Within the Year

future-lawyers.co.uk

Among other findings, a recent report concludes that nearly a quarter of British associates surveyed are planning to leave the legal profession in the next year. Of those planning to leave, one-third cited poor work/life balance as a major factor, while 10% cited personality and management issues; 8% hoped to take a career break and 16% wished to leave law entirely. Via LawCareers.net.

2010 Linklaters India Internship

PLP announces 2010 Linklaters India Internship for Harvard Law School Students:

Harvard Law School students are invited to travel to India for a winter term internship in Mumbai. Students will spend 2.5 weeks working in a Mumbai law firm followed by two days visiting major legal institutions in New Delhi. Read More

Posted in Uncategorized

Upcoming Events @ PLP

Erik Ramanathan
Executive Director, PLP
Tuesday, November 3, 2009, 12:00-1:30 p.m.
Ames Courtroom, Austin Hall

Erik Ramanathan is the new executive director of the Harvard Law School Program on the Legal Profession, and former General Counsel of ImClone.

Lunch will be served, please RSVP to Kimberly Lyle.


Urban Cowboys: The effect of Status, Norms, and Bureaucracy on Strategic Patenting in the Legal Services Sector
Stine Grodal
Assistant Professor of Strategy and Policy, Boston University School of Management
Wednesday, November 18, 12-1pm
Room TBD

Client Relationship Extension: How Partners Share Their Clients Following a Law Firm Merger
Forrest Briscoe
Assistant Professor of Management, Smeal College of Business, The Pennsylvania State University
Monday, November 23, 3:30pm-5:00pm
Room TBD

The Seeds of Success: Early Assignment and Positive Career Outcomes for Associates Who Use Flexible-work Programs
Forrest Briscoe
Assistant Professor of Management, Smeal College of Business, The Pennsylvania State University
Tuesday, November 24, 12-1 pm
Room TBD

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Posted in Uncategorized