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Big Law Is Failing Legal Aid

The American Lawyer's Susan Beck reports that big law firms are failing legal aid nonprofits representing people too poor to afford their own lawyers. Even the most generous firms are contributing little more than one-tenth of 1 percent of their gross revenue.

She profiles the need for legal services in Cleveland, noting that "a lack of adequate public funds and private donations means that, as in Cleveland, more than half of those who seek help are turned away." Overall, there's just one legal aid lawyer for every 8,893 low-income Americans who qualify for legal aid.

Meanwhile, profits are healthy at Am Law 200 once again. Revenue passed the $100 billion mark for the first time in 2014.

"In a country with one of the highest concentrations of lawyers in the world, poor people often are forced to navigate the potential loss of their home, their children or their benefits on their own," Beck reports.

Law Firm Hiring Improves--But Not to Pre-Recession Levels

Law firm hiring has improved from the doldrums of the Great Recession, but complete employment recovery for lawyers isn't likely for a long time yet, Crain's Detroit Business reports. Contracting law school classes should help the market too. The class of 2013 was the largest in the history of American legal education, but the cohort of law students has drop from 52,000 law school students entering programs in 2010 to 37,000 students entering this fall, Crain's also reports. 

Survey: Efforts to Curb Corporate Legal Spending Paying Off

 A survey of 292 companies on their legal budgets shows that total corporate spending just increased by 2 percent in 2012, down from a 3 percent increase in 2012 and a 5 percent increase in 2011, the Wall Street Journal reports. The survey also shows that more companies are taking their legal work in-house and using legal outsourcing firms for document review. "None of these trends look terribly promising for law firms that operate much as they did in past decades, when profits were fueled by armies of toiling associates and legal bills went largely unquestioned," the WSJ further reports.

Clerical Jobs Roles Changing, Being Cut in Law Firms

Submitted by Amaris Elliott-Engel on Mon, 02/24/2014 - 09:27

Here's an excerpt of a piece I wrote for the Connecticut Law Tribune about how clerical and administrative jobs in law firms are changing due to technology as well as being reduced in number:

Technology has allowed people to work together in different offices around the country on labor-intensive cases like class actions.

There's no typing pool anymore.

The clerical and administrative work on legal cases has changed to tasks like legal work by paralegals, basic document review, and creating the formatting on legal documents.

The result is that some law firms have reduced the number of people they employ in clerical roles or the administrative work has changed from taking dictation and filing hard copies in accordion folders to specialized roles like paralegals who can bill for the legal work they do, and jobs in quality control, client satisfaction and retention, practicing attorneys and legal consultants say.

Another trend, they also say, is that administrative professionals are becoming much more efficient in how they spend their time.

Part of Boston-based legal consultant Jeff Coburn's work is interviewing the legal clients of his law firms' clients to find out their satisfaction levels. One thing he has learned is that larger firms are under more pressure from their Fortune 1,000 clients to cut costs, said Coburn, managing director of Coburn Consulting.

"The last five years or so there's been a huge pressure on in-house legal counsel to get accountability for the legal department, which you never used to have 25 years ago," Coburn said. "It was like a black hole. They spent what they spent."

According to a survey conducted in March and April 2013 by legal consultancy Altman Weil, 89.7 percent of managing partners or chairs from U.S. law firms with 50 or more lawyers said that the legal market trend of having fewer support staff is permanent (238 firms answered the survey).

The vast majority of respondents also identified price competition, improved efficiencies in legal practice, more commoditized legal work and more contract lawyers as permanent trends.

The survey also reported that 38.6 percent thought they would have fewer support staff in five years, 41.6 percent thought they would have about the same, and 18.9 percent thought they would have more.

Eric A. Seeger, a principal with Altman Weil out of suburban Philadelphia, said the industry standard has changed to have one secretary for every three lawyers or even one secretary for every four or five lawyers.

Clerical jobs that were cut in the five years or so since the Great Recession also won't be restored, he said.

Twenty years ago, overtime for secretaries would be put on the bills for intensive matters like mergers and acquisitions or litigation, Seeger said. "You would be hard-pressed to get away with that today," he said. "I think that corporations that examine their legal fees and have billing guidelines pretty much uniformly say that we expect the law firm overhead to be included in the rates that are charged."

"Clients want templates," Coburn said for his part. "They want systems [that] ... get to the heart of it, which is a document, a jury trial, an opinion or the cost of a merger situation."

The biggest costs for law firms are the people they employ and the spaces they use for their offices, Seeger said. Reducing staff means not only that law firms save on labor costs but also potentially space costs if they can move into smaller spaces, he said.

"Some of it is driven by clients applying pressure and the fear that more clients will apply pressure," Seeger said.

The types of clerical services that are being automated include data processing, word graphics and document management, Coburn said.

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