The Young Texas Lawyer

Google announced today that they will begin providing full text case law free of charge using their Google Scholar search engine. It is still way too early to determine if this begins to take a bite out of the profits of the sites that charge for legal research, but if anyone were to pose a threat to the big boys then who bigger than Google. According to the Official Google Blog:

Starting today, we’re enabling people everywhere to find and read full text legal opinions from U.S. federal and state district, appellate and supreme courts using Google Scholar. You can find these opinions by searching for cases (like Planned Parenthood v. Casey), or by topics (like desegregation) or other queries that you are interested in. For example, go to Google Scholar, click on the “Legal opinions and journals” radio button, and try the query separate but equal. Your search results will include links to cases familiar to many of us in the U.S. such as Plessy v. Ferguson and Brown v. Board of Education, which explore the acceptablity of “separate but equal” facilities for citizens at two different points in the history of the U.S. But your results will also include opinions from cases that you might be less familiar with, but which have played an important role.

The blog article goes on to say that Google’s goal is to “empower the average citizen by helping everyone learn more about the laws that govern us all.” Surely lawyers will feel empowered by the potential cost savings to their legal research budgets.

Last month, YTL contributing author Sana Naeem explored the notion of family members as clients. This month, K&L Gates, named for Microsoft Chairman Bill Gates’ father, has lost its status as one of Microsoft’s preferred legal providers. Although the process by which Microsoft hires legal counsel is probably very different from that of Sana’s Aunt Agnes, the lesson here is that firms of all sizes operate roughly using the same business model.

The widely known business school notion that any business model can be boiled down to that of a lemonade stand runs true in the legal world too. Any law firm, no matter the size, can be boiled down to a solo practice. Just as our friends at Naeem & Regueiro have to tap the shoulders of family members to stay afloat, so do the likes of mega firms such as K&L Gates. And just like Microsoft, Aunt Agnes will look elsewhere if she feels like she isn’t getting the best possible representation, family or not. Look at the competition and take their ideas, borrow them, and tailor them to fit your needs. Learn from the best and you’ll always stay ahead of the rest.

As reported by The Legal Intelligencer, law firms are shifting from a “pyramid” business model to more of a “diamond” business model, meaning a higher ratio of partners to associates and further de-leveraging. The axe will continue to fall on many young lawyers in order to clear some of the glut that is already in the system.

Some firms have resorted to only hiring second-year associates and above, in many cases, only third-years. This practice makes sense when you account for how much it costs to train new lawyers, especially considering the abundance of laid off, well trained lawyers scouring for jobs. This begs the question, if employers only want trained lawyers then where will the recently licensed be trained.

A panel discussion titled the “Future of Innovation” at the 3rd Circuit Judicial Conference in Philadelphia saw representatives from four prominent, yet very different, law schools talk about how they’ve been trying to better prepare their students for life after graduation and top law schools are moving towards a more practical curriculum.This sounds like a sensible solution, but it’s going to take time to implement and probably won’t work for the simple reason that academics and practitioners live in very different worlds.

The stark reality is that more of the onus is going to fall on young lawyers to train themselves and find their own mentors. Those are two principles that this site was founded on and will continue to strive to achieve, but a website can only do so much. As YTL has stressed before, local bar associations are a key factor in developing both your network and your skills, but just as it takes a village to raise a baby, it takes more to raise a lawyer. Utilize all of the resources at your disposal and don’t feel ashamed or embarrassed to ask questions. Pick the brains of those ahead of you and you’ll never be behind.

According to The American Lawyer, New York firm Stroock & Stroock & Lavan is offering students the option to take a severance package before even working at the firm for a single minute. Students who agree to sever ties and not join the firm will receive a $75,000 payout. In a letter to new associates, the firm outlined the unique plan. Those willing to participate would receive two lump sum payments, one in September and the second in January of the following year. However, those with offers must decide on this option now.

“It should also be understood that we will only offer this option now and should you, for whatever reason, ultimately not join Stroock, this option will not be available,” the letter said.

Those who decide to pass on the offer and stay with the firm will have to delay start dates until January 2010; the firm will cover bar fees and provide a cash advance of $10,000 in addition to covering some moving expenses. Those who choose to delay for more than a year, starting in January 2011, will receive a $50,000 stipend provided they find some nonprofit or public interest work.

Excerpts from the letter to incoming associates after the jump. Read the rest of this entry »

From The National Law Journal… the economic turmoil also has stirred up positive changes to traditional contract services, creating some new twists on the temporary attorney industry.

“Law firms are re-imagining how to use lawyer talent,” said James Leipold, executive director of the National Association for Law Placement.

Sources within the Obama Administration are saying that they “will call for increased oversight of executive pay at all banks, Wall Street firms and possibly other companies as part of a sweeping plan to overhaul financial regulation.” For many companies this will be seen as a burden, but for attorneys it can easily become a boom.

As Carolyn Elefant at MyShingle.com recently wrote, “Looking for a new practice area… just pick up the newspaper.” The level of government intervention we have seen in the last few months is somewhat historic. In general, big disasters lead to over regulation and this one will be no different. New regulations means new laws and new laws means new lawyers. The changes will come in the form of updates to the IRS Code, ERISA, Treasury regulations, and SEC regulations. There are already a myriad of rules that corporate america has to abide by and even some of the individuals who draft them don’t even know what they mean.

So if you are having trouble picking a speciality, pick up a newspaper and use your imagination, because with every new government regulation comes a new or renewed practice area. The angry mob is already out with their torches and pitch forks visiting some of the AIG executives’ homes. It won’t be long before executives are out in angry mobs looking for attorneys to protect them.

Green marketing hype has been inescapable. For example, notwithstanding the current economic recession, four out of five Americans claim that they continue to purchase and consume green products. What implications does the green movement have for attorneys?

Many companies currently take measures to reduce their carbon and greenhouse gas emissions, utilize recycled paper and other materials, and promote awareness of green issues in order to have a positive impact on the environment. Some law firms across the country have begun to market themselves as practicing law in greener, environmentally beneficial offices. It is no secret, however, that companies claiming the green label can reap sizable rewards. Such companies have grown a noticeable competitive advantage. Moreover, green companies may be held accountable for fraud or other deceptive trade practices should their green claims prove factually incorrect or misleading. Hence, “green” litigation may arise out of green claims made by builders, consulting groups, design professionals, energy producers, and manufacturers of consumer goods, among other potential sources.

Young Texas attorneys should take an interest in “green” law for at least three reasons:

First, Texas’ dominant energy industry promises to take greater interest in renewable sources of energy as the viability of green energy improves. Increased interest in renewable sources of energy seems imminent, furthermore, as the Obama administration’s American Recovery and Reinvestment Act (ARRA) will inject $787 billion into the economy, claiming to “provide the capital over the next three years to eventually double domestic renewable energy capacity.” Energy companies heralding renewable products must take care to make factually accurate claims about the effect of their technology on the environment.

Second, Texas is a developing state, and green construction projects may grow in popularity. Legal issues include tax credits for homeowners who install energy-efficient windows, insulation or heating systems, claims against designers who allegedly failed to achieve the level of green certification at which the owner marketed the property, and other risks. For those interested in learning more about the extent of regulation over green marketing claims, please check the FTC’s “Green Guides,” which outline general principles that apply to all environmental marketing claims and provide guidance to help marketers avoid making unjustified or deceptive claims under Section 5 of the FTC Act. These general principles may be found online.

Third, the small firm and solo practitioner have the option to take a leadership role and “go green”, in order to capitalize on a unique marketing opportunity while having a positive impact on the environment. It may cost a little bit more to print only on 100% recycled paper, but if the recent trend provides any indication, it could be well worth it. Profit is not the only bottom line…

Written by YTL Contributing Author Kiernan A. McAlpine

As a coda to Lisa Young’s recent post for the newly unemployed, I thought I’d add some thoughts for those of us who are employed, but perhaps not as gainfully as we had hoped in this, the Worst Economic Crisis In The History of The Universe (WECITHOTU).

Economics is called the dismal science. I am not an econ major, and as such only remember two things about Keynesian economics, both of which are dismal indeed – but only if you have the wrong frame of mind:

First, Keynes’ big gripe about letting business cycles run their course without government intervention was that, essentially, in a recession or depression like the one we are in now, society is wasting a whole lot of human potential — yours, mine, and everyone elses’.  So whether or not it is your fault, if you are unemployed or underemployed, your God-given talent and potential is being wasted. I say this not to make you feel bad, but to remind you that you (and by extension, me) are somebody who has graduated lawschool, passed the Bar Exam, and clearly possesses at least enough grey matter to accomplish those things.

The second thing I remember is Keynes’ quip that “in the long run, we are all dead.” Sadly this is true. I say this to remind you (and me) that we don’t have forever to get things crankin’ again.

With those things said, let’s talk about all the fun you and I can and will be having in the short term! Some things to keep you smiling:

1. Remember that your friends at Biglaw (you know, the ones who are working full time, but might be getting fired tomorrow) are truly exceptional. According to the U.S. Department of Labor, the average lawyer in the State of Texas (in May 2007, back when things were ducky) made a mere $57.73 per working (not necessarily billable) hour. Remember, this number includes all those older guys and gals who do, in fact, have years of experience under their belts. Because I actually like the fact that some of my smart friends make lots and lots (7 or 8 times more than I do) of money, I will say nothing more, lest my Biglaw friends’ potential clients are reading.

2. Remember that if you are a twentysomething person earning a mere $30,000 per year, you are not particularly unexceptional. The weekly median wage for 25-34 year olds is $680.

3. Read the Bible. Especially Job. If you still have any family, friends, or livestock, or any minimal degree of mental and physical health, don’t complain too much.

4. Try other self-help books. My friend recently loaned me Dr. Scott Peck’s The Road Less Traveled. It helps.

5. Take the opportunity, especially if you are, like me, single, to engage in some self-exploration. You might learn fascinating things about yourself; I have.

6. Many schools still need substitute teachers. It won’t pay a lot, but it’s better than nothing.

7. Write that law review article you’ve been scheming about. If you haven’t been scheming, start scheming.

8. Keep polishing your resume and learn how to interview. Or write blog posts that remind people to do that; I for one know I am underpaid and underemployed because I haven’t been doing those things as often as I need to!

9. Make lots of comments on blog posts such as this one. It won’t get you a job, but at least it will keep you off the streets.

Written by YTL Contributing Author James E. Dallas

Many young attorneys find themselves in a never ending sweatshop of document review, receiving a trite $30 an hour to do work that a client is paying the firm over a $100 an hour for. This results in a great profit margin for both the legal recruiting firm that hires the contract attorneys and the law firm billing out their work to the client. They both play as the ultimate middle man. The law firm pays the recruiting firm and the recruiting firm pays the attorneys. Meanwhile, the recruiting firm is charging extra to the law firm and the law firm is charging extra to the client. Big profits for all except the contract attorney making $30 an hour with no benefits and an insurmountable level of student loan debt.

A far more troubling problem is that most of the attorneys doing the document review often wonder if their services are even necessary. Thus, brings up the issue of sales and its role in the legal industry. If the ultimate goal is profits and margin, then there are some scary ways to accomplish that, as Brian Baxter of The American Lawyer points out in his article, The Fine Art of Overbilling. A client may not need a service, but perhaps the right partner can convince them otherwise. Just like the mechanic that successfully adds a whole host of unnecessary and often expensive services to every oil change customer that walks through the door.

There is an inherint conflict of interest for an attorney that could do more work, but can provide excellent legal services without it. Is being over prepared unethical when there is a cost involved? If a partner asks you to do work a secretary can easily handle and charges the client, isn’t that over billing? If you question the value of your work and the hours you are billing for it, think about the client paying the bill and you’ll have a better chance of finding the elusive balance between being prepared and being efficient.

Bruce MacEwen does a great job of explaining the economics of law firm layoffs and some alternatives. Since you have the majority of law firm associates complaining about a lack of work life balance then start a program that allows them to reduce their pay according to reduced billable hour requirements. After all, most firms don’t have a lot of work to go around and associates are having a hard time meeting their requirements. This solves the problem of layoffs, results in a happier workforce, and would make the firm that implements such a policy a pioneer of sorts in the legal industry.

Law firms seem to forget that the product they are peddling is their associates’ time. That’s why they only accept the best and the brightest. When a client asks, “Why am I paying $200 an hour for this 25 year old to review my documents when I have plenty of 25 year-olds that work for me at $15 an hour?” – the firm can hand the client a top notch associate’s resume and merely say “this is why.” If your product is your people then it makes sense to spend some time and money on product development to keep your people happy. Clients are important to give the partners billable work, but what good is work if you have no happy or competent associates to do it.